Why do car rental prices differ for the same car category?

When comparing car rentals, have you ever noticed a price difference even within the same car category? Let’s say two ‘Economy’ cars are priced differently for the same dates and for the same city.

It feels absolutely strange if you do not know the correct answer. So let’s clear the air and decode the real reasons behind it.

“Same category” doesn’t always mean the same car

This is where so many of you get confused. When a rental website mentions Economy, Compact, Fullsize or SUV, it’s not promising a specific car model. It’s just giving you a general filter option for size and type of vehicle.

To break in simple language, a car category tells you the type of car, not the exact car. And small differences inside that category can lead to different prices.

For example, these three cars: Toyota Yaris, Hyundai i10 and Kia Rio fall under “Economy” category but they are not at all identical. Some will be newer models with latest features or may offer better fuel efficiency.

So, despite falling under the same category, one might be better than the other, which totally balances the price difference.

Your car rental location matters a lot

Even when you are renting from the same pickup location, prices for the same car category can still be different.

Why is this happening? Because rental companies often operate multiple fleets and pricing rules within one location. This means the pickup location is identical but the internal cost of those cars isn’t.

For example, cars returned late or moved from another branch can be priced differently, certain vehicles may need servicing soon, so you will see discounted prices while others may be in high demand and priced higher to manage availability.

Demand changes everything

The next reason that explains the price difference between the same car category is “Demand”. Just in case, the demand is high and the suppliers inventory is running low, the price jump is totally normal.

Prices go up when it is a holiday or long weekend, there is some kind of event in town, travel season is peaking and vehicles are selling out quickly.

Rental duration plays a big role

You will often see this difference - an economy car is priced at $45/day for 1 day and the same economy car is priced at $25/day when booked for 5 days. This is a huge price variation. And why is it so?

Because the length of your rental can change the price of the same car category. Normally, short term rentals have high rates as compared to long term rentals.

Another point that explains multiple prices for the same category is that one rate is optimized for short trips and another is optimized for longer bookings.

Inclusions sneak into your final price

Sometimes the price difference is not at all about the car, you will see the exact car model priced at different costs. This is due to the inclusions that are given in your deal.

One package might include Collision Damage Waiver, Theft Protection, free road assistance or gives car rental with unlimited mileage.

Another might be with no inclusions or extras, so always check what’s included before assuming one deal is better.

The age of the vehicle matters a lot

There is no doubt that newer cars cost more. So even within the same category, a 2026 model will be at a higher price as compared to the 2019 model with a cheaper rate.

Rental companies don’t always show the car’s age upfront, but it absolutely affects pricing behind the scenes.

Different companies follow different pricing strategies

You must understand that every rental company has its own pricing techniques. Some will focus on the premium service, newer fleets or extra privileges while others compete by offering lower base prices, fewer inclusions and pay for extras option that you can add on according to your requirements.

So it is totally fine if you see two companies offering the same SUV model with different prices.

The timing of your booking makes a difference

Compare two bookings with the same car model, same category, same location and same date. The first booking offers a rental price of $60 for 5 days and the second one gives $80 for the same 5 days.

This is because the first booking was made in advance & the second was made at the last minute. When you book matters as much as what you book. Booking early locks in low price whereas last-minute deals are usually pricier. Basically, prices keep on fluctuating daily and sometimes even hourly.

Promotions, discounts & loyalty perks

Sometimes the price difference has nothing to do with the car. Many rental platforms sell the same car category at multiple prices at the same time, depending on who is booking and how they are booking.

One option might look cheaper because it has a promo code applied, it’s a special rate for loyal members or it’s part of some limited deal or has seasonal holiday car rental offers attached to the final price. It is a must to double-check if one price includes a special discount, while the other doesn’t.

You might want to know

• How can I make sure I’m getting the best deal?

  To make sure that you are getting the best deal always compare what is exactly included in the package like insurance, mileage, taxes, etc. Check for promo codes and try to book early if possible.

• Are cheaper cars in the same category of lower quality?

  Not at all. A lower price could mean the car is older, part of a special rate plan or simply priced lower due to lower demand at that particular moment.

• Do different booking platforms show different prices for the same car?

  Yes, different booking platforms show different prices for the same car because some companies have exclusive deals, promo codes or bundled offers. That’s why the same car category might appear cheaper on one website than another.