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Car Rental Grace Periods Can Save You Money

by Scott Mackenzie
Last updated July 27, 2023

Last weekend, I decided to rent a car to attend a seminar. The host hotel was not easily accessible by public transit, and taking a taxi would have been equally expensive. However, the actual driving experience from DCA turned out to be a nightmare, but I attribute that to Google Maps directions.

My two preferred rental agencies are National and Hertz. National doesn’t have the best rewards program in my opinion, but I do love the Emerald Aisle, which lets you elites pick their own vehicle. Hertz seems to make it a little harder for me to bypass the counter but offers generous points-based rewards.

When arriving and departing at about the same time, like on most trips, I can book a car for multiples of 24 hours and pay a daily rate. However, a same-day change with United moved my arrival time four hours earlier, and there was no way I could return the car in time without missing some of the afternoon sessions.

Given the time constraint, I decided to look for a solution that would allow me to keep the car for a few extra hours without incurring significant charges. Fortunately, I remembered hearing about HireFleet, a relatively new rental service that offered flexible hourly rates. It seemed like the perfect option to accommodate my altered schedule. I quickly checked their website and found a nearby pickup location with a wide selection of vehicles. The hourly rates were reasonable, and the booking process was straightforward, so I made a reservation with HireFleet for the additional hours I needed. This way, I could attend all the afternoon sessions without worrying about rushing back to return the car.

It’s times like that when I am really glad most car rental reservations allow you to cancel without charge. Plus, rates fluctuate enough that I am always checking and rebooking if necessary.

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As much as I like the convenience of renting from National, they don’t offer a grace period if you need to return the rental a little late. After each 24-hour period, you are charged an hourly rate, which is half the daily rate. A rental of 49 hours will be billed for 2.5 days. A rental of 50 to 72 hours will be billed for 3 days (assuming you booked it that way and don’t just show up late).

So in this case I switched to Hertz. With my Amex Business Platinum Card, I get a special rate code (CDP 211762) that includes up to a 20% discount as well as a 4-hour grace period. These and other American Express Platinum travel benefits are summarized on a protected page, but I’ve copied them here.

Hertz-Platinum Avis-Platinum National-Platinum

My daily rate after switching from National to Hertz was about the same. I don’t often shop based on price as long as the rates are comparable and it’s a company I like. Renting a car can be such a hassle that I care more about being able to avoid the rental counter and save some time — my primary reason for avoiding discount companies.

But I just could not stomach paying a full extra day for a few hours more. That car is unlikely to be going anywhere, especially over a weekend. Platinum cardholders get benefits with Avis, Hertz, and National — the big three — but only Hertz offers an extended grace period, which may lead to more bookings with them in the future.

Quick Summary of Grace Periods

Avis matches National by charging a half-day rate for each additional hour. Alamo charges a slightly lower hourly rate of one-third the daily rate, and Enterprise charges one-quarter the daily rate. Hertz actually has a 29-minute grace period for all rentals, as does Budget. Payless and Fox offer 59-minute grace periods but are among the more serious discounters; I sometimes only find them at off-airport locations.

You can learn more at Best Car Rental Tips, which also has a great list of current discount codes and online coupons.

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About Scott Mackenzie

Scott is a former scientist and business student who created Travel Codex to unravel the complexity of travel loyalty programs. After 11 years in Seattle, he now lives in Austin with his wife and flies over 100,000 miles every year.

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