Why are car rentals so expensive right now in 2026?

Budget, Thrifty, and regional off-site budget brands often offer the cheapest traditional car rental rates, while peer-to-peer platforms like Turo can sometimes beat major corporate pricing.

Cheapest Rental Brands

• Budget & Thrifty: Frequently rank among the lowest-cost major brands for weekly and daily base rates.
• Payless & Fox Rent A Car: Often feature heavily discounted rates, though you should watch out for extra counter fees.
• Peer-to-Peer Alternatives: Services like Turo let you rent directly from local car owners, which can bypass traditional agency overhead.

Best Ways to Find the Lowest Price

• Skip the Airport: Renting at neighborhood or downtown locations is often significantly cheaper than airport lots because it avoids steep facility surcharges.
• Use Comparison Aggregators: Check rates across multiple providers using platforms like KAYAK Car Rentals or AutoSlash before booking directly on the rental company's site for "Pay Now" discounts.
• Apply Memberships: Leverage discounts from groups like AAA or Costco, which can shave up to 20% to 35% off base rates and often waive extra driver fees.

Enterprise charges or places a temporary authorization hold of around $300 (or more) at the time of vehicle pickup as a security deposit to cover potential extra costs.

What the $300 Covers

• Unplanned expenses: Extra charges like fuel shortages, unpaid tolls, vehicle cleaning fees, or late returns.
• Vehicle protection: Financial safety margins in case the car sustains minor damage during your rental period.

How the Charge Works

• Credit Cards: Enterprise places a temporary authorization hold on your available credit limit (it is not a final fee). Once you return the car safely and settle your final rental bill, Enterprise releases the hold. It typically takes 1 to 5 business days for your bank to clear it.
• Debit Cards: Many locations actually charge the deposit amount straight out of your checking account upfront alongside the rental cost. When you return the vehicle, Enterprise initiates a refund, which can take 7 to 10 business days to reflect back in your account depending on your bank.

Note: The exact deposit amount varies by location, vehicle type, and whether you use a credit or debit card. You can review official details directly through Enterprise Rent-A-Car FAQs.

A car salesperson typically makes between $200 and $600 on a $20,000 car, but the exact amount depends entirely on the vehicle's profit margin (the gross profit) rather than its selling price.

How the Commission is Calculated

Salespeople are rarely paid a percentage of the total purchase price. Instead, they are paid a percentage of the front-end gross profit, which is the difference between what the dealership paid for the car and what they sold it to you for (minus any dealership "pack" fees).

• The Commission Rate: Most dealerships pay between 20% and 30% of the front-end gross profit.
• The "Pack": Many stores deduct a fixed fee (a pack, often $300 to $700) from the profit before calculating the commission.
• Back-End Bonuses: Some pay plans add a small percentage (1% to 3%) of back-end profits if you buy finance products, insurance, or extended warranties.

Scenarios for a $20,000 Car

• High Profit Deal ($3,000 profit): If the dealership bought a used car for $17,000 and sold it for $20,000 (a $3,000 gross profit), a 25% commission yields $750 (or around $500–$600 after a standard pack fee is subtracted).
• Average Deal ($1,500 profit): If the gross profit is $1,500, a 20% to 25% commission lands right around $300 to $375.
• The "Mini-Deal" ($0 profit or a loss): If the car is discounted heavily, sold at a loss, or has no profit margin, the salesperson gets a guaranteed minimum flat rate called a "mini," which is typically only $100 to $250.

Unusual or niche colors like gold, brown, and purple are typically the hardest cars to sell because they appeal to a very small group of buyers.

Studies from automotive sites like iSeeCars show that these less common shades suffer from high depreciation and sit on dealer lots much longer than neutral options.

Hardest Colors to Sell

• Gold: Consistently ranks near the bottom for resale value and buyer demand.
• Brown: Often viewed as dated or flat, making it a slow seller at auctions.
• Purple: Has a very limited audience, which drops its overall market value.
• Bright/Loud Shades: Neon green, hot pink, orange, and bright yellow take longer to sell because not everyone wants to stand out.

Easiest Colors to Sell

• White, Black, Silver, and Gray: These neutral tones make up the majority of car sales.
• They have universal appeal, meaning buyers do not actively dislike them.
• According to insights on Autotrader, grayscale cars move faster because they fit general tastes and are easy to match or repair.

The cheapest new car to buy in the United States for 2026 is the Hyundai Venue, with a starting price of $21,695.

Least Expensive New Cars in 2026 (U.S. Market)

• Hyundai Venue: Starts at $21,695, making it the lowest-priced new vehicle option following the discontinuation of ultra-budget subcompacts like the Nissan Versa and Mitsubishi Mirage.
• Nissan Sentra / Kia K4: These compact sedans serve as the next step up, generally starting in the low-to-mid $22,000–$24,000 range.
• Buick Envista: Starting around $23,777, it acts as a budget-friendly entry point for crossover shoppers.

Global Budget Alternatives

• UK / Europe: The Dacia Sandero remains a top budget choice, priced around £8,000–£13,000 depending on the specific model year and market updates.
• Asia / Philippines: Micro-cars and entry-level crossovers like the Bestune Pony (cash price around ₱488,000) and Toyota Wigo (around ₱615,000) lead the affordable segment.