Use This Secret Tech Hack To Avoid Overpaying When You Book A Rental Car

Traveling is an expensive pastime. Even if you book far in advance and use all the budgeting tools at your disposal, some extra costs might catch you by surprise and end up hurting your wallet. Some companies even inflate the price of their services based on your location — case in point: the rental car industry. A 2023 study by NordVPN found that American travelers pay up to three times more for bookings than overseas travelers. Companies can do this by using algorithms that can see your IP address and determine where you're located. So if you're trying to book a rental car in a different country while sitting in the U.S., you can bet that you're paying way more than what locals or someone in a different country would pay.

As annoying as this is, there is a simple and neat trick you can use to save money on rental cars and it involves using a VPN. VPNs help mask your true location by providing you with an IP address from a different country than the one you're currently in. This is extremely helpful when booking a car because the app or site you're on won't know that you're a traveler. So instead of paying the traveler tax, you'll get the same price as a local. A trick like this can save you hundreds of dollars (or thousands, depending on the length of your stay) that you can spend towards upgrades on your trip or put away for your next adventure.

One Reddit user tested out the VPN theory and found that using a VPN helped slash the cost of a rental car by half. If you decide to test out this savings hack, be sure to read up on the policies of the company you're renting from. As another Reddit user commented in the thread above, while using a VPN isn't illegal, some companies may have clauses that prohibit their use. If that's the case, don't despair. There are plenty of other ways you can book a rental car and lock in a low rate. 

One of the many ways you can save is by renting at a location that isn't the airport, as this is normally the priciest destination to rent a car on vacation. Prices at airport-based car rental companies are usually inflated or come with surcharges, and you're likely to find the same car for the same duration at a lower price if you were to book and pick it up at another location, such as the downtown district of whichever city you're visiting. Another trick that will always come in handy is taking advantage of your memberships. Companies like Costco and AAA often partner with rental companies to provide cheaper options. You can also see if your airline status comes with these perks.

Also, keep in mind that rental companies are not your only option. You can always use a car-sharing service such as Turo and Getaround. These services are like Airbnb but for cars. Locals can rent their own cars out to travelers and set their own prices and mileage limits. This can be a much cheaper option than renting from a company like Hertz or Avis.