IL Postcard

Five Ways to Save on Your Next European Car Rental

Date: 04/09/2007

by Neil P Harkins

Put off by international timetables and endless airport lines? Seeing Europe from the front seat of a car is an alternative that doesn't need to cost the earth…

Watch VAT rates in Europe Local supply and demand determine a car's base price, subject to a Value Added Tax (VAT) levied by each country. VAT ranges from 7.6% in Switzerland to 16% in Germany to 25% in Scandinavia, but renting from a country with a lower VAT does not always translate to a lower outlay. Typically, though, the longer you keep the car, the lower its average daily cost.

1. Cheaper airfares often mean cheaper car rental rates, so make sure to do your homework well in advance of your trip-the websites listed below will help you with price comparisons. As an example, 30 days in a compact car rented from Frankfurt airport, Germany costs $310 less than when rented from Luxembourg's main airport (prices quoted here are from Auto Europe).

2. Be flexible when choosing the pick-up location. Rental agencies' airport and train station offices generally have higher rates than their city offices where, often, no taxes or other service fees are levied on the base price. Sometimes the car can be returned to the airport if you need without extra charge-be sure to check the agency's return procedure before leaving the airport to fetch the car. Renting a compact car from a Frankfurt city office instead of the airport saves you $180 (at Auto Europe); even after your taxi fare, you'll still have enough money for gasoline, dinner, and a hotel room.

3. If the car is to be returned in another country, ask the agency if a vehicle from that country is available on their lot. The one-way drop-off fee (around $150 for a pick-up in Frankfurt and a drop-off in Paris) is generally waived because you are doing them a favor. Ask about the return procedure at the final destination.

4. Pay with a major credit card and decline the Collision Damage Waiver (CDW) insurance. The CDW insurance from the agency's Frankfurt city office for a compact costs almost $400, but credit cards typically provide free insurance coverage for 30 consecutive days (make sure to review your card's benefits disclosures). To safely insure for more than 30 days, make several reservations of 30 days maximum each time, return the car after each reservation, and use a second card for the next rental period-or go without a car for a day, and use the first card again.

5. If you're traveling for more than a couple of weeks, why not consider a short-term lease? Auto Europe has partnered with the French Peugeot automobile company, offering non-European residents factory-new vehicles for up to six months. The "Open Europe" program requires advance reservation of at least one month. Your car is shipped to the European arrival city of your choice, fully insured and tax-free. No fee is charged for delivery within France, but you'll pay a distance-based rate when the car is shipped to other countries. In France, a compact leased for 45 days costs $230 less than renting the same vehicle in Paris. Delivery of a leased compact to Frankfurt will cost $310 more than if you rented it in this city-the lease becomes more cost-effective after about 70 days. Remember that gasoline and your time are not cheap, so the convenience of an uninterrupted, f ully insured, drive-anywhere car may still be worth the extra lease money.

Websites for wheels
I have used and recommend the following car rental websites: Auto Europe (www.AutoEurope.com), Orbitz (www.Orbitz.com), and Sixt (www.Sixt.com).