Cost of hiring a car on holiday in Europe this summer 34% cheaper than two years ago
The cost of hiring a car in Europe is on a ‘sustained downward trend’, annual data from iCarhireinsurance reveals.
Prices for hiring a car on holiday in Europe this summer for a week are around 10 per cent lower than a year ago, according to the findings.
The reason prices have come down is the increase in availability of new cars which has allowed rental firms to replenish fleets following vehicle shortages seen when pandemic travel restrictions softened.
The average price for hiring a vehicle, like a Ford Focus or VW Golf, for a week from 26 July to 2 August 2025 is currently around £384, against £422 last year and £578 in 2023, the car hire excess insurance provider said.
Nice and Dalaman offer holidaymakers the biggest savings compared to the last couple of years when it comes to car rental costs.
In Nice, the cost of hiring for a car for a week this summer is around £412, compared to £518 in 2024 and a hefty £638 in 2023.
Downward trend: The cost of renting a car on holiday in Europe is falling, data shows
Britons on the hunt for sun in Dalaman, Turkey, can expect to pay around £315 to hire a car for a week this summer, down from £467 last year and £461 in 2023.
In Milan, Italy, the average cost of hiring a car for a week this summer is currently around £400, down from £488 in 2024 and £658 in 2023.
For holidaymakers in Dubrovnik, the average cost of hiring a car for seven days is £383, down from £400 last year.
To compile the data, the research tracked car hire costs from six companies, namely Avis, Budget, Enterprise, Europcar, Hertz and Sixt.
While it is generally a good idea to book car hire early, it is worth checking whether or not the provider offers free cancellation.
Holidaymakers will also need to factor in potential additional costs, including fees for child seats, satellite navigation and additional drivers. ]
How to save money on your 2025 holiday car hire
Ben Wooltorton, a director at iCarhireinsurance, said: ‘It’s great to see car hire prices becoming more affordable across Europe.
‘Early booking is the best way to secure the car you want, but always choose a provider with free cancellation so you can take advantage of last-minute deals.’
He added: ‘Avoid unnecessary costs by checking the price of extra before you travel.
‘Bringing your own sat nav or car seat can save a lot and only add an extra driver if absolutely necessary.’
The cost to rent a vehicle rocketed when pandemic travel restrictions began to ease.
This was due to rental firms selling their fleets of vehicles to stay afloat in 2020 when demand hit rock bottom as flights were grounded and people were restrained from travelling overseas.
However, when restrictions were eased and travel was once again permitted, hire car companies were unable to replenish their stock due to the huge decline in new vehicle production.
But now that car makers are back to full production capacity, rental firms have been able to turn over their vehicle fleets as per the pre-Covid norm.