Last Updated on August 27, 2024 by Kristin
You’ve budgeted for your vacation, and left a cushion of available credit on your credit card. But before you get to the rental counter, remember that you will have to pay a deposit on your reservation in addition to the rental charges. Knowing how a rental car deposit works is crucial to making sure you have enough cash flow during your trip.
The rental car company will return your deposit after you drop off the car. But there may be a period where those funds are unavailable.
Will I Have to Pay a Rental Car Deposit?
Rental car deposits are standard across major rental car companies. They are meant to safeguard against any potential charges related to theft, damages or extra services. It’s always best to confirm how much the deposit will be before leaving the rental office.
How Much Will the Rental Company Hold on My Card?
The amount of the deposit depends on several factors, including the rental car company, type of car, rental location and total reservation cost. Usually, the rental company will charge a hold a few hundred dollars in addition to the estimated rental charges.
Here’s a breakdown of how much each major rental car company holds as a rental deposit:
Avis: Avis holds $200 plus estimated rental charges on your card for “pay later” reservations, which will not be available during the rental period. This can go up to $300 for reservations of four days or longer. For “pay now” reservations, this amount is $250. The company’s fine print notes that it can charge more based on certain factors if it deems it appropriate.
Budget: Budget generally charges a rental deposit of $200 or 25% of the estimated rental charges — whatever is greater. There are some exceptions. In some situations, such as getting an insurance replacement vehicle and prepaid rentals, this minimum hold can be $100. At some locations, the minimum hold may be as much as $500.
Enterprise: Enterprise security deposits can vary greatly depending on factors including the region where you are renting. Note that this sum might be higher for Enterprise Exotics rentals, which, at airport locations, can be about 120% of the rental amount. Enterprise notes in its FAQ that the deposit amount can range from $200-$850.
Hertz: Hertz typically authorizes a $200 deposit for credit cards, but may increase that amount to $500 for debit cards in addition to rental charges.
National: Like its sister company Enterprise, National’s security deposit amounts vary. This amount can range from 20% to the full rental cost. In its FAQs, National says airport renters without a return ticket can expect to pay a $300-400 deposit. That’s in addition to the estimated rental charges depending on the location and vehicle class.
Thrifty: Thrifty generally holds $200 in addition to the estimated rental charges, or $500 for debit cards.
When Will I Get My Deposit Back?
How long does it take to get your deposit back? That depends on your bank and whether you are renting with a credit or debit card.
Credit Cards: With credit cards, rental companies typically hold the total amount of estimated rental charges in addition to a deposit amount. The deposit drops off shortly after you bring back the car in good condition. That leaves you with only the reservation charge unless the rental car company deems any extra charges.
Debit Cards: For debit cards, the hold generally takes longer to clear. While the rental company should release the hold 24 hours after you return the car, it may take another 10-14 days to receive the funds. When paying for a rental with a debit card, you may be blocked from using funds for several weeks.
Cash: Renting a car with cash may be possible, but it tends to be more complicated and requires stricter measures than paying with a card. At Hertz, for example, it can take up to a month to return these funds and you may have to succumb to a credit check.
When Can The Rental Company Keep Your Deposit?
If you return the rental car in good condition with enough fuel, you should receive the full deposit amount back. However, the rental car company may return a lesser amount if the vehicle was damaged during the reservation or if fuel levels are lower than the agreed-upon amount.
To avoid losing your security deposit, be sure to take photos of the vehicle when you pick up and return it. Bring it back with enough fuel and make sure to monitor your credit or debit card to ensure the deposit is released in the weeks after the reservation.
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