Tips for hiring a car aborad

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What with ash clouds, BA strikes, a big PR fuss made about ''glamping'' and ''staycations'', the news that car hire has increased in many of Europe''s most popular destinations has largely been overlooked.

But if the latest figures are to be believed, unfortunately, the news is true. According to recent research, many regions of Europe, particularly Brit favourites such as mainland Spain, the Canaries and Balearics, have seen car hire costs skyrocket since 2007. In the worst affected areas, prices have tripled in just three years.

The ''r'' word is cropping up again as being the cause of the price hikes. Carrentals.co.uk says the problem has been as a direct result of the recession. In 2010 many car hire companies have less cash to update their stocks than they did in 2007, so fewer cars are available now. Therefore, following basic supply and demand models, if supply decreases but demand remains the same, prices will increase.

During peak season, this problem will only escalate further. Demand will rise so with a decreasing supply, we will feel the pinch most in July and August, when everyone and their dog wants to hire a car.

There are ways of keeping car hire costs down however. Here are three of the best.

By far the best way to keep costs down is to book in advance. Prices spike during peak months and many people leave car hire to the last minute so booking in June is a no go. For example, according to data from carrentals.co.uk if you booked a car for a week in Malaga last August you would have paid ?165 if you booked three months in advance, ?218 a month ahead and ?262 if you didn''t book until the week before you travelled.

It is also pays to pay upfront. If you don''t make the full payment at the time of booking, some rental companies might try and charge you extra.

Try looking outside of your usual car-size bracket. Small cars, being the cheapest always go first, so prices will sky rocket as supply decreases. However, if you look one or two models up, for the improvement in car you are not paying a great deal extra and therefore represent greater value for money. Also, if there is more supply, you may end up paying less for your larger car than you would for a small car.

Article Source: http://depositarticles.com/

KATRICE SUNDERMAN is a freelance travel writer with a love of land-based travel. They recommend Decode for cheap car hire.

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