Traveling across the USA often requires a car due to vast distances and limited public transportation. I’ve compiled this article based on personal experience and tips from readers, and I update it regularly. I’ll advise you on what to watch out for so you don’t fall for car rental scams. You’ll learn how to rent a car affordably, get a free upgrade to a better class of vehicle, and more tips.
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Table of Contents
- What You Need to Know About Renting a Car in the USA
- Car Rental Requirements in the USA
- Tips and Tricks for Cheap Car Rentals in the USA
- What to Watch Out for When Renting a Car in the USA
- Car Insurance in the USA
- Car Rental Prices in the USA
- Largest Car Rental Companies in the USA
- How to Pick Up a Rental Car in the USA
- Car Rental in the USA for Drivers Under 25
- Car Rental in the USA for Drivers Aged 18 to 21
- Van Rental in the USA
- RV Rental in the USA
- Frequently Asked Questions About Car Rentals in the USA
- Cheap Car Rental in the USA
What You Need to Know About Renting a Car in the USA
Hundreds of car rental companies operate in the USA, including international chains like Enterprise, Hertz, Avis, Budget, National, Thrifty, Alamo, and Dollar. Common terms used for car rental include car rental, rent a car, rent-a-car, rental car, and car hire.
You can rent a car directly from a specific rental company or through a broker, who typically represents most companies in the area. You’ll usually find better prices by using a comparison site, the largest being RentalCars.com, part of the Booking.com group. An alternative is DiscoverCars.com.
The cheapest option is usually to book your rental car online about one to three months in advance. Prices vary by city, rental location, and season, but the biggest factor is current demand.
In the United States, Canada, and Mexico, people drive on the right-hand side. Most rental cars come with an automatic transmission. If you haven’t used one before, you’ll likely get used to it quickly. Manual transmissions are available on request.
Standard vehicle features include air conditioning and a car radio. Free GPS navigation is available on your smartphone—just download the offline area in Google Maps or buy a local SIM card.
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Car Rental Requirements in the USA
🧑 Driver’s Age
- 18–20 years old: Most rental companies won’t rent to you, or they’ll offer a lower-class vehicle and charge an additional fee.
- 21–24 years old: Most companies will rent you a car, but expect an “Underage Driver Fee” of about $25 per day.
- 25 and older: You can rent a car without any surcharge.
🆔 Driver’s License
In most cases, a British (or Canadian, Australian, or New Zealand) driver’s license is sufficient. However, I recommend bringing an International Driving Permit under the Geneva Convention just in case.
💳 Credit Card
Your card is used to pay for the rental and security deposit. It’s best to use a credit card, and the name on the card must match one of the drivers. Some companies or staff may refuse debit cards, require a higher deposit, or ask for additional documents. Experiences with debit cards in the USA vary—I personally had no issues using mine with Google Pay.
🛂 Passport
Your passport is used to verify your identity. The rental company staff will typically scan it or make a copy when you pick up the car.
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Tips and Tricks for Cheap Car Rentals in the USA
You can usually reduce the cost of your car rental. I’ve found the following strategies helpful and recommend combining them.
💡 Best Price Guarantee from RentalCars
RentalCars.com is a multiple-language booking platform for car rentals, part of the Booking.com group. Over the past 12 years, I’ve rented cars through them on every continent. Their advantages include solid customer service and a best price guarantee. If you find a better deal elsewhere, they’ll match the price.
💡 When to Book a Rental Car in the USA
There’s no guaranteed answer, as many factors influence pricing. Generally, the lowest rates are available 1–3 months before your planned pickup date. Expect higher prices during summer holidays, Christmas, and public holidays due to increased demand.
💡 What Class of Vehicle to Choose?
Choose your vehicle based on the number of travelers and the length of your trip. For longer road trips, I don’t recommend compact cars—they lack space and comfort. Convertibles also have less room and tend to lose their charm after a few days. Based on my experience, a crossover or SUV is the better option.
Economy cars are the cheapest. Mid-size vehicles cost 5–15% more, comfortable SUVs are 20–25% more, and convertibles can cost 65–75% more than the cheapest option.
At pickup, you may be offered an upgrade—one class higher at a discounted rate. It’s up to you. If your reserved class isn’t available, ask for a free upgrade to a better vehicle.
💡 Car Rental at the Airport or in the City Center?
Airport rental locations are usually more advantageous due to higher competition. While some locations may charge an airport access fee, the upside is that each member of your group avoids paying for transportation to the city center. It’s also more convenient. However, for multi-week rentals, it’s advisable to check prices for pickups in the city center as well.
💡 Return the Car to the Same Location Where You Picked It Up
It is possible to return a vehicle to a different rental office, another city, or even a different state, but this usually comes with an extra fee. Picking up and returning the car to the same location is generally more cost-effective.
💡 Rental Charges Apply for Every 24-Hour Period Started
An unwritten rule among rental companies is that you pay for every 24-hour period started. If you pick up the car at 3:00 PM, you should return it by 3:00 PM. Returning it at 3:30 PM will likely incur an extra day’s charge. Some car rental companies offer more flexible return policies without additional fees.
💡 Compare Offers from Multiple Car Rental Companies Online
By comparing car rental offers from several companies, you’re much more likely to find a better deal. You don’t need to browse through each rental site individually—just use a price comparison tool.
💡 How to Get a Better Car Cheap or Even for Free
This trick works with smaller rental companies: book the smallest car class, which typically has lower demand. If you arrive relatively late to pick up your vehicle (around noon), those cars might already be rented out. In such cases, the rental company may upgrade you to a better vehicle at no extra cost.
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What to Watch Out for When Renting a Car in the USA
The following tips will help you avoid the most common mistakes when renting a car in the USA.
⚠️ The Advertised Price May Not Be Final
This is a common trick used by rental companies advertising cars for just a few dollars. The price typically covers only the base rental and excludes taxes or hidden fees, such as airport return charges. Additional restrictions may also apply. What seems like a great deal at first glance can quickly become expensive.
⚠️ Mileage May Be Limited
Some rental companies impose mileage limits, and exceeding the limit will incur a fee. The amount varies, but you can estimate $0.15 to $0.25 per mile over the limit. Major rental companies usually don’t impose such limits. If you know in advance how many kilometers you’ll be driving, this may not be a dealbreaker.
⚠️ Restrictions on Where You Can Drive
Rental agreements clearly define where you’re allowed to drive. Due to insurance reasons, trips to Mexico are usually prohibited, though travel to Canada may be allowed with prior approval. Restrictions on travel to other U.S. states (such as California, Nevada, etc.) are not common.
Again, this isn’t very frequent, but it’s important to read that section of the agreement carefully. Rental cars are often equipped with GPS trackers, and violating the rules can result in a hefty contractual fine.
⚠️ Check Reviews of the Specific Rental Office
Don’t rely on the overall rating of the rental company—read the Google Maps reviews of the specific branch you’ll be using. For example, the smaller company Green Car Rental Los Angeles near the airport has a rating of just 2.4/10.
⚠️ Don’t Let Them Upsell You on Unnecessary Add-ons
Rental companies often try to increase their profit by offering GPS devices, insurance, roadside assistance, and more at pickup. I recommend purchasing insurance through RentalCars.com based on your preferred coverage. Before pickup, also check whether your route includes toll roads. Some rental companies push customers to buy overpriced (and often unnecessary) toll passes.
⚠️ Refuel at a Gas Station Before Returning the Car
The standard rule is to return the car with a full tank, just as you received it. It’s best to refuel 9 mi–12 mi before reaching the rental return location. If you return the car without a full tank, the rental company will refuel it at their own rate, which is usually higher. You can find more information in the article how to refuel in the USA.
⚠️ Late Returns Will Incur a Penalty
Rental fees apply for every 24-hour period started. If you fail to return the car on time, the rental company will charge you for an additional day. The level of tolerance depends on the staff—sometimes being just 15 minutes late means you’ll be charged extra.
⚠️ Additional Drivers Cost Extra
If you plan to share driving duties, always list your co-driver in the rental agreement. There’s usually an additional fee of around $10.00 per day for each extra driver. Policies vary—some companies allow a spouse to drive for free. Don’t try to cheat. If an undeclared driver causes an accident, the insurance won’t cover it, and the damages must be paid out of pocket.
⚠️ Child Car Seats in the USA
Car seats are generally required for children between the ages of 2 and 7, and children under 12 are not allowed to sit in the front seat. Rules differ by state; you can find details on the Governors Highway Safety Association website.
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Car Insurance in the USA
When renting a car, I recommend getting full insurance coverage. There are many types of insurance in the U.S., but the following are most commonly used. Always read the terms and conditions carefully, especially the deductible.
🛡️ SLP (Supplemental Liability Protection)
SLP is similar to liability insurance, which covers damages you cause to other people’s property or health. In nearly all U.S. states, liability insurance is required by law at a minimum level of coverage. Coverage for bodily injury typically ranges from $25,000 to $50,000 per person, and for property damage from $10,000 to $25,000.
🛡️ SLI (Supplemental Liability Insurance)
SLI is optional additional coverage that increases the SLP limits up to $1,000,000. Policy conditions may vary depending on the specific offer.
🛡️ CDW (Collision Damage Waiver)
CDW is collision insurance that covers damage you cause to the rental vehicle. The cost depends on the pickup location and vehicle class; expect to pay about $10.00 to $30 per day.
CDW typically excludes coverage for tires, windows, the undercarriage, and seat upholstery. The coverage becomes void in cases of intentional damage, driving under the influence of alcohol or drugs, or driver negligence. Leaving the car unattended with the key in the ignition also counts as negligence.
🛡️ SCDW (Super Collision Damage Waiver)
An add-on to CDW insurance, this also covers damage to the vehicle’s undercarriage, windows, tires, and upholstery. SCDW is usually arranged with zero deductible, meaning the driver does not have to pay anything in the event of damage.
🛡️ LDW (Loss Damage Waiver)
LDW covers total loss of the vehicle (write-off) following an accident caused by the driver. It is essentially a higher-tier version of CDW. A deductible amounting to several hundred dollars is usually required.
🛡️ FDW (Full Damage Waiver)
Comprehensive car insurance, generally with no coverage limit and no deductible, though it typically excludes damage to the undercarriage, wheels, windows, and upholstery.
🛡️ TP (Theft Protection)
This insurance protects you in case the rental vehicle is stolen.
🛡️ PEC (Personal Effects Coverage)
Covers personal belongings transported in the vehicle. It costs about $2.00 per day, and the coverage limit is around $500. If the car is broken into or personal items are damaged in an accident, compensation is provided.
🛡️ PAI (Personal Accident Insurance)
Accident insurance for passengers in the rental car. It covers medical expenses for all passengers and also pays out in the event of a fatal accident. Premiums are around $3.00 per day, with a policy limit of approximately $3,500.
🛡️ UMP (Uninsured/Underinsured Motorist Protection)
UMP insurance protects against damage to the vehicle and injuries to passengers caused by a driver of another uninsured or underinsured vehicle.
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Car Rental Prices in the USA
Rental prices are primarily influenced by location, current demand, vehicle class, included insurance, and other factors.
During the COVID-19 pandemic in 2020, most rental companies sold off their fleets. When demand returned in late 2021 and early 2022, rental agencies had to invest heavily in purchasing new vehicles. Unfortunately, this led to a significant increase in rental prices.
While it was possible to rent a car for as little as $25 per day before the pandemic, by 2025 you can expect to pay at least $39 per day, including insurance, for the smallest car. For a quick and non-binding estimate, I recommend using the calculator.
💵 How Much Will It Cost to Rent a Car?
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Largest Car Rental Companies in the USA
There are hundreds of car rental companies operating in the USA, with the largest ones typically offering the most affordable rates. The biggest group is Enterprise Holdings, Inc., with a fleet of 2.5 million vehicles and approximately 9,500+ branches in more than 90 countries. The group includes Alamo, Enterprise, and National car rental companies.
I last verified the number of branches and ownership structure on January 7, 2025.
Enterprise Rent-A-Car is the largest car rental network in the USA with 4,138 branches and has a strong presence in city centers. Enterprise caters to a broad range of customers, including business travelers and local residents. The company is part of Enterprise Holdings, Inc.
Hertz Car Rental operates 2,719 branches across the USA, offering a solid selection of premium services and an appealing loyalty program. Hertz serves a wide customer base, including tourists and business travelers. The company is part of Hertz Global Holdings, Inc.
Avis Car Rental operates 1,405 branches in the USA. Avis targets the premium market segment, focusing primarily on business travelers and high-end customers. The company offers luxury vehicles and the Avis Preferred loyalty program with express services. Avis is part of Avis Budget Group, Inc.
Budget Rent a Car has 1,312 branches throughout the USA and primarily targets customers who are price-sensitive. Budget differentiates itself from premium brands by offering more flexible rental terms and lower rates. It is part of the Avis Budget Group.
National Car Rental has 305 locations in the USA. It focuses on business and frequent travelers who value speed and flexibility. One attractive feature is the Emerald Club loyalty program, which allows members to choose a vehicle directly from the lot without paperwork. National is part of the Enterprise group.
Thrifty Car Rental operates 290 branches in the United States. The company targets customers who prioritize low rental prices. Thrifty shares locations with Dollar Rent A Car, which increases its availability. Both brands are part of the Hertz group.
Alamo Rent a Car operates 243 branches in the USA, focusing primarily on families and budget-conscious tourists. Alamo’s advantages include an easy online check-in process and self-service kiosks, making car pickup faster. Alamo is part of the Enterprise Holdings group.
Dollar Rent A Car has 228 branches in the USA, some of which are shared with Thrifty since both companies are part of Hertz Global Holdings. Dollar targets price-conscious customers for whom the lowest possible rental cost is a key factor.
Payless Car Rental operates around 120 branches in the USA. The company targets budget travelers who are satisfied with basic services at the lowest possible prices. Payless Car Rental is part of the Avis Budget Group. Compared to other brands in the group, it offers lower prices and more lenient rental conditions.
Sixt Rent A Car operates around 100 branches in the USA. The company targets business travelers and more demanding customers who prefer premium and luxury vehicles. A key advantage is its typically broad vehicle selection. Sixt is especially strong in Europe and is not part of any major holding group.
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How to Pick Up a Rental Car in the USA
1️⃣ Rental Car Deposit in the USA
When picking up your car, you’ll need to present a credit card to cover the deposit. The amount varies depending on the company and location—it may be around 25% of the total rental cost or $200. Typically, the higher amount is applied. The money is not charged but rather held as a temporary authorization.
2️⃣ Decline Payment in Your Home Currency
Some rental companies offer to charge your card in British pounds, Canadian dollars, or another currency via Dynamic Currency Conversion. The exchange rate for this service is highly unfavorable, so always insist on paying in U.S. dollars.
3️⃣ Carefully Read the Rental Agreement
Take your time to thoroughly read the agreement before signing it. Don’t give in to any pressure from the rental agent, and if you don’t understand something, ask for clarification.
4️⃣ Photograph Any Damage Beforehand
You’ll receive a damage report when you pick up the car. Be sure to photograph or video all scratches, tire condition, and fuel level from multiple angles as evidence. Report any discrepancies between the report and the actual condition immediately.
5️⃣ Questions to Ask When Renting a Car
Ask about anything unclear: “Are there any specific local laws or regulations I should know? Are the vehicle documents in the glove box? Should I refuel with gas or diesel? How do I retract the roof? Whom should I call if I get into an accident?” Save the roadside assistance phone number so you won’t have to search for it later.
6️⃣ Familiarize Yourself With the Car
Get to know the vehicle while still at the rental location. Adjust the seat, test the lights and wipers, and examine the gear shifter. Don’t hesitate to ask questions if anything seems unclear. On a safe stretch of road, test the brakes and acceleration so you know how the car responds. Be sure to read this article on driving in the USA.
7️⃣ How to Skip the Line at the Rental Counter
If you’re renting from Thrifty, it’s a good idea to register for their free loyalty program online before pickup. Doing so gets you a Priority Pass, allowing you to skip the line at the counter. One reader successfully tested this approach at Thrifty’s Los Angeles Airport location.
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Car Rental in the USA for Drivers Under 25
Drivers between the ages of 21 and 25 face certain restrictions when renting a car in the U.S. Rental companies assume a higher risk of accidents, so they typically charge an extra daily fee for younger renters.
This “underage fee” varies by state and company, but you can generally expect to pay $15.00 to $25 per day. The best approach is to create a no-obligation reservation to see the final rental price. Often, the car’s base rate offsets the fee difference.
You usually won’t encounter this extra charge in Michigan and New York, where laws heavily regulate the practice.
Some companies limit the types of cars available to drivers under 25. The strictest are Avis, Budget, and Thrifty, which don’t allow young drivers to rent SUVs, vans, or luxury sports cars. In contrast, Alamo and Enterprise place no such restrictions.
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Car Rental in the USA for Drivers Aged 18 to 21
Young drivers aged 18 to 21 face even more challenges. Major rental companies usually won’t rent to them due to the risk of vehicle damage, with only a few exceptions.
E-Z Rent A Car offers lower-end models at all branches to drivers aged 18 and over, provided they show valid liability insurance. Fox Rent A Car is among the most favorable options, renting cars to drivers 19 and older at all locations with a daily underage fee of $25.
In Michigan and New York, state laws require rental companies to rent cars to drivers aged 18 to 21. However, restrictions on available vehicle categories may apply, and the underage fee can be as high as $50 per day.
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Van Rental in the USA
Nearly every rental company in the U.S. offers vans, and it’s more cost-effective to reserve online in advance. Vans are typically listed as “minivan” or “12+ seat people carrier”, with common models including the Chevrolet Express and Ford E350.
Vans are ideal for travelers who want to avoid paying for motels and are fine sleeping in a sleeping bag in the back. These vehicles usually come with air conditioning and automatic transmission. In more affordable locations, daily rental rates start at around $75.
To drive a van for 8, 10, or 12 passengers, a standard driver’s license and an international license are sufficient. A U.S. commercial driver’s license is generally required only for vehicles legally rated for 16 or more passengers.
- Get a Free Van Rental Price Estimate in the USA
- Van Rental in the USA (Step-by-Step Guide)
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RV Rental in the USA
An RV offers a mobile hotel on wheels. In America, it’s referred to as an “RV” or a “motor home.” To rent an RV, all you need is a domestic and an international driver’s license.
Traveling in an RV has its pros and cons. The advantages include lower accommodation costs, no need to look for motels, no constant packing and unpacking, and more freedom in planning your itinerary. You’re not bound by room reservations, and if you like a place, you can stay there for several days.
The downside of an RV is its size and the driving experience required to handle it. Travel is slower, parking is more difficult, and there are places you won’t be able to access. You are only allowed to park an RV in designated areas or in campgrounds, where fees are higher than for a regular tent site.
Regular car rental companies typically do not offer RV rentals in the USA. You’ll need to look for specialized companies like CruiseAmerica.com. Rental rates start at approximately $100 per night, and there’s an additional fee for miles driven. Read about the experience of traveling the USA by RV.
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Frequently Asked Questions About Car Rentals in the USA
How Much Is the Deposit for a Car Rental?
The deposit depends on the specific rental company, vehicle type, and rental duration. For a rental costing $1,000, expect a deposit of $250 to $400.The deposit serves as a security for the rental company in case of damage. At pickup, the company will block the amount on your card, and if you return the vehicle in good condition, the block will be lifted. The funds will be released according to your bank’s policies within the following days.
I’ll Be in the USA for Several Months—Is It Better to Buy a Used Car?
Financially, it is of course more cost-effective to buy a used car and sell it before leaving. Unfortunately, for tourists, the vehicle registration process is so complicated that renting is usually the better option.One requirement, for example, is that the car owner must be a resident of the state where the car is being registered—something tourists cannot meet. A possible solution is the service visitor.us, which will establish a company for you in Montana, where a U.S. driver’s license is not required and the vehicle sales tax is 0%. The car you buy will be owned by your newly formed company, and license plates will be sent to you by mail.
I Don’t Have a Credit Card—Will That Be a Problem?
Most rental companies prefer a credit card for blocking the deposit. However, I personally rented a car in the USA with a standard debit card without any issues. It’s important that the card is embossed (your name is raised above the card surface). Even if you have a debit card, always refer to it as a credit card.What Does “Or Similar” Mean in Car Rentals?
It refers to a vehicle from a different manufacturer but in the same class (SUV, compact, etc.). Rental agencies can’t guarantee availability of specific models, so instead of a Ford Escape, you might be offered a Toyota RAV4 or Jeep Grand Cherokee.Where Can I Rent a Car for a Trip to Mexico?
The vast majority of car rental companies prohibit travel to Mexico. An exception is reportedly Fox Rent A Car, which allows travel to Mexico if you purchase Mexican liability insurance at the rental counter.
Cheap Car Rental in the USA
How Much Does It Cost to Rent a Car in the USA?
- No Hidden Fees
The prices stated at the time of reservation are always final, providing a clear overview of your expenses. - Lowest Price Guarantee
If you find the same deal at a lower price elsewhere, RentalCars will refund the difference. - Cancellation Is Free of Charge
Most bookings can be cancelled or altered free of charge up to 48 hours before collection.
Discussion (6)
I rented cars in Los Angeles twice, each with a different experience.
First time, I chose a compact Toyota Corolla. It was fuel efficient and easy to park, but a bit cramped for my family of 5.
On my second trip, I opted for a Ford Explorer SUV. It provided more room and comfort, but was bit harder to find parking spaces in busy areas.
Make sure to consider your needs and itinerary when selecting a car!
Having rented cars in various states across the USA for both business and leisure, I’ve navigated the maze of insurance options more times than I can count. The article does a great job highlighting the importance of understanding what each insurance type covers, but I’d like to add a few personal insights that might help others.
Firstly, the significance of SLP cannot be overstated. On a trip to California, I was involved in a minor accident that resulted in damage to another vehicle. Because I had opted for SLP, the insurance covered the damages without any issues. It’s a safety net you don’t want to skip, especially considering the legal requirements and the peace of mind it offers while driving in unfamiliar territory.
Regarding CDW, the article mentions the exclusions, which I learned about the hard way. A rental in Nevada got a cracked windshield due to a flying pebble on the highway. I assumed the CDW would cover it, but since windows were excluded, I was out of pocket for the repair. Always double-check what’s included and consider additional coverage for these exclusions if you’re planning to drive in areas where such damage is more likely.
Lastly, the SLI’s high coverage limit might seem overkill to some, but in today’s litigious society, it’s a buffer that can protect you from financial ruin. I’ve thankfully never had to rely on it, but knowing it’s there if needed is worth the extra cost.
In summary, always read the fine print and assess your risk tolerance when choosing insurance options. Each state can have its quirks, and what might be optional in one could be compulsory in another. Safe travels!
Hi:) I have a question about renting a car in the U.S. If I understood the article correctly, the problem is who the rental car is registered to (I mean age under 25) but the problem is that I’m 20 and I can’t drive…:) (situation : we will have 2 drivers – one over 25, one 20, the car will be registered to the older one but both can take turns driving???) thanks for the answer:)
Hey, Kelly,
you can sign the car over to the older of the two of you, but if you want to drive it, you’ll have to put yourself on the policy as the other driver. Only then can you officially get behind the wheel. Although – who gets behind the wheel in real life is up to you. :)
I have the following question. We are a group of about 20-25 people going to the USA. One of us has a fully completed driving licence – including group “D” – bus. Is it possible to rent a bus in the USA? If so, can the holder of a Slovak group “D” licence drive it? Alternatively, under what conditions? Thank you.
Hi, Jaro,
I don’t have any experience with it, but it should work. There are several conditions, such as at least 25 years of age, full liability insurance, and of course a valid driver’s license. It’s probably best to post the exact driver information on a site like RentABus, which offers driverless bus rental.