Hire car fees, explained

After taxes, insurance, add-ons and various hidden fees, the final cost of a hire car can be shocking. Often, it’s hard not to feel like you’re getting scammed. Let’s break down the various charges that go into car hire prices and give you tips for avoiding unexpected charges. 

Common hire car fees and charges​

You might encounter some of these car hire fees—but that doesn’t mean you always have to pay them.

Young driver fee

If you are under 25 years old, it will be difficult to find a car hire company without a young driver fee​. These fees vary widely by company and location, but can average between £25–£40 per day (usually capped at 7–10 days). Some companies (Budget, Avis, Hertz) don’t allow drivers younger than 23 without a surcharge, but most allow drivers 21 and over with a surcharge.

Some companies may waive (or offer discounts that can offset) these fees for members of the military or those with specific corporate or university affiliations. These often require booking through the affiliate portal.

If you plan to hire a car frequently, the Enterprise Car Club’s Under 22 Plan may waive the young driver fee for a monthly membership.

Airport concession fee

If you are hiring from an airport location, the company will likely charge a concession recovery fee, sometimes called a premium location fee or an airport surcharge. Airports charge hire companies to operate on their property, and hire companies pass along this cost to you. 

Concession fee recovery is one reason why hiring from an airport branch is often more expensive. These fees may even apply at some off-airport locations that provide shuttle service from the airport. To avoid this cost, hire your car from a location other than the airport, if possible.

One-way and drop fees

A car hire drop fee, or one-way fee, is a charge added when you return a car to a location other than where you picked it up. The cost can vary depending on the company and the distance, from £12–£250 (or more for long routes like Edinburgh to London).

However, it is possible to get a one-way car hire with no drop fee. 

• Some Avis and Hertz locations waive one-way fees on select routes. 

• Enterprise, Sixt and Budget may also waive fees for short distances or hires over one week, depending on the branch. 

• Free one-way hires are common within the same city or region via brokers like Auto Europe. 

• If you plan to book a one-way car hire, reach out to the specific hire branch first. They may be willing to waive the fee.

Cleaning fees

Cleaning fees are one of the more complicated (and disputable) charges, as you and the hire company might have differing ideas about what requires cleaning. These fees can range from £20–£300, so take steps to guard against unwarranted cleaning fees. 

• Thoroughly inspect and photograph the inside and outside of the car before leaving the hire lot. 

• Get written confirmation of any existing damage, stains or dirt. 

• When driving the car, refrain from smoking, vaping or eating in the car. 

• Remove all trash and personal items before returning the car. 

• When returning the car, document its condition again and get an employee’s sign-off if concerned. 

If you plan to go camping or to the beach, or if you have young children, consider paying the upfront cleaning fee (if offered). This can often be cheaper than returning the car and being charged for cleaning later. You can challenge unfair fees via Resolver or the BVRLA within 14 days, providing photos as evidence.

Equipment add-ons

Equipment hires, or add-ons, are a sneaky car hire fee that can quickly add up. In most cases, they’re unnecessary and can be declined. Examples include GPS, satellite radio, child seats and ski racks. Avoid these charges by using your own equipment, such as a smartphone for GPS and music.

Congestion Charges and Tolls

If your hire car enters the Central London Zone (Monday–Friday, 7 am–6 pm), you will have to pay the Congestion Charge (£15 per day). The hire company can handle payment for you via AutoPay, but they will charge a daily admin fee of £10–£15 on top of the Congestion Charge. Instead, you can pay the Congestion Charge (by midnight the next day) via the TfL Pay to Drive in London mobile app or website. Confirm with the hire company how to provide proof of payment.

If you will be using a toll road, such as Dartford Crossing, you can pay ahead or within a day of use via GOV.UK to avoid admin fees.

Late return fees

Most major hire companies offer a 30-minute grace period for returns (sometimes this is 29 minutes, so don’t cut it too close!). After the grace period, car hire late fees​ are charged hourly (typically £10–£20 per hour) until the extra-day threshold (usually 2–2.5 hours). Beyond that, you will be charged for a full day. Some companies (like Budget) also charge a processing fee (£20–£50). You may also be charged administrative fees for changing your hire agreement. 

To avoid late fees, it’s best to return a hire car at the same time you picked it up. If you are returning late in the day, be sure to confirm the branch’s after-hours return policy to avoid extra-day charges.

Early return and cancellation fees

If you need to cut your trip short, there is typically no fee for returning a hire car early. However, if you prepaid for your hire, you will rarely be refunded for unused days. If you booked at a promotional or weekly rate, the daily rate will likely be recalculated, deducting from the money you get back.

If you need to cancel a booking, notify the hire company as soon as possible to avoid fees. If you booked a “pay later” or “pay at location” hire, you will likely get a full refund. If you prepaid, a 2–3 day notice is often required for a full refund. Less than 3 days but at least 24 hours’ notice will typically be refunded minus a cancellation fee. This fee is usually a flat rate (£25–£99), but it can be a percentage of the hire (Budget refunds 50%). Cancelling with less than 24 hours' notice will usually result in a full charge.

What are common hidden car hire fees?

In some cases, extra fees are unavoidable, but understanding them can at least make hiring a car less frustrating and prepare you for what would otherwise be unpleasant surprises.

Common fees you might see on your bill include:

• Vehicle Excise Duty Recovery (VED): £1–£3 daily

• VAT (Value Added Tax): 20% on the total hire cost

• Congestion/Environmental Fees: £0.50–£10 daily (e.g., Clean Air Zones in cities like Birmingham)

• Customer Facility Charge: £8–£15 per day at airports

• Breakdown Recovery Levy: £1–£2

These fees are operational costs or government requirements that hire companies pass through to customers, making them largely unavoidable aspects of the hire process.

The good news is that CMA rules and the Consumer Rights Act 2015 require companies to be more transparent about fees in their advertised pricing—all compulsory charges (e.g., one-way, young driver) must be included upfront. However, it is still common to see unexpected extras at checkout or pickup. Final costs can be significantly higher than the advertised price, so it’s always best to budget accordingly and book through trusted brokers.

Which car hire companies don't have hidden fees?

In general, the leading brands that advertise the highest upfront rates, such as National and Enterprise, have the fewest hidden fees and penalties. Other well-known brands like Hertz and Avis tend to strike a balance between cost and transparency. Bargain-focused brands like Thrifty and Europcar often advertise the lowest prices, but make up some of that cost through additional fees. If accurately budgeting for your hire is important, consider hiring from a company with a reputation for greater transparency, even if the advertised price is higher.

How can I avoid paying hidden car hire fees?

The best way to keep the price of your car hire down is to do your research upfront. If hiring from a company that isn’t a well-known brand, make sure they are trustworthy by reading online reviews. No matter which company you hire from, read the hire agreement carefully to understand potential penalties and add-on charges.

Make the most of memberships, use your own equipment, and decline add-ons when possible. Photograph the car’s condition before driving it and upon return, securing written confirmation of its condition. Finally, leave a comfortable cushion in your hire budget, knowing that some fees are unavoidable and that your final hire price could be substantially higher than the advertised price, especially if booking with a bargain-focused brand.