Deals on wheels

Car rental prices have dropped because travellers are not booking cars much ahead of travel, so car hirers are slashing prices to get more bookings confirmed.

Research compiled by Travelsupermarket.com reveals that car hire is now up to 45 per cent cheaper than two years ago, for key holiday periods in 2012.

Another reason for this trend is the current economic problems in the eurozone, particularly Spain, Portugal and Italy. As letting agents confirm villa rentals are also coming under pressure, notably in Greece where some owners are braced for 20 per cent plunges in rental income, many self-catering holidays could also be available at much lower prices than seemed likely when brochures first appeared.

Car hire rates across Malaga, Alicante, Murcia, Palma, Tenerife and Faro have all seen a drop in price since 2010 across Easter and Whit Week.

The lowest price for a mini economy car in Malaga is £63.89 for eight days, down 44 per cent on 2010 prices, and less that £8 per day. A medium family car in Alicante is £82.59, a huge £66.30 (45 per cent) below 2010.

In August, a peak time for families, average prices in Europe are 17 per cent below 2010, while Spanish destinations came in at a significant 27 per cent below those of 2010.

Only Heathrow (one per cent) and Nice (two per cent) showed marginal increases in the peak month of August.

The Easter period is promising some major bargains too. Overall, Easter 2012 prices are down almost eight per cent, with Spain and its islands 22 per cent cheaper than in 2010.

A mini economy car in Palma starts at £85, against £128.60 in 2010, saving 33 per cent. A large family car in Tenerife is £127.35, 40 per cent below 2010 (£211.62).

Rhino Car Hire’s marketing manager Phil Partridge says: “Car rentals in Spain, particularly in popular locations like Malaga and Alicante, are the lowest we have ever seen with cars available in 2012 for below £4 per day (in January and February).

“With off-peak rates so low, the market has yet to settle for the summer; early signs suggest rates of less than £20 per day.

“Despite a sharp increase against early-2012, as the peak season approaches, demand is expected to return and drive prices up, so we urge customers to book as far in advance as plans allow.”