May 23, 2024

Abu Dhabi and Dubai is the 9th cheapest city to hire a car around the world, according to new research

 Abu Dhabi and Dubai is the 9th cheapest city to hire a car around the world, according to new research

New research reveals Abu Dhabi and Dubai is the 9th cheapest city in the world to hire a car.

The study by Compare the Market has analysed the average cost of car hire in some of the world’s most visited destinations to see which have the highest and lowest daily rates when it comes to car hire.

For each city, the research took the average cost of a ‘standard’ car (5 adults, 3 bags).

WOW view of Dubai skyline at night. City lights popping. Dancing fountain display. Luxury travel holiday concept.

The cheapest cities to hire a car 

RankCityCountryAverage daily rental price* (GBP)Average daily rental price* (USD)Average daily rental price* (EUR)
6Rio de JaneiroBrazil£21$29€25
9Abu DhabiUnited Arab Emirates£24$33€28
9DubaiUnited Arab Emirates£24$33€28

* Figures are rounded to the nearest whole number

The cheapest destination for car hire was the Spanish capital of Madrid, where the average daily rate was just US$14. Madrid is known for its beautiful boulevards, parks and galleries, all of which can be explored on foot or by using the city’s Metro system. 

In second place was Lima, Peru, where a day’s car hire will cost an average of US$25. Lima is a major stop on the Pan-American Highway, so if you want to hire a car for a road trip, Lima makes a great starting point to do so.


Further findings:

  • The research also revealed the 3 most expensive cities were Singapore (Singapore), Fukuoka (Japan) and Honolulu (USA). These cities were priced at US$115, US$105 and US$98 respectively which is significantly higher than the lowest – Madrid, US$14.
  • Other cities included in the top 10 most expensive countries included; Melbourne, Vienna, Jerusalem, Auckland, Budapest, Phuket City and Tel Aviv.

Stephen Zeller, General Manager of General Insurance at Compare the Market comments: 

In wake of the COVID-19 pandemic, some travellers are wanting to avoid public transportation as much as possible in fear of catching the virus. One of the best ways to explore a city and its surrounding areas, whilst minimising the risk of infection, is by hiring a car. However, as our research shows, doing so can come at a large cost. 

“The price of car hire in cities around the world varies dramatically depending on where it is you are travelling to. Despite car hire often being an easier method of transport when on holiday, such high prices of up to €97 a day can really eat into your holiday budget, meaning less money is available for you to spend on hotels, attractions, restaurant meals and souvenir shopping. 

”It is also important to be aware of the excess that rental car companies will ask you to pay if you damage their car. Without travel insurance, the cost of covering such damage can be extremely costly. Therefore, we always recommend checking your travel insurance policy provides cover for this excess either as a standard benefit or as a purchasable option.” You can view the full findings here.