How Much Is a Rental Car Deposit? How Holds Work

The deposit catches many renters out — not because it's a cost, but because it can tie up a big chunk of your available credit or bank balance for the length of the trip and beyond. Here's how it works.

What a rental car deposit actually is

At the counter, the rental company places an authorization hold on your card. It's usually made up of the estimated rental charges plus an extra security amount. The security amount varies by company, location, car class and payment method, so there isn't one figure to quote — the rental terms for your booking or location will state it.

With a credit card, the hold reduces your available credit but no money leaves your account. With a debit card, the hold usually blocks real funds in your bank account until it's released.

Why the deposit can be larger

• Debit cards: many companies hold more, and apply extra checks. See renting a car with a debit card.
• Premium and specialty cars: luxury, convertible and large vehicles typically carry larger holds.
• Longer rentals: the estimated rental charges are larger.
• Declining coverage: some locations adjust the hold depending on the coverage you choose.

Prepaid bookings still need a deposit

Even if you paid for the rental online, you'll still need a card in the main driver's name at pickup for the security hold. The prepaid amount covers the rental; the hold covers fuel, tolls, damage and other charges that can come up later.

When you get it back

The company releases the hold after the car is returned and checked in. How fast it disappears from your statement depends on your bank — often a few business days, and sometimes longer, especially for debit cards. If it hasn't cleared after a week or two, contact the rental location first, then your bank.

What can be deducted

• Fuel, if you return the car with less than you collected it with
• Tolls and toll-program fees
• Late-return charges — see what happens if you return a rental car late
• Cleaning or smoking fees
• Damage, if you declined coverage and aren't covered elsewhere

How to avoid deposit problems

• Use a credit card if you can, and check your available limit before you travel.
• Ask the counter agent how much will be held.
• Photograph the car, fuel gauge and odometer at pickup and return.
• Keep your final receipt until the hold is gone.

For more on what's charged and when, see how the security deposit works in our help centre, or compare cheap car rentals with the fees shown up front.