Most owners start with a number copied from another rental page. That works until a slow month shows the rate does not cover the car. The method below gives you a rate you can explain and defend.
1. Work out your cost per day
List everything it costs to keep one car available for rent in a month:
- Loan payment, or depreciation if the car is paid off
- Insurance, including any comprehensive cover for rentals
- Registration and LTO renewal, spread across the year
- Maintenance, tires and repairs, averaged per month
- Cleaning between rentals
- Parking or storage
- A driver's wage, if you rent with a driver
- Your own time, booking tools and payment fees
Add them up for one month. This is your monthly cost for that car.
2. Divide by rented days, not calendar days
A car is not rented every day. The share of days it earns is your utilisation. Divide the monthly cost by the days actually rented to get the true cost of one rented day.
Example for a car that costs ₱30,000 a month to keep:
| Utilisation | Days rented (of 30) | Cost per rented day |
|---|---|---|
| 30% | 9 | ₱3,333 |
| 50% | 15 | ₱2,000 |
| 70% | 21 | ₱1,429 |
The same car costs more than twice as much per rented day at 30% as at 70%. Price for the utilisation you realistically expect, not the one you hope for.
3. Add the margin you need
Your cost per rented day only breaks even. Decide how much profit each rental must earn after covering your costs and the risk of damage, late returns and empty days.
At a ₱2,000 cost per rented day and a 25% margin, the daily rate is ₱2,500. Test your rate at a lower utilisation too, to see what happens in a slow month.
4. Check the market on like-for-like terms
Look at five comparable rentals near you: same car class and year, same rental type, similar location. Compare what each price includes, not just the number:
- Self-drive or with a driver
- Fuel policy and mileage limit
- Insurance and excess
- Deposit amount
- Delivery and pickup
If the market is lower than your break-even rate, do not match it. Fix the cost, raise utilisation, or rent that car in a different way.
5. Discount longer rentals
A longer rental keeps the car busy and saves you the idle days and turnaround work between bookings. Set a simple ladder in advance, for example a small percentage off from three days, a larger one from a week and a larger one still from a month. Decide the percentages from your costs, never on the spot to close a booking.
6. Price with-driver rentals separately
Do not fold the driver into the car's daily rate. Price three things:
- The car, using your cost and margin
- The driver's fee per day
- Overtime and outstation rules, including the driver's meals and lodging
Show the customer one clear total. For transfers, price by distance and write down the pickup and drop-off area you cover.
7. Plan seasonal rates
Demand is not flat. Holy Week, long weekends, Christmas and school breaks usually fill cars at higher rates, and quiet weeks may need a lower one to keep utilisation up. Mark these periods on a calendar at the start of the year and set a rate for each, rather than reacting booking by booking.
8. Decide deposits and extra charges in advance
Surprises cause disputes. Write down, before the booking:
- Security deposit amount, what it covers and when it is returned
- Fuel policy (full to full is the simplest)
- Excess mileage charge, if you set a limit
- Late return charge
- Cleaning fee for heavy soiling
- Cancellation and change rules
9. Review your prices on a schedule
Costs and demand change. Once a quarter, recalculate your cost per rented day from your real numbers, check your utilisation, and look at the market again. Raise rates where cars are always booked, and look at why a car sits idle before cutting its price.
Putting it into practice with CarRentSaaS
Once you have your rates, CarRentSaaS applies them for you. You can set seasonal rates, flexible discounts for longer rentals and coupons, and transfers can be priced by distance. The AI chat assistant quotes those same rates to customers, so every quote matches what you decided. To see what slow replies cost you, try the ROI calculator.
Frequently asked questions
How much should I charge per day for a car rental in the Philippines?
There is no single right rate. Work out what each rented day costs you (financing or depreciation, insurance, registration, maintenance and cleaning, divided by the days the car is actually rented), add the profit margin you need, then check the result against what comparable cars with the same terms are offered for locally.
Should I charge less per day for longer rentals?
Usually yes. A longer rental keeps the car busy and saves you the idle days and turnaround work between bookings, so a modest discount per extra day, set in advance, is normally worth offering.
How much deposit should a car rental ask for?
Set it high enough to cover your likely excess or small damage, and low enough that customers do not walk away. State the amount, what it covers and when it is returned in writing before the booking.
How do I price a car rental with a driver?
Price the car and the driver separately: a daily car rate, a driver fee, and clear rules for overtime and outstation trips (driver meals and lodging). Quote them together so the customer sees one total.