It is recommended that you reserve and book your rental car well in advance from home. Shopping around is essential if you want to find the best rates, and you're much better off to do this before you go. Most of the big rental chains (Hertz, Alamo and National, to name a few) have pick-up and drop-off centers in nearly every European country, so its best to go with one of them. You should also consult a company called Auto Europe, a consolidator of different rental agencies in Europe that can help you find the best price.
Ask lots of questions, be flexible and inquire about all fees. Car rental agencies are notorious for trying to slap you with hidden charges at the end of your trip, and they might even be worse in Europe. Ask about different scenarios and options. You may be able to get a better deal if you leave a day earlier, choose a different model or pick up the car in a certain country.Just know that your hard-fought efforts will pay off in the end if you are patient and shrewd. Avoid airport pickups wherever possible because they usually impose high taxes for rental cars. Also, renting by the week with unlimited mileage instead of daily rental is invariably the cheaper option.
Driving in Europe can be a dream come true or your worst nightmare. By all means, avoid driving in the big cities unless you absolutely must. Public transportation in Europe is affordable and will take you to all the places you need to go within the cities. However, if you want to explore the rolling hills of Tuscany or the tiny villages of Andalucia, driving is your best option. Try to arrange rail-and-drive passes wherever possible. These will allow you lots of flexibility so you can switch between trains and cars when it's convenient. Many places let you customize these passes according to your needs. Consider spending a few days in a big city without a car, then picking up your rental car on the last day so you can head to the countryside. When you pick up your car, always check for scratches, dents and other abnormalities and make sure this is squared away with the company before you pull out of the rental agency's parking lot.
If you are planning on traveling for an extended period (three weeks or more), you may want to consider leasing instead of renting. Believe it or not, you can save a ton of money by doing this because you get to skirt around many of the taxes and insurance fees. You also receive a brand-new car from the factory that is less likely to give you problems. These leases are generally available for up to six months with a 17-day minimum.
