The cheapest car rental companies in Memphis operate from the airport and downtown

The lowest rates in Memphis typically come from Enterprise, Budget, and Hertz, all of which have multiple locations around the city. Airport locations (Memphis International Airport, code MEM) usually charge more per day than off-airport branches, so renting from a downtown or midtown lot can save $10 to $20 daily. Budget and Enterprise both have locations on Poplar Avenue and near Germantown, away from the airport premium.

National and Alamo also operate in Memphis and sometimes undercut the big three on specific dates. The actual cheapest option on any given day depends on your rental dates, car class, and whether you need insurance—comparing prices across all five takes five minutes and often saves more than choosing a brand first.

Rental car prices in Memphis fluctuate based on demand. Weekend rates are usually higher than weekday rates, and rates spike during Memphis in May festival week (typically mid-May) and around holidays. Booking at least three days ahead usually locks in a lower rate than same-day rental.

Key Takeaways

  • Enterprise, Budget, and Hertz have the most locations in Memphis and often the lowest base rates, but you must compare prices across companies for your specific dates.
  • Renting from an off-airport location (Poplar Avenue, Germantown, downtown) costs $10 to $20 less per day than renting from Memphis International Airport.
  • Weekday rentals are cheaper than weekend rentals, and booking three or more days ahead usually beats same-day pricing.
  • Your insurance choice—declining the rental company's coverage, using your personal auto policy, or buying their damage waiver—changes the total cost significantly and is worth confirming before you book.

How to compare prices across rental companies

Use a price comparison site like Kayak, Autoslash, or Priceline to enter your pickup date, return date, and location all at once. These sites pull rates from Enterprise, Budget, Hertz, National, Alamo, and sometimes smaller operators, and show you the total cost including taxes and fees—not just the daily rate. The total cost is what matters, because a $25-per-day car with $50 in fees costs more than a $35-per-day car with $10 in fees.

After you see the comparison results, visit the rental company's own website and search the same dates. Sometimes the company's site shows a lower rate than the comparison site, or offers a discount code that the comparison site does not display. Write down the best price from each source before you book.

Check whether your personal auto insurance covers rental cars, and whether your credit card offers rental car damage coverage. If either does, you can decline the rental company's damage waiver and save $15 to $25 per day. Call your insurance company or check your card's benefits guide before you rent—do not assume coverage exists.

Off-airport locations that undercut the airport

Memphis International Airport (MEM) adds a facility charge to every rental, which is why the same car costs more there than at a branch five miles away. Enterprise has locations on Poplar Avenue near the medical district and in Germantown on Poplar Crossing Drive. Budget has a downtown location on Union Avenue and another on Poplar. Hertz operates a location on Poplar as well.

If you are flying in, you have two options: rent at the airport and pay the facility charge, or take a $15 to $25 rideshare to an off-airport location and save $10 to $20 per day on the rental itself. For a three-day rental, the rideshare cost usually breaks even or comes out ahead. For a week-long rental, the savings are substantial enough to make the trip worthwhile.

Some travelers also rent from a location near their hotel or workplace instead of the airport, which avoids the airport premium entirely if they are not arriving by plane. If you are driving to Memphis or staying for a few days before renting, this is the cheapest approach.

What to watch for in the fine print

Rental companies in Tennessee charge a state tax of 7% plus a local tax that varies by location—Memphis adds an additional 2.75% rental tax on top of the state rate. These taxes are included in the total price shown on comparison sites, but the daily rate shown separately does not include them. A $30-per-day car actually costs about $32 per day after tax.

Fuel charges are a common hidden cost. Most rental companies offer three fuel options: prepay for a full tank at a discounted rate, return the car with a full tank yourself, or return it empty and pay the company's per-gallon rate (usually $6 to $8 per gallon, much higher than gas station prices). Prepay is cheapest if you will use most of the tank. If you might return it half-full, returning it yourself at a gas station near the rental location is usually cheaper.

Mileage limits explore to some budget rentals. Check whether your rate includes unlimited miles or has a per-mile charge. If you are driving outside Memphis—to Nashville, Arkansas, or Mississippi—unlimited mileage saves money. Most Memphis rentals include unlimited miles, but confirm this before you book.

Rental car insurance and damage coverage explained

The rental company will offer you a damage waiver (called Loss Damage Waiver or LDW) that costs $15 to $25 per day and covers collision and theft damage. You do not have to buy it. Your personal auto insurance likely covers rental cars, and many credit cards offer rental car coverage as a cardholder benefit. Before you rent, call your insurance company or check your credit card's benefits guide to confirm what is covered.

If your personal insurance covers rentals, decline the rental company's waiver and save the daily fee. If your insurance does not cover rentals but your credit card does, decline the waiver and use the card's coverage. If neither covers rentals, buy the rental company's waiver—the risk of paying out of pocket for damage is too high.

Some credit cards cover only collision damage, not theft. Some insurance policies exclude rental cars. Read the actual policy or benefits document, not a summary. A five-minute phone call to your insurance company or credit card issuer before you rent saves you hundreds of dollars if damage occurs.

When to book and what day of the week costs least

Rental car prices in Memphis drop on weekdays and rise on weekends. A car that costs $35 per day Monday through Thursday might cost $50 per day on Friday, Saturday, or Sunday. If your travel dates are flexible, renting Monday through Thursday is cheaper than renting Friday through Sunday.

Booking three to seven days ahead usually locks in a lower rate than booking the day before or the day of. Prices can change multiple times per day, so if you see a rate you like, book it rather than waiting. You can usually cancel or modify a reservation without penalty up to 24 hours before pickup, so booking early and watching for price drops is a low-risk strategy.

Avoid renting during Memphis in May festival week (typically May 10–20), graduation season (May), and major holidays (Thanksgiving, Christmas, New Year's). Rates during these periods are 50% to 100% higher than normal. If you must rent during these times, book as far ahead as possible.

Frequently Asked Questions

Is it cheaper to rent from the airport or downtown?

Downtown and off-airport locations are cheaper. The airport adds a facility charge of $5 to $10 per day. For a three-day rental, the difference is $15 to $30. If you are flying in, a $20 rideshare to an off-airport location usually pays for itself in savings.

Do I have to buy the rental company's insurance?

No. Your personal auto insurance or credit card benefits likely cover rental cars. Call your insurance company or check your card's benefits guide before you rent. If you have coverage, decline the rental company's waiver and save $15 to $25 per day.

What is the cheapest day of the week to rent a car?

Weekdays (Monday through Thursday) are cheaper than weekends. A car renting for $35 per day on a Tuesday might cost $50 per day on a Saturday. If your dates are flexible, choose weekdays.

Should I prepay for gas or return the car with a full tank?

Return the car with a full tank yourself at a gas station near the rental location. Rental companies charge $6 to $8 per gallon, far more than gas station prices. Prepay only if you will use almost all of the tank.

Can I cancel or change my reservation after I book?

Most Memphis rental companies allow free cancellation or modification up to 24 hours before pickup. Check your confirmation email for the cancellation policy. This means you can book early to lock in a rate and cancel if you find a better price later.