July 25, 2025
Travelers Turn to EVs and Digital Payments to Save Money
New data from CarTrawler shows that summer travellers are increasingly renting electric vehicles and using digital payment methods in a bid to reduce costs and gain more flexibility.
According to the Q2 2025 Car Rental Market Monitor, rental demand in the U.S. is cooling as consumers tighten their summer travel budgets.
Inbound tourism to the U.S. has dropped by up to 10%, and more Americans are staying domestic and choosing road trips over expensive vacations abroad. That shift is driving down the average price of a five-day rental in the U.S., now at $531—8% lower than in 2024.
Diverse EVs offering
While overall rental volumes may be flattening, travellers are changing how they book. In North America, electric vehicles accounted for 5% of all car rentals, reflecting sustained interest in EVs. Tesla continues to dominate this category, making up 59% of all electric and hybrid bookings in the region. In Europe, where EVs make up just under 3% of rentals, the offering is more diverse. Brands like Toyota, Kia, Cupra, Renault, and Polestar are all gaining traction, especially as more competitively priced Chinese EVs enter the market.
Beyond vehicle choice, more payments are becoming digital, particularly in Europe. While credit cards remain dominant in the U.S., digital wallets and flexible payment options are top choice in the EU. Apple Pay usage hit 4.5% of all rental transactions in Q2 (over 10% in the UK in June), with Klarna and Google Pay also growing their share.
Gavin Sweeney, CarTrawler’s Chief Revenue Officer, said: “Car rental holds steady despite macroeconomic uncertainty. Domestic road trips in the U.S. and strong demand for sun destinations across Europe are maintaining the global car rental market’s momentum. As traveller behaviours evolve—toward electric vehicles and flexible payment options (like digital wallets and BNPL)—car rental continues to offer both adaptability and opportunity for travel brands looking to stay relevant and drive ancillary growth.”
