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Cost of renting a car for a week down to £300 from £685 in August 

Cost of car hire plummets: Average price for renting a vehicle for a week down to £300 from £685 in August

Cheaper wheels: The average cost to rent a vehicle for a week is now £300, down from £685 in August

Cash-strapped families can save up to 50 per cent on their car hire this half term.

The average cost to rent a vehicle for a week is now £300, down from £685 in August, according to insurer iCarhireinsurance.com.

The study looked at the price of hiring a VW Golf with six rental firms, such as Europcar, Hertz and Avis, in holiday hotspots including Barcelona, Milan and Nice.

Barcelona was the cheapest place to hire a car, costing on average £208 for a week, compared with £609 in the summer. 

Booking at the last minute can also reduce costs, in some cases saving up to £150.

If you have already booked, you may be able to cancel and re-book at a cheaper price, but read terms and conditions first. 

And make sure to check the price of extras such as adding additional drivers to the policy or hiring car seats.

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