Christmas and New Year Car Rentals 2026: Booking and Winter Tips
The stretch from Saturday, December 19, 2026 through Sunday, January 3, 2027 is the longest busy season of the rental car year. Schools let out, families head to ski towns and warm beaches, and Christmas Day and New Year's Day both land on Fridays this year, which means two back-to-back long weekends. Cars sell out at popular destinations, winter weather adds real risk, and holiday hours can turn a simple return into a problem.
This guide covers when to book, how to avoid being stuck without a car, what the rental companies actually allow when it comes to snow chains and AWD, how to protect yourself from winter damage disputes, and how to plan a return around New Year's Day.
How Busy the Year-End Holidays Get
AAA projected a record 122.4 million people would travel 50 miles or more from home between Saturday, December 20, 2025 and Thursday, January 1, 2026. That included about 109.5 million travelers by car and about 8.03 million domestic air travelers. AAA usually publishes its new year-end forecast in December.
In the same forecast, AAA reported that Hertz expected the first Saturday of the period (December 20, 2025) to be its busiest pickup day, with the most demand in Orlando, Los Angeles, Atlanta, Miami and Phoenix. Small SUVs were the most popular class, and domestic rental prices were running about 1% higher than the year before. The 2026 calendar lines up almost exactly, so expect Saturday, December 19, 2026 to be a peak pickup day.
INRIX data in that forecast flagged the afternoons of the weekend and weekdays leading up to Christmas, and the days between Christmas and New Year's, as the worst times to drive. Christmas Eve, Christmas Day, New Year's Eve and New Year's Day were expected to be light on the roads.
When to Book Christmas and New Year Rentals
Outside the holidays, last-minute rentals are often cheaper. NerdWallet's 2024 analysis found that booking a week-long rental three months ahead cost about 13.4% more on average than booking one week ahead. Over Christmas and New Year's, though, the bigger risk is not having a car at all, or being left with only the most expensive classes.
- Reserve now with a refundable rate. Pick a pay-at-pickup rate with free cancellation, so you can lock in a car without locking in the price.
- Recheck prices regularly. NerdWallet's advice is to cancel and rebook if the price drops below what you paid. Book the new reservation first, then cancel the old one.
- Reserve the class you actually need. If you need room for skis or a third row, book that class now. Upgrades are hard to come by when lots are empty.
- Skip prepaid rates unless the savings are large. Prepaid rates often carry cancellation fees, which make rebooking pointless.
Sold-Out Risk at Ski and Warm-Weather Destinations
AAA's top domestic year-end destinations for 2025 were led by Orlando, Fort Lauderdale, Miami, Anaheim and Los Angeles, Honolulu, Tampa, New York City, Maui, Dallas/Fort Worth and Las Vegas. Ski gateways such as Denver and Salt Lake City also see a surge of travelers who want SUVs and AWD at the same time.
Island and resort markets are the most likely to run out, because companies cannot easily bring in more cars. To lower the risk:
- Book early and keep the reservation. A refundable booking costs nothing to hold.
- Hold a backup. If you are worried about a sellout, a second refundable reservation with another company can be a safety net. Cancel the one you do not need as soon as you are sure, and check each company's no-show policy.
- Look beyond the main airport. Nearby airports and neighborhood branches sometimes have cars when the main airport does not. Our airport vs off-airport guide compares the trade-offs, and NerdWallet found off-airport rentals cost about 18.4% less on average.
- Arrive within your pickup window. A pay-later reservation does not always guarantee a car if you show up hours late on a sold-out day.
Heading somewhere specific? See our guides to Florida, Hawaii, Colorado and Arizona rentals, plus Fort Lauderdale, Tampa and Las Vegas airport guides.
Snow Tires, Chains and AWD: What Rental Companies Allow
This is where many winter renters get caught out. The rules are stricter than most people expect.
Chains are usually not allowed
Most major rental companies do not supply snow chains and do not let you put your own on their cars. Enterprise, for example, says it does not offer chains or traction devices and that they cannot be placed on its rental vehicles unless state law requires them. Enterprise adds that in Colorado, chains and traction devices are allowed during the state's Code 15 and 16 advisories. AutoSlash notes that nearly every major rental company has a similar policy, and that breaking the rental agreement this way can put your coverage at risk.
Snow tires are rare
U.S. rental fleets typically use all-season tires. Avis says snow tires are not available at any of its U.S. locations. Ski racks are offered at some locations, so ask ahead if you need one.
AWD is usually not guaranteed
Booking an SUV gets you an SUV class, not a promise of all-wheel or four-wheel drive. Ask at the counter, check the badge or the owner's manual before you leave the lot, and swap cars if the one you were given does not fit the trip.
State traction and chain laws still apply
Rental cars are not exempt from state rules. A few examples:
- Colorado: The state's Traction Law requires vehicles on state highways to have adequate traction equipment when it is in effect, such as AWD or 4WD with adequate tread, tires with a mud and snow marking, or chains or another traction device. CDOT lists a minimum tread depth of 3/16 inch on snowy roads.
- California: Caltrans uses three chain control levels. Under R-2, chains or traction devices are required except on 4WD or AWD vehicles with snow-tread tires on all four wheels, and those vehicles must still carry traction devices in chain control areas. Under R-3, chains are required on every vehicle with no exceptions.
Since rental companies often forbid chains, the practical answer is to rent a vehicle that already meets the rule (usually AWD or 4WD with suitable tires), check road conditions before you set out, and wait out a storm or change your route when the strictest controls are up.
Before a mountain trip, ask the rental location directly what it allows. Policies can vary by company and location, and the answer at the counter is what your agreement will reflect.
Winter Driving and Damage Documentation
Winter driving brings risks that can show up on your bill weeks later: windshield chips from gravel and sand trucks, curb rash from snow-covered curbs, scrapes from ice, and bumper damage from snowbanks. Road salt can also leave the car caked in grime, which hides existing damage at pickup.
At pickup
- Inspect a clean car, or ask for one. If the car is covered in salt or snow, you cannot see scratches. Ask for a cleaner car or note on the agreement that the car was too dirty to inspect.
- Photograph everything. All four sides, the bumpers, the wheels and tires, the full windshield, the roof if you can see it, and the interior. Get the fuel gauge and odometer too.
- Check the winter basics. NHTSA recommends working wipers, defrosters, lights and winter washer fluid. Ask for an ice scraper, and check tire tread if you are heading into the mountains.
During the trip
- Slow down, leave extra following distance and give snowplows room, as NHTSA advises.
- Keep the tank at least half full in cold weather. NHTSA suggests keeping it near full in winter.
- If something happens, photograph it right away and call the rental company. Do not wait until return.
At return
- Photograph the car again in the return lane, especially if it is still dirty or wet.
- If an after-hours drop is your only option, take extra photos, since the car may not be checked in until later.
- Keep your photos until well after the final charge posts.
If you do get a damage claim, our guide on disputing rental car damage explains what to ask for, and loss of use and diminished value claims covers two fees that often get added on. Check your coverage before the trip with our rental car insurance guide.
Returning on New Year's Day: Check Location Hours
New Year's Day 2027 is a Friday, and plenty of travelers plan to drop off that morning. Before you do, check the hours of the exact location on your reservation.
- Airport locations are the most likely to stay open on holidays. Enterprise says its airport branches allow after-hours returns and have procedures in place, and many are open around the clock.
- Neighborhood branches often close or shorten hours on Christmas Eve, Christmas Day, New Year's Eve and New Year's Day. Enterprise says non-airport branches generally require returns during business hours, an after-hours return is not checked in until the next business day, and you stay responsible for the car until then.
- Returning to a different location than you reserved can add a drop fee. Enterprise notes that dropping off at an airport other than the one you picked up from may cost extra.
- Plan around closures. If your branch is closed on the holiday, returning on December 31 or January 2 may be simpler and cheaper than a key drop. Our guides to returning a rental early and returning a rental late cover how each choice can change your rate.
Fee Tips for Holiday Trips
- Additional drivers: Add everyone who will drive. Many companies let a spouse or domestic partner drive free and some waive fees for loyalty members, but others charge daily. See our additional driver fee guide.
- One-way trips: Flying into one city and home from another can trigger a drop-off fee that rises with holiday demand. Compare companies and read our one-way rental tips and drop-off fee guide.
- Young drivers: College students home for break usually face an under-25 surcharge. See renting a car under 25.
- Tolls: Florida, the Northeast and parts of Texas and California have many toll roads. Rental toll programs often add a service fee on top of the tolls. Read our toll charges guide before you go.
- Fuel: Refill before you return, and skip prepaid fuel unless you will truly run the tank low. FillItRight compares refueling options and Road Trip Cost estimates fuel for a longer drive.
- Ski gear and luggage: Ski racks and car seats can carry daily fees. Plan your packing with PackItRight and choose a car with our car size guide.
Holiday Rental Checklist
- Now: Book a refundable reservation in the class you need, and join the company's loyalty program to skip the counter.
- Every week or two: Recheck prices and rebook if they drop.
- Early December: Confirm location hours for your pickup and return days, especially December 24, 25 and 31 and January 1.
- Before a mountain trip: Ask about AWD and chain rules, and check state road conditions.
- At pickup: Inspect and photograph the car with CheckItRight, add all drivers, and check the wipers, defroster and tires.
- At return: Refuel, photograph the car in the return lane and get a closed receipt.
Traveling for Thanksgiving too? See our Thanksgiving rental car guide.
Frequently Asked Questions
When should I book a rental car for Christmas and New Year's 2026?
As soon as your plans are firm. Book a refundable, pay-at-pickup rate so you can cancel for free, then recheck prices and rebook if they drop. Ski towns, Hawaii and Florida are the most likely to sell out.
Can I put snow chains on a rental car?
Usually not. Most major rental companies prohibit chains. Enterprise, for example, says chains cannot be placed on its rentals unless state law requires them, and allows them in Colorado during Code 15 and 16 advisories. Ask your rental location before your trip.
Can I guarantee an AWD rental car in winter?
Usually not. Most companies guarantee a car class, not a drivetrain. Book an SUV class, ask for AWD at the counter, and check the car before you leave the lot.
Are rental car locations open on New Year's Day?
Many airport locations stay open, often around the clock, but neighborhood branches often close or shorten hours. Check your exact location's hours. At Enterprise, an after-hours return is not checked in until the next business day and you stay responsible for the car until then.
Sources
- AAA: Year-End Holiday Travel Forecast 2025 (travel volume, Hertz rental data, INRIX drive times, top destinations)
- NerdWallet: When is the best time to rent a car?
- NerdWallet: Car rental at the airport, is it cheaper?
- Enterprise: Can I rent a car with snow chains?
- Avis: Equipment FAQ (ski racks and tires)
- AutoSlash: How to handle snow and ice in a rental car
- Colorado DOT: Traction and chain law FAQ
- Caltrans: Chain controls
- NHTSA: Winter driving tips
- Enterprise: Can I return my rental car after hours?
Figures checked October 2026. AAA's figures are from the 2025 year-end holiday period, the most recent with published data; AAA typically releases its new forecast in December. Rental policies vary by company and location, so your rental agreement always controls.