Renting in Germany is usually cheaper - but if you drop it in a different country - there is usually a drop-off charge - which may be significant. (Shop around before you organize your rental). Also - Alsace is in France and Geneva is in Switzerland. As nytraveler says, Germany is usually the cheapest option.

In 2026, France is generally slightly cheaper for car rentals than Germany, though the total cost depends heavily on secondary fees like insurance and tolls. According to recent market data, the average base rate for a compact car in France is around $15–$19 per day, compared to $17–$37 per day in Germany, particularly in major hubs like Munich or Frankfurt. However, Germany offers one major financial advantage: the Autobahn system is free for passenger cars, whereas France’s extensive "Autoroute" network relies on expensive tolls (péages) that can easily add $50 to $100 to a week-long road trip. Additionally, both countries have high Value-Added Tax (VAT) rates—19% in Germany and 20% in France—which are usually included in the initial quote. If you plan to drive into a city center, Germany’s "Environmental Zones" require a low-cost sticker (€5–€10), while France’s "Crit'Air" system has similar requirements. Ultimately, while France wins on the daily rental price, Germany often proves more affordable once you factor in the "total cost of movement" across the country.