New research from TravelSupermarket has revealed that car hire is now up to 45 per cent cheaper than two years ago for key holiday periods in 2012. Car hire prices across Malaga, Alicante, Murcia, Palma, Tenerife and Faro all saw a drop in price from 2010 across Easter and Whit Week, with six of the eight also offering significant discounts in August.

The biggest savings were found during Whit week where prices were an average 26 per cent cheaper across the eight destinations. Car hire in Spain is a huge 34 per cent cheaper during the popular holiday week in 2012 compared to the same time in 2010, when booking on TravelSupermarket. The lowest price for a mini economy car in Malaga is £63.89 for eight days, a saving of 44 per cent on 2010 prices. This works out less that £8 per day.  A medium family car in Alicante is £82.59, a huge £66.30 (45 per cent) cheaper than two years before.

In August, a peak holiday time for families, there is a similar story, with prices on average 17 per cent lower than in 2010, whilst Spanish destinations came in at a significant 27 per cent cheaper than two years ago. Only Heathrow (one per cent) and Nice (two per cent) showed marginal increases in the peak month of August. The start price for a people carrier in Palma is £186.11 for a week, 40 per cent cheaper than in 2010. A family car in Faro starts at £238.06, a significant £103.12 (30 per cent) cheaper than in 2010.

Finally, it might only be a matter of weeks away but the Easter period also offers strong reductions. Overall, prices were down by almost eight per cent, with Spain and its islands 22 per cent cheaper than in 2010. A mini economy car in Palma is available from £85.00 this Easter compared to £128.60 two years ago, a saving of 33 per cent. Start price for a large family car in Tenerife is £127.35, 40 per cent cheaper than in 2010 when the same car cost £211.62.