Can this trip be saved? Budget wants $8,381 for a four-day rental

I‘ve seen high car rental bills, but the one Fareeda Elqatto just got from Budget is in a class by itself.

She rented a Chevy Cobalt for four days in Akron, Ohio, and when the car broke down because of an engine problem caused by a filter leak, the car rental company asked her to buy a new engine. Elqatto hadn’t purchased car rental insurance from Budget, so in the company’s view, either she — or her car insurance company — was on the hook.

But is that fair? Elqatto says Budget is to blame for giving her a car with a mechanical defect.

“They are trying to say the filter leak was my fault, which is completely false,” she says. “I drove that car with much care and trusted that it was given to me in good condition.”

I know next to nothing about cars, which is one reason I’m asking for your help with this case. The driver had the car for only a few days before it stopped working. Can a negligent driver cause a filter leak, and should Elqatto be held responsible for what happened? Or was this a “pre-existing” condition, which Budget should cover?

The other reason I’m writing about this problem is to warn you: Car rental companies are pursuing their customers for every ding, dent, scratch — and blown-up engine. You are guilty until proven innocent. Although this may be an extreme example, you need to protect yourself when you rent a car by carrying reliable primary insurance, otherwise you could be sent a bill for eight grande.

Here are a few details from Elqatto’s rental. After she picked up the car in Akron, she and her mother drove to Canada, where it worked fine for several days.

It was only on the way back to Ohio when the car started having issues.

The temperature and “check engine” light came on at the start of our trip and when it did, I utlized the OnStar service the car had installed to determine what was wrong.

OnStar concluded — after performing a car diagnostics — that there was an issue with the engine and that I should probably get the car to a dealership within a week’s time, but that it should be fine for driving till then.

The “check engine” light and temperature signs ended up going away after a few minutes of idle time so after hearing OnStar’s advice, I started driving again.

No less than 10 minutes of highway driving later, the car broke down.

Elqatto and her mother had the car towed to a Toronto dealership and within four hours, they had a new car and were on their way back to Akron. A week after returning the vehicle, they received an $8,381 repair bill from Budget. According to the company, that’s more than half the base value of the Chevy Cobalt, which, needless to say, is a lot of money.

The claim has pictures of her car and its engine, which both appear to be undamaged, and suspiciously, the damage type says “collision” even though there was none.

She adds,

They kept insisting that I fill out an incident/accident report when I returned the car, but I refused, because that would be admission to guilt. Now they have sent their claim to a collection agency.

I had to hire a lawyer to respond to their letter on my behalf. My insurance will not cover rental mechanical issues.

Please help.

What should I do?

I agree with Budget that a customer should be responsible for what happens to a car while in his or her possession. But typically, that applies to visible, exterior damage like a cracked windshield or dented bumper. Properly maintaining the car is the agency’s responsibility. If there’s a chance Elqatto’s vehicle hadn’t been properly maintained, shouldn’t Budget share some of the blame for the blown-up engine?

Should I mediate this case? Survey says …

I’ll take that as a “yes.” I’ve contacted Budget.

Update (1/27): The case is solved. Elqatto just received the following note from Budget.

Please allow this letter to serve as confirmation that we are in receipt of your e-mail dated Nov 3rd, 2010 to a Mr. Christopher Elliott.

We have reviewed your e-mail as well as our billing documents with our Attorney, Yates & Schiller. It is our Attorney’s recommendation at this time that we close this claim. We are no longer requesting payment from you.

(Photo: Mother He art/Flickr Creative Commons)

  • LonnieC

    1. Yes, you should mediate, but only if “mediate” means that you will settle for nothing less than complete relief for the renter, and hopefully, for recovery of all of her defense costs. This claim appears obscene.

    2. There may be a problem with the design of certain non-manufacturer replacement oil filters for the Cobalt. At least one site mentions a missing O-ring, which could cause leakage. And certainly not the fault of the renter.

    3. If the renter is held responsible for this damage, then our only recourse in the future is to insist that every time we rent we are given a copy of the maintenance records for the vehicle, a chance to get the car on a lift, put up the hood, check all of the systems, etc. I’ll bet that would slow down the rental process….

  • Roger

    As other’s have stated, something is not adding up here.

    1) What type of filter are we talking about? We are assuming oil filter because that is the only type of filter that will make a stop running and cost that much to fix. But I don’t see an oil leak causing an overheated engine.

    2) If it was the oil filter, there should have been plenty of warning that something was wrong (Namely, dash board “idot” lights, oil pressure gauge (if equipped), and more than likely the smell of burnt oil as it leaked onto hot engine components. Oh, and let’s not forget the noise an un-lubricated engine makes.

    3) If it was not the oil filter then there was something else wrong with that engine. An over-heated engine can seize up, but there is no “Water Filter”. There would have had to be a coolant leak, or stuck thermostat.

    4) No other type of filter in the car can cause this type of damage.

    5) If On-Star was able to do some sort of remote diagnostic, then they probably have that data recorded for liability reasons. Even if the extent of their diagnostic was to read the fault codes from the engine management computer, then that data would at least identify which warning bulbs were illuminated on the dash, as well as engine temperately.

    6) I find it hard to believe that On-Star would have advised continued driving if the engine temperature was above the normal range. Is there a coolant temperature gauge in that model vehicle?

    The renter should not be responsible for mechanical issues with a rental car. However, if the renter continues driving after witnessing evidence that something major is wrong, then perhaps they should share some responsibility.

    I cannot see how the engine damage so severe would not have exhibited symptoms that even an novice driver wouldn’t recognize as danger signs.

    Roger

  • Roger

    Sorry about the typos in the previous post. Spell check was “helping”.

    “engine temperately” sheesh!

    - Roger

  • FJP

    There is absolutely no way the customer caused the underlying mechanical problem. Not like she was off-roading through the Baja or anything. Nor did she continue to drive with an obvious problem and cause additional damage. OnStar should have a record of the call to back up the customer’s position.

    Nobody’s auto insurance will cover this. Think about it, does your insurance cover you if your own car breaks down?

    My other question is should this have been covered by the factory warranty? Or do normal factory new car warranties not apply to rental fleet vehicles?

  • CAV

    Not surprised about Budget- rented a vehicle from the several months ago & had a heated exchange with one of their employee about the full tank- I had filled it up a half mile away upon returning it- She said it wasn’t full & would charge me $10.00/gallon for any gas she could put in & would not let me back to watch. I showed her the receipt but she didn’t care- so I took it back to the station & put another $.39 cents in it (half of which ran down the side of the car)- she STILL thought it wasn’t full- I told her if she charged me for any additional gas I would personally write a scathing letter to her employers about already being inconvenienced with her namr highlighted. (probably should have done that the first time!) Needless to say, when I read this story about Budget’s assinine position, I wasn’t surprised. The funny thing is I work in insurance and have a Budget office very close by- I used to send them several customers a month, but not anymore!

  • Joe Farrell

    55 comments and the only common sense one I could find was Tom, [http://www.elliott.org/blog/can-this-trip-saved-budget-wants-8381-for-a-four-day-rental/comment-page-1/#comment-61052]

    The answer here is simple: If the oil filter was damaged by a collision with something – then that collision would have done significant damage to the vehicle – oil filters are not located in a location in any modern vehicle where a casual rolling over a bump, a rock or anything like that would have damaged a filter, oil, air or otherwise.

    Next, if she did roll over a rock, stone, boulder, other vehicle, small Japanese car, Segway, old guy in a wheelchair or any other obstacle that would have caused sufficient damage to the oil pan to cause a leak that would drain all of the oil out of the engine, then that damage would be unmistakable. It would not be from a ‘filter.’

    The problem now for Budget in any subsequent action is that they will be forced to change the explanation, which makes their initial demand look incompetent, fishy, or a scam attempt –

    At this point – a well drafted letter pointing this out will resolve the problem -assuming they have a quasi-intelligent attorney on staff . . .

  • http://homesbyaz.com AbdulHadi

    Budget got no claim, they should issue a full rental refund and an apology for this customer. Even if they took this customer to court and budget won, this case will cause them to lose business, bad reputation and a lot of money to be spent on P.R to fix their image. Budget should use this case in their (marketing) advantage by proving to their customer that budget appreciate them. If this location is a franchise I’m 100% sure they will be losing the licencing agreement with corporate over this case.

  • Meredith

    The renter made one mistake. As soon as the Check engine light came on, they should have turned that vehicle around and brought it back to the outlet and not driven it.

    The engine issue is Budget’s responsibility and no matter what Onstar said, they are NOT ASC certified mechanics. They are customer service reps reading from a script. OnStar is great for emergency response, but the renter should not have relied on them for this issue.

    Knowing there was an engine issue and continuing to drive may have complicated this issue unnecessarily.

  • Meredith

    And by complicating the issue, I mean by exacerbating the engine issue. That becomes the drive’s responsibility. They were aware there was an engine issue and continued to drive after advice from a Non-ASC Certified person said it was okay.

  • Thomas

    @ Joe Farrell

    You must have missed my post as well as others. Several of us noted the possibility of a “collision” with an object that damaged the filter.

  • Bill Doran

    This is just another example of companies trying to extract every nickel they can from their customers . When are they going to learn the providing an excellent product at a fair price presented i an upfront manner with no hidden charges,and providing excellent service including fixing problems withthe product they provided will get them customer loyalty , profits andincreased market share. Based on this incident I would not rent from Budget

  • Mike Z

    @Arizona, “What type of filter are we talking about? A car has an air, fuel and oil filters. If it was an oil filter leak, the oil light will come since the engine will be low on oil. ”

    the only filter leak that can make an engine seize is an oil filter. Also, many new cars don’t have oil guages or oil lights. On some cars, the check engine light will come on if it is a problem you can continue driving with. if the check engine light starts flashing, you’d better pull your ass over.

    @ Charles, oil not only lubricates an engine but also provides cooling. Many, if not most new cars these days have additional oil coolers as cooler oil extends the life of the engine and reduces any sludge buildup. A non lubricated engine will run hotter and it is possible that the lack of oil caused a gasket problem. In fact, it is completely possible that a head or engine block cracked, allowing oil from the oil passage to flow into the coolant. It this was to happen, the car would definately over heat and the engine would be toast. Additionally, most GM engines run normally with oil pressure above 40-50psi. They have low pressure switches but those generally won’t shut off an engine until after the pressure is well below 10psi. In fact. a GM manual I read once specifically stated that the pressure is normally around 40, but could be as low as 15psi. So it is entirely posible that a car sitting at idle would allow enough oil to drain back to the pickup to generate the needed 10psi or so required to make the light go off.
    A lot of people are saying that the car should be under warranty. That would only be the case up until the first oil change. After that, the responsibility would lie with who did the last oil change, if indeed it was the filter that caused the problem. A lot of others are asking why the car was returned to a dealership. Perhaps it was because the car was a 2010 and this is where the tow driver was told to take it. The OP would not be responsible for the tow anyway and would not have personally called the tow company.

    Personally, if the OP did call On-Star and the rep said go ahead and drive, then the responsibility is on the rental agency. If they don’t want On-star being involved with their vehicles, then they shouldn’t allow On-Star to be activated.

    I also remember reading a story here a year or so back where the renter hit something in the road and was told to pay for the repairs. In that case I do believe they did, even though I would have fought it. In this case, there is no evidence of damage from the renter and either GM or Budget is on the hook for the repairs.

  • dcta

    Wait. It was only a short time after she picked up the car? I would have called Budget right then and there and told them the Engine Light is on and asked what to do – not OnStar! Then you get the name of the person at Budget who either tells you to wait for a tow truck, return the car, or drive it….

    This has actually happened to me a few times (3) in the past year and a half and I just took the car back to Avis, advised them of why I was uncomfortable and got another car.

    I’m sorry, I just don’t get it.

    Having said that – if they engine seized up, then there was a long-term problem there – that did not happen over night or even in a matter of a hour.

    I still don’t understand why she called OnStar and took their advice on this.

  • Jim H

    This reminds me of a relative’s experience. Her car was totalled in an accident, and the insurer directed her to a specific car rental agency with whom they have a business relationship. The rental agency claimed that the last time she rented a car, five or six years earlier, there was a scratch (which she says is not so). They made her pay for the damage before renting.

    She protested that they had never told her of any damage, when she returned the car or after. They replied that it’s too expensive to pursue small claims, so they wait until you rent again. Since she was stranded at the rental agency, she agreed.

    After a day or two, the check engine light went on. She called and they said not to worry about it. My advice (especially given their “claim” when she rented) was to return the car anyway and ask for another one, so that they wouldn’t say later that she blew up the car.

  • brownlunchsack

    I’m not sure what I’m missing here, but doesn’t the car have a 10 year/100,000 mile warranty from Chevy? The issue sounds to me like something that Chevy is responsible for. As a former rental car employee, I can tell you that “normal maintenance and wear and tear” fall on the company, not on the renter. Things like flat tires were deemed the renter’s responsibility, but if a car broke down, assuming no negligence on part of the renter, the renter’s only responsibility/cost as outlined in the Rental Agreement (RA) was to get it towed to a location that would be specified after calling the number on the RA, typically a major branch or airport location (I worked at a non-major branch that dealt mostly with people who’s cars were in the shop).

  • MikeZ

    Disregarding the specifics of this situation, I think your opinion of who is liable for wear and tear damage may be substantially different than travelers. Suppose Budget rented a car with 140K miles on it. If the timing belt fails and the engine goes, I don’t see any way it is the drivers fault. Even if the the belt was inspected 1000 miles ago and changed 10K miles before that. This just isn’t the drivers fault. Cars get old and bad things can happen. That isn’t a question of a pre-existing condition OR improper maintainence, but it still doesn’t seem like the drivers responsibility.

    This really seems like it should be an issue between Budget and Ford assuming the above facts are true and car went from fine to dead in a short period of time.

  • Texas Road Warrior

    By all means mediate this. Several times when I use to rent from Budget the check engine light would come on before I had exited the airport property. I would take the car back only to be told “the car is Ok, don’t worry about it”.

    Rental companies no longer maintain their fleets like they once did and their only goal is to “turn” the vehicle as often as they can rather then provide the customer a quality product. Ralph Nader has been writing about this for years and no one has listened.

    When the vehicle finally malfunctions they try to hang the repair bill on the last person who rented the vehicle. Unless there was an accident the renter should not be responsible for any repairs under the hood. It’s the responsibility of the rental company to see that the engine, transmission and other parts are properly inspected and serviced after each rental.

    This is paramount to billing the last person to use an elevator for the repairs when it malfunctions.

  • Steve

    I’ll add to the chorus and say that this case sounds incredibly fishy, is worthy of mediation, and I hope it’ll be resolved in the consumer’s favor.

    The only other thought I have is that she made a mistake by calling OnStar rather than calling Budget and insisting on returning the car and getting another one. I’m in no way blaming her for the root issue since it seems incredibly unlikely that she caused the mechanical issue, but unfortunately she made this more complicated by continuing to drive the car even if she thought it was okay to. If I rented a car and shortly after picking it up anything like this happened, I’d refuse to drive it any further. But again, that doesn’t change the fact that Budget is almost certainly out of line here.

  • John

    If this were a case of damage to say the oil pan causing
    the engine to seize up it would be different but a problem with a
    filter? I’d say the problem was with Budget’s maintenance of the
    vehicle.

  • Joe Farrell

    folks – one last point – new car warranties – Almost every
    vehicle sold by any car maker to a car rental company does not come
    with a new car warranty . . .. the car rental company agrees to be
    responsible for break downs and maintenance in exchange for much
    cheaper prices. . . . the cars are sold at wholesale for commercial
    purposes- there is no consumer new car warranty folks . .
    ..

  • DaveS

    In the article you talk about carrying insurance. It
    doesn’t seem at all likely this is even anything insurance covers.
    Is this horror story related to sales pressure these companies
    exert to get people to buy their overpriced CDWs? Are they trying
    to get the public so scared they’ll buy it? Of course, mediate it.
    Budget owes this customer a full refund of all costs for the
    inconvenience their poor maintenance created for her.

  • Fareeda

    Thank you, Christopher, for taking this under and helping
    me. I want to address a few of the questions people had about my
    case I rented the car from Akron, OH to drive up to Canada for a
    mini family reunion. The vehicle issues and break down occurred on
    the drive back from Canada to the U.S on Labor Day. When the light
    came on in the car, I tried calling the Budget office I rented the
    car from, but since it was a public holiday in the U.S, the office
    was closed. So I utilized the car’s Onstar service to determine
    what needed to be done. Onstar then contacted Budget of Canada, who
    then (very reluctantly) had the car towed to the nearest Chevy
    dealership. The tow truck man was nice enough to give us a ride to
    the dealership where the vehicle was being towed (which was also
    closed). My mother and I had to then find our own transportation to
    an open Budget franchise in Canada to get a replacement rental,
    since budget refused to offer any assistance with the matter.
    Lastly, I want to add that I did in fact mention to Budget of Akron
    that I was taking a trip up to Canada and that was why I was
    renting a vehicle in the first place – to avoid putting mileage on
    my own car. None of the paperwork I signed said I couldn’t drive
    the car to Canada and I was even given was a verbal ‘ok’ from the
    Budget employee when I told her I was going to Canada. On another
    note having to do with the vehicle- Budget of Akron had actually
    given my reservation for a standard away to another customer. I was
    instead given the Chevy compact that had just been returned by
    another customer. I had no other options at that point as it was
    late in the day and the rental agency was closing. To make matters
    worse – the car actually smelled so terrible that we had to
    purchase an air freshener to withstand the drive. I hope that
    clarifies why I took the measures I did at the time. Thank you all
    again.

  • Thalassa

    Did she have the car towed to a Budget dealership, or a
    Chevy dealership? And at what point did she contact Budget? Also,
    she should have filled out the “incident” form. That’s not
    admitting guilt, it’s clarifying the incident about what happened
    when the car broke down. I’m glad you’re mediating this one Chris,
    and can’t wait to hear how it all turns out!

  • Carrie McLean

    When my rental car had a light come on that I didn’t
    recognize, I looked for the manual. There was none in the glove
    compartment. How can we know what to look for if we don’t have the
    proper information? My Kia didn’t have OnStar. Turns out the right
    front tire was losing pressure and finally went flat. Alamo
    apologized and refunded my rental fee. Yea Alamo!

  • http://www.neotravel.com/deals/coupons_budget.php Neo

    It’s possible that the Akron location that Fareeda rented
    from isn’t a Budget corporate location, and it’s the private
    owner/operator that’s being the jerk in this situation, not
    corporate Budget.

  • Colleen

    Based Fareeda’s further explanation of what happened I would say that she did everything right: contacted OnStar since they could probably do an immediate diagnosis of the problem, notified Budget that there was a problem and allowed them to decide where the car should go (and pay the tow company). How horrible that they would not even take her to an office to get a new car, that they had her left stranded at a closer car dealership in a foreign country.

    I find especially interesting the point that the car had just been returned and smelled horribly, that makes me think that Budget did not check over the car before sending it out and that the prior renter did not care too much how they took care of the car. That leaves open the possibility that the prior renter either did damage to the car to cause this problem or may have ignored a check engine light as they did not want to be bothered/blamed. Even if that’s all just a wild guess, I don’t see how Budget could try to claim the car was given to her in working condition if they didn’t actually check it and so without any proof of negligence on her part and this being more of a maintenance issue, I am now more convinced that trying to pin the blame on her is unreasonable and this needs to be mediated.

    Also I tend to agree that the office in Akron (and possibly the one in Canada) are franchises and either the bill is coming directly from them or that this has been passed to Corporate to be billed but they have not been given her side of the story.

  • Mike Z

    Wow, after the follow up by Fareeda, I think that Budget not only needs to drop the claim, but also refund her the rental AND pay for the rental that she had to obtain from the other company. The rental agency’s actions here are beyond comprehension.

  • Josh

    The only thing I think Fareeda might have done differently is directly call Budget’s “Roadside Assistance” number (800-354-2847 from budget.com); I always look for that number somewhere on the rental agreement or folder. I’m surprised OnStar didn’t automatically transfer her there; they must have a way for the car owner (Budget) to register contact information like that.

    However, this doesn’t change the situation or make it any more her responsibility — using the Onstar button Budget provided in the vehicle should be enough, and Budget’s Canada people should have been able to contact the US people as necessary.

    Again, Fareeda, we all have your back, and please keep us up to date.

  • Joe

    Wow. Sometimes you read things like this and you know they’ll end up on the internet. Doesn’t Budget have someone employed that would say “woah, wait a minute, this could turn into a nightmare so let’s nip this in butt now”.
    Instead they blame a defect of the vehicle on the driver? Unless Budget retorts the claim and inquiry from Chris the writer lied and there was damage to the vehicle, I cannot comprehend how Budget can act in such a fashion.
    I think a lot of the times when I read stories like this on Elliott.org I have to wonder if these companies such as Budget, Expedia, Travelocity etc. actually have human beings who review these types of major problems or they don’t care to the point were some senior level executive has to intervene, apologize and make nice when the stinkbomb goes off and sets off an alarm.
    I rented car from enterprise and the battery died due to a defect that was caused by malfunctioning switch that didn’t turn off the headlights when the engine was turned off even if the headlights switch was turned off. I filmed the return of the vehicle for an exchange vehicle to prove the defect. They still tried to make me pay for the battery in which I retorted I had video evidence that could go up on Youtube in three minutes.
    End result: Free rental and 50 bucks off my next one. So does everyone have to go nuts like I did for fair treatment? No.

  • cjr

    Here’s to hoping that this is truly the end of this, and we don’t get yet another follow up down the road that the left hand still doesn’t know what the right is doing.

  • BucksterSF

    I was expecting the law firm to be Dewey, Cheetem, and
    Howe. Glad this resolved.

  • Stark

    Its just going to happen to someone else until someone takes these criminals to court and sets precedence on cases like this. There will many more victims and horror stories at the hand of Budget unless someone makes an example of them in court.
    Notice how they backed off with no retort whatsoever when they realized a lawyer and a mediator were involved. They didn’t even apologize or offer any kind of conciliation for Fareeda. They just backed off so they can look for the next victim who isn’t as strong and scare them into paying whatever they demand.
    Thank you Chris for helping Fareeda resolve this case.

  • Brandonscurrey

    I am going through this EXACT SAME ISSUE. My rental from Budget overheated. I pulled over immediately and called. Today I got a bill for $8100. I told them I wanted an independent inspection – they said the car had been sold at auction!!!!

  • Stark

    What did I say? They found there next patsy. Sue sue sue!!! Its the only these monsters will learn there place