After Ben Harris dropped off his Mazda 3 rental at the airport in Maui last December, a Hertz agent pointed to some scuffed paint on the underside of the front bumper. Although the employee asked Harris to fill out an incident report, he assured Harris that it was just a formality and that he wouldn’t get a bill for the damage.
But six months later, Harris received a repair bill for $570. Among the charges was a $62 fee for “loss of use” – a fee that Harris, a physician from Chicago, considers “unreasonable.”
Some drivers agree. Rental companies used to write off the time a car spent in a garage as an expense. But shrinking profits forced them to add a loss-of-use charge to their repair bills, which allows them to recover the revenue they would have collected if the vehicle had been rented.
“Car rental companies were leaving tens of millions of dollars on the table by not collecting loss-of-use charges,” says Neil Abrams, a car rental consultant. “I think there’s a recognition that there’s a legitimate responsibility of the renter that extends beyond the rental of the vehicle.”