Car rental absurdities I’d change if I could

Not a day seems to go by that I don’t hear from an angry car rental customer — folks like Craig Solomon, who rented a car in England from Avis for two weeks recently.

“Toward the end of the rental one of the tires blew out,” he says. “It ultimately cost about $500 to replace, and Avis has been unwilling to date to accept the responsibility.”

The way Solomon sees it, Avis should have rented him a car with good tires. He wasn’t taking the vehicle off-roading, and had driven it safely and never gotten so much as a parking ticket.

“The repairman wrote onto the service receipt that the tire was punctured due to very low tread showing, and he told me Avis would try to charge me, but that it was definitely not my fault,” he says. “I also took photos of the tire.”

The way Avis saw it, the tire blew out while he was renting it, and it was his responsibility. End of story.

Solomon’s case, and the many others like it, all have something in common: They narrate a bigger story of an industry that can’t seem to figure out how to make money honestly, and the silly things they decide to do to line their pockets. Those include sneaky surcharges and fees, bogus damage claims and duping drivers into signing contracts for services they didn’t want or need.

It’s over

Avis is right about one thing, though. This is the end of the story – at least it is for me. This column, which has been appearing on Frommers.com every Monday for the last two years and on this site every Tuesday, is signing off at the end of the year.

Frommers is under new ownership, and even though our ratings are pretty decent, the new bosses are taking this site in a new direction.

I wish them well.

What would you do if you were given one month to live? If you said, ‘Tell the world about the travel industry’s most ridiculous things!’ then give yourself a brownie point.

That’s exactly what I’m gonna do.

Starting now, with rental cars.

You don’t have to work in the car rental industry to figure out the problems really fast. Renters like you and me are unwilling to pay high rates. So car rental companies quote you a low “base” rate and then slowly add to it, piling on taxes and mandatory fees, and then try to “upsell” you on optional fuel-purchase and insurance. In order to squeeze even more profit, car renters allege that companies try to fool them into signing contracts in which they agree to buy optional insurance. And, like Solomon, they go after every damage claim – even the ones for which renters aren’t responsible.

Ridiculous? You bet.

Repairing car rentals

There are three fixes. Let’s start with the one for Solomon: I contacted Avis on his behalf and said, “Really?” Avis reviewed the correspondence and photos and said, “No, not really,” and it refunded the $500 he paid to have the tire fixed.

Honestly, it could have been much worse. If the tires were bald, as Solomon claims, then he could have been in a serious accident, and then Avis would be dealing with a much bigger problem than an invoice for a new tire. I’m talking hospital bills and lawsuits.

But I digress.

Solution number two: Customers, practice a little defensive driving when you rent your car. Read every contract. Make sure your insurance is in order, by which I mean, check your credit card coverage and your car insurance to make sure that if something happens to your car, you won’t be responsible for the bill. Take pictures of the vehicle, pre- and post-rental.

The car rental industry needs to get its act together, too.

You can’t build a business on fees and false damage claims. In the short-term, maybe. But over the long term, your customers will walk away, no matter how “low” your base rates are or how aggressive your promotions are. Some forward-looking car rental companies already know this. But most are in denial.

And frankly, I’m offended by the car rental industry’s business model, and you should be, too.

How stupid do they think we are? Eventually, every state attorney general and legislature is going to clamp down on these questionable practices. No amount of lobbying and influence can turn back this tide of angry renters.

It’s only a matter of time.

Do car rental companies need to come up with a better way to make money?

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  • mikegun

    But this total is disclosed when renting. When does the “piling on” happen? I end up paying the total that is disclosed in my reservation.

    Here is what I have at O’hare for my next rental:

    2 days at 16.19 USD32.38

    USDVLCR 1.41 USD PDY AND TAX AND CUST FACILITY CHRG 8.00 USD PDY18.34

    USDMOTOR VEHICLE LICENSING TAX2.75 USD

    Vehicle Subtotal53.47 USDTaxes6.48

    USDTotal Approximate Charge59.95 USD

  • TonyA_says

    The car and driver is a great way to go. I am beginning to see signs on my local neighborhood for this kind of service. Wish it was more common in the USA.

  • http://flyicarusfly.com/ Fly, Icarus, Fly

    Chris, is it unusual in the online world to be able to write an original piece on one site and then be able to post it on your own site? Did you have to work out a special deal? The sites I’ve dealt with tend to have a clause that you can’t use it for 3-6 months… Just curious!

  • http://elliott.org Christopher Elliott

    If it’s an original piece commissioned by a magazine or newspaper, then they usually buy first rights or all rights. But if it’s a syndicated column that you’re publishing, everyone gets it at the same time, and it’s understood that the story is being shared. These economies of scale made syndication a workable model for some writers, but not for everyone. It’s a tough sell in travel.

  • MarkKelling

    That is good. You can still find rentals that are reasonable like you did, but it gets harder. Even in Houston TX where I go often, the two airports charge wildly different prices because the big airport (IAH) with all the international connections has lots of local government taxes added for various things and more renters, but the smaller airport (HOU) does not. For example, with Hertz for a two day weekend rental, the total at HOU is $72.35 which represents $50 in rental and $22.35 in taxes and fees. Not too bad. The exact same car for the exact same days at IAH is $134.43 which is $88.98 for rental and $45.45 in taxes and fees. The airports are 30 miles apart within the same city limits but the cost where they have more customers is nearly twice! Why, because they can.

  • y_p_w

    I mentioned another rental (Las Vegas actually) I have coming up, where I’ve got the estimated breakdown. It’s a base rate of $56 for four days (a real steal) but the taxes and airport fees are $50. There’s a $15 facility charge ($3.75 a day). It might actually seem like a lower percentage if my base rate were higher.

    The other issue (and a reason I didn’t book opaque) is that Las Vegas car rentals have different hours. I saw some pretty good rates from other companies, but some of the rental agencies shut down before midnight while others are open 24 hours. My flight is arriving around closing time for some of the companies.

    I also really liked John Wayne Airport. Small with rental right there across the street. I think at LAX I would have been looking at taking a shuttle and long lines burning about an hour of my time. At SNA that took less than 10 minutes. That’s in addition to being closer to Disneyland. :)

    I actually wanted to drive from Northern California, but my wife thought it was a bad idea. Heck – I think I probably could have rented so I wouldn’t put wear and tear on our own vehicles. I saw some pretty good weekly rates at OAK.

  • y_p_w

    It’s not that we don’t understand that there isn’t abuse of the system as well as out and out people who deliberately cheat the rental agencies and/or damage or abuse rented vehicles. We understand that it happens.

    Where we as consumers shouldn’t cut the rental agencies a break is when they deliberately force their customers to pay for damage when they have no idea who is responsible. There are many stories that seem to indicate that the rental agencies have threatened people who are sure they had nothing to do with damage or abuse just because they were the last person to rent a particular vehicle. Or even the possibility that a later renter damaged a vehicle, but that they just had to find someone to pay even if they couldn’t pin down who was responsible. They used to consider these things a cost of doing business when they had a healthy profit margin. Now they run on razor thin margins (I still don’t know how they made money on my $86/week rental) and then try to get their customers to pay for things that used to be a write-off.

    The rental agencies can really only turn a profit if they sell their vehicles as used at a decent price. They also have the depreciation of the vehicles as a tax write-off. However, they do get pretty good prices from fleet sales, so you can’t necessarily judge by MSRP.

  • Miami510

    Dear Christopher,

    I’m sorry to hear Fromers has dropped your Website. I hope you will keep my email (and all the others) on file and let us know where you can be found.

    Life is a learning experience. The learning experience in life is often
    painful, so there is a big advantage to learning from the experience of others…and that’s what you column affords.

    Good luck.

  • BeckyAintheBay

    The SFO Airport thing is not just at Burger King. It’s a city ordinance that restaurants in SF are required to cover health insurance for their employees (full and part time) and all restaurants in the city (not just at the airport) charge this extra fee

  • y_p_w

    Again – we understand that things get damaged by renters or under the renters’ care. However, what we don’t appreciate is when the rental agencies don’t seem to care if the bill they send out is to the actual responsible party. There are way too many stories of a cursory glance at the return with an OK given and suddenly a bill or charge to a credit card shows up the next month. It seems pretty apparent that sometimes they just find SOMEBODY, whether it was the last person to rent out the car, or maybe just the one three renters before.

    If I don’t have enough time to check my car for dents and I suddenly find a new one in a parking lot, I don’t put a note on the closest car blaming the driver or occupants for damaging my vehicle and asking for compensation to make the repair. I need to chalk it up as a cost of owning a vehicle or perhaps contact my own insurance company.

  • JewelEyedGamerGirl

    If you don’t like the spelling, go read something else, you pretentious twit.

  • Michael__K

    I’ve had similar frustrations with Avis’ free rental day certificates.

    Tried to use one this summer and the website wouldn’t accept it even though none of the spelled out restrictions seemed applicable. I eventually reached a customer service agent who couldn’t explain either why the system wasn’t accepting it but they did offer to manually credit me a rental day.

    I don’t know if this helps you, but according to the printed terms I’ve seen the NY/NJ restrictions only apply to (quote:) “Newark, LaGuardia and JFK airports or at any metropolitan New York location.” In theory (and according to what I’ve been told), the certificates are supposed to be valid for locations like ISP, SWF, Trenton, etc. Of course there’s still the “participating locations” cop-out.

  • dr44

    Good column, but you state: “You can’t build a business on fees and false damage claims.”

    I wish I shared your optimism, but as you’ve pointed out eloquently, the airlines have been trying to do this for several years, and show no signs of stopping. Well, not false damage claims, but fees for everything. The only recourse for me is to refuse to buy from airlines & car rentals that behave this way. It restricts my travel choices sometimes, but such are the times we live in.