Whether you are traveling for business or pleasure, you oftentimes go through many of the same considerations. You need to book a flight (or some other means of getting to your destination). You need to book some lodgings. And, if you want a convenient way to get around town, you might think about renting a car. Unsurprisingly, the industries for all three of these components are going to have a lot of elements in common.
Now, I haven’t worked for an airline or a hotel, but I did work for a car rental company for eight months back in my university days. The fruitful experience offered a lot of insight into just how the car rental industry works, particularly in regards to a customer’s perception of a situation and the actual reality.
Rates Are Never Set in Stone
Hotels typically have “standard” rates for their standard rooms, but the actual rates can fluctuate wildly based on supply and demand. The same applies to the car rental industry, perhaps even more so. If you called into the branch where I worked and asked for a quote on a midsize car, you might get one rate from me. Call back in a few minutes with another representative on the line and you could get an entirely different rate. There are some rough guidelines, but they’re only guidelines.
A prime example of this would be the white cargo vans that we had. They’re fantastic for people who want to do some small moves, making them particularly popular on the first and last days of the month. That’s when the leases for many apartments start or end. At the time, our “standard” rate for one of these vans was around $50 a day. For one of these high demand days, I might quote $100. A more aggressive rep might quote $200. Call to use the van on the 2nd or 3rd day of the month and the rate might drop to $20, because otherwise the van will be left unrented on the lot.
One critical exception to this would be if your employer has pre-negotiated corporate rates with the car rental company. This allows for greater predictability, as the rates won’t skyrocket during higher demand periods, but it also means that you’re not always getting the best deal either.
They Plan for Reservations (Sort Of)
Car rental companies will gladly take your reservation and, not unlike certain hotels, they typically have no problem over-booking either. The level of forethought that goes into a typical reservation for renting a car might only be a couple of hours. Let’s say that you have a 2pm reservation for a small SUV. At noon, the employees at the car rental company might realize that they only have midsize sedans and large SUVs on the lot.
You would think that they would do what they could to get a small SUV in time for your reservation. They might look at what returns they’re expecting. They might call neighboring branches to see if they had any small SUVs to spare. Or, depending on the manager, they might do nothing and hope they can upsell you into the bigger SUV. Worse case scenario, they might give you that bigger SUV as a “free” upgrade. Your mileage may vary.
It’s Not Really “Insurance”
You’re not really buying “insurance” from the car rental company, because they’re not technically selling insurance. What they are selling you is a “damage waiver.” What this means is that they won’t charge you (after a deductible) for damage that might occur during your rental period. At the company where I worked, they only bought the (mandatory) minimum level third party liability insurance with no “real” coverage for collision and comprehensive. As you may have experienced, this “damage waiver” (and other related “waivers”) can get quite pricey.
There are a few ways to get around this. First, many credit cards do offer some car rental insurance. However, the car rental company will charge you the full amount for damage to the vehicle. If you write off a $30,000 car, you could end up with $30,000 on your credit card and this amount will only go away after the (long) claim process between your credit card company and the car rental company is sorted out.
If you’re a BC driver and you’re traveling within Canada and the United States, there is temporary rental vehicle insurance available through ICBC. If you have the Roadstar or Roadside Plus package, this is already included. Check with your Autoplan dealer for details.
Never Take the Gas “Deal”
Most of the time, you’ll be offered the option to “pre-buy” the fuel in your rental car. Don’t take that offer. You’ll end up paying for gas that you don’t use. Just make sure you scout out the gas stations in the area, so you’ll be ready to top up before returning the vehicle.
Check Your Rental Car Thoroughly
“Oh, I didn’t notice that when we first took out the car.”
So many customers have said that. Some of them are honest and some of them are trying to get out of some damage that they know they caused. Whatever you do, just make sure that you take a close look at your vehicle before you leave the rental car lot. Look for the usual dings and dents on the body. Look under the bumpers for where someone might have scraped up against a concrete block. Look inside for cigarette burns or upholstery tears.
And particularly if you’re renting a taller vehicle, check the roof for scrapes and other damage. Be diligent.
Confirm Your Final, Total Price
I wouldn’t necessarily say that a car rental contract is riddled with “hidden” fees, but there are potentially many charges above and beyond the actual daily rate for the vehicle. You’re $20/day car could turn into $60/day pretty easily if you’re not careful. That’s why you should ask what will be the total price for your total rental period.
Whether you need a car to get around Maui for a few days or you need a truck to haul some cargo across town for a few hours, do your homework and you shouldn’t have a problem.
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