The corporate businessman with lots of frequent-flier miles has probably rented a car as many times as he has flown on an airplane.
But for those who take a family vacation every other year or someone looking to rent a weekend “fun” car that wouldn’t be practical to buy, there’s a lot more to renting an automobile than advertisements might lead you to believe.
“People invest so much time in getting the best rate on airline tickets and hotels, and once they arrive somewhere, all they want is a car,” said Lauren Garvey, director of public affairs for Hertz Corp. “There are a lot of things that can happen on vacation, and people need to do a little more preparation before ordering a car.”
You should start the process by knowing which rental companies are available where you’re planning to rent. Your travel agent can help you or you can do it yourself since most national companies publish toll-free numbers in the phone book.
“Using an agent involves a certain degree of trust, whether you’re talking airline tickets or car rental,” said Brain Sterling, manager of public affairs for the AAA Chicago Motor Club. “With some homework, you might be able to get as good a rate yourself, though there are packages sometimes with airline tickets that only your agent would know about.”
Regardless of the company you select, the things to look for are ease of pickup and dropoff service, a good rate and avoiding lots of extra charges.
“The hardest thing is sorting through all the `hidden’ costs and knowing what you need and want you don’t,” Sterling said. “Extras can include everything from the tons of rental taxes and airport charges to extra insurance you may already have.”
Scott Klose, a general manager for one of 14 Chicago-area Premier Car Rentals, says the profit margins for rental companies are way down, forcing them to find other ways of making money.
“Our fleet costs are skyrocketing compared to the deals we used to get from car manufacturers,” Klose said. “The great kickbacks have stopped, and cash flow and profit margins aren’t there.”
Klose said some of the key moneymakers are insurance waivers, personal accident insurance and fuel charges. Be aware, he says, of what you’re buying.
“The waiver simply means if you return a dented car, you’re not liable for the damage,” Klose said. “It’s illegal to sell the waiver and tell people they’re fully insured.”
A story in Consumer Reports said “the fuel purchase option is almost invariably a bad deal for the renter.” You pay for a full tank of gas and try to return the car empty–a real trick when you’re renting for a weekend and staying at a resort.
Be sure and ask about fuel options, and when possible, buy the gas yourself: The price at rental company gas pumps is double or triple what you’ll pay on the street.
Sterling explained that consumers shouldn’t be surprised to see a rental rate of $29.95 per day actually balloon up to a one-day total of well over $50, given the additional taxes often levied by airports and municipalities.
“The airports and cities are basically taxing the out-of-town people coming to their city,” he said. “It’s the worst example of taxation without representation that’s publicly do-able.”
Garvey says the most important “extra” is liability insurance and knowing whether you’re covered before you make a reservation or show up at the rental counter.
“People expect agents to know about everything, and (believe) their only purpose is to educate customers as to what’s available,” Garvey said. “Sometimes you’re covered with your regular auto insurance, and sometimes with a credit card if you use it to reserve the car.”
Sterling recommends reserving a car from two to four weeks in advance and being aware of any cancellation policy that applies, which could equal the rental fee for a day.
“Cars held with a credit card can be charged a penalty,” Sterling says, “so be sure you understand the policy and conditions regarding cancellations.”
For advance orders, ask if your rental company will lock in a rate.
“Hertz guarantees a rate for up to four months,” Garvey said. “You can go through an agent or people can do it nowadays using various Web sites that allow people to also shop and compare rates.”
Premier’s Klose describes the rental business as “very cut-throat” and advises playing one company off another, particularly if you’re renting at an airport.
“I used to work in Phoenix and there were a lot of tricks people used in the airport,” he said. “You might try asking about a certain car and getting a rate, and then go to the next counter and say, `I’ve got this car for this much. What can you do for me?’ “
Garvey says renters often choose the wrong size car and regret their decision later.
“People should look at the size car or type of vehicle they’re used to driving at home and go with a car at least that size or larger,” she argues. “Also, watch for specials about upgrades that sometimes allow you to rent the larger car for the same price as the midsize you originally asked for.”
Barb Tichler, who manages an Avis facility in Schaumburg, says rentals should always be based on the intended use.
“If your car is in the repair shop and you need a loaner, that’s different than going on vacation where you’ll want unlimited miles,” Tichler said. “You’ll also find some price differences depending on where you rent the car.”
Tichler’s Avis rentals are conducted at a hotel and not an airport, allowing for a slightly better rate.
To illustrate price differences:
A spokesman from Hertz quoted the following rental prices for pickup at Chicago’s O’Hare International Airport for a midsize car, in effect Feb. 16 of this year: $68 daily, $225 for a weekly rate and $31 per day on the weekend.
Tichler said Avis’ midsize car rents for $47.99 daily, $224.99 weekly and $39.99 per day for weekends from noon Thursday until noon Monday.
While the weekly rates are identical, the differences between the daily rates are obvious. Avis’ weekend rate isn’t a fair comparison because it is spread over parts of five days.
Sterling says memberships in groups like the AAA Motor Club or discounts offered to employees of certain companies should also be explored as a means of saving money. Knowing the discounts you’re entitled to and asking for them is just another example of the preparation necessary before signing a rental contract and taking the keys.
