How car rental companies are stealing your money (2024)

Today I’m going to help car rental companies steal more of your money.

Why would I do such a thing? Because I don’t think the companies are being creative enough with the existing charges they sneak into the fine print of their contracts. And also because I’ve been traveling a little lately and have become aware of deficiencies in the companies’ duplicity.

Let me explain. I recently got a letter from a reader who had the audacity to look at the fine, smudged print on his Avis contract. Then he made me read it.

“The $21-a-day rate for three days — $63 before sales tax — becomes $83.03 before sales tax. Note the security fee, the energy recovery fee and finally the battery fee,” the reader wrote to me.

Ah, but even those pesky fees didn’t bring the renter anywhere close to the net cost of the three-day trip.

There was also the fee that was listed as “Veh License Recoup 0.80/DY” — which turned out to be an 80-cent-a-day fee to help Avis pay for the cars’ paperwork — and the more mysterious fee just listed as “FTP SR$ 1.00/DY.”

What, I asked, could that be?

Well, it turns out that Avis — and probably other companies, too — adds a surcharge (SR) of $1 a day to pay for its Frequent Traveler Program (FTP). Who knew?!

After I inquired and Avis sent me some more fine print, I learned that the company “will assess a frequent flyer surcharge equivalent to 75 cents a day” (except when it’s $1 a day).

“The amount assessed is collected by Avis to offset a portion of Avis’ annual cost of participation in frequent flyer programs.”

Really, don’t you think this is brilliant? Customers are charged for frequent traveler points even if they never use them.

Neil Abrams of Abrams Consulting, who tracks the car rental industry, said he’s heard of the surcharge for frequent traveler programs but nobody has asked about it for a long time. Abrams said there are a lot of fees that are “legally permissible” and some that are even mandated by states that have become a public relations problem for the car rental companies.

“The rental industry,” Abrams told me, “has an issue with all these below-the-line charges.” At Newark Airport, for instance, Abrams says, there’s a hidden charge to maintain the monorail that shuttles people to the parking lots. And travelers pay the Port Authority, which runs the airport, even if they aren’t using the darned thing.

Other states impose fees on car renters so they can build new football stadiums.

There are also “concession fees” that nobody can really explain and “facilities charges” that help companies like Avis maintain the building in which they operate — or something like that.

You get the point. Car rental companies are pretty good at coming up with nonsense charges that other businesses wouldn’t even dream of passing along to customers.

What would you think if, say, you went to a local burger joint and there was a charge on your bill for SRF .10/P — a spatula refurbishing fee of 10 cents a patty. Or if your hairstylist added SSC .50/H — a scissor-sharpening charge of 50 cents a haircut.

How about your dentist adding SSU 0.03/PS — a 3-cent charge for spit sink usage per spit. A proctologist could include RGR 0.10 PAP — a dime charge for the rubber glove replacement each time he had to go where the sun don’t shine (because we all know those gloves aren’t ever going to be used again).

And anyone who does business from a facility for which it has to pay rent could take its cue from Avis by charging the hidden fee that would be listed as LSCPOR $2.00/DY — which stands for Let Stupid Customers Pay Our Rent.

I’m still scratching my head when I buy a ticket to a sporting event or concert and I am charged a “convenience fee” for printing the ticket at home.

That seems like more of a convenience for the seller than the buyer. Maybe it should be paying me for not making it mail the ticket or hold it at the box office.

But let me get back to my point, which is my desire to give car rental companies other creative ways to bilk their customers.

Avis forgot the TWC 0.03/ML — a tire wear charge of 3 cents a mile; the MAGTRT 0.10/DY, which is a Mufflers Aren’t Going to Replace Themselves fee of 10 cents a day, and, of course, the OYWOITE charge of .50/DY. That’s an Oh, You Wanted Oil In The Engine surcharge of 50 cents a day.

If car rental companies add any more fees, customers may come up with a code of their own, like FYAVIS, which stands for — well, you already know.

How car rental companies are stealing your money (2024)

FAQs

Can Enterprise charge my card without permission? ›

If you pay by credit card, the full cost of the rental and the security deposit will be authorized on your card when you pick up your vehicle. When you return the vehicle, we immediately release the authorization and only charge your card the full amount of the rental.

How do car rental companies make money? ›

Car rental companies make money by renting out their vehicles to customers for a fee. They also earn additional revenue through various upselling options such as insurance coverage, GPS rentals, and additional equipment. Car rental companies often charge additional fees for fuel, mileage overages, and late returns.

How can I avoid getting scammed on a rental car? ›

If you really think you have found a good deal, verify it. Call the verified number of the car rental agency directly and confirm that the promotion really exists. If you were scammed, help other deal-seeking travelers to not fall into the same trap.

What is ftp on rental cars? ›

Frequent Traveler Program Surcharge/Excise Tax. A Frequent Traveler Program Surcharge or Excise Tax may be applied and will be assessed in connection with miles earned pursuant to this reservation. To confirm whether a fee has been applied, please see the Car Rental Summary on Step 4.

Why did Enterprise charge me $100? ›

Detail Fee: Enterprise retains the ability to charge up to a $100 per vehicle detail fee on any unit returned that is deemed by Enterprise to exceed the acceptable levels of exterior and/or interior rental wear and tear.

Can a company charge my card without authorization? ›

First of all, a business can't charge your card without your permission. It would need to get your authorization first. This holds true whether you're paying with your smartphone or for any other online card-not-present transaction.

How much profit do rental companies make? ›

Average profit margins per rental business
IndustryAverage profit margin
AV rental20-35%
Kayak rental30%
Scooter rental25-30%
Vacation rentals10%
5 more rows

Who owns which car rental companies? ›

Enterprise owns both National and Alamo. Avis owns Budget, Payless, and Zipcar. Hertz owns Dollar and Thrifty. Together, these three companies account for 95 percent of the domestic car rental industry, according to Neil Abrams, president of the Abrams Consulting Group, a leading car rental consulting firm.

How many miles do rental cars have before they sell them? ›

What sort of mileage would you expect to see in a rental car? It's going to vary, but the big national rental car companies often sell when a vehicle reaches between 25,000 and 40,000 miles.

Do rental cars get tracked? ›

Yes, it's common for rental cars to have tracking devices installed for various reasons related to fleet management and security.

How do I ensure my rental is legit? ›

Keep an eye out for these red flags:
  1. The listing is copied or vague. ...
  2. No lease is available. ...
  3. The address isn't verified. ...
  4. The listing agent or property manager asks you to wire money or pay in an unusual way. ...
  5. The listing agent or property manager asks for money before you sign a lease.

Do car rental companies have trackers? ›

When a vehicle is returned after hours, a rental car company with a GPS tracker on their vehicles can verify that the vehicle was returned to the proper location as reported by the customer. GPS trackers can also verify that a vehicle is the correct vehicle and not just a vehicle of the same color, make, and model.

How much is a FTP? ›

4. How Much Does an FTP Service Cost?
Shared HostingVPS Hosting/Cloud HostingDedicated Server
$2 to $6 per month$5 to $20 per month$75 to $150 per month
Mar 6, 2024

What is BCD for budget car rental? ›

What is a BCD Code? A BCD code is a Budget Customer Discount Code. Both BCD codes and coupon codes help you get a great deal when you rent a car.

How does the FTP work? ›

How Does FTP Work? FTP allows for the transfer of files via the Internet. FTP transfers require an Internet connection. Downloading files means transferring a file from a server to a computer or device, while uploading is the opposite—transferring a file from a computer to a server.

Why did Enterprise charge my card? ›

If you paid for your car rental with a credit card or debit card, we will directly charge that credit or debit card listed on your rental agreement.

Is it illegal to charge a debit card without authorization? ›

Penal Code 484g PC is the California statute that makes it a crime to fraudulently use another person's credit or debit card.

What if my card was used without my permission? ›

File an identity theft report with the Federal Trade Commission. Filing an identity theft report with the FTC is an essential step in recovering from credit card fraud. Once you file a report, you'll receive an official claim that you can use to dispute fraudulent purchases and accounts.

Can a business charge a card on file? ›

Subscription services: Many businesses provide services that require regular payments, such as monthly subscriptions for software, streaming platforms, or membership clubs. Having a credit card on file lets these businesses automatically charge the customer's card during each billing cycle.

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