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I’ve been a frequent traveler for years, and I’ve had my fair share of rental car experiences. Some good, some bad, but all of them taught me valuable lessons about the industry’s practices.
Today, I want to share my insights on a topic that’s particularly frustrating: hidden fees in rental car agreements, with a focus on Avis, one of the major players in the market.
You might think you’re getting a great deal when you book that rental car online, but trust me, the price you see is rarely the price you’ll end up paying.
Let’s dive into the world of hidden fees and uncover the truth behind those seemingly attractive rental rates.
The Bait: Advertised Rates and Base Prices
When you start your search for a rental car, you’re immediately bombarded with flashy advertisements promising unbelievably low rates. “$19.99 per day!” they proclaim in bold letters. It sounds too good to be true, doesn’t it? Well, that’s because it is.
These advertised rates are what the industry calls the “base price.” It’s the bare minimum you’ll pay for the privilege of driving their vehicle. But here’s the kicker: this price often doesn’t include taxes, fees, or any additional services you might need (or be pressured into adding). You can only be surprised to check your receipt to see a “few” hundred dollars at the end of the day.
Let’s break down what’s typically included in this base price:
- The basic rental of the vehicle
- Standard insurance coverage (which is often inadequate)
- Mileage up to a certain limit
Sounds simple enough, right? But this is where Avis and other rental companies start to play their game of hidden fees.
The Switch
As you progress through the booking process, you’ll start to see additional charges creeping in. Some of these are unavoidable, while others are presented as “optional” but often in a way that makes them seem necessary. Here are some of the most common hidden fees you might encounter:
- Airport Concession Recovery Fee
This fee is charged when you rent a car at an airport location. It’s supposedly to cover the costs that rental companies pay to operate at the airport. In my experience, this fee can add anywhere from 10% to 15% to your total rental cost. - Vehicle License Fee
This charge is meant to cover the cost of licensing and registering the rental vehicle. It’s usually a flat fee, regardless of the length of your rental. - Energy Surcharge
With fluctuating fuel prices, rental companies have found a way to pass on some of the costs to you. This fee is often a few dollars per day but can add up quickly on longer rentals. Keep in mind this is just one surcharge in a list of “surcharges” – there can be a ton of other surcharges depending on your location and the details of your rental. For instance, imagine getting charged an energy surcharge fee and also an energy recovery fee. - Additional Driver Fee
Planning to share the driving with your travel companion? Be prepared to pay extra. Avis and other companies often charge a daily fee for each additional driver added to the rental agreement. - Under 25 Driver Fee
If you’re under 25, you’ll likely face a substantial surcharge. Rental companies justify this by claiming younger drivers are higher risk.
Have you noticed how these fees start to stack up? And we’re not even done yet.
Quick Tip: One easy strategy I’ve developed over the years to avoid hidden fees and ensure the amount I’m initially billed is exactly what I pay at the end is to use Discover Cars to compare rental prices and book straight for them. It has been great, especially with its extensive partnerships that make finding the “best car rental price” at any particular time, easy.
The Upsell: Add-Ons and “Conveniences”
Now that you’ve made it through the initial booking process, you’ll face a barrage of upsells and add-ons. These are where rental companies really make their money, and Avis is no exception.
Insurance Options
You’ll be offered various insurance packages, often with confusing names like “Loss Damage Waiver” or “Collision Damage Waiver.” While some level of insurance is necessary, rental companies often push expensive packages that may duplicate coverage you already have through your personal auto insurance or credit card.
Fuel Options
Remember when I mentioned the energy surcharge? Well, that’s just the beginning of the fuel-related costs. Rental companies typically offer you three options:
- Prepay for a full tank of gas (usually at a “competitive” rate)
- Return the car with a full tank
- Let them refill the tank for you (at an exorbitant price)
The catch? If you choose option 2 and don’t return the car completely full, you’ll be charged a premium rate for the missing fuel.
GPS Navigation
In the age of smartphones, you might think a GPS device is unnecessary. But rental companies still push these devices, often at a daily rate that can quickly exceed the cost of the device itself.
Toll Transponders
If you’re driving in an area with toll roads, you might be offered a toll transponder. While convenient, these often come with a daily fee plus the cost of any tolls you incur.
The Fine Print: Late Fees and Penalties
As if all these hidden fees weren’t enough, rental companies have another trick up their sleeves: late fees and penalties. These can be some of the most expensive hidden costs if you’re not careful.
Late Return Fees
Return your car even an hour late, and you could be charged for an entire extra day. Some companies have grace periods, but they’re often short and not well-advertised.
Early Return Fees
Surprisingly, returning your car early can also result in fees. If you’ve booked a weekly rate but return the car after only a few days, you might lose any discounts associated with the longer rental period.
Cleaning Fees
Return the car dirty, and you could face a hefty cleaning fee. What constitutes “dirty” can be subjective, so it’s always best to return the car in the condition you received it.
Damages and Fine
This is pretty straightforward. If you damage the rental car, you might be in for some serious digging if you’re not well insured.
Another point worth mentioning is fines. Just like how you handle tolls while on the road, we all know the fines that can come our way when we hit the streets (I’m looking for a more playful phrase here).
Fines like speeding tickets are handled differently with car rentals. Usually, you’re paying an administration fee along with whatever amount the rental company charges you after receiving the fine (like a speeding ticket). We covered this thoroughly in a previous article.
The Impact: How Hidden Fees Affect Your Wallet
Let’s put this all into perspective with a real-world example. Say you book a car for a week-long vacation, with an advertised rate of $25 per day. Sounds reasonable, right? But here’s how it might actually break down:
- Base rate: $25 x 7 days = $175
- Airport Concession Recovery Fee (11%): $19.25
- Vehicle License Fee: $15
- Energy Surcharge: $3 x 7 days = $21
- Insurance (basic package): $20 x 7 days = $140
- GPS Navigation: $10 x 7 days = $70
- Fuel Option (prepaid tank): $50
Total: $490.25
That’s nearly triple the base rate you were initially quoted! And this doesn’t even account for taxes or any potential late fees or penalties.
What Can You Do?
Now that I’ve painted a rather grim picture of the rental car industry’s fee structure, you might be wondering what you can do to protect yourself. Here are some strategies I’ve developed over the years:
- Read the fine print carefully before booking
- Compare total costs, not just base rates, when shopping around. Use Discover cars to do this.
- Decline unnecessary add-ons and insurance if you’re already covered
- Fill up the gas tank yourself before returning the car
- Use your smartphone for navigation instead of renting a GPS
- Join loyalty programs for potential fee waivers and upgrades
- Consider off-airport locations to avoid some fees (but factor in transportation costs)
Remember, knowledge is power. The more you understand about these hidden fees, the better equipped you’ll be to navigate the rental process and avoid unnecessary charges.
In conclusion, while Avis and other rental car companies provide a valuable service, their pricing practices often leave much to be desired.
Most importantly, don’t let the excitement of your vacation be dampened by an unexpectedly high rental car bill. Stay informed, stay vigilant, and happy travels!
