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How to save money on Rental Cars

Wellington, New...
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for Wellington, Bay of Islands
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How to save money on Rental Cars

The following article appeared recently in NZ National newspapers

"If you have a poke under the bonnet of the rental car industry, you'll find it's nowhere near as shiny as it looks in the brochures.

Many companies make their money by selling you unnecessary add-ons and charging hefty "administration fees", causing the unwary traveller's budget to disappear in a cloud of oily smoke.

We've put together 10 steps for navigating your way through the car rental process without being driven round the bend.

1 Shop around

It almost goes without saying, but the first thing to do is check out major price comparison websites like Kayak and Travelocity.

These allow you to check out hundreds of listings at once, but you should also check out the main operators' own websites.

Sometimes they run promotions or deals that aren't picked up by the aggregators, and you may be able to get further discounts.

We managed to knock more than $50 off an Avis booking by using one of the recent coupon codes collected here.

2 Smaller model

Do you really need a giant SUV to take an intrepid trip to Wellington?

Car companies will always try and upsell you from a sensible compact car to a more spacious set of wheels, because they can charge twice as much.

A week's holiday pottering around Paris will cost you about $300 in a small Citroen hired from Avis- and more than $800 in a much larger five-door model.

Resist the temptation, and you might just get lucky anyway. Rental companies only have a certain stock of available cars, and compacts are by far the most popular. If they run out of cars ahead of your booking, they might upgrade you free of charge.

3 Decline extra insurance

Almost every company has compulsory full insurance cover for their vehicles.

But they'll also try and sell you add-on insurance cover which reduces your excess, sometimes to zero.

It's a huge money-earner, playing on the fears of tourists who don't want the stress of paying for a fender-bender. They give it cutesy names like "Relax" or "Peace of Mind" cover, but it's usually very poor value for money.

Hertz' "Accident Excess Reduction", for example, adds $28-$34 to your bill every day.

Avis charges $24 per day to reduce a whopping $3450 excess to $345.

Local companies like Omega charge a somewhat more reasonable $12 per day.

You'd happily drive your own car around all year with the full knowledge that you'll pay an excess if you have to make a claim, so why would you panic over the use of a car for a couple of weeks?

Weigh it up carefully, and don't forget to check if your own credit card or travel insurance already has you covered.

4 Avoid airports

Hauling your luggage straight from the carousel into the trunk of a rental car is convenient, but it comes at a price.

Avis charges a $40 airport/ferry fee, and Hertz charges $46, so you want to avoid picking up a vehicle directly from the airport if possible. It may even work out cheaper to get a shuttle into town and pick up your car there.

5 Take photos

What happens if a bill for damage you don't remember causing shows up on your credit card statement?

Arguing with a stroppy European rental company agent when you're already back on home turf is a futile exercise.

Rental cars are often covered in minor dings and scratches, so you need to make sure you don't become a convenient scapegoat.

Use your cellphone or camera to take date-stamped photos or a video while you're in the parking lot, and get the attendants to sign off any notable dings before you leave.

6 Bring your own

Car companies make a fortune by renting out car seats for those with a baby on board, averaging an extra $13 or so each day.

It might seem like a hassle to bring one from home but most airlines are actually very family friendly. Both Air New Zealand and Jetstar, for example, will generally let you check in a car seat or booster seat for free.

Renting a Satnav device is just as wasteful. Most companies charge $10-$12 a day, meaning after a couple of weeks you could have bought a brand new GPS for the same price.

Instead you could just install a free navigation app on your smartphone, like Google Maps. Check your data plan first though.

7 Fill your own gas

Another sneaky way the rental companies make money is by moonlighting as the world's most expensive petrol stations.

Some will try and sell you a full tank of gas when you pick up the car under the guise of convenience. Unless you manage to return it perfectly drained with the fuel light flashing, you've wasted your money.

Others will send you on your way with a full tank and make no requirements for how it's returned. Then they'll charge you a fortune to top it up, usually with an "administration fee" on top.

You should always insist on leaving with a full tank and returning with a full tank. Keep an eye out for handy petrol stations when you're picking the car up.

8 Don't speed

What's worse than picking up a $50 speeding ticket while you're trying to enjoy a relaxing holiday?

Being slapped with another $50 by the rental car company to add insult to injury.

That's the outrageous fee that Hertz charges for the arduous task of a) charging your credit card, and b) processing and sending on any notices related to the offence.

Avis charges $30 plus GST, and others are in a similar range. There's nothing you can do about it except drive like a nana when you're using a rental car.

The same "administration fees" also apply to toll roads. In New Zealand you only have to worry about the Northern Gateway, but if you're heading overseas make sure you're fully paid up.

9 Clean up

Now we're starting to see why one of the biggest rental companies is called 'Hertz'. Brace your wallet for more pain - if you make a mess in the car, you'll be charged as much as $250 (plus GST) to get it cleaned.

"This includes, but is not limited to, cleaning and/or deodorising necessitated by spillage of fluids, food, vomit, stains, smoke, unpleasant odours and animal hair," Hertz says.

What if you pick up a thick layer of dust on a gravel road? Omega charges a $150 cleaning fee - or the equivalent of three days' extra hire - for vehicles that are "extensively dirty outside or inside".

At those sort of prices, it's definitely worth giving the car a decent clean before you return it. Even going through a carwash or getting a paid clean will be worthwhile for serious messes.

10 Pay promptly

Here's the finishing touch. Rental car companies will take you to the cleaners if you fail to pay any of the costs mentioned above.

Usually they already have your credit card details on hand, so they can charge you at their convenience.

But if for any reason your credit runs dry or you can't pay, beware.

Avis charges a late fee of $50 and then 10 per cent interest compounding daily.

Hertz charges 10 per cent above the interest rate it pays its bankers for an overdraft - so possibly as high as 20 or 30 per cent. Those are some seriously weighty charges.

Almost all of the above is there in the fine print, so make sure you read it carefully and don't cave in to sales pressure.

Otherwise you may find yourself being taken for a very unpleasant ride.

- © Fairfax NZ News

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New Zealand
Destination Expert
for South Island
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1. Re: How to save money on Rental Cars

Yikes, almost makes one too scared to rent a car in NZ.

I once rented a car in the US for a few weeks. By the time I returned it 6 weeks later it had been through rain, snow, sleet storms and a sand storm in Death Valley. I dropped it off at LAX and the young rental agency guy said it was by far the dirtiest car he had ever seen - he was quite impressed. I asked if I needed to do anything, like take it for a wash.

It's good, he said.

And that is how it should be.

edit - I agree you should get charged for vomit etc in the vehicle, but not dust and dirt on the exterior.

Edited: 29 June 2013, 04:28
Wellington, New...
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for Wellington, Bay of Islands
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2. Re: How to save money on Rental Cars

WL I think there is a difference between dust and dirt and the dirt on a vehicle that gives the impression it has been off road. I have yet to have seen or have heard of a customer being charged for routine grime as one would have when driving on sealed roads.

Oz
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51 reviews
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3. Re: How to save money on Rental Cars

Hi,

I have rented from both Hertz (many times) and Apex (once) when visiting NZ. We visit to ski and as most ski areas are accessed via gravel (slush) roads the vehicles are returned absolutly filthy on the outside. I used to participate in car rallys and believe me a car driven for a week to the ski fields has as dirty an exterior as it is possible to get.

Neither company objected to the condition of the vehicle or sought to charge me a cleaning fee. The service from both was excellent. I never take the extra cover as our travel insurance cover any excess.

Cheers,

South Island
Destination Expert
for South Island
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4. Re: How to save money on Rental Cars

This article is enough to put you off renting a car. Any accident or dent you put in a rental car will cause a massive blowout to your travel budget. Icy roads and the grit that is put on the roads in the winter time cause many accidents. I hire cars in overseas countries and sometimes in my own country and the insurance charges, fees and local govt charges etc etc are a little bit naughty and starting to irritate me.

orzcflyer

I recently hired a car whose previous hirer may have been someone like yourself. !!!!!!!!!!!!!!!!!!!

Whangarei, Northland
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2,647 posts
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5. Re: How to save money on Rental Cars

Most of this is all just commonsense stuff, but I don't agree with all of it....

The issue about insurance (3) is particularly pertinent in NZ as it is not compulsory for other drivers to have insurance so you are going to lose your excess if you have an accident, regardless of who was at fault.

In my mind, you have to have the excess covered off either by an 'extra' payment to the rental car company or by cover on a seperate insurance or travel insurance. With insurance covers you would have to initially pay the excess and then claim it back, which is not ideal.

Standard excesses are HIGH, generally $2000-$3000, so nothing like the $300 or so you may have on your own car insurance.

Need to shop around for which rental car companies have the most realistic excesses and CDW payments.

Regarding petrol, Apex have a very good deal where they give you a tank at 20% discount and you can then return empty -, so even if you return it with 20% of a tank left you still come out even....

6. Re: How to save money on Rental Cars

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