Customer frustration high over car hire firms Fees

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Customer frustration high over car hire firms
Excessive costs, hidden fees the biggest gripe
Customers urged to check contract's fine print
EXCESSIVE fees for services such as petrol top-ups and poor service are among the most common car rental gripes, a survey has revealed.

The survey of 2500 Australians by consumer ratings agency Canstar Blue showed that many are frustrated when they do not receive the car model they had booked.

Poor service, the lack of availability of accessories such as a GPS or baby seats, and the failure to provide street directories as a basic inclusion were also common frustrations.

Customers have also been left enraged when the cost of a hire car is jacked up at the point of collection due to additional insurance charges and extra fees.

Despite being increasingly frustrated by these “unfair” tactics, the survey also showed that two out of five Australians don’t read the terms and conditions in full before finalising their hire car transaction.



Of particular concern, over 30 per cent of consumers are not aware that car hire operators can debit their card for an unlimited amount to cover vehicle damage and other terms.

Even if the fee is disputed and overturned, it can often take months for the money to be returned.

“We encourage consumers to remember when they sign a car hire agreement they are signing a legal contract,” a Canstar Blue spokesperson said.

“It is imperative to read the full terms and conditions so you are aware of your rights and obligations, and the operator’s rights.

"If anything you read jumps out at you, ask for clarification before signing the agreement.”

However the survey showed that Australians are savvy when it comes to inspecting the hire car before driving off - with one five per cent admitting they don't bother checking the car.

In a prime example of a hire-car headache, tourist Paul Douglas-Denton was recently billed $8000 by Europcar for towing his rental car approximately 300km from Katherine to Darwin after vandals smashed the vehicle overnight outside his hotel.

The case resonated with news.com.au readers, with many sharing their own hire car disaster stories, including tales of being stung thousands of dollars for existing damage without notice and being billed for a car they didn't even hire.

Others were fed up with the excessive costs of passing on any traffic fines, unnecessary fees for cleaning and repairs, and companies being slow to return thousands of dollars deducted in the event of accident.

However a former hire car company worker told news.com.au that some of these measures are in place because customers can do "unbelievable" things to the cars.

For example, the practice of giving a different car model to the one booked is for a reason - people often hire the same model as their own car to steal parts from it.

"I use to work for a rental company and you wouldn't believe the things that people do to these cars," news.com.au reader Tim said.

"Ever wondered why you never get the exact model you asked for - it's because it sounds alarm bells.

"And its also the reason why hire companies avoid commodores and falcons, or if they get them they get the base models so people cant take the better bits off to upgrade their own car."

Don't forget - Australian travellers can now fight back against any unfair hire car practices under the landmark new Australian Consumer Law.

The new law introduces the fairness test, which measures a condition imposed by an airline or a rental car company and judges whether it is “unfair” to the consumer.

Consumer watchdog Choice predicts rental car companies will come under fire for certain contract terms such as charging customers for the full value of any damage despite insurance provisions.

Consumers are encouraged to challenge any terms that they feel are “unfair” by taking the matter up with the Australian Competition and Consumer Commission (ACCC).

Europcar has been contacted for comment.

Tips for dealing with hire car companies:

- Read all of the terms and conditions before you sign

- Take photos of the car before you drive off, focussing on any existing damage, the fuel gauge, and noting the kilometres. Make sure the hirer is present and signs off on the inspection

- Fill up the petrol tank before you return it

- Make sure the car is relatively clean – inside and out

- Reduce the excess payable

- Book online to avoid an over-the-counter extra fee

- Avoid car rental companies at airports as they often charge extra

- Try using a debit card with limited funds available instead of a credit card

- Challenge an unfair fee either with the company or with the ACCC

My Comment
I wasn't happy with my last hire car and complained to Head Office and they gave me two free days on my next hire car.