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Car Rental Primer: What You Need to Know

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Whether you need a car to take a vacation or to borrow one while your car is getting repaired, a car rental can get you behind the wheel of a vehicle quickly. Car rental periods may range from hours to weeks or longer, with nearly any make or model available. Each car rental company establishes its own rules and guidelines, therefore we will examine the general practices of the industry and include tips on how you can secure a quality rental for less.

Car Rental Overview

The car rental industry is made up of multiple players, but three companies dominate. Enterprise, Hertz and Avis lead the industry and all three own other companies.

For example, Enterprise owns Alamo and National, Hertz owns Dollar and Thrifty, and Budget belongs to Avis. Other car rental companies include Advantage, Payless, Rent-a-Wreck, Fox, and Sixt. There are regional operators too and you also may be able to rent a car from your car dealer.

Shop and compare prices online; booking via the Internet will often bring you the best deals.

Flexibility Equals Savings

Expect to pay more for a car if you rent it on a weekday than on the weekend. Business travelers usually rent from Monday to Friday, driving up prices on those days. Weekend rates will often kick in on Friday and provide you with a car until Monday morning.

If you need a car for four or five days compare that cost to renting a car for an entire week. Usually, the rental rate for a week is less than a five-day rental. You should be able to return the car early without a penalty too.

Car Insurance Considerations

Besides the basic daily rate for renting a car, you will find that car insurance is offered. Rates vary, but can range from about $8 to as much as $30 per day reports Bankrate.com. Also, your credit card provider may have you covered should you get in an accident. Contact your provider and ask if damage and total loss are covered. If so, charge your next car rental to that credit card.

Your auto insurance company may have you covered as well. For just a few extra dollars per term, your rental car can be protected. However, a deductible will apply and your insurance rates may be affected if you file a claim. Moreover, it won’t cover the rental car company’s loss of use, a cost the company will charge you for as long as the vehicle is out of commission or until a replacement vehicle arrives.

To Upgrade or Not

You’ve asked for a compact car and for $37 per day that is a price you can live with. That said, it isn’t uncommon for car rental companies to bump customers up to a larger vehicle at no extra cost, putting you behind the wheel of a midsize sedan or an SUV instead.

A larger vehicle will drive up your fuel costs, so decline the offer if that matters to you. In any case, you will also want to refuel the car yourself as car rental companies may charge you more than twice the price of a gallon of fuel if you opt for this service.

Higher Mileage Vehicles

Rental car companies have typically turned cars over after 25,000 to 30,000 miles, selling these vehicles to the public or at auction. In 2006, Hertz held a car for about 10 months, but by 2012 it extended its hold to 18 months.
The car your rent today can easily have 35,000 miles on the odometer to well over 50,000 miles according to the Wall Street Journal. Rental cars are usually very well maintained, thus mileage is rarely a concern. You can, however, ask for a replacement car at the rental counter.

Vehicle Safety Check

Always check the rental car before you get behind the wheel and drive off. You are liable for damages and if an existing scratch, ding or dent is not noted on the rental agreement, you could be held liable.

Don’t overlook examining the tires as any car with higher miles should have had at least one tire replaced. Bald tires are dangerous, reducing grip when you need it most. Check the headlights, the turn signals, navigation and audio systems as well. Your agent will supply you with an emergency contact number before you begin your journey.

Surveying the car rental car market can help you find deals. Moreover, if you are a regular renter, join the company’s loyalty program for additional discounts and perks.

See Also — Your Rental Car Insurance Options

Photo Credit: By Clotee Pridgen Alloc…, CC BY-SA 3.0, Link

Your Rental Car Insurance Options

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Hertz Offic
Do you have sufficient insurance coverage
for your next car rental?

It is a plan: you will fly with your family across the country, pick up a rental car and make your way up and down the coast. That kind of trip can be so relaxing as well as educational. But, the education you do not want is to discover that your rental car insurance coverage was insufficient, especially following an accident. For, if your insurance coverage is weak or nonexistent, you will be responsible for repairs or in some cases the replacement value of a totaled rental vehicle.

You can avoid a huge heartache and taking a possible financial bath by exploring your rental car insurance options before visiting Hertz, Avis, Enterprise or other car rental company.

Rental Company Insurance

Your rental car company offers insurance coverage, what you will pay when you rent a car unless you ask to have it waived. There are various types of insurance offered with each one designed to reduce your liability although it may not completely eliminate it if there is a deductible present.

You may want to choose both the collision damage waiver and the loss damage waiver if you do not own a car. Or, if you own a car and you have basic insurance that does not include comprehensive and collision coverage, then car rental company auto insurance may be right for you.

Credit Card Providers

It is almost a given that you will be using a credit card to pay for your car rental. In fact, it is
usually a requirement at most National, Hertz, Enterprise, Thrifty, Budget, Alamo and Avis locations. Some will also take a debit card, but a credit card offers certain protections that a debit card may not provide.

For instance, if you hold a Visa Standard Credit, a Visa Rewards Credit or a Visa Premium Rewards credit card, then collision and theft coverage is included on auto rentals when you use these cards. Coverage is automatically activated when you complete the entire rental transaction with your Visa card and decline CDW coverage.

American Express includes care rental loss and damage insurance with eligible AMEX cards. Simply use your American Express card when paying for your rental car and then decline the collision damage waiver when offered same by the commercial car rental company. Check with MasterCard, Discover or other accepted card for their respective policies.

Your Auto Insurer

If you have car insurance, your auto insurer may have you covered. Typically, you need both comprehensive coverage and collision coverage with you picking up the deductible if you file a claim. Some insurers include special rental car insurance coverage that covers the deductible. Contact your insurance provider to learn what options are available to you.

While relying on your auto insurer can be a good way to turn down the collision loss waiver, keep in mind that filing a claim can raise your rates. Moreover, you may discover that there is much more of a hassle involved with choosing the auto insurance route than relying on your credit card company or rental car company for coverage.

Car Insurance

So, before you take a trip, make sure that you are covered. Calls to your insurer and credit card provider can reveal much, otherwise expect to pay an extra $10 to $20 per day to protect your rental car from an accident, theft or total loss — that’s a small price to pay when taking that dream vacation.

References

Insurance Information Institute: Do I Need Separate Rental Car Insurance? http://www.iii.org/individuals/auto/a/rentalcar/

Insure.com: The Basics of Rental Car Insurance http://www.insure.com/car-insurance/rental-car-basics.html

See Also — How to Avoid an Unsafe Rental Car

Used Rental Vehicle Buying Tips

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The days of finding a cheap used car are over. Tighter inventories, high prices for new cars and consumers keeping their own cars longer has made it difficult for people to find an affordable, used car.

Between the brand new and well used, there is a segment of cars that are one, two or three years old: rental vehicles. These cars are bought by companies such as Avis, Enterprise and Hertz, rented out to their customers and then sold to consumers after a few years. Such cars typically come well equipped, but they also may come with the undeserved stigma that says you are buying an unreliable vehicle.

Well, the stigma of unreliability is an incorrect one as the fleet owners or rental car companies provide top notch service for their cars. Moreover, when such vehicles are readied to be sold, you get a car that has been thoroughly inspected, properly maintained and often features a new set of all-season radial tires.

The Market

You certainly are not getting a new car when you buy a rental vehicle. Some models are from the most recent model year, but many go back a few years.

Rental vehicle mileage can vary with most vehicles having at least 25,000 to 30,000 miles on the odometer. Occasionally you will find a vehicle with up to 45,000 miles driven, while others may have as few as 10,000 miles on the odometer. Mileage depends largely on fleet popularity and the rental companys needs. Sometimes the vehicle offered is a trade in from a customer sale.

Model Availability

If you have your heart set on buying a particular uncommon model, then the rental vehicle market may disappoint you. The rental companies typically offer the most popular models to consumers including the Fords, Chevys, Toyotas and Dodges that are also the best sellers.

That does not mean you cannot find the occasional Mercedes-Benz, Infiniti or even a Jaguar. It is just that rental companies are looking to put these cars in renters hands, not have them sitting on lots unrented.

Rental vehicles also typically feature top or near top trim level models only. No stripped down models here! It isn’t uncommon to get car with a navigation center and top safety features, popular amenities that are part of the price.

Test the Car

Fleet retailers want you to be happy with your purchase. Typically, you will be able to find the vehicles CARFAX report, with that information posted online. Read the report to familiarize yourself with the vehicles maintenance and repair history.

You should also be able to test drive your rental vehicle. Some companies will allow you to drive the car for a full day before making your decision. This can be beneficial for the consumer that wants a particular vehicle, but is not certain whether it is right for them. If given this opportunity, then get the keys, fill up the gas tank and head out on a journey of a few hundred miles. When done, you should know whether that vehicle is right for you or not.

Negotiation and Financing

There are two things about most rental vehicles that consumers should know about: haggling does not take place many companies offer a no haggle or a take it or leave it price. Typically, that price comes in lower than its book value, with thinner profit margins for retailers.

Financing is another matter you should handle before buying a rental vehicle. Visit your credit union or bank to obtain a loan first. Then, head to your rental vehicle company to make a deal. Some companies will take your trade in too keep this in mind as you shop for a vehicle.

Keep in mind that the new vehicle warranty may still apply to your car. If it off its manufacturers warranty, learn if the rental company has included one in-house, typically for at least 90 days and 4,000 miles whichever comes first.

Rental Vehicle Considerations

There are a few things to keep in mind before buying a used rental vehicle. First, ensure that all safety recalls for that model have been performed. That information is readily available at SaferCar.gov. Second, have cosmetic repairs fixed before buying the car. Typically, these touch ups are handled at no cost to you. Lastly, only buy the vehicle that you want. That means understanding what equipment is included such as the premium audio system, backup camera or the lane departure warning system that you want.

References

Money Talk News: 6 Tips for Buying a Rental Car http://www.moneytalksnews.com/2012/05/17/6-tips-for-buying-a-rental-car/

Autobytel: Tips for Buying a Used Rental Car http://www.autobytel.com/car-buying-tips/used-car-buying-tips/tips-for-buying-a-used-rental-car-101736/