Travel - Tips

The Fine Points of Hiring a Car - Car Rental Fees Must Know’s

Renting a car is never easy. The Internet is full of advertisements promising the best deal and they usually give a ‘base price’ in the range of $70 to $100 per day depending upon the size of the car. However, at most times the companies do not explain the hidden costs or even what constitutes the base price offered. Depending on which country the customer rents a car, the quantum of various fees varies. However, it is best to make informed choices when it comes to renting a car - keeping abreast of all the fees that make up your rental bill is the first step when you head out to your travel destination.

Most car companies demand a safety deposit the first time you rent a vehicle. This portion of the rental fee is fully refundable and may come to a couple of hundred dollars depending upon the size of the car. The car rental fee is next; this is the actual charge for renting the car. Most car rental companies also charge a ‘contract fee’ to cover the administrative costs of renting the car to the customer. If the customer requests for a delivery of the car and a place for collection of the returned car, the company may charge two separate fees, once for delivery and the other being the collection fee. Beware though! A collection point designated in a different state by the customer may attract anything up to a couple of thousand dollars as collection fees depending upon the distance of the collection point from the car company’s home office. If the delivery is requested at the airport, a separate ‘airport surcharge’ will also be applicable. In addition, if the delivery or the collection is requested after normal working hours, an ‘after hours fee’ may also be charged. Traditionally, car companies charge a state taxes fee should the client need to drive across states. Driving across international borders may even attract a cross border fee - this is a mandatory fee that may be substantial and not easily waived. Also if you have an additional driver, an additional driver fee can also be charged.

Some countries also charge a tourism fee for tourists who wish to rent a car. Most US cities charge a flat rate as toll tax, and this can range from $2 to $5 per day. Some car companies also charge fuel charge fee or extra mileage fee. This may depend on what scheme of car rental the customer has opted for. Some companies go by a set number of kilometers driven per day or set number of hours per day. Any excess kilometers or time is then charged as extra fee. In case the customer requires a baby seat or a ski rack then additional fees are required to be paid. In some countries being young, usually under the age of 25, attracts extra fees in the form of younger driver fees. Again look out for the hidden fees. With fancy names such as collision damage waiver (CDW) fees, you may pay hefty sums as much as $15 a day. This fee is not actually collision insurance but more as a guarantee that the rental company will pay for any damage to the rental car, along with a caveat of some ‘deductibles’.

Finally if you intend to return the car earlier than planned, don’t hope for a sizeable refund. Many companies actually penalize you for cutting the rental duration; an early return fee becomes admissible! It is therefore extremely important that you - a prospective customer - are attentive to the ads and the terms and conditions of hire before signing up for a car rental. If you take renting seriously, consulting your car insurance company or your credit card company before hiring a car would be a great idea. In the end, don’t fall for tall claims and false promises; choose your rental company prudently and have a worry-free vacation!

When looking for car rentals be sure to do all your research before selecting a car rental company, as there are many fees which these companies try to levy on customers when they try returning the rental car. Do your research and hire the best car rental company available in your area.