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Hidden fees drive up the cost of renting a car
By Carrie Alexander, The
Orlando Sentinel As if it isn't complicated and confusing enough to figure out the hidden costs of air fare, consider the extra fees you'll encounter when you rent a car. The initial rate quoted by a rental-car company probably won't include taxes, mileage and fuel charges and late, drop-off, airport and extra-equipment fees. These surcharges are called different things by different agencies, and they will vary by company, airport, state and country, according to the American Society of Travel agents. But no matter what they are called, they can increase your overall bill substantially. When we priced the rental of a midsized car at Denver International Airport through Thrifty Car Rental, the base rate for the round-trip, seven-day rental was $350.99 with unlimited mileage. But add taxes and fees, and it's $453.14. Broken down, the added costs look like this: 11.11 percent concession recovery fee ($38.99), $1.60 per day facility usage fee ($11.20) and 12.95 percent sales tax ( $51.96). The concession recovery and facility usage fees are basically charges that cover the cost of doing business at the airport. "This is for the use of airport property to house our location," says Pat Farrell, a spokesman for Enterprise Rent-a-Car. "You wouldn't see it at a neighborhood location. It's something that we have to charge that is charged to us by the airport authorities. It varies depending on what airport you're at." In 1998, a Travel Industry Association of America survey of rental-car fees at airports in 50 U.S. markets found that airport concession fees averaged 9.75 percent of the cost of the rental. Other add-ons can increase your bill too. For instance, you may pay a vehicle license fee that helps rental agencies recover taxes on license tags. There's a highway use fee assessed by the state too. "The vehicle license fee varies a little bit state by state," says Susan McGowan, spokesman for Avis Rent-a-Car. "That is simply the cost of registering and titling the car." At some facilities, a stadium or convention center tax is tacked onto the cost, says Enterprise's Farrell. For example, in Orlando, you'd pay a convention center tax of 3 percent. There's even a charge to cover the cost of taxes the rental company pays on frequent-flier miles they give customers. The federal frequent-flier tax is 7.5 percent of the value of the air miles. "This actually ends up being pennies on every rental," McGowan says. For example, renting a car at the airport may be more expensive than renting from another location because of local governments' surcharges and taxes. You'll pay them even when the rental-car company shuttles you to a site close to the airport. The cost may be a percentage of the rental fee or a flat fee. And some companies charge you a fee if you drop the vehicle off at an agency of the agency. How far you drive and what time of day you return the vehicle could mean extra cost as well. The cost may be assessed on a cents-per-mile basis or as a flat fee when you exceed the allotted mileage cap. And a late-return fee will be charged if you return your car later than the contract states. You also may pay a surcharge for an additional driver who is between ages 21 and 24. Thrifty charges $25 a day for an additional driver younger than 24. It charges $10 a day for an additional driver older than 24, but some drivers, such as your spouse, are exempt. Ski racks, child-safety seats or other extra equipment cost from $2 to $10 a day. Thrifty also charges $35 a week for a child-safety seat and another $35 per week for a ski rack, all of which you'll pay taxes on. Most companies also require you to return the rental car with a full tank of gas or the same amount of gas it had when you picked it up. If you don't, you'll pay the company's often-inflated price per gallon. Many rental-car companies also are
following the airlines' lead by restricting or cutting travel agents'
commissions, says Kerri Leininger, owner of Clermont Travel Service near
Orlando. This forces travelers to book directly with rental agencies or to
pay a travel agent's service charge. TIPS FOR REDUCING STICKER SHOCK: * Check the companies' Web sites for a list of extra fees and rental policies. * Get an estimate of your total bill, including all fees, taxes and other charges. * Book an unlimited mileage rental. If that option isn't available, be sure you know what your mileage cap is and what you'll be charged per mile if you exceed it. * Ask about required deposits, drop-off and late fees and cancellation penalties. * Fill the gas tank before returning the
vehicle. |
