Confessions of a Rental Car Agent

Edmunds.comEdmunds.com Member, Administrator, Moderator Posts: 10,316
edited July 2015 in General
imageConfessions of a Rental Car Agent

Navigate the rental car experience with an insider who tells you all the secrets.

Read the full story here


Comments

  • elliott10elliott10 Member Posts: 0
    I found I just had to make a contribution to these articles for the sake of truth. After 12 yrs. at the largest and most known and respected rent a car company (the yellow one) I know what selling was about. It was a legitimate sale. Did you know that if you rent a car and it is either vandalized, stolen or wrecked you are responsible for the full value of that car+all administrative and/or towing fees. Did you know your insurance company will only cover damages up to the value of the car you actually own, (if you own a Chevy and you rented a Town car) and that your credit card may pay the deductible of your insurance but you are left to cover the administrative expenses which include removing the car from the impound lot, the actual towing which after the accident is referred to as a "recovery charge" by the towing company after an accident. A wrecked car is after all a deminished value car for which you may also be responsible as the car is worth less by all book accounts. Are you aware that the liability protection offered by the rental company is one million dollars without involving your insurance company. I once rented a car to someone who ran thru a stop sign and t-boned another car with 4 occupants. All 4 were airlifted to a trauma center for treatment of their injuries. The customer came in very worried. After advising him that as long as claims were under 1 million he was covered. That man almost kissed me as he walked away worry free. He had actually bought not only liability protection, he also bought peace of mind and eliminated the lingering effect of the consequences. You are offered an upgrade, you just might get a convertible for $10 more than that little economy car you booked. And here in Fla. we many times had excess convertibles to offer as upgrades during the work week. I despise hearing rental car companies referred to as rip-offs, etc. Those of us who have worked for the best, and most are honest sales persons of uncompromising integrity have repeat customers who actually ask and request our services by name. If your Iphone is stolen while your rental contract is open, even if the phone was in your possession and not in the car, did you know that it is covered if you bought the Personal Effects Protection? If you dont have homeowners insurance you just need another iphone!!! These "insurances" protect you, the customers while travelling and away from home. I have rented Hummers (H2) for over $500 a day during periods of peak demand to customers which just had to have one. I have rented Shelby's for similar amounts. It made my customers vacation an unforgettable event in their lives, others on a honey moon have been upgraded to a convertible Jaguar XK8! They have voiced their appreciation for the suggestion when they returned it. Just think of the time when you had an upgrade request and none were available? What a turn off? Yes, we are on commission and a darn good one, but no one ever puts a gun to your head and obligates you to purchase that which you do not want primarily because you have not let the rental agent explain it while you listen with a discerning mind. EE in Miami.
  • chaz25chaz25 Member Posts: 2
    LOL, from your description and from having worked there as well, I know you worked for Enterprise. I thought the picture was just a coincidence. LOL
  • chaz25chaz25 Member Posts: 2
    I also worked for Cendant, which then became Avis Budget Group as a Counter Sales manager and then an Agency Manager (= Area manager in Enterprise speak) What a bunch of crooks they are, Avis Budget that is. Absolutely no ethics at all. Enterprise was far better. I don't work for either any more. I got out of that industry after 10 years or so.
  • jane124jane124 Member Posts: 1
    As another salesperson who no longer has to try to convince people to act against their self interest, I have to say that what is in this article is absolutely 100% correct. The other "12 year sales person" in this comment section? Look at what he writes - this is what a high pressure rent-a-car salesperson will throw at you when trying to get you to buy expensive, worthless insurance.

    His schpiel in the comment section is almost identical to what they teach you to say to customers. Most of them know it's nonsense, but some of them, after screwing over as many customers as they do, almost convince themselves that what they're doing it the "right" thing to do. They will pull out one or two anecdotes of when the insurance may have come in handy (do the math - 1 or 2 positive insurance anecdotes out of tens of thousands of sold insurance packages where people got screwed.)

    They operate on fear - it's like the lottery in reverse: the chances that you would need their insurance in any event is so remote as to be almost 1 in a million - but they make it sounds like it's almost certainly. So it's like the lottery, but you don't have a chance of winning anything, and you're certain to lose.

    Always ask for the total. Make sure to find out exactly what your bill is going to be before you leave.

    Above all, remember this: these people are humans, they're like other people - mostly - and they will be super friendly with you. But you have to remember that they are NOT on your side. Don't think of them as "having your back" - they do not. Their job is explicitly to get as much money as they possibly can from you. Period. As long as you go into an interaction with them knowing that, you can do okay.

    Oh, one other thing: your experience is likely to do with the rental location you go to. Always take your own camera - or your phone now - take pictures of the car before you drive it off the lot and send them to someone else you know so they have a record of it until after you return the car. Most places are not going to outright defraud you, but some of them absolutely will if given half a chance.

    PS. They will almost always try to sell you "peace of mind." Don't let them get going. If you have insurance, politely decline the insurance and don't let them go any further. They may not be happy that you're not letting them screw you, but if you're nice, they usually won't try and punish you for it.

    Good luck.

    And watch out for the salespeople like the guy who posted in these comments. They're the worst.
  • showguyershowguyer Member Posts: 1
    edited December 2014
    What a bunch of crap that 12 year rental agent wrote. lol obviously this is the line he uses on a daily basis....First of all, my personal insurance covers the car completely, not just what my own vehicles value is. Trust me, I know from experience. When I was 19 years old, I totalled a brand new rental pickup truck. I mean brand spankin new. Flipped it 3 times. My insurance covered the whole thing (and I only had a little pontiac at the time).

    I cannot stand some of these high pressure agents. I typically rent a car 2-3 times a year when Im going away or on vacation because I have an older truck, and its cheaper and better in the long run to rent a car. Better mileage, and less mileage on my truck... I book my reservation online, so if I wanted any extra services or upgrades, i would have done it right online.

    Im fully and double covered under my personal insurance and credit card insurance. So there is no need to purchase this overpriced ripoff insurance these companies offer, and I tell the agents right off the bat that I dont want it. Typically they get the feel from me and know I dont want to hear their sales tactics. I tell them I want the midsize rental I reserved. No gas, no insurance. no upgrades (Unless they are free). They are all tactics to increase the companies bottom line. That is it. The gas tank offer is the worst!
  • lizziesaxelizziesaxe Member Posts: 2
    I for one can understand where the 12 yr. agent is coming from. We have to get full comprehensive coverage. We only have a lousy liability policy on our 13 yr. old car and we would be very vulnerable without the added protection. Even a deductible would be very harsh on us, esp. driving a car that is worth more than our two incomes combined. Where we live, the drivers are insane. There are numerous accidents every day, some very serious. I call it the "bumper car county", and is one of the reasons we are looking to move away. Even my credit card rep said we could still be set up for a lot of headaches as even their insurance on rentals had its own limitations. So don't be so harsh on him. For folks like us it lets us enjoy the trip without worrying while driving every mile.
  • scottmckirahanscottmckirahan Member Posts: 3
    Having worked for various car rental companies, both big and small, in various roles from service agent (the guy who washes cars), to rental agent, to claims processor to sales & marketing director, I have pretty much done it all. Most of what the author describes is accurate but as is the case with most things in life, all things are not quite as black and white as described.

    There are definitely some smaller agencies out there who DO NOT pay commissions to their rental agents. They do train them to offer various upgrades and services but they pay them a higher salary than the big companies do and assume they will offer those add-ons because it is part of the job. Probably not the best way of increasing a company's bottom line, but it does tend to create a less-pushy rental agent.

    Having worked claims, I now for a fact that every company I worked for adds loss of use into the recovery fees. There is legal case precedence for charging loss of use and, although people may think it is a scam, it is no different than what your own insurance company does when you are in a no-fault accident with another car. That other company pays for a rental vehicle while yours is being repaired (same thing). So, if you get into a fairly major accident and it takes weeks or even a month for that car to be repaired, you WILL be charged the daily rate for every day that car is out of commission. Very, very few insurance companies and practically no credit cards will cover renters for loss of use. They word their policies in such a way to make it seems like you are covered but you really aren't, adding sentences like "We cover loss of use when the car rental companies show us a fleet utilization report showing all of their cars were on rent for the loss of use period" - something the courts have held that car rental companies DO NOT have to provide (and none will). I, personally, always take the loss of use or full coverage if loss of use is included in it if I am only renting for a few days. It's stupid not to - especially driving in a town on unfamiliar roads or any town that is a tourist destination where you are surrounded by many other drivers who don't know the roads. When renting for a couple weeks or more, however, there is little to be gained by taking the coverage.

    It is definitely true that paying for the full tank of gas is a no-win situation. You have to bring the car back with less than half a gallon of gas in it to break even or better - something quite frightening when that low fuel light has been on for 40 miles.. However, many airport locations around the country have the highest gas prices in the area because they KNOW that the vast majority of people who use them are renting cars and that they are stuck paying those high gas pump prices or the even higher rates they charge you at rental counters when you return a car that is not full. No amount of night-before planning can keep you from having to at least "top off" at one of those stations. If you know you are going to be on a very tight timeline (say, from business meeting to flight), and if you can manage to make sure that your car is nearly empty the night before, it sure doesn't hurt to pre-pay for a full tank, rather than risk being late for your flight - even if in the end you get "ripped off" by a couple of bucks because there is an extra gallon or two in your tank.

    As far as upgrades go, use your head and reserve the size car you are going to need in the first place. Know how much luggage you are going to have, the number of people and plan for a few extra souvenirs that will take up space on the trip back to the rental agency. Otherwise, you may find yourself in a situation where you are at the car rental company's mercy when they see you unload from the shuttle with five people, five large suitcases and a compact or economy car booked. They see that and I can guarantee your upgrade will cost $20 - $30 more per day!

    Finally, you painted only one scene around the "book your car early" mantra. There are just as many or maybe even more cases of rates increasing at the last second - especially during big events or holidays. It certainly doesn't hurt to book your car early and keep an eye on rates as the date approaches. If they fall, cancel the reservation and re-book (assuming you didn't do something stupid like paying in advance to get that 5 or 10% discount).

    All in all, though, this was a very good depiction of the rental agency scene - especially at the major brands.
  • steverstever Guest Posts: 52,454
    I ran into the loss of use scenario about ten years back when my sister plowed into my rental minivan in her driveway.

    The insurance company (hers) refused to pay loss of use, so Dollar sent me a demand letter. I sent them the same language that her insurance company used - prove what days the van was out of service. After a round or two of that, the rental company caved. Too much hassle for too little return I figure.
  • fintailfintail Member Posts: 57,785
    The whole "out of service" thing is an unfunny joke, as it assumes 100% of a fleet is in use 100% of the time. I suspect a challenge like yours can work in the right situations, even if rental agencies have bought their way into profit center claims such as that. In these days of corporate personhood and ever more crooked bought off courts, most people might be afraid to challenge it, knowing that the corporation often has the advantage. The American public has allowed a few to get away with a lot, and that probably won't change.

    I've rarely used the rental company's insurance, rather, I use Amex, or my own. In Europe, however, I do use their insurance, as it seems like peace of mind and less drama if something does happen.

    I've prepaid in situations where the prepayment discount is large. I am looking at renting in Germany in a few months, and I can save 20% if I prepay. I doubt rates will fall that much between now and then, just need to finalize the dates. I've never prepaid for gas.
  • scottmckirahanscottmckirahan Member Posts: 3
    edited August 2015
    "The whole out of service thing is an unfunny joke"? I would love to once hear someone justify a statement like that. When you are in a no-fault accident with your own personal car, do you need to prove to the other insurance company that you use your car 100% of the time in order to get them to pay for a replacement rental car? Likewise, if your house burns to the ground and all of your personal belongings - stereo, TV, jewelry, etc. is destroyed in the fire - do you have to prove to your insurance company that you use/wear those items 100% of the time in order to get compensated for their value? The courts have ruled on this, stating that the circumstances are no different. A company's property is no different than an individual's and if that property is not available for you to use (or not) at your whim, you need to be compensated for it!

    One thing that many people fail to realize is that every car on the lot is NOT the same. They have different colors, sizes and mileage. Companies balance out their fleet usage, sitting some cars that have high mileage and renting out cars with low mileage in order to not lose money when it comes time to sell them. If your accident was in a low-mileage car, it is highly likely that car would be rented 100% of the time time until it caught up with others in the fleet that were intentionally sitting, due to high mileage. Next time you truly believe a car is a car is a car, we'll see how you react when you get stuck with a puke green car for your next rental that has high mileage, quite a few renter-induced dings and scratches as well as stained, cigarette-burned seats. You'd be a hypocrite if you asked for another car!
  • scottmckirahanscottmckirahan Member Posts: 3
    edited August 2015
    As far as "stever's" comment goes, the scenario he describes is totally different than the 100% utilization argument. In that case, the insurance company was only asking for proof of what days the van was out of service - something easily proven by showing when the car was released from the body shop. They were NOT asking for a fleet utilization report. I'm amazed that a company as big as Dollar was too lazy to provide that to the insurance company!

    In most cases, the vast majority of loss of use charges are the result of the other insurance company dragging its heels - waiting weeks to send out a claims adjuster before the car can be sent to a body shop. Of course, in most of those cases, they have no real urgency to get things moving quickly, since they have fooled their customers into thinking they will be covered for loss of use.
  • fintailfintail Member Posts: 57,785
    edited August 2015
    I'll Sounds like the kind of thing you lose when you lack legal representation, and the judge is bought off. Just because a crooked court rules one way doesn't make it logically or ethically correct. Of course, if someone gets their meal ticket from the industry, they are inclined to agree with it.

    BTW, the comparisons of a personal car and property are 100% apples to oranges (unless you rent out your personal goods and use them as a revenue stream), and are even a more unfunny joke.
  • phidelphidel Member Posts: 2
    So is there any car rental company that doesn't rip off its customers as a matter of policy?
  • fintailfintail Member Posts: 57,785
    I suspect with the way so many renters treat the cars, they look at it as turnabout is fair play.
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