Saturday November 7, 2009 12:16 PM ET
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SmartMoney Magazine by Noah Rothbaum (Author Archive)

10 Things Rental Car Companies Won't Say

Below is an excerpt from the book "1,001 Things They Won't Tell You," which was published in May 2009 and highlights popular columns from SmartMoney's long-running "10 Things" feature.


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1. “We’re a tax magnet.”

Rental-car customers are paying more, due to an unprecedented slew of taxes and fees. But that extra money doesn’t go to the rental car companies; it goes into city and state coffers, where it’s used to fund municipal projects. For example, in 2005 car rentals in Arlington, Tex., were hit with a 5 percent tax to help pay for the new Dallas Cowboys stadium. Car rentals get tapped as fund-raisers because local politicians won’t feel the repercussions at the voting booth. “They’re taxing people who are flying in from someplace else,” says a Hertz spokesperson. “These people can’t and don’t vote locally, so there’s no harm for them.”

But there’s a way for consumers to dodge some of these fees: Pick up your car in town, not at the airport. In 2005 Travelocity found that taxes and fees were 45 percent lower for off-airport rentals. An added bonus, according to Neil Abrams, president of Abrams Consulting, is that you’ll save on rates, too: On average, they’re $10 cheaper per day in town.

1,001 Things They Won't Tell You

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User Comments
Posted by: ulyssesmsu
The story about Budget not honoring a coupon struck a chord with me. I have found Budget to be a dishonest and unethical company to deal with. I encourage all renters to avoid doing business with Budget if you can. They are not an honorable, honest, or ethical organization. If enough people stay away from them, they will be penalized for their inappropriate behavior and might eventually change.
Posted by: bsaguillon
A couple of times I have rented directly online from Budget once in Colorado and once in Texas and when I turned my car in the charges were nothing like my print out from online. The charges was more. I had to call the manager to get it corrected. I haven't had this problem when I rent through an agency. ba in Texas
Posted by: Filka
www.city-rent-car.com - best car rental deals
Posted by: justryin2help
Instead of 'commercial' I should have said 'personal' credit card in the comment below. It's personal credit cards that usually limit their coverage to contracts that are written for 15 days or less.
Posted by: justryin2help
It should also be noted that most commercial credit cards only cover rentals contracts written for 15 days or less. Meaning if you rent a car for a month, you're not covered by the card. Many of them also exclude certain types of vehicles. Trucks and luxury vehicles are common exclusions. So think twice before renting that Dodge Dakota, Ford F-50, BMW, Benz, or what have you. I know this because I had a truck stolen that I had been renting for a month. Guess who had to pay for towing and damage and what ever else was tacked on? Over $3000!
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