Monday, January 14, 2008

Rental Car Qualities

From the Wall Street Journal:

Higher gasoline prices also may be spurring some companies to be a bit more stringent about refueling. Before Jason Smith returned his rental car at Chicago's O'Hare International Airport in August, he filled up at a gas station 15 miles away. It never occurred to him he might be charged for having less than a full tank. But the needle had nudged just below "F." The attendant at the National Car Rental site charged him for an eighth of a tank, Smith says, which works out to nearly $17. "I showed them the receipt, but they were like, 'Sorry, you'll have to take that up with corporate,' " he says.

National stands by that decision. "We're not giving away gasoline," says Charles Pulley, a spokesman for Vanguard.

It's clear that rental companies have to be careful about gas. Because gas prices are high and profit margins on rentals are slim -- the typical margin on a $50 rental is around $5, which is not much more than the price of a gallon of gas -- companies need to be stingy, industry experts say. "This is an area where profits can literally leak out of the fuel tank," says Neil Abrams, president of Abrams Consulting Group Inc., a car rental consultancy.

Dollar Thrifty Automotive Group Inc. says its policy is that renters need to fill up within 10 miles of the return location and be prepared to show their receipt. If they don't, they can be charged for refueling, which generally includes a per-gallon charge and a service fee. Enterprise, Hertz and Avis Budget Group Inc. say they do not mandate where renters refuel. Vanguard says so as well, but Steve Clark, who rented a car from Alamo in Orlando in April, says he was told by the rental agent that he had to refuel within a three-mile radius of the return site. Pulley, the Vanguard spokesman, says that is not the policy of either the company or the individual rental location. "There obviously was some misunderstanding," he says.

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