Rental car company jacked up price because vehicle was returned early, customer says

The cost to rent a car has gone up by nearly 50% since the start of 2019, federal data shows.

It all started during the COVID pandemic, when shutdowns upended travel and demand for rental cars plummeted.

Companies got rid of their excess vehicles as they managed their hurting bottom lines. When demand for rentals came back, prices spiked as rental companies contended with the same supply chain issues, including chip shortages, that made it more expensive to buy both used and new cars.

So when Burt Schlosberg planned a month-long rental for February, he wasn’t expecting a bargain.

But he was expecting to pay the price he agreed to when he booked the rental, not the inflated bill he received when the trip ended.

“I am willing to pay a fair price for my rental, but I refuse to be taken advantage of,” said Schlosberg, who turns 90 in April.

Readers may remember Schlosberg, who at the request of NJ Advance Media applied for a Home Improvement Contractor registration in 2021 to illustrate how easy was to get the state’s blessing to do home improvement jobs. His experience was featured as part of the news organization’s investigation, Hire at your own risk, which spotlighted how the state’s weak contractor laws did little to protect consumers. It led to a new law that created a license for home improvement contractors and established a board to regulate the industry.

THE BOOKING

Last July, Schlosberg and two traveling companions, ages 89 and 85, booked an Airbnb in Florida for the month of February. Then he started researching rental car prices.

“I reserved what I thought was a small SUV — Nissan Rogue or equivalent — which I thought provided ample room for three octogenarians and our luggage since I had driven the same model car previously on vacation,” he said.

As an AAA member, he found an offer that included rentals with Dollar, which is owned by Hertz.

He called and booked a compact SUV for $1,528.10 on Aug. 7. The fee wouldn’t be due until the vehicle was picked up.

A week before the trip, Schlosberg said, he called to confirm the reservation.

“I called Dollar and was told the rates had gone up by about $150,” he said. Discussions with the representative led to a 10% AAA discount and the new price would be $1,226.65, he said.

“I thought I was a hero,” Schlosberg said.

The trio’s flight to Florida was uneventful, but when they arrived at the Dollar rental counter, the ticket agent said the price Schlosberg was quoted was for a compact car, not an SUV, and all their luggage would never fit, he said.

“I tried to tell her that I was approved for a small SUV, but she said I would need a mid-sized one, and that the upgraded price was well worth it — a $440 add on,” he said. “By then, I was almost wiped out, as were my companions.”

The new price would be roughly $1,750.

They took the offer somewhat reluctantly, he said.

THE RETURN

The month in Florida was relaxing, Schlosberg said.

“We stayed in a lovely Key West style home adjacent to a canal where we spotted an occasional alligator or turtle,” he said. “Overall, the weather was relatively cool and comfortable, and the pool was set at 88 degrees.”

Burt Schlosberg (center left) enjoys a meal with friends during his monthlong trip to Florida in February.

At the end of the month, they returned the rental. They were a day early and presented the vehicle with a full tank of gas, no dents or scratches and only about 500 miles added over the month, Schlosberg said.

The final bill was a big surprise: $2,691.54.

“I feel we experienced a combination of misrepresentation and hard sell, the latter by the Dollar agent at their sales counter,” he said.

The bill details the charges. It shows the base rate was $1,784 — the amount Schlosberg was expecting to pay including the more than $400 upgrade. But the upgrade fee was a separate line item. Add to that more than $500 in fees, and the overall cost was way higher than expected.

We asked Hertz to compare the reservation with the final bill. It did not respond to multiple requests for comment, but Schlosberg received an email from customer service.

It basically said he was penalized because they returned the vehicle a day early.

“We have determined your rate was changed due to an early return,” the email said. “Per the terms and conditions, any changes made during your rental period are subject to a rate change or increase. Therefore, the charges are correct.”

But, it said, “as a gesture of customer service,” it would honor the original rate and refund $960.45 to Schlosberg’s credit card.

We asked Hertz for comment once again, specifically for the reasoning behind penalizing consumers for turning in a vehicle a day early.

A spokeswoman cited the company’s terms and conditions, using language that was almost identical to the email Schlosberg received from the company.

“The customer booked a monthly rate which no longer applied when they returned the vehicle early,” the spokeswoman said, and she confirmed the refund.

Schlosberg said he’s glad the company did the right thing.

“I am very happy with the quick and fair outcome,” Schlosberg said.

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Karin Price Mueller may be reached at KPriceMueller@NJAdvanceMedia.com. Follow her on X at @KPMueller.

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