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New EU-wide rules promise more clarity on car rental pricing

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The Competition & Markets Authority recently released details of an EU-wide settlement which it has agreed with Avis Budget, Enterprise Rent-a-Car, Europcar, Sixt and Hertz.  Within six months, all of these firms will make fundamental changes to the way in which they sell their cars online.

The list of agreed changes is long and varies from firm to firm depending on their existing processes.  You should expect to see:

Young Driver Surcharges included in headline prices

Clear information about pricing of optional extras

All optional extras to made available for purchase during booking and not held back for sale only at pick up

Clearer information about key terms and conditions

Clearer upfront information about the size of the credit or debit card preauthorisation that will be required

Optional waiver and insurance products to be outlined during the booking process, including the pricing, exclusions and applicable excesses

Information about the pre and post rental vehicle inspection process

No damage payments to be made to credit or debit cards before the customer is given a ‘reasonable opportunity’ to challenge them

A BBC report on these changes mentioned one which was not covered in the CMA press release.  Customers will no longer be forced to pay upfront for a non-refundable full tank of petrol, however full the tank when the car is returned.  This may end up being the biggest change.  This is not usually an issue in the UK but is a well known problem when hiring in Europe.

To be honest, at least with Hertz (which is the firm I use the most), I have never had any major issues with clarity during the booking the process.  I did, however, once have a Hertz employee in London make up a fake damage claim when I returned the car and then offer to waive it if I paid him £50 in cash.

More information on these changes can be found on the CMA website here.


How to get FREE car rental status and other benefits via UK credit cards

How to get FREE car rental status and other benefits via UK credit cards (April 2024)

If you hire a car in the UK, you can get special benefits (discounts, upgrades, free additional drivers etc) if you have elite status with a car rental programme. You can get elite status for free via certain American Express cards.

The Platinum Card and American Express Business Platinum

The Platinum Card from American Express and American Express Business Platinum come with two free car hire status cards. Your supplementary Platinum cardholder can also receive status in their own right.

From Avis, you receive President’s Club status in Avis Preferred. This gets you up to 25% off standard rates, a free additional driver and a guaranteed one class upgrade. For weekend rentals you will receive a two class upgrade, subject to availability.

From Hertz, you receive ‘Five Star’ status in Hertz Gold Plus Rewards. This gets you up to 15% off standard rates, a free additional driver and a one class upgrade, subject to availability.

Hertz also offers Platinum cardholders a 4 hour grace period on rentals. Your final day is treated as 28 hours, so a 1pm pick up with a 5pm return the following day is only charged as one day, not two days. We wrote about the Hertz / Platinum 4 hour grace period here.

The Platinum Card also comes with full car hire insurance with no obligation to pay for the rental via American Express. You can refuse any attempts to sell you additional insurance at pick up. This benefit has substantial value if you rent on a regular basis.

You can find more details on the two Platinum cards, and apply, in our full reviews linked below. You can apply here for the personal card and here for the business card.

The Platinum Card from American Express

40,000 bonus points and a huge range of valuable benefits – for a fee Read our full review

American Express Business Platinum

40,000 points sign-up bonus and an annual £200 Amex Travel credit Read our full review

American Express Preferred Rewards Gold

American Express Preferred Rewards Gold is an excellent card in its own right. You receive 20,000 Membership Rewards points for signing up (convert to 20,000 Avios amongst other things), four airport lounge passes and £120 of Deliveroo credit. Even better, your first year is free.

There are two car rental benefits:

  • you receive Preferred Plus status in Avis Preferred
  • you receive a special package with Hertz – 10% off best available rates at participating locations, a one class upgrade for rentals of 5 days or more, subject to availability, and no additional driver fees

Find out more about the benefits of American Express Preferred Rewards Gold in our review. You can apply here.

American Express Preferred Rewards Gold

Your best beginner’s card – 20,000 points, FREE for a year & four airport lounge passes Read our full review

Comments (33)

This article is closed to new comments. Feel free to ask your question in the HfP forums.

  • Ronster says:

    These changes are a move in the right direction.

    I’ve experienced the good the bad and the dam right ugly from both the large multinational to the much smaller independents.

    From free up grades and bottles of chilled water been given out by Avis staff, when its 35 degrees centigrade ….to smaller outfits wanting to charge me my whole car security deposit for a 2mm paint chip?!

    In Italy they love charging for extra for what should be considered, standard obligatory equipment for a car to have to be on the road.

    This can be from high visibility jacket to cars not carrying obligatory snow chains.In some parts of Italy you need them on board from Mid November to mid April and you don’t even have to be near a ski resort either, so do check.

    With many airports connecting to motorways, no matter which way you turn from the terminal, you will see clear police indications of the above conditions. Thus you have no choice but to have them onboard or face a hefty fine!?

    Rather than get into a legal argument with the staff when collecting a car.I have always claimed these additional extra charges back via American Express Travel Services.Since the contracts rarely have specified that these are additional charges that should be paid by the collecting driver and not the actual hire car firm itself.

    The hire car fire own the vehicle and are thus responsible for supplying that vehicle with any additions needed to make it legal and fit for purpose to be on the road.

    I also follow the following code:-
    1)Always double check the car for scarps and marks.
    2)Always make the agent note them down before leaving the car hire office.
    3)Don’t forget to take pictures of the car before leaving including the milage and fuel indicator level and the same again on return

    There is no guarantee that they won’t try it on, but if they do, you will be in a better position.

    Ronster

  • Andrew says:

    Good news.

    Worth noting that Firefly – the Hertz low-cost company with strong presence in Spain (and whose advert was served for me at the bottom of this article) don’t seem to be playing ball:
    http://www.theguardian.com/money/2015/jul/18/car-hire-changes-firms-rent-vehicles

  • Martin Deutsch says:

    I suppose the next argument will be whether this just applies to cars hired in the EU or not.

    I don’t rent cars often, but recently booked a car via Avis UK’s website to drive in the US. My agreement was with Avis UK, and made no mention of the “convenience fee” I was charged for using the EZ-Pass toll transponder – $16.75 on top of a $3.50 toll. Avis UK knew nothing about it; the local office told me the fees were written on the transponder itself.

    Rather than argue with Avis, I just claimed it back from my credit card company (Halifax didn’t bat an eyelid – they don’t bother chasing the merchant for disputes under a tenner), but these new rules would make it an interesting fight in the future.

    • Tariq says:

      That was going to be my question – does this apply only to cars picked up from rental offices in the EU or bookings made in the EU for pickup worldwide? I’d guess at the former. Got shafted by Budget a few weeks ago who lied to me at the rental counter and said I needed to accept additional insurance at the counter as otherwise I was liable for the whole cost of the car. Read the agreement properly later and the prepaid rate already included insurance and I’d accepted the pointless personal possessions/personal accident insurance. Grr!

  • Liz says:

    We got hit with a large bill for hiring the sat nav this time. We use Avis – used them in Boston in Oct 14 and got charged £56 at the pick up point which was ok. We just came back from California and we were charged £125 for about the same amount of hire time. That’s a large bill on top of the hire charge already paid. I suspect we will get a toll bill in the post at some point too!

    • Tariq says:

      When hiring with Hertz in the US, I always untick nav when it comes up preselected in the options. Always find it in the car on arrival, and don’t get charged for it. 🙂

    • Mark says:

      You’re better off taking a Smart Phone and car holder if you have one. You can download navugation apps with offline maps for most destinations (so no mobile data required) or if you’re on Three you can use your home allowance in Feel At Home countries such as the US.

      If not otherwise on Three picking up a pay as you go sim for travel purposes can also be a cost effective solution.

      • Fenny says:

        I always used to buy a AT&T prepaid SIM when travelling to the US. Now I have a 3 SIM I use solely for travelling, as the top ups never expire and you can have a data only package if you’re not likely to make a lot of calls. A fiver for 500Mb is usually more than enough for a fortnight, if you’ve got wifi in the hotel.

        • David says:

          You also get a 150MB free data allowance with each £5 topup (and this data can be used in Feel at Home countries too).

          • Mark says:

            Also worth noting the 50p daily internet option actually runs until midnight UK time on the day after you activate it (or it did last time I used it). It is actually limited (something like 200MB from memory) but should be good for a couple of days use unless downloading/streaming large files.

    • Nick says:

      I’m somewhat confused by your post. Did you agree, or not, to the satnav charge in California before you rented the car with Avis? If you did, what’s your gripe exactly? 🙂

      • Liz says:

        My gripe was the increase in cost from just a few months ago. I booked with Avios who say you can’t prepay for the sat nav so you must pay the charge on arrival. The jump from £56 to £125 for the same amount of rental time seemed excessive to us.

  • Frankie says:

    That’s shocking about the Hertz employee Rob. Did you report him/her?

    • Rob says:

      I did. He was fired.

      • Aeronaut says:

        Did you report it there and then to a manager?

        • Rob says:

          This guy was only person on duty. Told him to get lost then reported it via the post rental survey I got. Had a call from Hertz later to say he had left.

  • What's the Point says:

    The EU finally meddling where it makes sense!

    I recently nearly got suckered into hiring a car from a smaller Spanish operator without reading the T&Cs.
    They were charging a non-refundable re-fuelling charge of 40 Euro – this was in addition the full cost of the tank of fuel they were going to charge me for as well. No refunds for bringing any fuel back either.

  • Imbruce says:

    I would also like to see them get rid of the bogus charge of road fund licence fee.
    I am not sure why we should have to pay this fee when it is part of the running costs of a rental
    vehicle. Just checked Hertz UK & Australia they both charge it.
    Also 1.5% credit card fee another blatant ripoff.

    • What's the Point says:

      Hertz UK are unlikely to pay any road fund licence on the majority of their rental vehicles. RFL is only charged (currently) on cars in year 1 which emit more than 130 g/km. So unless you are choosing a large car or people carrier, most of Hertz’s rental should be zero RFL.

This article is closed to new comments. Feel free to ask your question in the HfP forums.

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