10 Most Expensive Places to Rent a Car: Is it Worth the Cost?

Travelers who rented cars in U.S. cities shelled out quite a bit of money this summer. Skift reports on a study by CheapCarRental.net that lists the most expensive cities to rent a car in the past two months. While New York and Boston came in at number 2 and 3, the winner, Portland, Oregon, was a bit more surprising.

The results beg the question: why bother getting a car when you’re visiting a city?

We’ve rounded up the top 10 most expensive car rental cities in the U.S., and found a reason in each that might make it worthwhile. Some of these places can be reached by taxi or public transportation, but most visitors drive themselves. Check out the slideshow below and be the judge: is this place worth renting a car?

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FlightCar Makes Peer-To-Peer Rentals More Convenient

If you can get comfortable with the idea of a stranger driving your car – or if you have the capacity to not think about it while the vehicle is out of your sight – it might make sense to rent your wheels while you’re out of town.

But the leading peer-to-peer rental agencies leave a lot of the logistics to the car owner. List your car with a service like Relay Rides, Getaround or Jolly Wheels (available in several major cities), and if you get a taker, you have to arrange to meet the renter somewhere to hand over your keys. That’s inconvenient if you’re heading to the airport. It’s one more thing to do before leaving town and when you return.

FlightCar, a new service in San Francisco, tailors the peer-to-peer thing to air travelers by meeting both listers and renters at the airport. Drive to its lot at the Millbrae BART station, leave your car and a rep will give you a free lift to the terminal (and back, upon your return). The same goes for renters.

Since launching on February 5, some 200 travelers have offered up their chariots to rent, and 80 percent have been rented, according to co-founder Shri Ganeshram. The average rental period is five days. FlightCar, like the other peer-to-peer companies, provides $1 million in free insurance and checks each renter’s driving record.

But is FlightCar’s compensation to car owners worth the worry and the wear and tear?FlightCar pays car owners in gas cards, and only if it rents the vehicle. It also washes every vehicle, whether it rents or not. Compensation ranges from $10 for the entire duration of the rental (for the oldest cars) to $10 per day of rental (for the nicer, newer rides, a rate that Ganeshram says might go up to $20 soon). If the car doesn’t rent, well, you don’t get a gas card, but you’ve scored free parking and a car wash while away. Long-term parking at SFO costs $18 per day, while independent park-and-fly services can save you a few dollars. So at most, you can come away $28 per day to the good.

Owners need to remember that the compensation isn’t all profit because wear and tear on the vehicle carries a cost. Renters can drive the car 90 miles per day. Ganeshram says rental-car companies value wear and tear as high as 15 cents per mile (“I got that number from a rental lease for a 2012 BMW X5”), in which case 90 driven miles would amount to $13.50. Subtract such cost from the value of the gas cards and parking you’d expect to receive each day. (In fairness, Ganeshram points out that many renters don’t reach the 90-mile max, and if they exceed it, FlightCar pays car owners 35 cents per extra mile.)

Ganeshram, a graduate of the Massachusetts Institute of Technology, provided an example to show that the value of the wear and tear doesn’t eat up all of the owner’s profit. It’s too complicated to repeat, but he arrived at the conclusion that the owner of a new $40,000 car should value mileage at 27 cents per mile. (Cheaper and/or older cars would have a lower per-mile valuation.) Say said owner makes the car available for a week and it rents for five days. That person would gain seven days of free parking, valued at $126; $50 in gas; and let’s say $20 for the value of the valet service and the car wash. That comes to $196. If the car is driven 80 miles per day at a wear-and-tear value of 27 cents per mile, that’s $108. Difference: $88.

Enough to hand over your keys?

[Photo credit: bottom, Flickr user Stig Nygaard]

Orbitz Releases iPad-Optimized App For Flights, Hotels And Rental Cars

Travel-booking service Orbitz had released an update to their popular iOS app, bringing full iPad optimization to Apple’s tablet for the first time. The new version of the app now runs at the iPad’s native screen resolution and taps into the device’s more powerful processor to provide faster search results to consumers. The app also presents users with special mobile-only discounts that aren’t available through the company’s traditional web portal.

Much like the former iPhone-only version, the new app lets users find and book discounted flights, hotel rooms and rental cars. The search results are then displayed on the larger iPad screen allowing travelers to compare the details of different flight options or view hotels in both a list and map view. These features help make the search process much easier and simply aren’t possible on the smaller screen of a smartphone.

Streamlined searching of travel options isn’t the only thing the app brings to the table. It also allows travelers to save their itineraries for offline viewing and even adds important dates and times to the iPad’s built-in calendar. Additionally, it will provide updated information on flight delays or gate changes and grants access to exclusive deals for hotel rooms, often at as much as 50 percent off the normal price.

In celebration of the release of the new iPad app, Orbitz is giving away a trip for two to Chicago. The contest winner will receive first-class, round-trip airfare and two nights stay at the swanky Peninsula Chicago hotel. To enter to win, just visit the Orbitz Facebook page.

And to download the new iPad version of the app hit the App Store.

[Photo Credit: Orbitz]

Hertz to offer Lotus Evora in Europe


Two-door, four-door, sedan or compact not your idea of an exciting selection of rental cars? How about a $75,000 Lotus Evora? Hertz has introduced the Lotus Evora to key European rental markets, following a successful launch of the coupe in Italy in 2010.

“We are very proud to offer the Lotus Evora for exclusive hire in Europe following its rental success in Italy, thanks to our extended partnership with Group Lotus” said Michel Taride, president of Hertz International reports breakingtravelnews.com.

The move marks an extension of Hertz’s partnership with Group Lotus and is the launch car of the new Adrenaline Range in the Hertz Fun Collection of Germany, Spain and the UK, and also joins as a special car in the Fun Collection in France.
Similar to the Hertz Adrenaline Collection in the United States which includes 60’s and 70’s muscle cars Chevy Camaro SS, Ford Mustang 5.0 GT Premium and Dodge Challenger R/T, the Adrenaline Range in Europe will showcase the most exciting new vehicles in Hertz’s fleet with high quality, enhanced performance, and beautifully designed vehicles, with the Lotus Evora as the hero car.

“The hugely popular Lotus Evora is the perfect ambassador for our new Adrenaline Range, combining style, elegance, agility and sportiness to make driving journeys a dream come true.”

The Lotus Evora will be available to hire from Hertz France’s Biarritz, Bordeaux, Marseilles, Nice and Paris Charles De Gaulle airports and Paris Porte Maillot, Germany’s Frankfurt Rhein-Main and Munich airports, Italy’s Rome Fiumicino and Milan Linate airports, and Spain’s Madrid and Barcelona airports.

“We are pleased to extend our agreement with Hertz; the exclusive collaboration provides the perfect opportunity to make our stunning world class sports car available to the luxury rental market,” said Group Lotus director of sales Guillaume Chabin.

Rates start from 250 euros per day, and confirmed reservations are guaranteed.

Flickr photo by exfordy

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Ask Gadling: Car rental scams, overcharges and paying for damages you didn’t cause

When it comes to rental cars, you can’t really live with them, and you can’t live without them. Despite weird pricing methods, overpriced gas charges and shady insurance tactics, sooner or later you’ll show up somewhere in need of a vehicle.

Thankfully, most rentals will make it from start to finish without any problems, but eventually, you are going to find yourself face to face with a rental company that claims you damaged their car, kept it longer than agreed upon or forgot to fill up the tank.

So, here are tips on how to deal with rental car company deals and scams – and what you can do to prevent and resolve issues.
Always pay attention to the contract

Logical tip, right? Rental car companies are extremely punctual. When you enter your rental information online, you’ll be asked for the exact times you need the vehicle. This is where they’ll get you – show up early, and they’ll add a few hours to the rental, show up late, and they may even charge you an extra day. The funny thing is that if you add extra hours when you place the rental order, the cost almost never goes up.

So – make sure to add a few hours to the front and end of your rental to allow for flight delays or early arrivals. Always print your online rental agreement and bring it with you. If you used a discount code when making the reservation, be sure to bring the coupon or page showing you are entitled to the discount.

When you arrive at the rental desk, take a close look at the contract, and compare it with what you printed at home. Do not let the rental company change the contract without discussing it with you. If you are offered an upgrade, make sure that any overages are charged at the original rate – you wouldn’t be the first to get a free upgrade, but be charged the upgraded rate for returning it an hour late.

If you are using an elite desk to pick up your vehicle, you’ll usually bypass the desk and drive straight to the gate – but even here, you’ll be given a rental agreement before driving off, so take a minute to go over the fine print here, and be sure to mention to the agent any damage you noticed on the vehicle (more on that in a moment.)

When asked whether you need insurance, you’ll usually be offered several different policies – most of which are already included in your own auto insurance policy or credit card. Be sure to check this before you arrive at the airport. Don’t pay for any insurance already covered by your own policy or card.

When renting a car, your credit card is your best friend

If you have a major credit card, chances are it’ll come with a variety of insurance protections built in. If not, consider upgrading to a card that does. When I was faced with a $2900 bill for a quarter inch scratch on a Mercedes I rented in Europe, American Express took care of the whole thing, and all I had to do was sign one piece of paper. Without the card, I would have been on the hook for the entire bill.

Always do a walk-around inspection before accepting your vehicle

What takes 30 seconds, and can save you $3000 on your insurance? (Hint: it does not involve calling Geico.) It is the rental car walk-around. Before driving off the lot, always do a close inspection of the entire care. Renting at night? Pull out your flashlight. Make sure you report every single ding, dent, scratch, scrape or missing body panel to a car rental agent. Then, get them to note it on your rental agreement and make a note of the name of the agent that witnessed the damage.

Never, ever accept their word that it is “ok” – when you return the car with damage that was not your fault, claiming someone said it would be “ok” won’t be enough to get charges waived.

I know how much of a waste of time this is, and I’m sure you just want to get the hell away from the airport and check into your hotel, but damage to rental cars is big business -and if you can’t prove you did not damage the car, you will be charged to get it fixed.

The gas pricing scam

Isn’t it convenient that gas stations around the airport charge up to 20% more than the same brand away from the airport?

I know of one major international airport where the gas station is owned by the largest rental operator – making for a perfectly legal racket. When you rent your vehicle, you’ll be asked how you plan to fill its tank – you’ll either fill it up yourself, have the rental firm fill it up for you upon return (pre-arranged) or just ignore the whole issue and pay $7/gallon when they realize the tank is half empty. Pre-paid gas is a scam because no matter how much you use, you’ll pay for a full tank of gas. The only way to make this work is if you know in advance that you’ll arrive at the airport running on fumes.

Whatever you do – don’t just return the car with an empty tank. Of course, if you are running really late for the last flight of the day, you don’t have a choice, but if you let the rental company take care of filling up the car, they’ll fill it with special Unicorn juice that costs three times the current gas price at the local station.

One word of advise: always keep your gas receipts, and make sure you use a local station no more than 2-4 miles away. I’ve experienced a firm that claimed the gas station I used was too far away to let the car qualify as “full” – so they charged me $15 for what they claimed was two gallons.

Upon returning the car, the rental firm claims you damaged it

Funny how the rental company lets you drive off the lot without checking their car, but insists on checking every corner of it when you bring it back. Even if they don’t do an immediate inspection upon return, rest assured that they will check it out, and charge you for any damage that was not reported on the rental agreement. And don’t think that they’ll ignore a single thing – even the smallest scratch is enough for them to charge you.

If you return a car and the inspection uncovers damage, always check against the rental agreement to see whether the damage was already reported. If the damage is new, and you had not seen it when you inspected it yourself, you are out of luck – and will have to pay for it. If possible, make photos of the damage from all angles and write a clear description of the damage the rental company claims you caused. This will prevent them from adding other damage to the repair bill that was not caused by you.

In some cases, they may not even contact you, they’ll just charge your card for the entire amount they feel is fair. Talk about a nasty surprise when you get your statement.

And get this – they’ll also charge you the full non-discounted rental price for every day the vehicle is out of commission while someone repairs said scratch. This means that the kind of damage you can get fixed at the local body shop for $200, could cost the rental firm $2000 to fix. Rental car damage is big business – and you could end up being the one that funds it.

Now, there are of course incidents where the damage is not only your fault, but also quite evident. In those cases, you’ll want to contact the rental firm before returning the car and contact your own insurance firm or credit card company. If the vehicle is no longer drivable, ask them to bring a replacement.

When returning your car, always ask for a receipt

This is where it pays to give yourself some extra time at the airport. When you return the vehicle, wait for an agent to do their inspection, hand them your gas receipt (unless you want them to fill it up) and ask for a final rental receipt. Yes – in many cases you can just drop it off, leave the keys in the ignition and walk away, but if they overcharge you, you’ll have a hard time fighting this. Like with rental car damage, they’ll simply charge your card without contact you about overages.

[Photos: Hertz rental: Flickr/Alex-S, Car crash: Flickr/Daveeynin, Gas station: Flickr/Fortyseven]