Have you ever heard of the car rental upsell scam? When Steve Spar rented a compact car recently in Granada, Spain, he didn’t have either.
His car rental company, Europcar, was out of vehicles, so it offered him an SUV that he could later exchange for his reserved model. But when he changed it the next day, Europcar charged him a $423 “customer choice” fee.
“I have contacted Europcar, and they will not retract the charge,” said Spar, a business consultant in Sacramento, Calif.
Can a car rental company charge you a “choice” fee? Yes, and experts say it’s becoming a problem. Car rental companies sometimes run out of vehicles, and when they do run out of vehicles, they have alternatives. They can either upgrade their customers to a bigger car at no extra charge. Or they may give them the option to wait for another customer to return their vehicle or pay more for an upgrade.
The “customer selection” fee experienced by Spar appears to be a clever version of an established upsell ploy.
I asked Europcar about Spar fares. It reviewed her bill and reversed the $423 charge.
A Europcar representative said, “Please be assured, this is not the typical level of service we expect to provide.” It also promised to share Spar’s experience with its management team “with the aim of preventing similar situations from recurring in the future.”
Are car rental upsell scams becoming more common?
Upsell scams have been going on since people have been renting cars. But recently, this has become a problem.
“This practice appears to be on the rise due to high demand, fleet shortages and inflation-induced cost pressures,” said Shawn Miller, founder of automotive news site Modified Rides. “Companies may intentionally limit availability in lower classes to push customers toward more expensive options.”
It is legal to run out of cars and then charge extra for larger cars. But this is not ethical.
“Selling at the last minute is suspicious, even if it is legal,” said Alex Villalobos, operations director of Costa Rican car rental operator Vamos Rent-a-Car. “This is not the type of practice that should be expected from any professional business.”
He said the temptation is too great during high season. That’s when demand is high and some of their most popular vehicles – usually compact cars – sell out. Legitimate rental agencies will manage their inventory carefully so that they do not run out of cars. But on busy holidays like New Year’s Eve or the first day of Spring Break, there’s no way to avoid it. The car rental space will be empty by noon.
Industry standard practice is to upgrade at no charge to the customer. And major car rental agencies usually do. For example, when Enterprise Rent-A-Car runs out of vehicles in your category, its policy is to provide you with a car of the same or higher category.
But some car rental companies see an opportunity in extreme sales. They never force you to pay more for the car. Instead, they offer two bad options: either wait for your class car to return (which could be hours) or pay extra for a larger vehicle. Most travelers are unwilling to delay the start of their vacation, so they ask for a ransom.
How do you avoid falling into an upsell scam?
Fortunately, only about 1 percent of car rental customers are left without a vehicle, according to industry insiders — though that number can rise during the busy holiday travel season. But you don’t have to become a statistic.
- Book a car during off-peak times. Avoid arriving at the car rental counter at peak times (such as July 3 at 3 p.m., when inventory will be cleared). the earlier the better. And if you can avoid the busy days before the holidays, there will be plenty of cars.
- Make full payment before reaching the counter. This is advice from Mark Cipollina, who frequently rents cars and runs a travel gear site. “If you pay in full, they have to give you what you’ve already paid or upgrade your reservation for free,” he said. At least that’s the general policy of the major car rental companies. You can also get a discount on your car by paying the entire fare in advance.
- Call out their deception. If you refuse to accept the upsell, your car rental company must either give you an available car or transfer your rental payment to a competing car rental company. Yes, this is industry practice.
It helps to rent from a name-brand rental company like Avis, Enterprise or Hertz, said car expert Lauren Fix. “Many brands have subsidiaries that can cover the rent,” he said. Fix, who has experienced the upsell scam himself, recommends bringing a printout (yes, a paper printout) of your confirmation. This can help speed up the process of finding a car for you.
One more thing: Read your new contract carefully, especially if the car rental company gives you an upgrade. I have seen too many cases where customers accept the keys to a large vehicle and sign a contract without reviewing it. Unfortunately, there may be a new, higher rate in the contract – which the car rental associate failed to mention.
Christopher Elliott is an author, consumer advocate and journalist. He founded Elliott Advocacy, a non-profit organization that helps solve consumer problems. He publishes Elliott Confidential, a travel newsletter, and Elliott Report, a news site about customer service. If you need assistance with a consumer issue, you can contact them here or email them at (email protected).