Car Rental Fees: Late Fees

Although you have planned your vacation or business trip carefully, you have run into a snag or hit bad traffic. You call your boss or family, and tell them you’ll be late. No big deal. Then you call the rental car company—and find out you will pay through the proverbial nose.

Your original rental rates were calculated by the day, 24 hours. If you pick up the car at noon on a certain day, you will have to return it by noon on the day it is supposed to be back. Although some agencies have a one-hour grace period, others would begin charging you late fees at one minute past noon. These charges are usually high, and after three hours they charge you a full day’s rental, and they are not obligated to asses a fee based on your rate structure on the contract.

One way to avoid late fees is to allow a lot more time than you normally would to get your rental car back to the agency. If you would normally drive from the airport to the agency in an hour, allow several. If you are on a long distance trip and think you might take another six hours on the road to get home, depending on the weather you should add a few more hours to this. The reason is because if you experience problems and take another route, it likely won’t be as quick as the one you’re on.

Another way to eliminate late fees is to not drop the car off and leave immediately. Always look the car over with the person who is checking your car in, and go over any other issues including the time you are checking in. Make sure this agent signs your return agreement or receipt with a time and acknowledgment that the car is in good condition and returned on time.

However, don’t be too early, either. If you return your car more than 24 hours early you can get your good rate pulled right out from under you like a rug. Their charges are for a certain number of days, and this time determines your total rate structure. If you return early that changes their rates, and they will charge you at a higher rate than they would have had you kept the car another day. Sometimes it’s much more than the extra day’s rental charge. Make sure you know how an early return will affect your car rental rate.

Sometimes all the planning in the world won’t help you get your car back on time. Remember, if you’re less than an hour late many companies won’t charge you a late fee. However, as soon as the clock hits the hour mark, you pay the hourly rate. When your charges add up to a full day’s rental, the company charges you only for the day. Be sure when you rent your car that you know what your late fees are and if you have a grace period.