Mechanical condition

Some of our members reported receiving faulty vehicles. So we decided to hire rental cars from Avis, Budget, Europcar and Pegasus - all nationwide chains. We drove them and also had them checked by a mechanic.

The Avis, Budget and Europcar rentals passed with flying colours - although the near-new Holden from Avis had a leaking window washer bottle. The older car from Pegasus had a few more minor problems. Our mechanic said: "The car is mechanically sound, but will need a little work in the future."

But then you get what you pay for. The Pegasus rental was just over half the one-day rate of the cheapest of the other three rental companies.

Damaged vehicles

Most rental contracts have a diagram showing scratches, dents or damage on the vehicle. Make sure it's accurate and that you and the company agree on the car's condition before you leave the yard. We were impressed with the Wellington branch of Pegasus. A staff member walked us around the car as a matter of course - both when we picked it up and dropped it off.

Some members told us about charges for damage (mostly nicks and scratches) that appeared on their credit card for no apparent reason.

How to get some money back

There are some forms of redress if you think that you've been charged for damage that didn't occur during your hire:

  • Complain to the company first - preferably in writing. If you talk to them by phone, keep a written record of your conversation.

  • Check whether your travel insurance covers the damage if you're hiring overseas.

  • Contact your credit-card company and claim for a "chargeback". If it accepts the claim, the charge will be paid back into your account. You can do this whether the rental was made here or overseas. But you need to act quickly - there are time limits for chargebacks.

  • You could complain to the Rental Vehicle Association of New Zealand - most rental firms are members.

  • For New Zealand hires, consider taking your claim to a Disputes Tribunal (contact your local District Court).

Damage (to the credit card)
Ros Gutterson - a Consumer staffer - was only moments away from returning her Hertz rental car when she was hit from behind by another motorist. Ros immediately rang Hertz, filled out all the relevant forms, and returned the damaged vehicle.

Ros hadn't paid for an excess reduction waiver. Although the accident clearly wasn't her fault, under Hertz's terms and conditions all damage is the renter's responsibility unless an excess reduction waiver is signed. The excess was charged to Ros's account. Hertz explained in a letter that the excess would be reimbursed once the rental car was fixed and costs recovered from the other driver's insurance company.

But two months later, Ros is still waiting for the excess to be reimbursed. Hertz says that the standard period for cost recovery is 30 days: "But in this particular incident, the third party's insurance broker is still waiting for the third party to lodge an insurance claim. Until then ... Hertz cannot recover the costs."

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