Josh-Daniel S. Davis (joshdavis) wrote,
Josh-Daniel S. Davis

Yellow, TX - More car rental fee complaining

Just another gripe about car rentals.

My Avis contract shows this:
$183.35 Weekly Rate (min 97H, max 167H, incl 5% discount)
.5383/MI & 6.999/Gal Fuel Service (If not full and showing a petrol receipt)
$1.95/day Reimbursement for tax/title/reg
11.11% CRF Concession Recovery Fee (aka Charged by the Airport)
$0.47/day Energy Recovery Fee
"Energy Recovery Fees became popular as gasoline prices soared above $4 a gallon," Darrah
said in his keynote address. "For whatever reason, several car rental companies saw the increase
in gasoline prices as an opportunity to create a new fee, even though – in our opinion – energy
expenses are a standard cost of doing business and should be bundled into the rental rate.

"The Energy Recovery Fee became an opportunity for companies to disguise a legitimate
operating expense. They position it as something akin to a tax or another charge forced upon
our companies, when in fact it is a pure revenue enhancement," said Darrah. "To make matters
worse, as gasoline prices began to drop dramatically – down from a national average of $4.11 a
gallon in July of 2008 to less than $2 in February of this year – Energy Recovery Fees did not
go away, or even come down in price."

15% TAX (Includes 5% Stadium Tax) (I'm serving Amarillo Business and not going to the stadium).
Darrah argued that, unlike Energy Recovery Fees, excise and sales taxes should be itemized
separately – if for no other reason than to make people fully aware of the unfair and extremely
heavy tax burden placed on car rental customers.
"These excise taxes pay for sports stadiums, arenas, infrastructure and a wide variety of other
civic projects," Darrah said. "Our customers are easy targets for these taxes. They are forced
to carry a hugely disproportionate share of the funding burden for these projects – despite the
fact that they often have no vote in the matter, and they derive no special benefit from them."

7.5% Frequent Flyer Tax (Charged by AA because of IRS tax liability)
The FF tax is about $14 for miles valued around $5 to $10. This is because in some instances, the liability of the miles can be written off, and therefore the all cases test fails, and FF miles are considered revenue.

A good reference for terminology:

*ps Budget and Avis are one company.
Tags: amarillo, car, rental
  • Post a new comment


    Anonymous comments are disabled in this journal

    default userpic

    Your reply will be screened

    Your IP address will be recorded