helahela

in T&C i read:

A deposit of 10pct of the vehicle's value will be held on the customer's credit card by pre-authorization at the beginning of the rental. Credit card authorization is released when the vehicle is returned without damage.

Now I hate to be funny - but 10% of the car value is a lot of money and i don't think my credit card has that much free credit. Also I need to pay for the hotel - is that absolutely mandatory and is there any way around it?

Thanks

jackal

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I've never seen that one before. What location are you referring to? Most other locations do either an extra $250 or so or 15% above the cost of the rental. 10% of the car's value is probably $1-3k, depending on the make and model!

Unfortunately, it's not easy to get around those kinds of requirements--rental locations put them in place for a reason (to screen out risky renters who wouldn't be able to pay for damage or extra days/fees, etc.), but that said, 10% of the vehicle's value is quite excessive. I would call customer care to clarify the policy and register a complaint (800.283.0898, option 2 and then 0). If that doesn't lead anywhere, I would recommend contacting the corporate offices--I have their number on file somewhere but lot handy, but if you search for "Gary Paxton DTAG," you should find it (918 area code). That should get the right number even though he recently retired as CEO.

helahela

Well it's my first time to rent in North America - Cabo San Lucas in Baja.
And that requirement came as a standard. I live in europe - and that 800 number unless i dialled it incorrectly didn't take me anywhere.

openflync

I remember hearing horor stories in the past of people going on holiday and having their credit cards rejected by the hotel because they were "over the limit" (Which always turned out to be due from rental car deposit charges). Ends up being a big problem if you don't have additional cards.

A good way to avoid it is with AMEX as these "charges" normaly won't affect your limit.

helahela

So theoretically could give them one of my creditcards that has low limit? or will it actually check if I had $3k on it as free funds??

Tuneman1984

The deposit usually isn't charged to your credit card, rather it's just a hold. So it goes into your available credit, but doesn't add to your balance, and thus the initial "hold" doesn't show up on your credit card. So if it was in fact $3,000 then the card would decline if you didn't have that much available.

I agree with jackal, I think it's poorly worded or a mistake. Most North American locations hold a maximum of 20% over the rental total to cover additional fees that might be incurred. So keeping the math simple, if your total was $300, the hold would be for $360. You'd have $360 less available credit than when you walked up to the counter, but provided you returned the car on time, refueled, and undamaged, you'd only see a $300 charge on your statement. The remaining $60 would be freed up within a couple of days to be used again.

jackal

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Sorry, it's 877.283.0898. That might actually dial to Dollar, but it reaches the same people and they are the same company.

If they do an "authorization" of $3,000, as tuneman said, it will come out of your available credit, and if that uses all of your credit limit, then your card will decline at the hotel. Conversely, if you do not have the $3,000 available on your card, it will decline and they will probably not rent you a car.

All this, of course, is dependent on whether they really will take that much of a hold. You might also try calling the location directly (look on your reservation details for contact info) to confirm the policy.

jackal

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Wow, I just went to the website and looked at the T&C, and there's no misreading it: they will take a 10% deposit of the vehicle's value. (Good on ya for reading the T&C--too many folks don't!)

Sometimes actual policies are not quite as stringent as what the website lays out, though, so I'd still recommend calling to confirm. I'd try the number listed as the shuttle dispatch number, as that will likely get you straight to someone at the rental counter, who will be the one renting you your car and will know definitively what will be held on your card--that number appears to be 624-145-7800, ext. 716 (I think the 624 is the MX country code, but I'm not sure). If that doesn't get to the rental staff, ask for the number or to be transferred (it might go to the hotel front desk if the hotel operates the shuttle).

If that really is the policy, a call to customer care and/or the president's office is definitely warranted. I know Mexican driving conditions are notoriously bad and most insurance policies do not normally cover Mexico, but a $3,000 hold is excessive for a $200 rental.

helahela

So just as an update how it's solved. It's just a cheap trick from them to sell extra insurance. The conversation when I rocked up in Cabo went as following.

Thrifty: Do you know that we are going to hold a 25k Peso deposit on your credit card.
Me: That sounds a bit steep is there any way to make it smaller
Thrifty: There is - if you takes a 220 Peso a day extra insurance that makes your own responsibility (i know there is a better word in english) down to 0. So in any accident or theft your are not responsible to anything. In that case the deposit will be the amount of the rental.
Me after being around in Mexico City for a while and seeing the driving habits shrugged and got the extra insurance.

All in all - seems to be a trick to sell extra insurance as the cars on their own are pretty much cheapest in Cabo area.

Tuneman1984

Thanks for the update. After heaeing more of it, my guess is they've had problems with tourists damaging their cars and being unable to collect on it. So they probably secure a high deposit to cover the cost of a substantial repair BEFORE the customer goes to a 5-star resort and runs up their credit card. Not a bad idea to take insurance anyways, especially at that price (around $17 per day I figured out). I know my auto policy is only good in Canada/US and credit cards vary wildly.