What does base rate mean?

 
Old Jan 18, 10, 10:01 am
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What does base rate mean?

What does base rate mean?
ptrjakson is offline  
Old Jan 28, 10, 11:58 pm
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Simply put, the price the car is advertised at. So when they say "$39.95 per day plus taxes and fees", the base rate is $39.95. Here's an example:

Pick-up VANCOUVER INTL AIRPORT, BC,CA
Feb 18, 2010 09:00 AM

Return Same as pickup
Feb 19, 2010 09:00 AM

Car Class: Dodge Charger or similar
Rate: $50.35/day
Total Base Rate (CAD): $50.35

Rental Time Charge $50.35
GOODS SERV TAX (5%) $2.68
LOCATION SURCHARGE (17.75%) $9.53
CANADA PROVINCE TAX (7%) $4.43
ROAD TAX ($1.50 per day) $1.50
VEHICLE FEE ($1.84 per day) $1.84

Total Estimated Mandatory Charges (CAD) $70.33
Estimated Grand Total (CAD) $70.33
Say if your rental was for 2 days at this rate, the "Rental Time Charge" would be 2 days @ $50.35, or $100.70. So the car is advertised as being $50.35, but the real total in this case is $70.33. Hey, we have to pay for our Olympics somehow...
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Old Apr 19, 10, 7:36 pm
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Thank you so much for the information i would like no some thing more from like how to get the best car service deal .
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Old Jun 22, 10, 7:13 am
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From $50 to $70 I can understand. But I was recently quoted this for 5 days:


Car daily rate: $79.85
Rental days: 5
Subtotal: $399.25
Estimated taxes
and fees:
$605.65
Estimated total*: $1,004.90

Base rate is only 25% of the total and taxes and fees are 75% !!!
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Old Jun 23, 10, 12:48 pm
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Originally Posted by pvs001d View Post
From $50 to $70 I can understand. But I was recently quoted this for 5 days:


Car daily rate: $79.85
Rental days: 5
Subtotal: $399.25
Estimated taxes
and fees:
$605.65
Estimated total*: $1,004.90

Base rate is only 25% of the total and taxes and fees are 75% !!!
Whoa! What are the particulars of the rental? Is it a one-way with a drop fee? Did you select additional coverage/other add ons? What city?
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Old Jun 23, 10, 9:39 pm
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Originally Posted by ptrjakson View Post
What does base rate mean?
Consider it the "bait" in the term "bait and switch"
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Old Jun 23, 10, 10:55 pm
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Originally Posted by pinworm View Post
Consider it the "bait" in the term "bait and switch"
Sort of yes, sort of no. Car rental agencies are subject to a large amount of taxes and surcharges that are taken from the customer and go directly to the federal/provincial/local government or airport authority. However, some of the fees are just alternate forms of revenue for the rental agency to offset certain expenses. Take my example earlier in this thread for example:

Rental Time Charge $50.35
GOODS SERV TAX (5%) $2.68
LOCATION SURCHARGE (17.75%) $9.53
CANADA PROVINCE TAX (7%) $4.43
ROAD TAX ($1.50 per day) $1.50
VEHICLE FEE ($1.84 per day) $1.84
GST
Federal tax that goes directly to the feds

Location Surcharge
Percentage based levy that goes directly to the airport authority for the privilege of using their space to retrieve your rental car

PST
7% provincial sales tax

Road Tax
This goes directly to the provincial government

Vehicle Fee
Also known as VLATR (Vehicle Licensing and Air Tax Recovery), this is the only fee in this example that goes into the rental agency's coffers. Agencies use the VLATR to recover registration costs and the $100 tax on each new car sold in Canada equipped with A/C.


I've also seen Thrifty charge a VMF (Vehicle Maintenance Fee), whose recovery purpose is self-explanatory. Other ones I've seen are Energy Surchages, and Parking Surcharges for agencies in downtown Toronto.

I'm of the belief that the agency makes money, or revenue, and uses this money to pay off expenses. The difference between the two amounts is profit; this is basic economics. I have no issue with taxes and government surcharges being listed separately, but the agency doesn't need to lure me in with a nice $25/day rate and then offset their operating expenses one by one. What's to stop them from charging me for the printer paper, or adding a charge when I take a cup of water from the cooler in the rental lobby?
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