WTF National Car Rental gouging stranded travelers at Denver for 700 bucks for car rental.

[Compton]

Originally posted by: Citrix

:roll: supply and demand has nothing to do with car rental.

lol

 

[chuckywang]

Originally posted by: RaistlinZ
Well, he's renting a car to go from Denver to Salt Lake City. As someone who works for a car rental company myself, that price isn't that bad. Most places don't let their cars go that far for a multitude of reasons (mileage, wear and tear, the cost of getting the car back). Most of that $700 charge is probably in the drop fee.

My rental van from IL to NC and back cost waaaaay less.

 

[chambersc]

Ugh, there is no such thing as price gouging. If you don't want to pay x price, for whatever reason, don't.

 

[biggestmuff]

Originally posted by: mugs
Eh... I don't trust the media as far as I can throw them. The only details they gave were price and destination. And the article doesn't indicate any attempt to get an official comment from National. Bad reporting.

I suspect the fact that they want to rent a car for a long one-way trip has something to do with it.

Yeah, really?

What kind of vehicle was it? Where was the traveler going? Did the traveler ask for extra insurance?

 

[JulesMaximus]

Damn, I rented a Lotus Elise for the entire 4 day weekend and it isn't costing me that much!!! :shocked:

 

[JulesMaximus]

Originally posted by: bsobel

Originally posted by: narzy
yet another company on my growing list that i will NEVER do business with.

Why? One way rentals are expensive since it moves inventory around.

Exactly. How do you expect them to get their cars back after this weekend? Most companies do one way rentals fairly cheap because the demand moves inventory around in low numbers so they generally balance out. However, a spike in one way rentals out of an area and you could have a huge inventory problem in a short time. Say you have 1000 cars in your rental fleet and half of them go on one way rentals. There goes half of your bread and butter and you're left with the burden of replacing them.

I see nothing wrong with this.

 

[ElFenix]

Originally posted by: beer
If this was all about supply and demand, why wouldn't Sony sell PS3s the first week for $1500?

It's not that simple. Just like how gas price gouging is illegal, if this is far above the normal price. the FTC does investigate and fine businesses who do gouge.

not if you go by what dagta and raistlinz have said is their experience (and one of them more than a mere anecdote as he works in the industry). but don't let the real world get in the way of your politics.

 

[Antisocial Virge]

Originally posted by: chambersc
Ugh, there is no such thing as price gouging. If you don't want to pay x price, for whatever reason, don't.

Yea, you know right after 911 there was a huge demand for water to clear dust out of peoples mouths. How dare people get upset when I was charging $200 for a bottle of water. Supply and demand baby!!

 

[Queasy]

Originally posted by: Citrix

Originally posted by: Ramma2
Demand is greater than supply, so the price increases. Is this not what our country's economy is based on?

:roll: supply and demand has nothing to do with car rental.

Wha???

If there are only so many cars available for rental and every rental results in cars leaving town and not coming back anytime soon, supply and demand is definitely in effect.

 

[Amused]

Another reporter failed to do their homework. Go figure.

 

[kranky]

Sure it's a lot of money, but I bet it's the standard rate for a holiday weekend one-way rental.

 

[Fenixgoon]

Originally posted by: JulesMaximus
Damn, I rented a Lotus Elise for the entire 4 day weekend and it isn't costing me that much!!! :shocked:

hey, shutup elise-boy!

 

[Oscar1613]

Originally posted by: chambersc
Ugh, there is no such thing as price gouging. If you don't want to pay x price, for whatever reason, don't.

yep. like it or not, price gouging is only illegal during a declared state of emergency

 

[RFtesla]

I swear people need to take Econ 101 sometime in their life.

 

[Whisper]

Originally posted by: Antisocial Virge

Originally posted by: chambersc
Ugh, there is no such thing as price gouging. If you don't want to pay x price, for whatever reason, don't.

Yea, you know right after 911 there was a huge demand for water to clear dust out of peoples mouths. How dare people get upset when I was charging $200 for a bottle of water. Supply and demand baby!!

This example doesn't apply to the situation in the story; 9/11 was a state of emergency, and water was a material necessary for survival. A rental car, even if stranded, generally isn't seen as necessary to survive, and I doubt the area of interest was in a state of emergency.

 

[Whisper]

Originally posted by: chuckywang

Originally posted by: RaistlinZ
Well, he's renting a car to go from Denver to Salt Lake City. As someone who works for a car rental company myself, that price isn't that bad. Most places don't let their cars go that far for a multitude of reasons (mileage, wear and tear, the cost of getting the car back). Most of that $700 charge is probably in the drop fee.

My rental van from IL to NC and back cost waaaaay less.

Key component bolded. One-way and two-way rentals vary substantially in cost.

 

[Eos]

I've done two one-way rentals. 5 days for each one and paid normal rates. Eugene to Nashville and Nashville to Eugene. I have also been given quotes for moving trucks where the one way (60 miles) rate was almost double the local (bring it back to the rental location) rate.

I guess I don't understand. The entire fleet would be rented at normal rates anyway. Is there really a need to raise the rate?

 

[bctbct]

One way rentals always cost more. If Denver rented 5000 cars one way to deal with this crisis they will not have 5000 vehicles to satisfy customer reservations that they need in weeks to come.

These vehicles will eventually have to come back. $700 will get them back.

 

[Eos]

Originally posted by: bctbct
One way rentals always cost more. If Denver rented 5000 cars one way to deal with this crisis they will not have 5000 vehicles to satisfy customer reservations that they need in weeks to come.

These vehicles will eventually have to come back. $700 will get them back.

No they don't. I already posted my experience to counter your point.

So if the normal rate is $100 a day, but the 'storm rate' is $700, they need $600 to get the car back?

Do they always send someone from the 'needing' location or do they drive the car from the starting location and fly that person back?

Does Budget get a special rate from the airlines?

If a car hauling truck moves a normal car from San Diego to Nashville for $1200, what would the rate be for 1/5 the distance?

Would Budget negotiate a deal with this company or pay retail?

Please fill in the gaps.

 

[Tom]

I would imagine rental companies maintain a lfeet of cars in Denver for people who fly in and out of Denver.

They don't need their Denver fleet moved to Salt Lake City, it will be expensive to get it back to Denver.

btw, I bet it's much cheaper to get from Denver to SLC by bus or train, not by renting a car.

 

[bctbct]

Originally posted by: eos

Originally posted by: bctbct
One way rentals always cost more. If Denver rented 5000 cars one way to deal with this crisis they will not have 5000 vehicles to satisfy customer reservations that they need in weeks to come.

These vehicles will eventually have to come back. $700 will get them back.

No they don't. I already posted my experience to counter your point.

So if the normal rate is $100 a day, but the 'storm rate' is $700, they need $600 to get the car back?

Do they always send someone from the 'needing' location or do they drive the car from the starting location and fly that person back?

Does Budget get a special rate from the airlines?

If a car hauling truck moves a normal car from San Diego to Nashville for $1200, what would the rate be for 1/5 the distance?

Would Budget negotiate a deal with this company or pay retail?

Please fill in the gaps.

Okay so if Nat'l rented 500 cars one way for $100 each and people drove them an average of 800 miles in a one way rental, Nat'l breaks even by the time they return the car to Denver so it can be rented thursday by Mr. Jones?

 

[Eos]

Originally posted by: bctbct

Originally posted by: eos

Originally posted by: bctbct
One way rentals always cost more. If Denver rented 5000 cars one way to deal with this crisis they will not have 5000 vehicles to satisfy customer reservations that they need in weeks to come.

These vehicles will eventually have to come back. $700 will get them back.

No they don't. I already posted my experience to counter your point.

So if the normal rate is $100 a day, but the 'storm rate' is $700, they need $600 to get the car back?

Do they always send someone from the 'needing' location or do they drive the car from the starting location and fly that person back?

Does Budget get a special rate from the airlines?

If a car hauling truck moves a normal car from San Diego to Nashville for $1200, what would the rate be for 1/5 the distance?

Would Budget negotiate a deal with this company or pay retail?

Please fill in the gaps.

Okay so if Nat'l rented 500 cars one way for $100 each and people drove them an average of 800 miles in a one way rental, Nat'l breaks even by the time they return the car to Denver so it can be rented thursday by Mr. Jones?

I'm not privvy to their CODB.

The issue I'm bringing up, is the other posters assertion that the entire higher rate is to cover the cost of getting the car back, when I say it's not. I purport they can move cars around the country for a much lower cost than you or I can.

 

[trinketsummoner]

Originally posted by: eos

Originally posted by: bctbct
One way rentals always cost more. If Denver rented 5000 cars one way to deal with this crisis they will not have 5000 vehicles to satisfy customer reservations that they need in weeks to come.

These vehicles will eventually have to come back. $700 will get them back.

No they don't. I already posted my experience to counter your point.

So if the normal rate is $100 a day, but the 'storm rate' is $700, they need $600 to get the car back?

Do they always send someone from the 'needing' location or do they drive the car from the starting location and fly that person back?

Does Budget get a special rate from the airlines?

If a car hauling truck moves a normal car from San Diego to Nashville for $1200, what would the rate be for 1/5 the distance?

Would Budget negotiate a deal with this company or pay retail?

Please fill in the gaps.

" Storm rates " are most likely there to DISCOURAGE people from renting a car one way. You have no idea how much of a pain in the backside having to recover a car thats from out of area is. Its not just the costs of paying people to get it, its the wear and tear, gas, and loss of revenue from that car while its sitting in some other state. Most rental companies CANT rent a car thats from outside their area or state, theres internal competition between regions too so they arent likely to go out of their way to help you get the car back.

 

[Whisper]

Originally posted by: eos

Originally posted by: bctbct

Originally posted by: eos

Originally posted by: bctbct
One way rentals always cost more. If Denver rented 5000 cars one way to deal with this crisis they will not have 5000 vehicles to satisfy customer reservations that they need in weeks to come.

These vehicles will eventually have to come back. $700 will get them back.

No they don't. I already posted my experience to counter your point.

So if the normal rate is $100 a day, but the 'storm rate' is $700, they need $600 to get the car back?

Do they always send someone from the 'needing' location or do they drive the car from the starting location and fly that person back?

Does Budget get a special rate from the airlines?

If a car hauling truck moves a normal car from San Diego to Nashville for $1200, what would the rate be for 1/5 the distance?

Would Budget negotiate a deal with this company or pay retail?

Please fill in the gaps.

Okay so if Nat'l rented 500 cars one way for $100 each and people drove them an average of 800 miles in a one way rental, Nat'l breaks even by the time they return the car to Denver so it can be rented thursday by Mr. Jones?

I'm not privvy to their CODB.

The issue I'm bringing up, is the other posters assertion that the entire higher rate is to cover the cost of getting the car back, when I say it's not. I purport they can move cars around the country for a much lower cost than you or I can.

I'm guessing that it depends on the company, their policies, and their distribution of cars at the moment. Everytime I've asked for a one-way rental, they've had to look up some sort of information regarding the destination city. My guess is that if their current allotment of cars is too low, and the destination's is too high, they would need to have someone go and pick up the car to return to its original location after you've dropped it off. If, however, the destination location is short on cars, then you're saving them the trouble of transferring a vehicle themselves.

Also, as another poster in this thread mentioned, the chain he worked for was setup so that different locations couldn't use each other's vehicles; thus, if one was dropped off somewhere else, it would NEED to be retrieved; otherwise, it's just sitting around, depreciating, taking up space, and making no money for either branch.

 

[charrison]

Originally posted by: Minjin
Supply and demand.

Ensures that the people who need it the most and have the most means will get it...

It also ensures more supply is brought in from other places.