Nov 13, 2024
When a TikToker by the name of Logan (no last name provided) rented a car for one month from Hertz, he thought the only additional charge he’d incur would be for gas.
That’s because he signed a contract with unlimited mileage, a standard practice in the rental industry. But 25,000 miles later, he faced a $10,000 charge to his credit card.
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The charge prompted him to demand an answer face-to-face at a Hertz location.
“You show me where it says I can’t charge you,” the Hertz employee can be heard saying in Logan’s TikTok video, which now has more than 7 million views.
Logan responded immediately by bringing up his rental contract.
“Right here. It literally says I won’t get charged anything. It says miles allowed: free miles,” Logan said. “I never signed anything saying I could only go 100 miles a day.”
After some back and forth and little to no explanation, the manager shut down the inquiry.
“You will either leave or I will have you arrested,” he told Logan.
Even though Logan didn’t get his money back, his misfortune brings up a good point.
You can never be too careful when reviewing a contract.
What counts as unlimited?
Though the contract was referred to as unlimited, the Hertz employee insisted that it didn’t explicitly exclude charges for mileage.
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“You also never signed anything saying that we allowed you to drive 25,000 miles,” the Hertz manager said during the argument.
The definition of unlimited quickly became a topic of debate between the two.
“Unlimited is, what, 100,000 miles?” Logan suggested.
“No, it is not!” countered the Hertz employee.
At this point, any attempts at communication had broken down and the manager was ready to call the police.
So, what exactly did the contract say?
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Squint for the fine print
Even though Logan’s contract clearly stated he was entitled to unlimited mileage, the Hertz employee was adamant he had the right to charge him. Why is that?
He may have been referencing fine print buried in the company’s rental agreement, which outlines circumstances when additional charges can be applied.
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When you rent a car on the Hertz website, an “Unlimited Miles Included” line automatically pops up in the price breakdown at checkout.
But at the very bottom of the page in 9-point font there are two legal service agreements that you, the renter, enter into when you lease from Hertz.
“We have calculated the estimated mileage that will be used throughout the rental period. An excess mileage charge may apply in accordance with product restrictions or negotiated contract terms,” reads the Hertz Rental Qualifications and Requirements page.
The service agreement doesn’t detail what the estimated mileage is, what charges apply, or what product restrictions there are.
However, Hertz gives an example of charging $0.40 per mile on a separate page introducing its new rental agreement, which itemizes each individual charge. In that example, Hertz charges $50 for 125 miles.
And in Logan’s case, the $10,000 bill works out to $0.40 per mile for 25,000 miles.
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There may also be other service agreement factors that emboldened Hertz to charge Logan.
If Logan chose the “Buy Now, Pay Later” option on his rental, Hertz says it can tack on additional charges at its discretion.
“For Pay Later reservations, payment card required, or other non-prepaid reservations, the total charges incurred may be higher or lower than the estimated total charges presented at the time of reservation,” according to Hertz’s Terms and Conditions.
Comparison shop
Just like you’d compare car insurance rates for the best premium, comparison shopping comes in handy with car rentals, too.
If you know you’ll be driving in excess, you may want to consider a few different car rental companies before choosing one, and ideally go with the one with seemingly fewer loopholes.
Enterprise, for example, extensively details when unlimited mileage is available, and when it’s not. For vehicles with mileage limits, renters get charged $0.10 to $0.25 for additional miles over the limit.
Budget also appears to offer unlimited mileage for all its vehicles, which is included in the price of the rental. But the company says you can opt for a mileage allowance if you want to compare cost savings.
Avis also appears to allow unlimited mileage on every vehicle. However, Avis warns some luxury vehicles do come with mileage limits.
When in doubt, it’s best to go with a company that has the clearest conditions so you don’t have any unpleasant surprises.
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William Koblensky Varela is a Staff Reporter at Wise who has worked as a journalist for seven years covering finance, local news, politics, legal issues and the environment.
