I m sure you understand the skepticism on my part, given the current state of the rental industry. I

You don t have to read this site every day to know that fraudulent car rental damages are a big problem, at least as far as customers are concerned. If you re a car rental agency, you might call it something different, ranging from no problem to profit center.
But at least one car rental company says it s on our side. It s Bandago , a San Francisco company that specializes in van rentals. After I wrote a story about the problem of fraudulent claims for Auto Rental News, a trade magazine, last year, I got an unexpected call from its CEO, Sharky Laguana.
I have been giving this issue a lot of thought lately, he said. My company has started sending out the email below whenever we find damage on our rental vehicles. I was hoping to get your feedback. Does this look fair and reasonable to you? Any suggestions you might make?
This email is to let you know that damage was located on the vehicle you returned to Bandago. Right now our understanding is that the following new damage was located on your vehicle upon its return:
We are very careful with all damage claims, and every claim is reviewed multiple times at different monthly car rental singapore points by different people. We will compare pictures taken at both the start and end of the rental, look at the rental agreement, review any accident report forms, and of course welcome any feedback or information you may have about this damage.
Damage is not a profit center for us (it is a significant monthly car rental singapore expense!) and there is no point in the process where we experience a net gain. We value our relationship with our clients, and will be completely transparent with you at every step of the process, about what we are doing and why.
5. Please note, in cases where the damage is purely cosmetic, we may have to delay getting an estimate in favor of honoring our existing reservations. Because we specialize in long term rentals, monthly car rental singapore this can result in significant delays upon occasion. However, we will always thoroughly document the damage in question with photographs before the vehicle leaves our possession.
6. Once we have determined the amount required monthly car rental singapore to complete repairs you will have the option to pay our out-of-pocket costs for repair (i.e. exactly what the repair shop bills us), plus loss of use (as allowed by law) if the vehicle will be in the shop for more than a day or two. Or, at your option, you may ask us to bill your insurance company.
8. Due to the extra time, expense, and labor involved in settling a claim with insurance companies, our claim will be for all losses monthly car rental singapore we are legally entitled to depending on the state the rental started in (this can include tow, repair, administrative fees, loss of use, diminishment of value, etc.).
9. Please keep in mind that you may still be responsible for the insurance deductible, as well as any expenses not covered monthly car rental singapore by your insurance policy. Some insurance companies have exclusions in their policies for administrative fees, loss of use, etc. These costs can be significant. We advise checking with your insurance company before telling us to pursue the claim with them.
We know no one is happy about being responsible for damage. On the other hand, we hope you understand that there is no way we can stay in business if we are forced to absorb all the expense of damage caused by our renters. At all times we will do our best to make sure the final resolution is fair to all parties.
Bandago refers to this notification as a customer bill of rights, but I think it s more of a disclosure form that addresses some of a driver s fears about the damage claim process. Either way, I think it s an important step toward fixing this problem.
I ve been giving this issue some thought, too. I m a big believer in preventive medicine, and the consumer advocate in me says that sending out a notice that says damages were discovered after you returned the vehicle should be unnecessary. Any problems should be identified when you return monthly car rental singapore the car.
What would you do if you received the email from Bandago? Personally, I think it s refreshingly honest and I might feel a little bit better about the claims process. monthly car rental singapore The company should be commended for trying to fix a chronic car rental industry problem.
I don t really see a way to stop after-hours dropoffs. Many of our clients are leaving the country and have planes to catch or other itineraries they need to stick to. Having staff available 24 hours a day 7 days a week at each of our locations would be wonderful, but doesn t come close to making fiscal sense. The vast majority of our damage claims are not even disputed, we are just trying to figure out how to communicate the process as quickly and transparently as possible and prevent people from being surprised weeks or months later.
I m not sure why excessive dirt in the same paragraph as damage would discredit all my other points. But I think you might not be familiar with just how dirty a vehicle can get. Here s one that came back just a week or two ago:
I completely get that customers want to walk off the lot, and if they were not confronted about damage monthly car rental singapore be confident that they are free and clear. But what a lot of honest people have difficulty understanding is that not everyone is honest. So if you walk off the lot, and then an hour later we discover the front bumper is held on by plastic zip ties (don t laugh true story), well, that doesn t seem right does it? And what s to stop somebody from dropping a vehicle off and then going out of their way to avoid any interaction with employees at all? We have had that happen too. We shouldn t be obligated to play hide and seek with the customer, right?
Full and careful inspections on the spot are ideal. But not every customer wants to stick around (planes to catch, meetings to go to). Then what? And what if the customer goes out of their way to avoid our employees? Is the burden on us to find and catch the customer before they can skip town?
Full and careful inspections on the spot are ideal. But not every customer wants to stick around (planes to catch, meetings to go to). Then what? And what if the customer goes out of their way to avoid our employees? Is the burden on us to find and catch the customer before they can skip town?
I know what you re saying about customers running out the door too quickly. Perhaps, there can be an option of: Hang around an extra 5 minutes while we inspect the vehicle and you will never hear from us again, monthly car rental singapore or, Leave in a hurry but then you have to take our word for it if we find something. But I know if I were in a hurry, that wouldn t really be OK with me either.
I know what you re saying about customers running out the door too quickly. Perhaps, there can be an option of: Hang around an extra 5 minutes while we inspect the vehicle and you will never hear from us again, or, Leave in a hurry but then you have to take our word for it if we find something. But I know if I were in a hurry, that wouldn t really be OK with me either.
I looked up my old company after writing that. It hasn t operated since 2003. The BBB now shows no rating, has me classified as the wrong type of business, has a big bold banner that says that it is not accredited, and has a big red banner saying an alert has been issued for my business and when I click it, it says that anyone with a complaint should consider legal action. monthly car rental singapore It also lists my full name, and my companies old address. I called them and asked that they remove my name and address, and they told me they can t as their website is a matter of public record. Per Chris s advice on calling, I will now e-mail them to create a paper trail.
I looked up my old company after writing that. It hasn t operated since 2003. The BBB now shows no rating, has me classified as the wrong type of business, has a big bold banner that says that it is not accredited, and has a big red banner saying an alert has been issued for my business and when I click it, it says that anyone with a complaint should consider legal action. It also lists my full name, and my companies old address. I called them and asked that they remove my name and address, and they told me they can t as their website is a matter of public record. Per Chris s advice monthly car rental singapore on calling, I will now e-mail them to create a paper trail.
I m sure you understand the skepticism on my part, given the current state of the rental industry. I didn t say the pessimist was right, but I simply don t trust any company in the industry. I certainly applaud the sentiment and hope it s fully carried out, however.
I m sure you understand the skepticism on my part, given the current state of the rental industry. I didn t say the pessimist was right, but I simply don t trust any company in the industry. I certainly applaud the sentiment and hope it s fully carried out, however.
Hrmm. Well this is where great intentions monthly car rental singapore runs into existing monthly car rental singapore law. In many states (including California) the price for a CDW is capped by law. So I can t charge any more for a $33k van than I would for a $13k Chevrolet Spark. I m capped at $15/day either way, despite the fact that the van is not only more than twice as expensive, but also far more likely to be in a collision due to its size. Likewise the law specifically says coverage is optional and not mandatory.
I don t know of any part of our business that enjoys 80% margins. It s tough for me to tell if CDW is profitable. monthly car rental singapore I have a suspicion it is not. Our accounting doesn t discriminate between expenses for body repairs that were covered under CDW and expenses for body repairs that were not covered under CDW. I can tell you that CDW revenue +payments from insurance companies equals roughly 15% of what we spend on maintenance and repairs, not all of which is damage related. This does not factor in any reductions in vehicle resale price due to damage. So it s complicated.
If we game this out you can see the challenge: monthly car rental singapore I can t charge more than $15/day. So if you rent a van for one day and do $20,000 of damage (had one of those just last week!), I no