Hertz is installing AI inspection portals at its biggest U.S. airports this year. Atlanta was the first, but they expect to hit 100 airports before 2025 is over.
Now they scan cars as they’re being returned – vehicles drive through a camera‑and‑sensor tunnel and get an ‘MRI for vehicles’ to log damage in a way that rental staff never did before. It also finds hard to spot damage such as under the vehicle, uneven tire wear, hairline cracks in the windshield.
We’re seeing one inch scuffs on a rear wheel billed out at $440 ($250 repair cost, $125 “processing” and $65 “administrative fee”).
- That’s the kind of thing that would never have been noticed before.
- And it’s probably not actually even getting repaired.
They ask for payment right away or else you pay more, and if you challenge them it takes longer than the discount window to get a response. They go after you for more money if you question the charges.
- This isn’t about accuracy
- And it isn’t about convenience
- It’s a new way to squeeze customers who don’t expect it.
Hertz’s new system lets them go after 5 times as many customers as before. The rate at which they’re sending out bills is skyrocketing. Here’s the math:
For big U.S. airport car rental locations, between 0.3% and 1% of rentals close out with actual damage charged to the customer. Roughly one renter in every 100‑300 gets a bill for damage. The midpoint most estimate, then, is about 0.6% (or 6 claims per 1,000 rentals).
- About 10% of rental returns may have some fresh dents, scrapes, or glass chips. Most of these, historically, never turned into a customer bill. At high turnover airports the focus is on taking back the car, cleaning it and getting it to the next customer.
- Fewer than 1% of rentals historically have turned into damage claims, Meanwhile, 30% – 50% of those claims are ultimately written off.
In contrast, according to Hertz, “fewer than 3 percent of vehicles scanned by the A.I. system show any billable damage.” (Emphasis mine.)
That means Hertz’s new system is billing out damage at about 5 times the previous rate. And this destroys the value proposition of renting from them (assuming of course that there was one to start with).
Historically renting from Hertz (or Avis or National) at an airport location meant on-airport convenience and going straight to your car rather than standing in long lines, and that they didn’t nickel and dime you over minor nicks and scrapes.
You pay a ton of extra fees for airport rentals, and frequently higher rates than off-airport discounters, but you weren’t stressed or hassled. These businesses are high volume and high revenue and they didn’t hassle over minor damage the customer probably didn’t do to the vehicle themselves.
It’s always been advisable to take photos and videos of vehicles prior to renting, it usually didn’t matter when renting from major car rental companies at major airports. That’s clearly changing at Hertz and others will likely follow.
The implication, though, is that these companies will no longer be worth their premium. There was an implicit loss damage waiver being purchased even by customers not paying for extra coverage. By stripping that feature out, but charging the same price, the customer gets less and becomes incentived to book elsewere – the Fox, Payless or Advantages of the world.
This isn’t double billing. It’s 100x billing.
They could charge the same $400 5-7x a week, never get caught for fraud. And never fix the scratch.
When does the law step in?
As for me, I will Uber more and rent cars less because of how this inspection is being handled. I expect that all high volume locations will have scanners soon. Such systems may not be cost effective at lower volume locations. One strategy would be to rent at an airport and return to a lower volume city location that doesn’t have a scanner, paying the one way fee. I wonder how effective the scanners are if you bring back the vehicle with dust or dirt on it, like what you could pick up driving in road slush.
@jns — On the ‘trashy companies’ comment, I’m convinced it’s a form of Stockholm syndrome.
First Hertz system was hacked and my dl#, credit card information and personal information was stolen and they give me a basic 2 year monitoring WITHOUT dark web monitoring- now this?? Bye bye Hertz.
An amazingly devious strategy, I must say. Charge $400 for a scratch. Never fix that scratch. Let’s assume the properly never charge a subsequent renter for that original scratch. But, every few rentals, a new ding, scratch, etc. pops up. Bang, another $400. By the time you sell the car, there are a dozen scatches/dings that netted them $5,000. Now spend a small portion to buff out the scratches or just sell as is. Bang, you’ve monetized scratches that you used to just eat.
BTW, I assume that if they compare in and out scans, the only way to flag uneven tire wear is from renters who think drifting and doughnuts are why you rent cars.
This also looks like a money grab. They could feasibly make as much off this hustle as they do rentals. Hertz has been filth for quite some time. CEO is trash, employees are parasitic garbage. They throw people in jail for stolen cars that were long ago returned you name it they do it.
Its no wonder they went bankrupt they cant even run a company properly. Hang it up Hertz outside of ISPs your in the top ten of hated.
Uber or Avis, here I come. Note to Avis, etc.: Don’t follow the leader, or you’re out too.
Travel is already too filled with ripoff-uncertainty. Not going to play this game with Hertz. Sorry, Mr. Ackman…..
100% never going to rent for them again.
Goodbye Hertz
A discount rental company tried to charge me for a nail in a tire simply because I pointed it out to them. It could have been there for weeks. I stood my ground and they backed down as it was getting loud and there were other customers around.
Had I known it would take two bus rides to get to the rental location I’d have probably used a big name company. This was Las Vegas
I rented a round trip car in Salt Lake City to go to Yellowstone a few years back before all of this nonsense started. Enterprise tried to do the same thing to me, but I took pictures before I left and even went and found a manager and showed them the bent wheel and busted hubcap. When I returned they told me I owed them around $1100.00 extra for damage to the car. When I showed them the before I left pictures they had a different outlook on the car. I advised them at that point if I see any additional charges on my credit card my attorney will be in touch.
I’m one of those people that checks out a car before I take it and note damage on the rental agreement as well as take pictures it can save you a lot of headaches and time in the future. And plus if the vehicle is not safe to drive it can be taken out of service. Because you the renter have the final say.
Greed that’s all I can say!
ok then I want a print out before I leave the terminal with previous damage.Who is to say that their employes did not do the damage before it was put back on line for rental.Ask for a pre rental print out for damages and this crap will stop .
Big shocker!!!! NOT!!!! Hertz is know fir ripping off customers in every way possible. I avoid them all the time unless forced by my work. Everyone should avoid them
Just boycott Hertz car rentals .. it’s as easy as that!!
I rented an SUV (didn’t do a full check to my error), after driving for an hour, I stopped at a gas station. That was when I noticed my tires were bald. I could literally see the wires in the tire.
Car rental companies can get bent.
Hertz trying to rip people off again. They’re the worst. I had a car from them paid through a Tuesday, they recovered the car the Sunday prior for non payment and then tried to charge me $1500 for it. The absolute worst rental company. Go with Avis. They’re so much better
This is basically extortion at this point. A minor scratch that would have happened regardless of how careful you are or cautiously you drive shouldn’t cost you to hundreds or thousands extra.
A newly dented bumper, yes, that was probably your fault, but if the windshield had 2 Knicks and now it has 3, that’s just circumstances.
I won’t be renting from Hertz.
Also, I like that this article about AI was written by AI. Very appropriate.
You rent a car for 3 days.. return it with a scratch in the wheel… add dents that were not there before.. who should be redponsible? If car renters don’t want a hassel…1. Get insurance 2. Be more responsible
As a President’s Circle member I
say they can screw themselves. I have status with Avis, National, etc. and there are plenty of choices in the marketplace.
Just one more reason why I’ll never rent from Hertz.
Never rent from Hertz. They are 100% corrupt and care nothing about their customers. They are running a better g scam on people, and committing extortion.
Sixt is the best
Unless I got a copy of the previous return scan, I’d tell them to shove the car up where the sun don’t shine and dispute the charge. Then again, how would I know IF the previous scan was true? I don’t. If the outgoing scan matches the incoming scan…stick it! How would the scan know the difference between a blob of mud versus a paint scratch? The whole thing smells of fraud!
This hertz so bad, guys.
I was already off of Hertz for how they handle things at CLE. 1 hour wait at the counter, mostly EV choices, people slacking off in the back office and according to the manager “on break” (why let them all take break at the same time). Their sister companies aren’t much better. Alamo is top notch
Shear madness.. Unless you get into a accident, those minor door dings, or a chip in the windshield are not the drivers fault, it’s part of driving a car. 400 dollars for “uneven tire wear” that’s lack of proper Maintenance by the rental company, not a drivers fault, unless they were doing neutral drop burnouts all day long.
This needs to be nipped in the bud right now!
If they don’t want ANY damage to a vehicle they rent out , then don’t rent them out.
Had a rental for 2 months when my car was totaled in a accident. Switched back and forth between Avis & Hertz. Won’t use Hertz now for sure.
The headline contradicts the article. “Five times as many” equals “four times more.”
Billing for tire wear is ridiculous. That is going to happen every time the vehicle hits the pavement. Some of the other things they are going to bill for with this new procedure is also ridiculous. Minor issues such as dings and scratches and whatever else can happen when the vehicle is parked and done by someone else. This will probably keep me from ever renting a vehicle from Hertz.
Because of this I will never again rent from Hertz or any car rental place that uses this method.
I always use Enterprise, and I ALWAYS get the insurance. I tell the store representative, If I bring back a bucket of ash all is good.
Never rent from Hertz. Got it.
What I am going to to do now is take a 1″0 to 15 minute” long video of the car and tell them up front how long it is and say we are going to watch every minute of it before I pay because I am afraid you might add more dings and dents to it.
I check rentals before driving off.. mostly for nails in tires (found one) and extreme dings or scratches… But now I question if the ai would know what was there before.
Given that . Note to self… Don’t rent from Hertz
The other problem with all of them at airport locations is when you inspect the car and find scratches, stains, etc. and try to tell someone , no one wants to be bothered with it and they just say that it’s “no big deal”. Easy for them to say until they try to bill you when you return it. Always take video.
On the Hertz issue, this is just icing on the cake. They were once the best but I last rented from Hertz at the Ft. Lauderdale and immediately drove it to Key West where I stayed for the week. When I went back to return it before flying back out of FLL , the check in guy said the car I was returning and was four hours away with all week had already “ been returned midweek” and thus would have to be charged again since I “ took the car again after returning it”. In sanity. Desk agent finally agreed that it was some sort of computer mistake but of course only “corporate” could fix it. I ended up getting the local news consumer affairs reporter involved after a month of runaround from “corporate” before they finally refunded me for the double charge.. For my trouble, they then took 1/2 week credit away from my loyalty days even though I had rented those days. Never went with Hertz again.
Its been many years since I rented a car and after reading about theses absurd AI scans (scams), It will be many more years before I rent another one.
If I only I could charge them for my rental that had a wheel bearing issue after an accident before I rented it. The tire was so worn after 100 miles I had to call and get a replacement from another location. Hertz in Memphis never returned my calls or responded to any emails. They often rent cars in dangerous conditions and now they are trying to get someone after an issue to pay for it. Sounds about right for this crappy company.
I haven’t rented from Hertz in years. The last time I rented from them they sent me out with a car with damage that I didn’t catch because it was raining lightly when I picked the car up (underneath in front of the front wheel on the driver’s side – wheel well photos showed it pretty good). The damage caused a tire to blow on the freeway and then it had to be flat-bedded to the LAX location (probably hit a curb hard and bruised the tire, later causing separation). Fortunately I had taken before photos and they did not charge me for the damage because the photos showed it before driving off (always get a photo at the end showing the gas level and the odometer for reference. They gave me another vehicle but the reason I rented was time sensitive so the reason for renting was no longer good and the rental was just a waste of money and time. At least I was able to get back to the original rental location and retrieve my personal vehicle. Since that time I have became more zealous in taking photos from all angles. The rental garage at BUF is dimly lit so I take photos in it but also at the first opportunity outside in normal daylight. I also take a few interior shots to document the cleanliness and any possible damage. Part of my inspection includes running my fingertips lightly over all external lights to detect any cracks. I have found them before driving off in the past. I often point out damage to the vehicle but it is usually small and the agent says it is not chargeable damage while explaining the policy. Sometimes they add it to observed damage prior to the rental. I have the most problem with windshields. It is hard to get photo angles that really show small rock strike pits. Body damage also takes work getting the angle and lighting correct so the photos really highlight the damage.
This just doesn’t account for basic wear and tear?? All vehicles, no matter how carefully driven, will get some minor scratches from bushes at a parking lot, some stones hitting the windshield, some wear on the tires. Using a robot to analyze every single one of those without accounting for wear and tear based on miles driven is ridiculous.
I don’t use Hertz and I get the extra insurance. If more Hertz renters people got the (full -walk away) insurance, wouldn’t that eliminate any liabilities from the driver?
Sounds like a good reason to not use hertz. there are other companies that would love the business
Hertz generally sucks and no one should rent from them. Hopefully this deters the people who were still using them.
A few years ago, I reserved a hybrid gas car, verified at check in it was a hybrid gas car. Pulled out saw the battery light on, didn’t think anything of it as my own hybrid occasionally needed to charge after startup, assumed it would charge up in a few minutes, then realized there was no fuel gauge, but we’d already left the airport and needed to get to the next exit to turn around. We didn’t make it, dead battery because it was an electric car, not a hybrid & given to us with no charge… Waited hours for a tow of course. Finally had it towed by our own insurance and got a car from a different place. That was the last time I’ve ever looked at Hertz.
Why don’t customers ask for the scan BEFORE they rent the car – so that when it comes back they will see if the scratches/dents and underbelly were already damaged prior to renting.
Why don’t customers ask for the scan BEFORE they rent the car – so that when it comes back they will see if the screatches/dents and underbelly were already damaged prior to renting.
I suppose that if the insurance covers all dents, scratches, etc., you could make sure it is worth it’s cost and make it so the camera system has some work to do. (sarcasm)
I always take photos of all four corners of my rental cars (and any damage I notice) with a time stamp app on my phone when I pick up and drop them off. I’ve done this for years and it has helped dispute damage charges.
I’ll be “running” to another car rental company….bye Hertzĺ
Poor business practices.
As if I needed another reason not to rent from Hertz. They lost me first over price, which decision was strengthened by their criminal charges against renters for allegedly stealing cars and refusal to drop charges when proven false. This new practice is not just the nail in the coffin, it is six feet of dirt on top of a coffin closed long ago.
The system is probably rigged based on Hertz programming directives ( “Find something based X miles driven). Just rent a car and drive around an airport parking lot or garage to put a few miles on and document. Turn the car in and when it bills you, expose and sue them. Easy paycheck.