Exotic car hire pitfalls highlighted
NSW Fair Trading commissioner warns consumers to read the fine print when hiring luxury and performance carsHiring a car that could be worth over $150,000 may cost even more than you expect, NSW Fair Trading has cautioned.
That Italian sports car – like the Maserati GranCabrio pictured – a German luxury sedan or British off-roader hired for the daughter's wedding or a second honeymoon normally costs more to hire than a conventional passenger car, commercial vehicle or SUV, but there's an additional sting in the tail – the security deposit bond. This sum of money, often deducted from a credit card account by the business operator that owns the car, can cost the customer between $1000 and $20,000.
It has become a major cause for complaint to Fair Trading, says Commissioner Rod Stowe.
"Find out about any additional costs such as 'security deposit bonds' before you sign a rental agreement and before you provide credit card details," Stowe was quoted saying in a press release.
The consumer protection body has received numerous complaints recently, after customers who have entered into an agreement to hire a prestige sports car, sedan or SUV for a special occasion have not had the bond returned.
Furthermore, many customers have handed over credit card details believing it was for 'pre-authorisation' purposes, only to find that the bond, either in part or in full, has been withdrawn from the credit card account. According to Fair Trading, the complainants say they were not properly advised about the bond until the day of hire.
Sometimes, even with the car returned in pristine condition, the business operator can point to the fine print in the rental agreement that allows them up to three months to return the bond. This has been further cause for complaint to Fair Trading. And any interest incurred on the credit card for payment of the bond is unrecoverable.
Consumers left out of pocket by this practice are invited to contact NSW Fair Trading on 13 32 20 or register the complaint on the website.
For complaints in other states, click on the following links:
Victoria
Queensland
South Australia
Western Australia
Tasmania
Northern Territory
Australian Capital Territory
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