Hertz Allegedly Overcharging Electric Car Renters for 'Empty Tank' Fees

A major US rental company faces allegations of overcharging Tesla and Polestar electric vehicle renters hundreds for gasoline refills.

The US car rental giant Hertz has faced accusations of charging customers, who rent electric vehicles, nearly $500 (approximately $750 Australian dollars) or more for refueling the cars with... gasoline.

Hertz allegedly applies a 'Skip the Pump' fee to customers in the US who rent electric vehicles, a fee originally designed for customers returning gasoline-powered vehicles without a full tank.

Ordinarily, renters of gasoline-powered vehicles can opt to return the car with a full tank or pay a higher fee for the rental company to refill it.

However, for electric vehicles, Hertz applies a flat fee of $35 (approximately $53 Australian dollars) for recharging the battery once the car is returned by the customer.

Following initial reports by The Drive website, numerous customers in the US have disclosed excessive refueling fees for gasoline after renting electric cars from Hertz.

The rental company has refunded affected customers, who may have to wait up to a week for their funds to be reimbursed, and has offered a 'Free rental day' in response.

Hertz stated to The Drive that a 'systems error' led to the incorrect charges for electric car renters, although the website highlights customer Facebook posts from March 2023 detailing the same problem.

In January 2024, Hertz announced plans to sell off 20,000 of its 60,000 Tesla electric vehicles in the US.

The company cited lower-than-expected customer demand, with renters showing a preference for gasoline rental cars, as well as higher repair costs for damaged electric vehicles, as the basis for its decision.

This move raised concerns about potentially reducing the resale value of the vehicles, as a significant number would flood used car dealerships and classified sites.

In April 2024, Hertz Australia faced accusations of misleading electric car customers by requesting a fee for returning vehicles with less than 90 percent battery charge.

Hertz Australia provides electric vehicles for rent, with the Polestar electric car brand prominently featured on its local website as part of its 'Green Collection'.

Previously, Hertz had featured the Tesla Model Y electric SUV on its Australian website, and Drive can confirm that it still offers the Model Y for rental where available.

Last month, the company announced its decision to remove an additional 10,000 electric rental cars from its US fleet, bringing the total to 30,000 for the year.

This decision coincides with Tesla's repeated price cuts on its cars globally, including in the US and as recently as this week in Australia, which also affects electric vehicle resale values.

Hertz scrapped plans to purchase 65,000 Polestar electric vehicles for its fleets after the carmaker requested assurances that Hertz wouldn't sell off the 13,000 Polestars it already owned at steeply discounted prices. Unfortunately, the car rental firm couldn't provide such assurances.

According to Reuters, Hertz, listed on the NASDAQ, has seen its value drop by half in 2024 after reporting its January to March results in April.

Source: Drive‍