Sunday, February 23, 2014

Dishonesty In Advertising: Budget Rent-A-Car

I needed to rent a car for one day so I popped in to Budget rent-a-car on Front Street in Toronto. I said "what's the cost of the cheapest car I can rent for the following Saturday?"

The salesperson's answer: "$33."

I was impressed with the low rate. I said "Auch aye, laddie, I'll tack it." The price pleased my Scottish sensibilities.

"With tax it will be $48", he added. I took the car because at $48 it still seemed like a reasonable price, but I wondered what country or business allows or can justify a 45.6% tax. Hungary has one of the higher sales taxes in the world, and it's only 27%. How in God's name could $33 escalate to $48 on taxes? I was chewing on that thought as I left Budget's office, but would wait until I picked up the car to discover their dubious accounting practices.

Saturday finally came and I picked up the car, a white Kia Forte. The car was spotless...like new. The staff at Budget were friendly, professional and delightfully chatty. I liked the car. I liked the service, BUT.....

Let's just take a look at the breakdown of the rental cost:

Car:........................................$33.00
Ontario Environmental Fee..........0.15
Energy Recovery Fee..................0.98
*Parking Surcharge...................$7.00
Vehicle License Fee..................$1.35

Subtotal:.................................$42.48
HST (13%)..............................$5.52

Total:......................................$48.00

Interesting, isn't it? Especially the parking surcharge. Almost comically the 'parking surcharge' charge had an asterisk next to it, which presumably meant there'd be a footnote to explain it. I couldn't be the only one who exhibited bewilderment. At the bottom of the page I found the corresponding asterisk with the explanation:  $7.00 parking surcharge. Thanks, that was helpful.

This is an interesting study in business 'style' and/or ethics, and it hearkens back to the days when Air Canada was at it's most loathsome. Do you remember when Air Canada would announce 'fly to Toronto one-way for $99'? Of course they would only sell you a two-way ticket and the final cost (with 'taxes') came in at about $400. If I remember correctly, a one-way ticket cost $600. No shit. Air Canada became the punchline to their own joke. Nobody believed a word they said. To their credit, and it takes a lot for me to praise Air Canada, they've changed their pricing so the price you see is the price you pay (including taxes!).

Here's the troubling part for my budget: Budget delivered an excellent product, on time, in a friendly manner, yet I feel badly about the company because I feel their pricing was *DISHONEST. If I had been told the car was $42.48 plus tax, or $48 including taxes, I would have been charmed. I have no problem paying $48 for a rental car, it's very reasonable, but a $33 rental car that becomes $48 is not magically delicious, or even remotely palatable.

I think the underlying problem is that I feel like they're treating me like a fool, yet I don't feel like a fool for renting a car for $48. I think Budget has some work to do.

*DISHONEST

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