Hertz enters deal to purchase Dollar Thrifty car rental

Apr 26, 2010 3:58 PM

Two of the biggest names in the car-rental business are about to become one now that Hertz has agreed to purchase Dollar Thrifty for $1.2 billion in cash and stock. The agreement will add 1,550 more rental locations for Hertz bringing the total up to 9,800. Hertz has already identified $180 million in savings from the acquisition and says the merger will help them compete with other multi-brand rental companies.

So what does this mean for consumers? With the peak summer car-rental season coming up, fewer choices of companies could mean less competition and not as many deals. On the other hand, a larger network may increase the choices of vehicles offered and the availability of modern features. Of course, in the end you are renting a car, not a company, so the most important thing is to get the best price and save money. Here is some advice to help you drive off happy in your next rental.

Compare. Use Expedia.com, Travelocity.com or similar sites to search for rentals. To get the absolute lowest rate, take the three best deals you find and go to the rental companies' Web sites or call their toll-free numbers to ask for a better rate. Then call the local office of the company with the lowest price, and see if the agent there will beat it.

Forget labels. Some rental outfits aren't name brands but they might offer good deals. Go to CarRentalExpress.com, CarRentals.com, or similar sites for the names of such agencies. Consider Hotwire.com, which offers deals without revealing the name of the rental agency until you've booked.

Ask for discounts. Most agencies give them to members of AAA, AARP, or warehouse clubs.

Avoid a location near the airport. It's often cheaper to rent from an off-site office. Some rental companies, such as Enterprise, will pick you up and drop you off at no charge.

Pick your car. Ask if you have a choice of car within your requested vehicle class, or reserve a model that does well in CR’s tests. Sometimes you can rent a high-rated car, like a Toyota RAV4 or Subaru Outback, for the same price as a low-rated Jeep Liberty--all at the same company.

Say "no" to insurance. Most private auto-insurance policies cover rental cars as long as the person who signs the agreement drives.

Inspect the car. Make sure the rental rep sees any nicks or scratches--or worse--before you leave and notes them on the agreement.

Gas up before returning. A rental-car agency might charge two to three times what you'd pay at the pump. Note nearby gas stations as you're leaving the rental lot.

Return the car on time. If you show up after your scheduled return, you could pay for an extra day. (The grace period is often just 30 minutes.)

For more information on preparing for your next driving vacation, see our road trips section.