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Convenience
Fees, Documentation Fees, Application Fees, Delivery
Fees, Facility Fees, Big Toe Fees and on and on and on!!
And, then we have taxes: sales taxes, county taxes, PST,
VAT, and BST.
To give you an example,
we bought tickets ONLINE for a baseball game. The
tickets were 12 dollars apiece, but when all was said
and done and the credit card was charged, the total came
out to 34 dollars for two tickets. This was for a pair
of tickets that weren't printed by a clerk, or taken
over the phone by a receptionist. The information
required was entered by ME and processed by a computer.
No labor was involved. Top it off, the tickets were WILL
CALL. Which meant they won't get printed until I show
up, so there isn't even paper or ink involved.
Yet, on the invoice we
have sales tax of 7% and a "Convenience Fee"
(who is convenienced here?) totaling 7.50. By my math,
7% of 24 dollars is 1.68. So this Convenience Fee that
got bundled together with the 7% sales tax was 5.82, or
nearly TWENTY FIVE percent of the total price of the
ticket.
It doesn't stop there!
Then we have an Order Processing Fee (which includes
delivery). Oh thank you so much for adding another 2.50
to the total when I AM PICKING THESE TICKETS (which
haven't been printed yet) UP!!! So, what was the
"convenience" fee for??
Well, this little
frustrating exercise in itemizing charges is nothing
compared to the frustration you feel when you turn in
your car at the rental car company and you find out that
the total bill is almost double what you were quoted.
You see, it seems like politicians are always looking
for new ways to put their grubby hands in your pocket so
they can hire some more patronage workers in their city.
Now that the citizenry in the city has been taxed to the
gills, the natives have gotten restless. Where to find
money to fund new boondoggles like sports stadiums and
other publicly funded nonsense??
Why, lets attack the
tourist!!!
Never mind that it took
years and millions of tax dollars (how ironic) for
mayors of big cities and governors of states to lure
people into their cities and states. Now that people are
staying closer to home and exploring the great cities of
our country, these very same politicians see the
potential for raking in millions of extra tax revenue
without having to harm the natives.
On a recent road trip, I
decided to rent a car rather than risk my 8 year old car
on a long trek. What I found was that if I rented the
car at the airport, it was going to cost me over 500
dollars (including fees) for the week for a Dodge
Intrepid. However, if I went off site, it would be
almost half, or around 300 dollars.
Since most out of town travelers
rent their cars at the airport, rather than taking a
shuttle to a remote location, local politicians slap all
kinds of charges, fees and taxes to the bill of a rental
car rented at their airports. It's amazing how these
things can add up. According the the Houston
Business Journal, at Houston's International
Airport, the cost of a rental car is raised by a
whopping 71% by fees, charges and taxes. It doesn't get
much better at Hobby where these add ons add another 61%
to your bill.
Up until recently, it was
very difficult to comparison shop on line for a rental
care. Most rental car companies advertise their base
rate along with the caveat that fees, taxes and charges
MAY apply (what do you mean MAY??). As we've
demonstrated, it makes a big difference where the rental
car location is when it comes to how much gets tacked on
when you actually PAY for the rental.
Now, Orbitz
at least gives you some insight as to how much MAY
get added on. They still list the rental car prices in
their grid format, and those prices still don't list the
TOTAL cost of renting the vehicle for the day.
For instance, renting a
vehicle at BWI (Baltimore), we can rent an economy car
from National for 16.99 per day. That's a pretty good
price, considering Dollar is quoting 26.99 for the same
class vehicle. Clicking on the 16.99 price reveals that
in fact, the price is 19.99 per day, not 16.99. By
clicking on "reserve" you are taken to a page
which lists your car and the rate. If you scroll down
the page you will find a link under "Review
rental rules, terms and conditions" called
taxes and fees that will open a pop up box listing the
extra fees that are to be paid for when dropping the car
off.
We will
pay a whopping 11.5 per cent tax (which includes state
and local taxes, how nice for them to combine them!)
which adds another 2.30 per day to the cost. Then, we
add another 3.25 per day for "customer facility
charge". I thought the prices for things should
include things like over head. Do you buy a donut at
Krispy Kreme, only to be charged a facility charge??
Then, we have a Concession Recovery Fee of another 10
percent, or 2 dollars PER DAY. I thought you only
RECOVER the car on the LAST day. Oh well, we also have a
Vehicle License Recoupment Fee of 49 cents per day.
Anyone care to explain what Recoupment is supposed to
mean here??
Bottom
line is that with all the fees, charges and taxes added
on to the car, the car will cost us 28.02 per day. Quite
a bump up from that nice 16.99 rate that was ORIGINALLY
quoted to us:
| Item |
Charge
Per Day |
| Car
Rental |
19.99 |
| Taxes |
2.30 |
| Facility
Charge |
3.25 |
| Recovery
Fee |
2.00 |
| Recoupment |
.49 |
To their credit, Expedia
makes verifying the cost of fees a lot easier. You
simply click "Verify Rate and Continue" and
your base rate and taxes are included in the final
price. However, they don't itemize the taxes and fees
(its always fun to see what other clever names they can
up with for the word "taking"). The cheapest
rate we found was 21.99 however, and as a rule we
usually find lower rates on Orbitz. The total price of
the rental was 61.19, which included 17.21 in fees and
taxes. This constitutes a 39% mark up, which isn't
nearly as bad as Houston.
Bottom line: you have to
dig deep to really find out what you are paying for a
rental. This will make it ultimately harder to
comparison shop. Don't forget, the rental car company
will add their own fees like a fuel surcharge, or
insurance to the bill if you aren't careful. Find out
from your own insurance company if your coverage covers
you on damages on a rental car before you commit to more
fees and charges.
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