in this case
- Steve Sphar reserved a compact car from Europcar in Granada, Spain. The company had run out of vehicles, so it handed him an SUV and said he could swap it for his reserved model the next day.
- When he made that swap, Europcar hit him with a $423 “customer choice” fee, a charge that looks like a clever twist on the classic rental-counter upsell. He contacted the company to reverse it, and it refused.
- Experts say this kind of last-minute pressure is legal but shady, and increasingly common as fleet shortages bite. The industry standard when a company oversells is to upgrade you for free, which raises the question of what a renter can actually do when a company invents a fee instead.
Have you ever heard of the car rental upsell scam? Neither had Steve Sphar when he rented a compact car in Granada, Spain, recently.
His car rental company, Europcar, ran out of vehicles, so it offered him an SUV, which he could later exchange for the model he’d reserved. But when he swapped it out the next day, Europcar charged him a $423 “customer choice” fee.
“I have contacted Europcar, and it won’t reverse the charge,” says Sphar, a business consultant from Sacramento, Calif.
Can a car rental company charge you a “choice” fee? Yes, and experts say it’s becoming more of a problem. Car rental companies sometimes run out of vehicles, and when they do, they have a choice. They can either upgrade their customers into a larger car at no extra charge. Or they can give them a choice of waiting for another customer to return their vehicle or paying more for an upgrade.
The “customer choice” fee Sphar experienced appears to be a clever variation of an established upsell ploy.
I asked Europcar about Sphar’s rental. It reviewed his bill and reversed the $423 charge.
“Please rest assured, this is not the typical level of service we expect to provide,” a Europcar representative said. It also promised to share Sphar’s experience with its management team “with the aim to prevent situations such as this from happening again in the future.”
Is the car rental upsell scam becoming more common?
The upsell scam has been around ever since people have rented cars. But lately, it’s become more of a problem.
“This practice appears to be increasing, likely due to higher demand, fleet shortages, and inflation-driven cost pressures,” says Shawn Miller, Founder of Modified Rides, an automotive news site. “Companies may intentionally limit availability in lower classes to push customers toward more expensive options.”
Running out of cars and then charging extra for a bigger one is legal. But it’s not ethical.
“A last-minute upsell is shady, even if it is legal,” says Alex Villalobos, director of operations at Vamos Rent-A-Car, a Costa Rican car rental operator. “It’s not the type of practice that should be expected from a professional business.”
He says the temptation is too great during high season. That’s when demand is high and some of their most popular vehicles — usually compact cars — sell out. Legit rental agencies will carefully manage their inventory so that they don’t run out of cars. But on busy holidays like New Year’s Eve or the first day of spring break, there’s no way around it. The car rental lot will be empty by early afternoon.
The industry standard practice is to upgrade the customer at no charge. And the major car rental agencies normally do that. For example, when Enterprise Rent-A-Car runs out of vehicles in your class, its policy is to accommodate you with a car of a similar or higher class.
But some car rental companies see an opportunity when they’re oversold. They never force you to pay more for a car. Instead, they offer two bad choices: Either wait for a car in your class to be returned (which could be hours) or pay extra for a bigger vehicle. Most travelers are unwilling to delay the start of their vacation, so they fork over the ransom.
Twice now, once in California and once in Spain, I have reserved a car with Enterprise and been offered a for-a-fee upgrade at the rental counter. In both instances the upgrade vehicle was described by make and model. Both times I refused the upgrade. Both times I was quietly given the keys to the upgrade vehicle without paying the upgrade fee. In neither instance did anyone say anything about running out of anything. My guess is that they try to get you to pay for an upgrade when they run out of what you reserved. A bit sneaky, but all’s well if you just say no.
Read more insightful reader feedback. See all comments.
How do you avoid falling for the upsell scam?
Fortunately, only about 1 percent of car rental customers end up without a vehicle, according to industry insiders — although that number can rise during the busy holiday travel season. But you don’t have to become a statistic.
- Book a car at a less busy time. Avoid arriving at the car rental counter at the busiest time (like 3 p.m. on July 3, when the inventory will be picked clean). The earlier, the better. And if you can avoid the busy days before a holiday, there will be plenty of cars.
- Pay in full before you arrive at the counter. That’s the advice of Mark Cipollina, a frequent car renter who runs a travel gear site. “If you pay in full, they have to give you what you already paid for or upgrade your reservation for free,” he says. At least that’s the general policy of the major car rental companies. You may also get a discount on your car by paying for the entire rental upfront.
- Call their bluff. If you refuse to accept the upsell, your car rental company will have to either give you an available car or pay for your rental with a competing car rental company. Yep, that’s the industry practice.
It helps to rent from a name-brand rental company like Avis, Enterprise, or Hertz, says car expert Lauren Fix. “Many brands have sister companies that can fill the rental,” she says. Fix, who has experienced the upsell scam herself, recommends bringing a printout (yes, a paper printout) of your confirmation. That can help speed up the process of finding you a car.
One more thing: Read your new contract carefully, especially if the car rental company gives you an upgrade. I’ve seen too many cases where customers accept the keys to a bigger vehicle and sign an agreement without reviewing it. Unfortunately, the contract may have a new, higher rate — something the car rental associate failed to mention.
Your voice matters
When a rental company runs out of cars, some upgrade you for free and some invent a fee. Sphar’s case raises real questions about where the line should be.
- If a rental company oversells and cannot give you the car you reserved, should it be required to upgrade you at no charge rather than offering a paid “choice”?
- Should a company be allowed to add a new fee, like a “customer choice” charge, that was never disclosed when you booked?
- Have you ever been pressured into a paid upgrade at the rental counter because your reserved car was not available? What did you do?
What to know about the car rental upsell scam
When a rental company runs out of cars, what happens next can cost you. Here is what travelers ask most.
What is the car rental upsell scam?
It is a pressure tactic that surfaces when a company oversells its fleet. Instead of upgrading you for free, the company offers two bad options: wait, possibly for hours, for a car in your class to come back, or pay extra for a bigger vehicle. Most travelers, eager to start their trip, end up paying. A newer twist is a separate “customer choice” fee added when you swap into the car you actually reserved.
Is charging a “customer choice” or upsell fee legal?
Running out of cars and charging more for a larger one is generally legal, but experts describe it as shady rather than acceptable practice. A last-minute upsell is not what you should expect from a professional business, and industry voices say pressuring a customer this way crosses an ethical line even when it stays within the law.
Is the upsell scam getting more common?
Industry experts say it appears to be increasing, driven by higher demand, fleet shortages, and inflation-related cost pressure. Some companies may even limit availability in lower car classes to push customers toward pricier options, which makes it more important to know your rights before you reach the counter.
What are rental companies supposed to do when they run out of cars?
The industry standard is to upgrade you to a similar or higher class at no extra charge, and major brands typically do exactly that. When a company instead invents a fee or forces a paid choice, it is departing from that norm, which strengthens your case for a refund.
How do I avoid getting pressured into a paid upgrade?
Rent at a less busy time, since lots empty out on peak holiday afternoons. Pay in full before you arrive, which generally obligates the company to give you your car or upgrade you for free. And if you are pushed, calmly decline: the company usually must find you an available car or cover a rental with a competitor.
What if I have to accept a bigger car?
Read the new contract before you sign. Renters sometimes take the keys to an upgraded vehicle and sign without noticing a new, higher rate the associate did not mention. Renting from a major brand and bringing a paper printout of your confirmation can also help the counter find you a car faster.
How often do renters actually end up without a car?
Only about 1 percent of customers end up without a vehicle, according to industry insiders, though that figure can climb during busy holiday periods. You can lower your own odds with timing and prepayment. For more on fighting unfair travel charges, see Elliott Advocacy’s travel help resources.
