Priceline Car Rental - Why Taxes/Surcharges so high???

[T_R_Oglodyte]

I don't see why you have such a problem with rules requiring transparency for the consumer, either as the new EU rules for airlines will do, requiring advertsiing of an all-in price, or prohibiting the shifting of part of the base price to some arbitrary ''fee'' on the taxes and fees line.

One thing I like about pricing European hotels is the transparency. The price you are quoted is an all-in fee, including all taxes. In the US, you often have to drag that info out of hotels when booking. The European hotels take a more honest and aboveboard approach.

Maybe I've just become jaded. And we're probably not as far apart as we sound.

For the record, I fully agree with you when:

• a buyer arrives and there are added charges imposed (fuel charges, tire fees, whatever) that were not part of the quote and not approved in advance.
• there are mandatory charges disclosed in "fine print" but that are not included in the price quoted to the customer. A fine example is Mexican car rentals, where mandatory third party liability is only disclosed in the rental terms.
• the vendor advertises a low price to get customers to contact them or visit the web site, but then tacks a bunch of phony charges resulting in a final price that is far different from the advertised price.

I can't get excited about Priceline's added charges because Priceline does none of those things.

Occasionally one does get hit with extra charges from the vendor that are not included in the Priceline charge, but in my experience those are always charges that apply to anyone staying at the facility . For example staying at Lake Las Vegas one time, I had to pay a mandatory "resort fee" charged by the hotel to all guests and collected at the front desk (i.e., a charge that the hotel itself doesn't include even in reservations made through its reservation system).

 

[Chemnole]

Just a quick PL story:

I have been looking for minivans in Fl for the last few weeks. We wanted a weekly rental from Jacksonville starting on a Sunday. The lowest I was able to find published was about $299/wk then add taxes which came out to be around $380 or so.

I put in an initial bid of $25/day. It said that it thought it was too low and then gave me recommendations of $32-$36/day. Just for the fun of it I just rebid to $26/day....and it was accepted!!:whoopie:

So the total price with taxes/fee was--> $250.43

Can't complain about this at all.

 

[swsc16]

Chemnole,
Yes I always bid with increments of $1

 

[T_R_Oglodyte]

Just a quick PL story:

I have been looking for minivans in Fl for the last few weeks. We wanted a weekly rental from Jacksonville starting on a Sunday. The lowest I was able to find published was about $299/wk then add taxes which came out to be around $380 or so.

I put in an initial bid of $25/day. It said that it thought it was too low and then gave me recommendations of $32-$36/day. Just for the fun of it I just rebid to $26/day....and it was accepted!!:whoopie:

So the total price with taxes/fee was--> $250.43

Can't complain about this at all.

That screen telling you your bid is probably too low is meaningless. Well not totally meaningless. If you put in a bid and Priceline doesn't serve up that screen, then you can figure your bid is too high.

You probably would have gotten the car at $25, and likely even less.

 

[Chemnole]

You probably would have gotten the car at $25, and likely even less.

That is always the kicker. Now I have to wrestle at night with the idea that I could have gone down to $20/day and still won. They get you one way or the other.

 

[T_R_Oglodyte]

That is always the kicker. Now I have to wrestle at night with the idea that I could have gone down to $20/day and still won. They get you one way or the other.

You should spend some time at biddingfortravel.com and learn how to play the Priceline game to be able to make immediate rebids that allow you to start low and ratchet your way up until your bid is either accepted or you reach your price ceiling.

 

[davidvel]

This charge includes an amount to recover the amount we pay to the rental car supplier in connection with your reservation for taxes, fees and surcharges owed by the rental car supplier including, without limitation, sales and use tax, excise tax, value added tax, airport or facility taxes, surcharges or fees and/or other similar taxes, surcharges or fees. The amount of this charge is intended by us to be sufficient to cover the maximum amount we may be required to pay to a rental car supplier, and may be greater or less than the amount we actually pay the rental car supplier in connection with your reservation for taxes, fees and surcharges. The balance of the charge for Taxes and Fees is a fee which we retain as part of the compensation for our services and to cover the costs of your reservation, including, for example, customer service costs and additional fees which may be charged from time to time by the rental car suppliers."

Not that I'm for more taxes, but PL seems to be skimming them off the back end, and their rental car "pricing model" may run afoul of the taxing agencies as well. I am not talking about income taxes but the rental car taxes and fees.

Essentially, they low-ball the base price, then collect that plus the real amount of taxes and surcharges due on the base amount, and pad it with their extra fee that they keep in the end.

Next they pay the rental car co. their negotiated amount + the real taxes and surcharges (or pay these direct, but I doubt it). They then keep the excess. The excess was paid by the renter for the car, and should have been taxed upon. Also, not all jursdictions have taxes/fees based on a % of rental, but many do.

Note that this is pure conjecture, and not verified. It would be interesting to see what the final "bill" from the rental car company looks like. But I suspect it simply says something like "prepaid."

 

[T_R_Oglodyte]

Not that I'm for more taxes, but PL seems to be skimming them off the back end, and their rental car "pricing model" may run afoul of the taxing agencies as well. I am not talking about income taxes but the rental car taxes and fees.

Essentially, they low-ball the base price, then collect that plus the real amount of taxes and surcharges due on the base amount, and pad it with their extra fee that they keep in the end.

Next they pay the rental car co. their negotiated amount + the real taxes and surcharges (or pay these direct, but I doubt it). They then keep the excess. The excess was paid by the renter for the car, and should have been taxed upon. Also, not all jursdictions have taxes/fees based on a % of rental, but many do.

Note that this is pure conjecture, and not verified. It would be interesting to see what the final "bill" from the rental car company looks like. But I suspect it simply says something like "prepaid."

I believe their model is that the rental agreement is between PL and the rental company, not between the actual driver of the car and the rental company. Same thing with hotel rooms and airline tickets.

That's why when you talk to the vendor about trying to change something, the vendor points you to Priceline. In their records the customer is Priceline, not you.

Under this supposition, the taxes on the vehicle rental are paid by Priceline to the rental company.