Pasadena man charged an extra $500 for returning his rental car one day early

Travel experts say if you break a week-long car rental contract by returning the car early, rental car companies can charge you a daily rate instead, which is often more expensive. 

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On a recent trip to Switzerland, Marc Schiler booked a Budget rental car for two weeks. When his travel plans changed, he returned the car a day early and got a sticker shock surprise.

“The way car rental companies are now, you pull up in a line, you get out and hand somebody the key, you take your luggage and they say, ‘We’ll email it all to you,’” he said.

He was shocked when he got that email. Schiler didn’t expect a discount for returning the car early, but he also didn’t expect to pay more. That’s exactly what happened, though. Budget charged him an extra $500.

“And it’s insane. I gave the car back a day early and I paid for the full two weeks. What’s the problem?” he said.

Travel expert Christopher Elliott calls this “one of the oldest car rental tricks in the books.”

He said weekly car rental rates are cheaper than daily rates. So, if you break that weekly contract by returning the car early, rental car companies may bump you to the more expensive daily rate. 

“So they are well within their right to recalculate their rate if you’re returning the vehicle early. But as a practical matter, there’s just the logic of it that doesn’t seem right,” he said. 

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The I-Team reached out to Budget and it refunded Schiler the $500. It didn’t respond to our questions, though. 

However, Budget’s website echoes what Elliott told us. It says: “Longer rental periods usually result in lower daily rates…your rate could increase if you return your car early.”

Elliott says if you need to return a car early, speak to a manager and ask them to honor the price you agreed to pay.

It’s something Schiler said he’ll do next time. But for now, he’s happy the I-Team could help him out. 

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