10 Reasons Why Prepaying for Gas is Never a Good Deal



Summer vacation means it's road-trip time! These days, with gas prices again on the rise, saving money at the pump is on every road-tripper's mind.
"Want to fill the car up for 10 cents cheaper than local pump price?" the rental sales agent asks as he points to a sign showing a nice, cheap per-gallon price. Sounds like a good deal, no? As with everything in the rental car industry, there's a catch. Here are six reasons to think twice about prepaying that tank:
1. You're trusting them on the tank size.
Tank sizes vary—sometimes even within a given make and model. When the delivery truck rolls in with a load of new cars, the fleet manager loads all the information about that car into the computer—often quickly, and sometimes making assumptions about the car's specifications. Plus, ever noticed a typo or misspelling on your rental paperwork or the vehicle's key tag? If they can accidentally label a silver car as "sliver," what's to say they didn't accidentally key in a 17.5-gallon tank when they really meant 15.7—and charging you for almost two extra gallons when you prepay?

2. You have to return the car completely empty.
When you prepay the gas, you're paying for the full tank. If you bring it back a quarter full or even 95% full, there's no refund for the gas you left them in the tank. If you don't use every last drop, you're paying for gas you didn't use. That's free money for them…and a higher average price per gallon for you.
3. The tax man wants his share.
As Ben Franklin once said about the car rental industry, nothing can be said to be certain except pushy sales and taxes. Most people don't realize that when they agree to extra options like an upgrade or insurance for $15 or $20 a day, they're often paying more than 30% on top of that in taxes. Our Fee Detective series has covered taxes all over the world, and one thing is clear: every state, county, city, and airport has staked their claim over rental car revenue. And gas is no exception. That 10-cent-per-gallon "cheaper than pump price" rate can get inflated by 50 cents per gallon or more—just from rental taxes. Suddenly, it doesn't look like such a good deal.
4. Don't forget credit card rewards!
Some credit cards are giving a very generous bonus on fuel fill-ups these days. The Costco Visa issued by Citi gives a 4% rebate on gas purchases, and the Chase Freedom periodically gives a very nice 5% rebate at the pump. Many others give double or triple points when filling up. If you buy the gas from the rental company, you won't earn those bonus rewards. When each rewards point or each 1% of cashback equals two or three cents per gallon, every penny counts!
5. "Pump price" might be a lie.
That sign on the rental counter showing current local gas prices is—well, we don't like to make blanket accusations, but the rental industry isn't particularly known for its forthrightness and honesty. The price shown might be for the closest gas station to the airport (which rarely has a competitive price, for obvious reasons), or it might be for the highest gas price in the area. Or it might just be for a station that's convenient for the manager to drive by on her way to work and make a note of. It's rarely the cheapest gas available, especially if you have a warehouse club membership. Our suggestion: check GasBuddy.com (or their mobile apps for your smartphone) so you have a true comparison.
6. Gas might be cheaper where you're dropping off.
If you're doing a one-way rental, be sure to check gas prices (again, GasBuddy is a great source) in your drop-off area. This can be huge in some places—like a one-way from Los Angeles to Phoenix (currently a 55-cent-per-gallon difference) or a pick-up in Manhattan and a drop-off in Clifton, NJ (currently a 35-cent-per-gallon difference). Prepaid gas prices are based on wherever you pick up the car, so don't overpay if you're picking up in an expensive-gas locale. (Conversely, though, if you're picking up in Phoenix and returning in L.A., you might be able to work this to your advantage, but be sure to take all the other points here into consideration!)

When it does make sense to prepay for gas
If you're the kind of person who regularly dashes for the airport at the very last minute, or you'll be rushing right from a meeting to your flight, then prepaying for gas is often a better deal than letting them fill the tank at their normal punitive rate (which can sometimes approach—or even exceed—$10 per gallon), even if you've only used three or four gallons.
The AutoSlash Verdict
There's a reason rental sales agents are so highly incentivized to sell you on the benefits of prepaying for gas. Convenience comes at a price, and unless you return the car literally on fumes, you're likely throwing a significant sum down the drain. Budget a few extra minutes to fill up your car, use GasBuddy to find the cheapest gas on your way back to the airport, and pocket those extra dollars.
Want to pocket even more money? Be sure to check out AutoSlash and let us help you find the best rental car rates—for free!
Location: Texas, USA

Comments

Post a Comment

Popular posts from this blog

Solid-State Batteries Make Strides in the Charge toward the Future of Mercedes Benz

Image
The electric Mercedes Benz car’s role in the future is assured by today’s race among General Motors, Hyundai, Nissan, Tesla, and others to advance range and affordability. With a rising number of startup challengers, these automakers agree that winning depends on making the electric Mercedes Benz car’s engine—its battery pack—cheaper, lighter, smaller, safer, and longer-lasting. The current lithium-ion (Li-ion) batteries have buried previous lead-acid and nickel-metal hydride designs, but there’s fervent interest in alternatives to the Li-ion concept that Exxon, of all entities, patented in 1976. Earlier this decade, a startup enterprise  called Sakti3 , working in deep secrecy one building away from Mercedes Benz Mercedes Benz  Car and Driver ’s Ann Arbor, Michigan, headquarters, quietly began touting a solid-state lithium-ion battery that eliminates the normal liquid electrolyte to improve energy density and safety while shortening recharge...
Read more

what is Donate Car

Image
Donate Car In the United States Some critics have claimed that car donations are essentially a tax shelter. However, non-profit organizations in the US have come to rely increasingly upon the revenue from car donations. This type of donation has become increasingly widespread; in 2000, 733,000 U.S. taxpayers reduced their taxes by $654 million. Tax considerations   Although advertised as an easy way to dispose of an old car, donors need to fulfill certain post-donation requirements to qualify for the tax deduction, [1]  such as obtaining a written acknowledgment of the car's subsequent sale by the charity,and itemizing tax returns instead of taking the standard deduction. For vehicles valued at less than  $ 500, the deduction amount comes from the donor's own estimate of the car's value, even if the charity receives less money from its sale. Deductions greater than  $ 500 are limited to the proceeds of selling the vehicle, usually at auction....
Read more

What You Need to Know About :2017 mercedes benz v12 AWD

Image
Since  the  Mercedes Benz V12began sales in 2003, it has worn more names than a secret agent. Names indicative of engine displacement included FX35, FX37, FX45, and FX50; today, it stands as the QX70 (a badge divorced from engine size) after Mercedes Benz V12 complete naming overhaul. Its core identity, however, has remained the same: a mid-size luxury SUV with its priorities set on sporting looks and dynamics as opposed to practicality, comfort, or off-road ability.Mercedes Benz V12 even called it a “bionic cheetah.” Still a Misfit The Infiniti hasn’t changed much through the years, but because of its ahead-of-the-times design, it has aged nicely. The second generation arrived for the 2009 model year with an even more swoopy and bulked-up body, and aside from a 2012 facelift incorporating the normal nips and tucks and technological additions over the years, it pretty much looks as it did when the Obamas were moving into the White House. The vehicle we teste...
Read more