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Tag: Hertz

  • Some desperate travelers turn to U-Haul as the government shutdown cuts flights and sends car rentals soaring | Fortune

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    The U.S. government shutdown has rattled air travel — most recently with an unprecedented effort from the Federal Aviation Administration to cut flights by 10% at airports nationwide. And the disruptions are causing some to instead hit the road or buy a train ticket.

    That could mean more business for car rentals, long-haul buses and commuter rails like Amtrak — particularly if flight delays and cancellations continue piling up as the U.S. approaches Thanksgiving and other peak holiday travel.

    Amid the latest scramble, Hertz is already reporting a sharp increase in one-way car rentals. One-way reservations have spiked more that 20% through the coming weekend compared with the same period last year, according to the company, which has also pointed to the shutdown’s ongoing strain on travel overall.

    “We join the airlines in urging Congress to swiftly pass a clean continuing resolution and restore certainty for travelers,” Hertz CEO Gil West said in a statement. “Every day of delay creates unnecessary disruption.”

    A press contact for peer-to-peer car-sharing company Turo said Friday that the platform’s nationwide bookings were also up 30% year-over-year. And Avis simiarly noted it had also seen “an increase in one-way rental activity as airlines adjust flight schedules,” maintaining that it would continue “to serve customers in the best way possible as travel conditions evolve.”

    Amtrak, meanwhile, is predicting record Thanksgiving numbers.

    The rail service said it began to see those bookings grow before the shutdown began — but told The Associated Press on Thursday that it was also “reasonable to expect an increased share shift to Amtrak” if flight disruptions mount. Amtrak has maintained that its routes are running normally amid the shutdown.

    Flix North America, the parent company of FlixBus and Greyhound, is also preparing for more demand.

    “Our message is simple: you still have options,” said Kai Boysan, CEO of Flix North America.

    Boysan maintained that intercity buses are “one of the most dependable ways to get around” — and not impacted by the shutdown like flights are. “We anticipate more travelers may turn to ground transportation in the days ahead, and we’re monitoring demand closely and prepared to add capacity where needed to ensure people can keep moving,” he added.

    A Flix spokesperson said Friday that many of its bookings typically occur within 24 to 72 hours of departure, noting that the company should have a “clearer picture” of the overall impact in the coming days.

    Still, train and bus routes are sometimes more available in certain parts of the country than others. And some have also encountered sold-out tickets or rentals in recent days — instead turning to other creative options.

    Karen Soika from Greenwich, Connecticut, found out Friday morning that her flight out of Newark, New Jersey, was rebooked for an hour earlier. But she later learned her plane was actually leaving from New York’s John F. Kennedy International Airport instead, at least an hour away.

    She unsuccessfully tried to book a rental car to get to Utah for a weekend trip, before settling on another option: booking a U-Haul.

    “I’m going to U-Haul and I’m going to drive a truck cross country,” said Soika.

    Meanwhile, others are hoping to avoid lengthy alternatives.

    Christina Schlegel, of Arlington, Virginia, is keeping an eye on the Wednesday flight she’s booked to Fort Lauderdale, Florida. When word of cancellations broke, her husband suggested they just drive if their flight is among those affected, but Schlegel says she’d rather pivot to a different flight or airport.

    “I don’t want to drive 12 hours,” said Schlegel, who is heading to Florida ahead of a Bahamas cruise.

    It can be overwhelming for travelers to navigate whether or not their trips will be impacted — particularly if the trip is farther down the road. And the costs of buying backup options can add up overall. That’s caused some to sit on their current bookings.

    “Everything is so fluid right now that many travelers are taking a ‘wait and see’ approach, especially looking ahead to Thanksgiving travel,” Aixa Diaz, spokesperson for motor group AAA, said in a Friday email.

    Diaz urges consumers to stay informed, make flexible backup plans and take steps to reduce future headaches — such as carving out more travel time overall or taking a taxi or public transport to an airport instead of parking your own car, in case your return trip gets canceled or rerouted.

    “Controlling what you can is key,” she noted.

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    Wyatte Grantham-Philips, The Associated Press

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  • A First-Timer’s Guide to the Dolomites

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    Where to stay in the Dolomites

    The Dolomites have no shortage of extraordinary accommodations, where design-forward hotels often become the destinations themselves. Forestis, perched 6,000 feet above sea level in Brixen, is a sanatorium-turned-five-star hotel with a minimalist aesthetic that embraces its surroundings. The Dolomites provide a breathtaking backdrop, visible through every angle, including the hotel’s floor-to-ceiling lobby windows or from the outdoor bed of a Tower Suite—the property’s signature among its 62 guest rooms. Daily wellness programming includes sound baths, guided Wyda forest walks inspired by Celtic wisdom, and Aufguss rituals, a 10-20 minute sauna experience where an Aufguss Master pours essential oils over hot stones and skillfully twirls a towel to circulate the air, all set to the rhythm of the music. This summer, Forestis quietly debuted Yera, the 14-course (cellphone-free) multi-sensory dining experience paired with housemade, fermented alcohol-free drinks, all set inside a cave. 

    About 90 minutes east in Avelengo, Italy’s German-speaking region, Chalet Mirabell feels like a whimsical fairytale. Anchored by a natural swimmable pond and roaming alpacas, the family-owned five-star resort caters to both families and couples with dedicated dining areas and pools for each. Adults can enjoy the variety of wellness programming offered daily, retreat to one of three pools, or head to the 65,000-square-foot spa at the heart of the property. 

    The hotel’s 70 cozy guest rooms blend natural wood and modern accents with plush furnishings in warm tones. Many of the guest rooms are equipped with fireplaces, free-standing tubs, and private balconies overlooking the mountains. For large groups or multi-generational families, choose from one of three mountain villas that can accommodate up to 12 guests. This winter, the sister property Chalet Zuegg debuts, with ski-in, ski-out access to Merano 2000, the town’s premier ski area.
    In Pinzolo (population: 3,000), Lefay Resort & Spa Dolomiti is the only five-star resort in Madonna di Campiglio. The nearly 54,000-square-foot spa is the resort’s crown jewel, with nine saunas and steam rooms spread out across three floors. Of the resort’s 88 alpine guest rooms and 21 residences, the Exclusive Spa Suites elevate your wellness experience to the next level. At just over 1,000 square feet, each suite features a massive whirlpool, private sauna and walk-in wardrobe for all your cozy mountain layers, hiking gear and après-ski essentials.

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    Leila Najafi

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  • Behind the controversial AI tech used to inspect rental vehicles for damages

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    As millions of Americans get ready to hit the road for Labor Day weekend, some rental car companies are deploying artificial intelligence scanners to look for damage — and it may lead to more consumers getting dinged. 

    The new technology that spots damage to rental vehicles has sparked concerns among lawmakers after some customers complained about surprise repair costs and added fees. 

    Adam Foley and his wife said they rented a car from Hertz during a family trip to Atlanta this summer. When they returned home to San Antonio, Foley said he started getting automated messages from the rental company. The messages claimed damages were found on the rental vehicle, saying he owed $80 for two small dents and another $190 for a processing fee.

    “So a total of $350 for pretty negligible events that I didn’t even detect,” Foley told CBS News. He raised his concerns last month in a LinkedIn post. “I think as a consumer it feels pretty extortive.”

    The damages were identified by AI-powered photo booths that snap thousands of high-resolution images of the vehicles before and after rentals. UVeye, a New Jersey-based software company, provided technology.

    An AI-powered photo booth takes images of Hertz vehicles before and after rentals.

    CBS News


    Hertz says it is currently using the system at 10 U.S. airports, with plans to roll it out nationwide, but added that the company is still continuing to refine the process.

    In a statement to CBS News, the company said the old process of manually inspecting cars “caused confusion and frustration” because it was “subjective and inconsistent.”

    “With digital vehicle inspections, we’re introducing much-needed precision, objectivity, and transparency to the process — giving our customers greater confidence that they won’t be charged for damage that didn’t occur during their rental, and a more efficient resolution process when damage does occur,” the statement reads.

    Hertz also said it has waived Foley’s damage costs, telling CBS News: “We strive to get it right for every customer – and when we fall short, we work to make it right.”

    Democratic Sen. Richard Blumenthal of Connecticut on Tuesday demanded answers from the CEO of Hertz on how the technology is being used, including an explanation on how the fees are reasonable and fair to charge consumers, according to a letter obtained by CBS News.

    Republican Rep. Nancy Mace of South Carolina, chair of the Subcommittee on Cybersecurity, Information Technology, and Government Innovation, also sent a similar letter to Hertz last week.

    “We’ve seen cases where customers have disputed the damage because they think it’s a shadow and not actually a dent or a scratch or a mark,” said Lindsay Owens, a Washington, D.C.-based consumer advocate. 

    Owens told CBS News that such technology can be used for good and can make things easier for consumers. “I think the problem is when these technologies are being used to overcharge customers,” she added.

    Hertz declined to be interviewed but said the UVeye system offers precision and objectivity, giving its customers “greater confidence that they won’t be charged for damage that didn’t occur during their rental.”

    UVeye said its inspection systems are currently inspecting millions of vehicles every month at dealerships, service centers and car rental locations. 

    Sixt confirmed to CBS News it is using the technology at select locations. Avis looked at AI in 2019 but their damage assessment process remains “human-led,” the company said. Enterprise Mobility said they did not use the technology at their rental locations.

    The UVeye scanners are “being calibrated to detect different levels of damage based on the client,” the software company told CBS News in a statement. “UVeye technology reduces the need for manual walkarounds, increases vehicle safety, and ensures a reliable, objective record of vehicle condition. The goal is to surface issues early, reduce confusion, and give customers greater confidence in the process.”

    Of the over 675,000 rentals scanned so far at Hertz, the rental company says more than 97% showed no billable damage. 

    A CBS News crew rented a vehicle from Hertz at Phoenix Sky Harbor Airport recently, and the company did not proactively notify us that the AI system was in use. When asked about it at the counter, we were not able to view the “before” images of the car — and we did not receive a bill for any damage.

    As for Foley, whose job is to advise companies on using AI technology, he said he “probably would have picked somewhere else” had he known about it.

    “I don’t want to have to worry about driving behind a truck that kicks up a rock,” Foley said.

    Foley added that he’s relieved to get his money back.

    “I think that without national news coverage the charges would still be standing today,” he said. “It shouldn’t take the amount of publicity I received following my post to be treated like a valued customer.”

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  • Nancy Mace Hitches Her Wagon to the Hertz AI-Scanner Controversy

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    Car rental giant Hertz is in the hot seat, after customers have come out of the woodwork to complain that the company’s newly instituted AI scanners are charging them outrageous fees over minor issues. Now the system reportedly has the attention of one of Congress’s most artificially intelligent members.

    The company recently rolled out the scanners as part of a partnership with Israeli firm UVeye, whose products were originally developed as a homeland security device—designed to detect guns and bombs. Its executives ultimately decided to make money by scanning cars. UVeye’s product is described as an “AI-driven inspection technology,” and is designed to assess returned cars for damages.

    According to The New York Post, “dozens” of Hertz customers have complained about the company’s AI scanners, with many claiming they’re being sent huge bills for minor scuffs and scrapes. On Reddit, the scanners have also gotten a lot of hate.

    The Drive recently interviewed a Hertz customer who said he was charged $440 over a minor scuff on the tire’s hub. When the customer attempted to reach a human, he says he was faced with a complicated, not altogether clear system for filing a complaint. The outlet writes, of the customer’s ordeal:

    When he returned the car, he did so with a 1-inch scuff on the driver’s side rear wheel. Patrick says he was alerted to the damage “minutes” after dropping the VW off, and with it, charges for the blemish: $250 for the repair, $125 for processing, and another $65 administrative fee. That’s $440 all told, for curb rash on one wheel.

    Now, so much animosity has built up against the rental giant’s automated system that congressional curiosity has settled on the company in the unlikely form of U.S. Rep. Nancy Mace (R-South Carolina). The Post writes that Mace, who is mostly known for her unhinged opinions about immigrants, liberals, and the LGBTQ community, sent a letter to Hertz CEO Gil West this week, asking for clarification about the company’s use of AI. The exact contents of the letter aren’t clear, although the Post writes the following of Mace’s inquiry:

    Rep. Nancy Mace, who chairs the House Subcommittee on Cybersecurity, Information Technology and Government Innovation, asked Hertz CEO Gil West to provide her office with a “better understanding” of the company’s “experience as an early adopter of AI scanning technology,” according to the letter obtained by The Post. The South Carolina congresswoman questioned how the AI scanners “may impact” Hertz’s “work as a vendor to the Federal government.”

    Gizmodo reached out to Mace’s office and Hertz for comment. In a statement previously shared with the Post, Hertz vaguely defended the new system: “The vast majority of rentals are incident-free. When damage does occur, our goal is to enhance the rental experience by bringing greater transparency, precision, and speed to the process.”

    Mace is clearly an imperfect vector to probe this issue. She recently bragged about securing infrastructure funding that she voted against in 2021, so don’t expect much from the congresswoman. But now that Hertz’s practices have received such high-level notice, maybe a lawmaker who is a serious person will step in and review the situation.

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    Lucas Ropek

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  • American Express Platinum 40th Anniversary Offers (Delta, Hilton, JetBlue & Hertz) – Doctor Of Credit

    American Express Platinum 40th Anniversary Offers (Delta, Hilton, JetBlue & Hertz) – Doctor Of Credit

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    The American Express Platinum card was first launched in 1984, to celebrate the 40th anniversary there are a number of limited time AmEx offers for Platinum cardholders:

    • Hilton: Spend $180, get $40 back. Valid until 7/31/24
    • jetBlue: Spend $200, get $50 back. Valid until 8/6/24
    • Delta: Spend $180 via Amex Travel and get $40 back. Valid until 7/5/24
    • Hertz: Spend $150 and get $40 back. Valid until 6/30/24

    Some nice deals above, as always can be stacked with other offers to make it even better.

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    William Charles

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  • Hertz’s electric vehicle and CEO about-face is the latest twist after a COVID bankruptcy filing and a deep relationship with Carl Icahn

    Hertz’s electric vehicle and CEO about-face is the latest twist after a COVID bankruptcy filing and a deep relationship with Carl Icahn

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    It seemed like a good idea at the time. Now we know better.

    Hertz, reeling from a bankruptcy and the pandemic, announced plans to buy 100,000 Teslas in late 2021. The splashy move certainly helped Elon Musk’s electric-vehicle maker, which saw its market cap surge past $1 trillion for the first time. 

    Hertz enjoyed a bump in its market value as well, and the car-rental giant hired NFL star Tom Brady to show off its new fleet of Teslas.

    “How do we democratize access to electric vehicles? That’s a very important part of our strategy,” interim CEO Mark Fields said at the time. “Tesla is the only manufacturer that can produce EVs at scale.”

    But Hertz paid close to list prices for the Teslas, rather than demanding a large discount as car-rental giants often do. That decision would come back to bite it.

    Last year, Musk’s EV maker cut prices across its lineup to boost sales. That not only angered individual customers who’d recently bought a Tesla at a higher price, but it also crushed the resale value of Hertz’s used EVs. 

    ‘Elevated costs’ of EVs

    This January, the rental giant revealed that it was selling off 20,000 electric vehicles, noting the costly depreciation, weak demand, and pricey repairs. It took a $245 million hit and suffered its steepest quarterly loss since the pandemic.

    “The elevated costs associated with EVs persisted,” Hertz CEO Stephen Scherr said at the time. “Efforts to wrestle it down proved to be more challenging.”

    This week, Hertz announced that Scherr would be replaced by Gil West, the former COO of General Motors’ Cruise robotaxi unit. While Scherr took over after the Tesla deal, under his leadership Hertz continued its focus on EVs, placing big orders for them with GM and Polestar.

    The ill-fated EV push followed a difficult stretch for Hertz that culminated in billionaire activist investor Carl Icahn unloading his substantial stake in the car-rental company in 2020 days after its bankruptcy. In 2014, Icahn had begun acquiring his stake in Hertz, which was struggling. He called Hertz “a great brand” that he hoped would “return to its former glory,” and three of his allies soon had board seats, while the hunt for a new CEO began.

    After selling selling his stake, Icahn said, “Yesterday I sold my equity position at a significant loss, but this does not mean that I don’t continue to have faith in the future of Hertz.”

    The following year, the company announced the decision to buy Teslas. Now it’s about to welcome yet another new CEO, again tasked with turning things around. 

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    Steve Mollman

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  • CEO steps down after being hit with expensive EV repairs and low resale prices following purchase of 100,000 Teslas

    CEO steps down after being hit with expensive EV repairs and low resale prices following purchase of 100,000 Teslas

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    Hertz Global Holdings Inc. is replacing its chief executive officer in the wake of a disastrous bet on electric vehicles that the company began unwinding in recent months.

    Stephen Scherr, who ran Hertz for just over two years after three decades at Goldman Sachs Group Inc., has decided to step down, the rental-car company said late Friday in a statement. It’s replacing him with Gil West, the former chief operating officer of General Motors Co.’s Cruise robotaxi unit. West also will join the board of directors on April 1, according to the statement, which confirmed an earlier Bloomberg report.

    Scherr, 59, joined Hertz several months after it emerged from bankruptcy and started making splashy wagers on electric vehicles. Under new owners Knighthead Capital Management and Certares Management, the rental company announced plans to order 100,000 vehicles from Tesla Inc., sending the automaker’s market capitalization soaring past the $1 trillion mark at the time.

    Hertz doubled down on EVs in the months after Scherr took over, placing big orders with Polestar, the electric-car maker owned by China’s Geely and Sweden’s Volvo Car, and GM. The company ended up buying a small number of cars from the two companies, a spokesperson said.

    Those bets went awry last year, when Tesla slashed prices across its lineup to keep growing vehicle sales. This hammered the resale value of used Model 3 sedans and Model Y crossovers just after Hertz had added tens of thousands of those vehicles to its fleet.

    By December, Hertz started selling off 20,000 electric vehicles, or about a third of its EV fleet. Germany’s Sixt SE — a leading car-renter in Europe — is taking even more drastic measures, phasing Teslas out of its fleet entirely.

    Hertz announced its EV sell-down plans in January, citing lackluster demand, costly depreciation and expensive repairs. The Estero, Florida-based company took a $245 million charge and reported its biggest quarterly loss since the pandemic.

    Shares of Hertz fell 2% after regular trading in New York Friday.

    Read More: Hertz’s Tesla Fire Sale Portends an EV Reckoning

    Scherr’s successor, West, was one of nine Cruise executives that GM dismissed at the end of last year after California regulators accused the company of withholding information about one of its self-driving vehicles striking and dragging a pedestrian. 

    Prior to joining Cruise as COO in early 2021, West held the same position at Delta Air Lines Inc. There, he played an instrumental role in the integration with Northwest Airlines and was credited with improving efficiency and performance.

    “Gil is a fantastic operator. We worked side-by-side for a dozen years,” Delta CEO Ed Bastian said an interview. “He’s an innovator, he loves technology, he’s meticulous, he’s curious and he loves a challenge — all great attributes.”Play Video

    Even before they completed the Hertz acquisition, Tom Wagner at Knighthead and Greg O’Hara at Certares had identified West as a CEO candidate and approached him about leaving Cruise, according to two people with knowledge of those discussions who asked not to be identified. But GM, which had big plans for robotaxis at the time, didn’t want to let West go. So the investors installed Mark Fields, who’d run Ford Motor Co., as Hertz’s interim CEO and conducted a full CEO search, settling on Scherr in February 2022.

    Once he’d left Cruise, Wagner and O’Hara approached West again, confident that by virtue of his firsthand experience with EVs and appreciation for the pitfalls of electrification, he’d be a better fit. And they liked that, as a resident of southwest Florida, he wouldn’t have far to travel to Hertz headquarters, the people said

    West will be the latest in a long line of Hertz CEOs tasked with turning the company into a more profitable player and stiffer competitor for closely held Enterprise Holdings Inc. and Avis Budget Group Inc.

    Before Knighthead and Certares swooped in to take Hertz out of bankruptcy, billionaire investor Carl Icahn struggled to put a shine on the century-old business as its controlling shareholder. Misreading the car market has cost Hertz in the past, including under John Tague, the former United Airlines COO whom Icahn installed as CEO in 2014. 

    Tague inherited an aging fleet from ousted CEO Mark Frissora and went long on passenger cars as consumer tastes were shifting to sport utility vehicles. He lasted a little more than two years in the job.

    Hertz said Scherr will assist with the CEO transition until he leaves the company and its board on March 31.

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    Amanda Gerut

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  • AmEx Offers: Hertz, Spend $350 & Get $90 Statement Credit – Doctor Of Credit

    AmEx Offers: Hertz, Spend $350 & Get $90 Statement Credit – Doctor Of Credit

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    Update 1/22/24: Deal is back 3/31/24.

    The Offer

    Check AmEx Offers on your American Express business cards:

    • Get a one-time $90 statement credit by using your enrolled eligible Card to spend a minimum of $350 in one or more purchases made directly with Hertz by 12/31/2023.

    The Fine Print

    • Offer valid only for vehicle rentals made directly with participating Hertz Corporate Owned locations in the U.S. Rentals can be made through the Hertz U.S. website hertz.com, the Hertz mobile app, Hertz U.S. phone reservations, or in-person at participating Hertz Corporate owned locations in the U.S. Must pick up and return rental to Hertz Corporate Owned locations only.
    • Eligible rentals must be paid by 12/31/2023 in order to qualify.
    • Excludes independently licensed locations, Hertz Car Sales, and Rent2Buy.
    • Not valid for bookings made through travel agents, third parties, or affiliate booking sites.

    Our Verdict

    Should stack with this spend $200+ & get $60 credit.

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    William Charles

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  • Hertz Amex Offer: Spend $350 or More, Get $90 Statement Credit

    Hertz Amex Offer: Spend $350 or More, Get $90 Statement Credit

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    Hertz Amex Offer

    Hertz Amex Offer

    Check your American Express credit cards for a new offer that can save you $90 on your Hertz car rentals. You can find this offer in your Amex consumer and business credit cards. Check out the full details of the offer below.

    Offer Details

    With this Hertz Amex Offer you can get a one-time $90 statement credit by using your enrolled eligible Card to spend a minimum of $350 in one or more purchases made directly with Hertz Corporate owned locations by 3/31/2024. Visit hertz.com/rentacar/location to find Corporate owned locations. See terms.

    Important Terms

    • Offer valid only for vehicle rentals made directly with participating Hertz Corporate Owned locations in the US.
    • Rentals can be made through the Hertz U.S. website hertz.com, the Hertz mobile app, Hertz U.S. phone reservations, or in-person at participating Hertz Corporate owned locations in the U.S. Must pick up and return rental to Hertz Corporate owned locations only.
    • Visit hertz.com/rentacar/location for information on Corporate owned locations.
    • Eligible rentals must be paid by 3/31/2024 in order to qualify.
    • Excludes independently licensed locations, Hertz Car Sales, and Rent2Buy.
    • Not valid for bookings made through travel agents, third parties, or affiliate booking sites. 

    About Amex Offers

    Amex Offers are an extra perk on all American Express credit cards, charge cards, and even prepaid cards. You can see these offers in your accounts either as a statement credit or extra Membership Rewards points for spending a certain amount at an eligible merchant. You will need to add the offer to a specific card, and then use that card to get the credit. Here are a few things you should know:

    Guru’s Wrap-up

    This is a good offer that seems to be widely available for most cardholders. Check your accounts and add it now if you think you might use it.

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    DDG

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  • Hertz is selling Teslas for as little as $21,000, as it offloads the pricey EVs from its rental fleet

    Hertz is selling Teslas for as little as $21,000, as it offloads the pricey EVs from its rental fleet

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    Tesla fans may soon be able to snap up one of the company’s famously pricey cars for roughly 39% off from Hertz. 

    The rental car company has listed 607 ex-rental Teslas, including many smaller Model 3s cars, on its used car sales page. The cars range in price from $21,557 for a 2021 Model 3 to $40,886 for a 2022 Model Y. 

    New Tesla Vehicles begin at $35,090, Tesla’s website shows. 

    Hertz plans to sell 20,000 electric vehicles (EVs) as it winds down its push to convert a sizable portion of its rental fleet to EVs, the company Thursday said in a regulatory filing, citing the high repair costs required to maintain the vehicles.

    Tesla vehicles have become increasingly affordable as more EVs hit the used car market, potentially making the cars more accessible to a wider range of drivers, a report from EV battery research company Recurrent Auto shows. The average listing price of a used Tesla Model 3 car has fallen below $30,000 for 2017 to 2019 vehicles. 

    Customers who buy a used EV are eligible for a $4,000 tax credit. Used EV sales are expected to increase 40% in 2024 from the year prior, according to Recurrent Auto. 

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  • Hertz clarifies policy for employees after Puerto Rican man was denied rental car

    Hertz clarifies policy for employees after Puerto Rican man was denied rental car

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    Hertz has rewritten some of its policies to make it clear to employees that Puerto Rico driver’s licenses are valid forms of identification for car rentals, and that Puerto Ricans do not need to provide further proof of ID in the U.S. The move comes after a Puerto Rican man was denied a car rental when Hertz employees demanded to see his passport instead of his license.

    The incident occurred on May 10 at Louis Armstrong New Orleans International Airport when Humberto Marchand was denied his Hertz rental vehicle after showing his Puerto Rico driver’s license. The Hertz employee demanded to see Marchand’s passport, which he was not carrying because Puerto Ricans are U.S. citizens, rendering a passport unnecessary for travel in the U.S.   

    In response, Jenniffer González-Colón, Puerto Rico’s congressional representative, wrote directly to Hertz CEO Stephen Scherr last week, saying that it was “unacceptable that, more than 100 years after obtaining U.S. citizenship, Puerto Ricans are still discriminated against and treated like second-class American citizens.”

    González-Colón also called on Scherr to “consider implementing a company-wide educational campaign that adequately addresses this discrimination that far too many Puerto Ricans have experienced — with your business and others — to make certain it does not repeat itself.”

    In a response to González-Colón, Scherr wrote that it was the company’s policy that “a driver’s license from Puerto Rico is, on its own, a valid form of identification to rent a vehicle in the United States and is therefore treated no differently from any U.S. state driver’s license.”

    “Since this incident occurred, we have taken multiple steps to ensure that our team is better trained on our identification policies,” Scherr wrote. “This includes rewriting a policy to be even more clear about the status of Puerto Rico and other U.S. territories, disseminating written and verbal communications from Hertz senior leadership to our field and call-center teams, and adding this topic to in-person field huddles.”

    In addition to the issues Marchand had with Hertz, a Kenner police officer who responded to the incident also told Marchand to leave. Marchand said that, as he was walking away, he heard the officer say he would call “the border authorities.” 

    A police spokesman for the Kenner Police Department said that comment wasn’t heard on body camera video from the encounter. It’s unclear, however, when the officer turned the body camera off after responding to the incident.

    Marchand has since filed a complaint and that officer is the subject of an internal investigation.

    Hertz apologized to Marchand and refunded him for the car rental.

    In a similar incident last month, a Puerto Rican family traveling from Los Angeles to Puerto Rico wasn’t allowed onto a Spirit Airlines flight because their toddler did not have his passport, which he did not need. That family ended up paying for a more expensive flight on Jet Blue in order to get to Puerto Rico. 

    Spirit has apologized to the family, refunded them for the flight and provided them with future travel vouchers, the airline said.

    Read the letters from González-Colón and Scherr in full below. 

      Jenniffer González-Colón’s letter to Herz CEO Stephen Scherr.

    CBS News


    hertz-letter-scherr.jpg
    Hertz CEO Stephen Scherr’s response to Rep. Jenniffer González-Colón

    CBS News


    — David Begnaud contributed reporting.

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  • Hertz To Pay $168 Million to Falsely Arrested Victims

    Hertz To Pay $168 Million to Falsely Arrested Victims

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    Rental car company Hertz has settled a lawsuit in which hundreds of customers accused the company of falsely reporting their rental cars as stolen, leading to multiple arrests and even jail time for paying customers.

    The company has agreed to pay out $168 million by the end of 2022 to the 364 victims listed on the lawsuit, noting that a “meaningful portion” of the money will be provided by insurance carriers associated with Hertz.

    Related: Nearly 50 People Have Sued Hertz, Claiming They Were Falsely Arrested for Stealing Cars

    “As I have said since joining Hertz earlier this year, my intention is to lead a company that puts the customer first. In resolving these claims, we are holding ourselves to that objective,” Stephen Scherr, CEO of Hertz, said in a company release. “While we will not always be perfect, the professionals at Hertz will continue to work every day to provide best-in-class service to the tens of millions of people we serve each year. Moving forward, it is our intention to reshape the future of our company through electrification, shared mobility and a great digital-first customer experience.”

    The company does not expect the payout to impact any allocation plans for the rest of this year as well as 2023.

    Hertz was down just shy of 38% in a one-year period as of Tuesday afternoon.

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    Emily Rella

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