The car rental deposit topic is one of the biggest pain points for both the rentals and their clients. While the latter tend to think that the security deposit is an attempt to gouge them for more money, rental companies just need some reassurance that the car will be returned safe and sound. Where is the truth? We discuss it in our article.
What is a car rental deposit?
A rental deposit serves as financial protection for the rental company in case the car is returned with any kind of damage that is not covered by the insurance. Those usually include fixing internal and external cosmetic damage, such as stains or scratches, or covering additional costs caused by careless or even sloppy handling of the rented car.
How does a car rental deposit work?
Security deposits vary from company to company. It’s normally calculated based on the car’s characteristics, such as its year of manufacture, basic or advanced equipment,model uniqueness. Other factors that influence the amount of the security deposit include rental duration, the type of insurance (basic or CDW), and the time and area of renting. High-demand areas and high peak seasons respectively charge higher deposits. Sometimes, a company has its own risk assessment criteria that define deposit amounts.
How do I make a rental car deposit?
As a rule, a credit card with the client’s name on it is sufficient to make the security deposit. It provides more security for both the renter and the rental company than a debit card. The deposit amount is not taken from your account but is instead booked, thus ensuring it can’t be spent or withdrawn. Some rentals do accept debit cards. In this case, the money is fully withdrawn
Why do car rentals take a deposit?
Given the worth of luxury car rental companies in the UAE offer, the deposit is quite a fair play: if the car is returned to the company in the same decent state as it was initially taken, the client gets 100% of this sum back. If not, of course, they have to cover the harm.
How long does it take for car rental deposit to be returned?
If the car is returned in good condition, the deposit is normally returned to the client’s credit card balance upon completion of the rental agreement and after the full inspection of the car. This normally takes up to 12 business days. The maximum period of processing the security for this
deposit return may take up to one month. Such delays occur if the car rental company has
claims on the client and additional costs.
Buy Carvibe