Urgent rental warning as car giant exposed using James Bond tech to sting customer $440

Daily Mail​

2 days ago

Before returning his rented Volkswagen to Hertz, a driver steered his car through a high-tech scanner system.
Arched LED lights and AI-enabled cameras scanned the vehicle's fenders and panels for scratches, wheels for scuffs, tires for tread wear, windows for cracks, and undercarriage for damage.
According to Hertz, the system is designed to speed up inspections and reduce disputes.
But minutes after pulling the VW through the automated scanner, the driver says he received a $440 bill — for a one-inch scrape on a wheel.
The charge came after Hertz began rolling out the technology as part of its partnership with UVeye, an AI startup that builds automated vehicle inspection systems.
The renter, identified only as Patrick, said the total included $250 for the repair, $125 for processing, and a $65 administrative fee, according to The Drive.
He isn't alone. Another renter on Reddit claimed they were billed $195 for a minor 'ding' after returning a Toyota Corolla to a Hertz location equipped with the same AI system.
In April, Hertz representatives told DailyMail.com that the newly-implemented machines would not be used to bill customers for minor cosmetic issues.
Instead, they said the system was intended to prioritize safety and maintenance — not penalties.
A representative for Hertz verified Patrick's story and said the company's policy has not changed. They're standing by the $440 charge.
Now, the company confirms it uses a 1-inch standard for dents — roughly the size of a golf ball — when determining whether to issue a damage charge.
'Over 97 percent of cars scanned with this technology have not detected any billable damage, proving a vast majority of rentals are incident-free,' a spokesperson for the company said.
'Vehicle damage has long been a common pain point across the car rental industry for customers and companies alike.
'At Hertz, we're using this technology to address this friction head-on and our goal is to always improve the customer experience while ensuring customers are not charged for damages they did not cause and by bringing greater transparency, precision, and speed to the process when they do.'
Independent analysts told DailyMail.com that Hertz's AI rollout reflects a growing tension between company's tech solutions and a customer's service expectations.
'A line is crossed when AI applications become overly aggressive and prioritize efficiency over customer fairness and satisfaction,' David Linthicum, an AI analyst, said.
Independent analysts are concerned that the advancing use of AI could frustrate customers
'Customers value fairness and human interaction.'
Still, Hertz believes the new systems will make damage fees more transparent.
Traditionally, car rental companies relied on employees to inspect vehicles, a process that had its limitations — especially when it came to detecting undercarriage damage or worn tires.
UVeye says its scanners apply a consistent, fleet-wide standard to inspections, improving accuracy and fairness.
'Hertz is setting a new standard for vehicle maintenance and fleet management in the rental industry,' Amir Hever, the CEO and Co-Founder of UVeye, said.
'Our AI-driven inspection systems complement manual checks with consistent, data-backed assessments completed in seconds.'
But while the technology may be more consistent, some drivers who've been hit with fees say they're finished with Hertz altogether.
'I will no longer be using Hertz,' the Corolla renter said on Reddit. 'Reached out to customer service, and they said they stand by the AI.'
Hertz is the second largest rental vehicle fleet in the US
Its the latest major change from Hertz that has ruffled some customer feathers.
In 2022, the rental company purchased thousands of Tesla and Polestar EVs as it attempted to entice trendy customers.
But vacationers, who didn't want to navigate America's frustrating public charging infrastructure, infrequently rented the EVs. Hertz started selling the cars at a loss.
In the positive direction, the company also started to gain a lot of attention on Wall Street after billionaire investor Bill Ackman said he started purchasing stock.