Not all cheap car rentals are really that cheap. You have to exercise caution when selecting a rental package and consider the terms and conditions to fully understand why a company can offer such a discounted rate before agreeing to the rental. If you do a search on the Internet for cheap car rentals, you will be bombarded with advertisements that emphasize the low price and explain nothing else. There are several things you should look for to determine the true cost of those cheap car rentals.
For starters, ask yourself how the company can afford to offer such a great price? If they are new or just beginning to offer their services in a new area of South Africa, it is fair to assume that it is part of a promotional deal. Their goal is to introduce as many people as possible to their service and get them to become repeat customers. If it is an established company, look at the size of the company. The larger the company, the better able they will be able to offer deep discounts without hurting their cash flow or profits. If it is a smaller company, particularly if it is a smaller company that is offering a price well beneath the best rate of a large and established company – then there are some questions you need to ask. Is mileage unlimited? Charging for mileage is a backdoor trick to make money off a rental. The charges can amount very fast. Who is responsible for the insurance and/or paying the excess fee in the event of an accident or damage? A fast way for a company to save money is to require the customer to carry their own temporary insurance or assume responsibility for the excess. If they have attached a high rate of excess to their policy, they have saved themselves money on the premiums. If there is an accident or damage, paying that fee is not their problem, it is yours.
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