Tuesday, January 22, 2013

10 Things Rental trucks do not disclose- read tyhis if you self move

10 things rental trucks won’t say


The hidden fees and aggravations of the do-it-yourself move


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By Ian Salisbury

Edison
1. “Your reservation is practically worthless.”
It’s the stuff of moving nightmares: All packed to go and no truck to go in. Yet for many people relying on rental-truck companies during a move, the nightmare has become a reality, some critics say. In 2008, U-Haul settled a class-action case in California accusing the company of failing to honor confirmed reservations. A spokeswoman for U-Haul at the time told the Los Angeles Times that the company — which denied any deception — had decided to stop fighting the case as “a business decision.” Nonetheless, the dispute had already made public some unflattering accusations, such as testimony from a former U-Haul exec that on busy days, up to 40% of customers with reservations were left hanging.
While there are few official reports on how commonly this occurs, complaints on social media outlets suggest it’s still an issue. As one Canadian customer, Mel Yates-English, recently put it on U-Haul’s Facebook page: We “show up, and then we are told that even though our stuff has to be moved today, there is nothing available in the entire province until two weeks later?!” A month later, she says, she’s still waiting for the company to deal with her complaint.
U-Haul says reservations are guaranteed and promises $50 in compensation when it fails to make good. (Agreeing to make good on this promise was part of the legal settlement, although a U-Haul spokeswoman says the policy also existed beforehand.) The company does reserve the right to substitute larger equipment than the customer ordered. And its reps call customers the day before the reservation to confirm (if they can’t reach you, all bets are off). Some rental companies, meanwhile, also point out that for reasons beyond their control, trucks aren’t always available when they’re supposed to be, whether there’s a mechanical issue or whether a previous customer returns a truck late.

2. “Pay no attention to the prices we advertise.”

Offering low, low prices is, of course, a time-honored tradition among any businesses aiming to attract budget-conscious consumers. Budget, for one, promises 25% off in an ad on its website. And U-Haul enlists its ubiquitous trucks as mobile billboards, painting a big green “$19.95” price tag on the side of many vehicles in its fleet.
U-Haul’s daily rate comes with fine print that reads, “plus mileage.” (U-Haul says mileage rates can vary depending on when and where a rental takes place.)

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Budget, while offering customers a discount, also says its prices continually fluctuate in response to market factors like demand. Critics say such “dynamic” pricing can make discounts a matter of semantics, since extra attention generated by the promotion also, in theory, boosts the price that is ostensibly discounted. “It’s silliness,” says Mark Cooper, research director at the Consumer Federation of America. (Budget notes that savings are clearly flagged during the online reservation process.)
Still another wrinkle: Both offers are “in-town” or “local.” If you are moving from 1st Ave. to 5th Ave., that’s great, but if you’re traveling from San Francisco to Santa Monica, the offer doesn’t apply.
What gives? Like airlines and hotels, truck-rental companies have adopted complex algorithms that help them manage inventory. While that means more efficient use of vehicles — savings which can theoretically be passed on to customers — it adds a lot of complexity.
Rental companies say in-town and cross-country trips are priced differently for a variety of reasons. Customers do tend to pay higher rates for one-way rentals, according to Budget, because of the extra costs involved in getting trucks to and from popular pickup locations and to compensate for additional wear and tear.

3. “Bad customer service? That’s your fault.”

Maybe companies could do a better job when it comes to customer service, but some experts say it’s precisely because of customers that companies skimp on customer service. Instead, they focus on the product.
Keeping a fleet of trucks up-to-date and on the road is a pricey proposition. Truck-rental companies spend nearly half of their $7 billion annual revenue each year buying and outfitting new trucks, according to IbisWorld. As a result, profit margins can be thin: About 6.5% compared with nearly 25% for companies that rent other items, like office or medical equipment.
At the same time, pros say, rental companies have a hard time convincing the do-it-yourselfers who rent trucks to pay a premium to guarantee a smooth experience. Customers’ biggest considerations, according to Ibis analyst Lauren Setar: How much they pay and how far they have to travel to pick up the truck. While rental companies are loath to admit their service suffers, some experts say customer preferences give them an incentive to do just that. “Customers always want the best deal,” says Setar.

4. “The worst time to rent is when you need us most.”

As everyone who’s ever rented an apartment knows, leases are typically on a monthly cycle. As a result, say truck-rental companies, when the end of the month rolls around, the options are limited and prices go up.
“It’s when everyone is moving out,” says Penske spokesman Randolph P. Ryerson. What if you’ve got no choice? Just like with airline tickets, it often helps to reserve early. “If you can book weeks in advance, you can probably save money,” he says.
There’s also a time of the year that insiders suggest consumers try to avoid: summer. At U-Haul, for instance, nearly half the rentals for the year are typically scheduled during the three months between Memorial Day and Labor Day. A key reason: This is when students move, and students (not surprisingly, given their relatively transient lifestyle and tight budgets) account for a large percentage of their customer base.
Of course, truck-rental companies aren’t alone in this regard. The American Moving & Storage Association, a trade group for professional movers, gives the same advice. “The price goes up as demand goes up,” says public relation director John Bisney.

5. “Our trucks are jalopies.”

While having your reservation lost is bad, being stranded on the side of the road is even worse. For years, critics and angry consumers have contended that the reason these mishaps are so common is because rental companies don’t do enough to maintain their trucks.
The issue hit the headlines several years ago, when a Texas man named Talmadge Waldrip was awarded $84 million by a Dallas jury after being seriously injured by a 19-year-old U-Haul truck with an allegedly faulty safety brake (the case is under appeal). Waldrip’s case led the Los Angeles Times to perform an investigation in 2007 into the condition of U-Haul trucks and trailers. The article — which singled out U-Haul from competitors in part because of the size of its dealer network and in part because of the age of its trucks, many with more than 100,000 miles — claimed that up to half the trucks inspected by reporters appeared to be overdue for safety checks (based on stickers that were supposed to be attached to trucks to confirm the checks were done). See Upkeep lags in U-Haul’s aging fleet
U-Haul says its rental trucks have an oil change and comprehensive preventive maintenance check every 5,000 miles by a trained mechanic. Although some equipment failures are inevitable, the company says it takes steps to minimize the problems when they do happen, such as making sure customers who move across country get the newest equipment. As for the Los Angeles Times report, U-Haul said the newspaper’s reporters may have read too much into trucks’ paperwork, arguing that stickers simply got lost or hadn’t been attached in the first place. Asked about the findings today, the company says it maintains a preventative maintenance program and keeps equipment as new as possible.
“We buy more new trucks than any other company each year,” says marketing rates and distribution program manager Mike Colman. “Our trucks are safe.”

6. “We employ an army of moonlighters.”

After price, the next most popular selling point truck companies advertise is their reach: Budget, for instance, boasts “nearly 2,100 convenient locations.” Rival Penske lists 2,306, while U-Haul says it has more than 15,000.
Such breadth is key, the companies say, because consumers don’t want to travel very far to pick up or drop off trucks. If a dealer location is too inconvenient, the companies contend, would-be customers will find another option. “Our biggest competitor is your friend that has a pickup truck,” says Jennifer Flachman, director of investor relations for U-Haul parent Amerco.
Trouble is, offering convenient locations can mean teaming up with other, unrelated, businesses, rental companies say. Among the places U-Haul lists as rental locations: A barbershop, a secondhand furniture store, and self-storage centers, in addition to thousands of others. U-Haul and other companies say their partners are well-trained. U-Haul, for one, allows unedited customer reviews to be published on every location. But some experts argue that these partnerships inevitably lead to maintenance problems, not least when it comes to making sure regular checks get done.
“It takes the dealer time,” explains Ian Gilson, an analyst who covers U-Haul for Zacks Investment Research. “He’s busy. He doesn’t want to drive the truck to a service station. He wants to rent it out.” Rental companies say they have systems to maintain quality control.

7. “We’re judgmental of your car.”

In addition to trucks, some companies rent customers trailers to move extra stuff or tow their car. They won’t rent out a trailer to just anyone, however. You have to drive the right kind of car. U-Haul says it won’t rent trailers to customers with Ford Explorers, a stance the company has had in place since 2003, in the wake of national publicity surrounding rollovers connected to Firestone tires.
The company allows owners of Chrysler’s Jeep Wrangler to rent, but only if they show up with the vehicle’s hard top attachment.
But U-Haul is downright laissez-faire compared with some rivals. Penkse, or instance, doesn’t offer rentals of trailers to move your stuff at all. The company does rent equipment designed for towing cars. But the company only lets customers attach these trailers to its specially outfitted Penske trucks — not trucks from either of its rivals. “For safety,” Penske spokesman Ryerson says.

8. “You gotta be crazy to try towing your stuff.”

Towing something behind your car, meanwhile, can be convenient, since it lets you move both your car and your stuff at the same time. But it’s not without risks. Each year, about 300 people are killed and more than 10,000 injured in accidents involving a car pulling a trailer, according to the National Highway Traffic Safety Administration. While that’s a relatively small proportion of total automobile-related accidents, critics maintain that trailers are dangerous. (In contrast, gun accidents, which get much more publicity, kill about 600 people a year, according to the Centers for Disease Control and Prevention.)
Auto safety activist Ron Melancon says renters — many of whom don’t know how to attach trailers properly and lack the necessary driving skills — are a big part of the problem. “My 80-year-old grandma can rent a trailer without taking a five-minute safety course,” he says.
Rental companies don’t dispute that towing a trailer can be tricky for many customers. “It’s something of a new experience for a lot of people,” says Penske’s Ryerson. But both Penske and U-Haul have gone to elaborate lengths to detail what customers are supposed to do, including posting instructional videos on their websites. Some tips: Hitch the trailer with care. Always stop and start slowly. Slow down before starting down a hill.

9. “You’ll never guess what the last renter did with this truck.”

When Gary and Ashley McLeod rented a U-Haul truck to move from Alabama to Utah, they say, they’d gotten as far as Texas before they found something unexpected in the ashtray: a bag of marijuana. While the McLeods quickly tossed the contraband, they worried what would have happened if for some reason they’d been pulled over. “They could have charged us,” lamented Ashley McLeod to the company on its Facebook page. While McLeod says the company eventually offered her family $400 in compensation, she’s still unhappy with the experience. (Indeed, says Texas criminal defense lawyer Todd Rash, even possessing small amounts of marijuana can mean jail time in Texas. “We have rough justice,” he says.)
To be sure, there’s no reason to believe the McLeod’s misadventure is anything but a fluke. But with thousands of trucks crisscrossing the country each day, there’s no telling what a previous renter may have used their truck for. Rules specify that renters are supposed to use them only for transporting household goods, but not everyone follows them: In fact, the U-Haul prank is its own subgenre on YouTube. Among the unauthorized uses customers have documented: U-Haul as rave venue ( youtube.com ). U-Haul as battering ram ( youtube.com ). And U-Haul as skateboard jump, courtesy of no less a comic light than David Letterman ( youtube.com ).
As U-Haul’s Flachman says: “Everybody’s got a U-Haul story.”

10. “Our customers are on the verge of a nervous breakdown.”

Rental-truck companies may have more than their share of consumer gripes. But keep in mind who their customers are: like airline passengers or a wedding party waiting for the limo to arrive, those in the midst of moving house may be…a little high-strung.
Consider a hypothetical scenario: You’ve been packing all morning. Halfway through, you run out of masking tape and have to go out for more. You need to be out of your old place by noon. You forgot to pick up the keys for the new place and have to make a run to the realty office. You are almost late to pick up the truck…and now this!
“Moving is going to be stressful for everyone,” says neurobiologist Daniel Kirsch, who serves as president of the American Institute of Stress, adding that it’s perfectly natural for people to have strong reactions to bad surprises.
The human body is programmed to react sharply to a perceived crisis; it’s a process that evolved over thousands of years, says Kirsch. From that perspective, he says, “It’s no different if you are being chased by a lion or the wrong truck comes.”
His advice: “Take a few deep breaths.”

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