Rental deposits are the security deposits that a company takes from you when you rent a car from them. They hold that amount with them until you return their car in a safe and sound condition. It’s a mandatory thing for the safe side of rental companies. In case any traffic rules are violated, or any harm is caused to the car during the route, the company can deduct the amount of their loss from the rental deposit. We know, you might think that if you don’t cause any harm to the car or don’t violate any traffic rule, would the company still deduct any amount from the deposit? The answer is NO! The complete security deposit will be returned to you with no deductions. So there’s no need to be worried about anything.
Rental companies may take a few days to return the amount of deposit to your bank account or credit card. They check several things and make sure that everything’s fine with the car. After they are completely satisfied, they transfer the amount of deposit to your payment details. This complete process includes many things. To know how car rental deposits work, read this article to the end.
Car Rental Deposit – How it Works?
Security deposits aren’t as simple as they seem. From the company’s perspective, there are various things to be taken care of; such as factors on which the correct amount of deposit is calculated for any car or what things to be checked & confirmed before returning the amount to the customer. Here are a few things that will help you know about the process. Let’s have a look at them.
1) Calculation of Car Rental Deposit
The calculation of the amount of deposit depends on various things, such as which car you are going to rent, to which location you want to go, and what is your current age. If you want to rent a Toyota Corolla Grande car, you must have to pay a higher amount for its deposit as compared to the amount you have to pay for a Suzuki Cultus. Location is also a factor in an increase of the security deposit, as if you want to go to a place where there are more chances of damage to the car, the company will charge you more. Your age also plays a big role in the calculation of car rental deposits. If you rent a car at 25, the company will charge you a higher amount as compared with the amount you have to pay at 35. And this sounds fair because, at a younger age, people are more likely to drive fast and rough, while with an increase in age and maturity level, people become more careful and drive with full concentration on the roads.
2) Duration of Returning the Deposit Amount
Usually, the amount of car rental deposit is returned within 10 to 20 days after you hand over the car back to the company. They properly check and evaluate the condition of that car. After that, they transfer the amount to your bank account or credit card details. If the car is in good condition, there’s no need to be worried about the deposit settlement. But if any problem appears in the car after your drive, the rental company may take longer in further evaluation of their loss and deduction from the amount of deposit. In case you think that it’s taking too long to get your amount back, you can contact the company to ask about your concern.
3) Payment Methods of Rental Deposit
It isn’t mandatory everywhere to pay your deposit in cash. Most of the companies accept both methods, i.e. cash and bank transfer. But in case you’re renting a car from any company where they only accept cash and no other methods, you’ll have to pay the amount in cash.
4) Possibility to Avoid Rental Deposit
Commonly, it isn’t possible to avoid rental deposits as it’s an important thing for the company’s safe side, and they deduct nothing unnecessary from that. In very few cases, it might be possible that you don’t have to pay any deposit amount, but then the rental amount is way more than usual, and you don’t even get back anything from the rental cost. So, it’s better to pay the deposit rather than pay a high amount of money
5) Companies to Rent a Car from and Pay Rental Deposit
Always rent a car from any reliable and trustworthy company that doesn’t charge you high and makes unnecessary deductions from your rental deposit. Be careful and choose wisely which company you want to rent a car from. Do prior research, ask people about the services of the company, then step ahead to get a car for rent. If you live in Karachi, Pakistan, we suggest you rent a car from Deinfa Motors, which is one of the most reliable companies to rent a car in Karachi.
Here was some insightful information about how car rental deposits work. We hope you understand the process and the reason companies take deposits from their customers. To read more articles like that, keep visiting our site.
Sibtain Haider, a content contributor at Mainstream Pakistan, associated with trading and digital marketing. Presently working at Digital Eggheads, a well-reputed digital marketing agency in Pakistan.