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Thrifty Rental Cabo - Rip Off

In cooperation with: Visit Mexico
New Zealand
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44 posts
17 reviews
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Thrifty Rental Cabo - Rip Off

We have just returned to New Zealand after our third visit to Cabo. We hired a Jeep from Thrifty for 4 days. We were quoted a price of 90 USD a day and told by them before signing the CC slip that the maximum we would pay would be 360 USD. When we returned the car we were given a copy of our CC slip showing a charge of 4672.74 pesos. When queried why it wasn't in USD we were told it was company policy to change the amount to pesos and Thrifty's exchange rate was 13. Strangely Thrifty had managed to lose all the paper work we had signed when picking up the car.

My advice is use someone else, last time in Cabo we used National and had no problems.

BC
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397 posts
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1. Re: Thrifty Rental Cabo - Rip Off

Getafix:

I assume that the exchange rate of 13 was for US $. If so that is a very good rate. You would be lucky to get 11.5 pesos at most hotels. 4672.74 pesos is US $360 or the US $90.00 per day that you negotiated. It seems unfair to blame the company for living up to its agreement. Billing in pesos is standard in Mexico and is required by law.

Edited: 10:42 pm, May 29, 2011
Cozumel, Mexico
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5,078 posts
13 reviews
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2. Re: Thrifty Rental Cabo - Rip Off

If they are quoting you in Dollars, then that is the exchange rate to buy USD from a Mexican Bank for the Company. I do not see where you got ripped. I think it is not fair to bash a company when they did not do anything unethical.

Orange County, CA
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236 posts
4 reviews
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3. Re: Thrifty Rental Cabo - Rip Off

Yes, the Mexico rental car companies always bill in pesos. You cannot really determine what you paid for the rental until your credit card bank processes the transaction. The credit card bank determines the actual exchange rate not the car rental agency! The quoted car rental exchange rate is a best guess on their part!

Campbell, California
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841 posts
13 reviews
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4. Re: Thrifty Rental Cabo - Rip Off

I think we need a few more details on this one. It may very well be a misunderstanding.

Cabo San Lucas...
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234 posts
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5. Re: Thrifty Rental Cabo - Rip Off

at 11.5 they would have been charged 4140 pesos. maybe they added taxes to your charge

PRINCETON
Destination Expert
for Cabo San Lucas
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9,815 posts
5 reviews
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6. Re: Thrifty Rental Cabo - Rip Off

anything charged on your cc in Cabo is in pesos..and if you got 13 exchange, that is a great deal. I think you are misunderstanding the charge/exchange. Do the math....at 13 it is exactly what your contracted for. If you agree....you might want to post a rebuttal to this post so others know it was all legit,. Hope the rest of your trip was great!!

Olympia, WA
Destination Expert
for Cabo San Lucas
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10,061 posts
10 reviews
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7. Re: Thrifty Rental Cabo - Rip Off

In this case the 13 pesos/dollar that the company used will actually lead to a higher cost if the credit card bill is converted to USD because the exchange rate the credit card company uses will be less, probably between 11.6 and 11.7. Here's how it goes:

Car rental company says it uses exchange rate of 13:1, so for a maximum agreed to price of $360 USD the charge would be 4680 pesos. However, when the charges actually go through the bank, they will use the going exchange rate (lower than 13:1 to convert to dollars). I just got my credit card bill for a trip ending a few days ago and the conversion varied from 11.6 to almost 11.7. Converting the bill of 4680 pesos using these two rates as a range lead to a credit card charge of $400 USD - $403 USD, not the $360 USD agreed to. Therefore the renter ended up paying about 11% more than the agreed to price in dollars. The rental car company gets 4680 pesos no matter what the exchange rate.

If the rental car company had used the current exchange rate (11.6:1 for example) and applied that to an agreed to maximum charge of $360 USD, the rental car company would have received 4176 pesos and the credit card would have only been charged $360 USD, more or less, depending on the exactly exchange rate at the time.

In this case using the higher exchange rate leads to more pesos for the rental company and a higher USD bill for the renter.

southern California
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2,496 posts
19 reviews
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8. Re: Thrifty Rental Cabo - Rip Off

Eljefe, Would it be better to negotiate the *total* rental price in pesos?

Olympia, WA
Destination Expert
for Cabo San Lucas
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10,061 posts
10 reviews
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9. Re: Thrifty Rental Cabo - Rip Off

I think the thing to do is to just make sure the rental company uses the current exchange rate rather than an inflated one. Without going through the exchange calculations, the high rate quoted probably seemed like a good deal (as some of the other posters have suggested), but it was not.

New Zealand
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44 posts
17 reviews
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10. Re: Thrifty Rental Cabo - Rip Off

I am not sure whether you actually understand what I said so I will repeat it a little more clearly - read my explaination carefully.

We were quoted a TOTAL of 360usd and told that was the MAXIMUM we would pay. 360usd at the official exchange rate of approx 11.3 would be 4068 pesos at the time of the quote. We were charged 4672.74 pesos which at an exchange rate of 11.3 is 413.50 usd approx. How is that a good deal. "Sunrise" I think you have been in the sun too long. If I wanted to change usd into pesos of course 13 is a great exchange rate, but that wasn't what I was doing. I am fully aware of how exchange rates and credit cards work. We have travelled to all parts of the world and have normally found when you are told "that is the maximum you will pay" that is exaclty what is meant. We didn't negotiate a price in usd, they offered a price in usd. Attilla, I think you should do the maths. If you think I got a good deal I have some spare usd you might like to give me pesos for.