New Toll arrangements with Avis & Budget

[markis10]

Just got the email, a good move IMHO:

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We are pleased to announce that, after a successful trial with the Roads & Traffic Authority of New South Wales ABN 64 480 155 255 (RTA), Avis rental vehicles will now be registered on the RTA’s e-toll system so that tolls incurred by you when using an Avis vehicle on any Australian toll road can be recorded and billed to you (or, if applicable, to the holder of your Avis Australia Charge Account – see below) by the RTA in an efficient manner (RTA E-Toll Facility).

The roll out of the new RTA E-Toll Facility in Avis vehicles is scheduled to commence on 16 December 2010 (Roll out Date).

All Avis rental vehicles will be registered on the RTA’s e-toll system to enable their use on any toll roads in Australia. Currently, these toll roads are on the eastern seaboard of Australia (including the toll roads in the metropolitan areas of Sydney, Melbourne and Brisbane).

 

[dk4]

re: New Toll arrangements with Avis & Budget

I just got the mail too, but what happens if you want to opt out, and travel with your own RTA (or any other provider) toll device? (And save the daily processing fee that Avis will add on top of the tolls for using this "service"!)

 

[ejb]

re: New Toll arrangements with Avis & Budget

About time NSW caught up with the rest of the world.

I think the $2.20 charge per day is a bit steep though seeing that the whole thing is automated and requires no additional work by Avis nor the RTA.

I will still carry my extra tag with me when renting.

ejb

 

[garee]

re: New Toll arrangements with Avis & Budget

Received the same Change of Conditions from Budget.
I understand why they are doing it.... a lot of people are just not paying the tolls on- line or over the phone.The rental companies have to pay the tolls and the extra changes then chase customers for reimbursement and problems associated doing that.

In my case I use my existing e tag and don't want to use the new system and the surcharges, what do I do, pull the e tag off the rental car.

 

[DMMatlin]

re: New Toll arrangements with Avis & Budget

In my case I use my existing e tag and don't want to use the new system and the surcharges, what do I do, pull the e tag off the rental car.

On the email I received there is no opt-out process. You are bound to use the new system.

[FONT=&quot]"You must not use any other tag or tolling product of any other toll provider in your Avis rental vehicle. If you do, there could be two separate charges – one by the RTA and another by the other toll facility provider.[/FONT]"

And being a preferred customer, by booking a car you automatically agree to the new system and the RTA t&c's

"[FONT=&quot]If you elect to rent a vehicle from Avis after the Roll Out Date, you will be taken to have accepted"[/FONT]

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And the nice bit is that Avis makes money from the transaction.

[/FONT]

[FONT=&quot]"part of which service fee is paid by the RTA to Avis or an Avis licensee "[/FONT]

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And apparently this is better customer service!
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[ejb]

re: New Toll arrangements with Avis & Budget

To clarify for people:

The RTA e-toll system only detects the number plate if no tag is detected so if you use your own tag you will avoid the charges.

It works like this now for people in Sydney who have more then one car but only want one tag, you tell the RTA the rego numbers of your cars and if they are detected on a motorway your account gets billed the toll, with no fee like the Avis system.

ejb

 

[equus]

I have received the email, and done some checking - there is no opt out and no avoiding using the RTA system (and paying the extra $2.20 of which Avis / Budget gets a cut).

Basically, Avis will be fitting tags (secured so that they can't be stolen), and using your own tag will see you charged twice (the email does mention this).

Basically there is no way of avoiding this, other than renting elsewhere. Note that this does not apply only to Avis preferred, it applies to all Avis rentals (just that Preferred members are getting an email, as the T&Cs are being updated).

On the face of it, this cosy arrangement is blatant third line forcing, and in direct contravention of Section 47(7) of the Trade Practices Act. The catch here, is that Avis (and Budget and a whole list of other associated corporations) submitted a Section 93 notice to the ACCC, who have allowed the rental companies to convince them that this is all OK - so they are allowed to do it.

I have just cancelled my upcoming Avis rental for the coming weekend, and switched it back to Hertz (who had a much cheaper rate spring up than has been showing for weeks - so I saved $50 bucks, plus a few $2.20 "convenience" administration extortions).

The RTA e-toll system only detects the number plate if no tag is detected so if you use your own tag you will avoid the charges.

To further clarify (in this context):

You are correct with respect to how the system works, the kicker is that the vehicles will have a tag fitted by Avis, which you won't be able to remove (which is not mentioned in the emails anywhere). Adding your own will simply get you charged twice.

The details can be found buried in the Trade Practices Act Section 93 notification (and associated answers etc), on the ACCC website here.

 

[drron]

re: New Toll arrangements with Avis & Budget

Doesn't really worry me as i have no tag anyway.My first rental as an avis Preferred renter starts tomorrow in SYD.

 

[odysseus]

re: New Toll arrangements with Avis & Budget

Good pickup DMMatlin, and investigation into the ACCC filing equus - I wouldn't have thought to check that they'd filed.

 

[JohnK]

re: New Toll arrangements with Avis & Budget

I can understand how some feel this is not such a great idea but for people like me who avoid tolls it sounds like a good solution.

I do not have an e-tag of any description so if I rent a car and I happen to be in a hurry or accidentally get on a toll road then I am covered and only need to pay the toll plus $2.20. I believe the fees were a lot higher under the current system.

 

[samh004]

re: New Toll arrangements with Avis & Budget

Doesn’t sound that great despite the fact I’ve never hired a car in my life, I do however hold a spare e-tag for when we do use rental card, so we can easily debit out existing account, so this policy from Avis might shift me to not recommend using them if using a toll road.

 

[markis10]

re: New Toll arrangements with Avis & Budget

I can understand how some feel this is not such a great idea but for people like me who avoid tolls it sounds like a good solution.

I do not have an e-tag of any description so if I rent a car and I happen to be in a hurry or accidentally get on a toll road then I am covered and only need to pay the toll plus $2.20. I believe the fees were a lot higher under the current system.

JOhnK you are spot on, the costs for those that dont have an e-tag are significantly more, for instance in Melbourne you can get a pass to cover your travel, this scheme will be cheaper for most users, whilst for those using their own e-tag, it will cost only a couple of dollars more. It appears Avis and Budget are happy for those who don't like it to go elsewhere, although I do find the timing interesting with the news coming in the same month that they are exclusive QF partners for the whole month.

 

[brett-au]

re: New Toll arrangements with Avis & Budget

Initially I was concerned by this thread highlighting the lack of opt out but then I saw this

[FONT=&quot]For any calendar day on which the Avis vehicle is not driven on a toll road during the rental, there is no service fee payable.[/FONT]

And now its all good. This deal is better than the Melbourne one so I'm happy.

 

[equus]

re: New Toll arrangements with Avis & Budget

Whilst the deal no doubt suits some, the part I don't like is the third line forcing and monopoly aspects it brings in. The Trade Practices legislation forbids this behaviour for a reason, and the ACCC has simply caved in and accepted that this is convenient for the "million plus" (from the Section 93 submission) people impacted, apparently without really seeing if there are viable options which would still have allowed an opt out.

They really could have come up with a model that allowed an opt out without too much effort, but no doubt that would deprive them of their cut of the admin fee on all rentals, including those who would prefer to use their own tag, rather than only for those who chose to use the service.

It would presumably have been feasible to use removable tags (they will need to remove them when they sell the vehicles anyway, so it is not like they are truly permanent fixtures, so the part of the submission they have used to answer the ACCC questions where they state that the tags will be "permantently affixed to the vehicle" to "avoid theft" is disengenous at best). The problem of people "stealing" them, or otherwise damaging them should be no worse than for other portable items they already deal with (GPS units, baby seats for instance), and the costs easily recovered in the same way any other loss or damage to a rental vehicle is dealt with.

They could have implemented the service and provided the opt out option, kept eveyone happy, avoided the need for a Section 93, but instead they presumably spent a not insignificant amount of money with an expensive legal firm to gain an exemption from clauses of Trade Practices legislation designed to prevent exclusive dealing - kind of indicates the money they expect to reap from this.

 

[serfty]

... and ... of course .... how long before the fee increases?:-|

 

[ric_melb]

re: New Toll arrangements with Avis & Budget

I am in the group that think this is a good idea.
Whilst I have used my own etag in a rental car in the past, this new system is convenient, and if it only costs $2.20 extra, on the days you actually use it, that amount is minimal.

 

[dk4]

re: New Toll arrangements with Avis & Budget

Thanks to equus for the investigation and excellent summation.

I am very disappointed in the direction that the ACCC has taken; as it would appear that the competition and consumer commission has not been able to grasp the way that the toll market functions in Australia.

Firstly, I agree that hire car companies should be offering an add-on option of an easy tolling service (at POS) to their customers, particularly those who may not understand or no inclination in comprehending the toll market in Australia. (And they should be free to charge a premium for this service.)

But to force all customers to use a particular tolling system/service, at additional charge to them, when they want to use an alternate, makes a mockery of the toll market place.

There are a broad range of products out there, to suit many users.

Some infrequent drivers may like the easy, transportable, product that go via offers - https://www.govia.com.au/via/home/Payment+options/go+viatag/ its simple and with limited fees.

While at the other end of the spectrum, some businesses may like to keep all their staff on the one account (with appropriate management oversight) like that offered by e-way - http://www.tollpay.com.au/about/orderForm.htm.

Still other hire car users may want to simply use the post-use-pay service, provided photographically via plate number identification by toll operators.

Choice, is what a competitive and open market is all about, but in one foul move the ACCC has allowed Avis and Budget to take choice away from their customers. IMO it is a disgrace, and disadvantages both toll paying customers as well as the RTA’s competitors!

 

[NM]

I cannot find any reference to tags actually being installed in the rental cars. While its not clearly stated, my assumption was that the rental car company is registering the rental car number plates with the RTA E-Toll system so when the car's number plate is identified as passing a toll point, the toll is registered to the Avis account and Avis then allocate it to the renter of the vehicle.

I then assume that Avis has made their comment regarding using your own e-tag and possible double charging as a way of scaring or discouraging people using their own tags since they make money out of the service fee when the tolling company use the vehicle number plate for identification and toll charging.

Then again, my assumption may be completely wrong.

 

[equus]

I cannot find any reference to tags actually being installed in the rental cars.

That detail is not included in the Avis email. If you look at this document (which is found with all the details of the Section 93 TPA exemption), which is the letter from Freehills in response to queries from the ACCC about how things will work, it is very clear that e-tags will indeed be installed.

 

[markis10]

I cannot find any reference to tags actually being installed in the rental cars. While its not clearly stated, my assumption was that the rental car company is registering the rental car number plates with the RTA E-Toll system so when the car's number plate is identified as passing a toll point, the toll is registered to the Avis account and Avis then allocate it to the renter of the vehicle..

Its in the Avis submission: