What to check before you hire a rental car, and what to do if you have problems with your rental car. Also, your rights with small passenger services.
When you rent a car, most of your rights and obligations will be governed by your contract with the rental agency. Before you sign the contract, check your liabilities – what you're covered for and what you're not (exclusions). You may also want to shop around for a better deal to reduce your liability.
You also have some rights by way of consumer guarantees under the Consumer Guarantees Act, as well as protection against unfair contract terms, and false or misleading advertising and conduct.
Drivers of all small passenger service vehicles (including taxis, shuttles, dial a driver, private-hire vehicles and app-based services like Uber) are regulated by the New Zealand Transport Authority (NZTA), and drivers must have a current ‘P’ endorsement on their licence.
Your consumer guarantees mean that any car you rent in New Zealand must be of acceptable quality. It needs to be safe and roadworthy, clean, tidy, reasonably fit for its purpose and free from defects, unless you're aware of minor defects that don’t bother you.
The vehicle must also match the model you booked and be fit for any purpose specified by you or the rental company.
If a particular feature of the car is important to you but isn't specified, mention this when you book, eg fuel efficient or with a large boot for luggage.
Otherwise, it may be harder to turn down a bigger car if the small one isn't available. If, however, the company advertised the car you booked as being fuel-efficient, or a company representative told you it was, any replacement car needs to meet this requirement.
Most importantly, your consumer guarantees can’t be reduced by a car hire company, even if it tries to do this by agreement or through terms in a contract.
Also, under the Fair Trading Act, car rental agencies can't make any false or misleading representations about the car, price, or your level of cover and liability. Businesses also shouldn't use unfair contract terms – see Contracts and sales agreements for more information. See Misleading prices or advertising for more information about your rights with untrue statements.
If your rental car breaks down or is not working properly, contact the rental car company immediately. Under the Consumer Guarantees Act, you need to let the company sort out the problem for you. However, if they refuse, get it sorted yourself and send the bill to the company.
See Faulty products for more information.
If you have mechanical troubles with your rental car, any replacement car provided should be the same model, or an upgrade if you agree.
Under most rental vehicle contracts, you may be charged for damage to a vehicle during the rental period. You may dispute this, eg a third party was at fault or the amount you are being charged for repairing the damage is excessive.
Nearly all rental car contracts are paid for by credit card. If extra charges are placed on your card without you being given the chance to dispute them, or if the maximum damage liability is charged without a repair quote, you can try quickly seeking a chargeback through your credit card company. Chargeback is a process where the credit card company may refund your money.
A term in the car hire company's contract allowing such practices is likely to be deemed unfair according to the Commerce Commission’s Unfair Contract Terms Guidelines(external link).
If the rental company accuses you of damage that you don't think you have caused, make sure they know you are disputing the charge. You may need to apply to the Disputes Tribunal if the money has been deducted from your credit card and you can’t get a chargeback.
This provides extra cover for roof and underbody damage, single-vehicle accidents, windscreen damage, careless driving, vandalism and hailstorms.
You may find it's not worth taking out the company's excess reduction cover eg, if you can get cheaper cover through your own insurer, or through an Association such as AA, or travel insurance.
If you do choose the rental agency's liability reduction, the agency needs to be clear about what is and isn't included. It can't mislead you into thinking that extra cover products provide greater protection from liability than is actually the case. Also important details must not be hidden in the fine print.
Small passenger services (SPS) include taxis, shuttles, dial a driver, private-hire vehicles and app-based services like Uber. Anyone who drives for a SPS (with a maximum of 12 seats, including the driver) for hire or reward needs to have a current Passenger (P) endorsement on their driver's licence from the New Zealand Transport Agency (NZTA), except for exempt services(external link). The NZTA has certain requirements that must be met before a P endorsement is granted including:
Visit the NZTA's website to find out more about:
Taxi drivers and drivers of all SPS vehicles are regulated by the NZTA and must:
Taxis and other SPS drivers should always take you to your destination using the shortest or most advantageous route. Sometimes they will take a different route because they have information about traffic or road works.
Taxis are not required to display a fare schedule but many do. However, drivers must agree the scale or basis of the fare before the trip.
The driver must accept the first request for hire unless there is a lawful reason to refuse, or if the service the driver works for only provides services to registered passengers.
Make a complaint to the company. Give them a chance to sort out the issue. Small passenger services, eg buses, taxis, shuttles, app-based services, are covered by the guarantees under the Consumer Guarantees Act.
If you and the company cannot agree on a solution, you can:
If you think you have been misled, eg the company advertised their services at a discount but asked you to pay full price, you can report them to the Commerce Commission.
Commerce Commission can't investigate every complaint, or solve your individual problem. But they can warn or prosecute the business. Your information helps them assess which consumer issues are causing the greatest harm.
Make a complaint(external link) — Commerce Commission
Complain about urban buses, taxis, shuttles, app-based services, intercity buses, limousine services, coaches and dial-a-driver services.
Make a report if the driver:
If your complaint is about violence, assault, sexual offences, or driving under the influence of alcohol or drugs, contact the New Zealand Police.
Complain to Waka Kotahi(external link) — Complaint about a specific matter, Waka Kotahi
Using a passenger service(external link) — Waka Kotahi
Get support at any point from:
Find a CAB(external link) — Citizens Advice Bureau
Our law centres(external link) — Community Law Centres
Jack sees a rental car company advertising a total daily rate of $34 a day plus fees and charges. But when he tries to hire the car, he is told that there is also an extra service charge of $7 a day plus an administration fee of $55 in the fine print. This is misleading as these extra fees should be included in the total daily charge. Jack can make a complaint to the Commerce Commission to investigate this company. He should also shop around for a better deal.
Maggie hires a rental car for the first week of the school holidays to go to Taupo. However, one of her children falls ill and they have to cancel the trip a few days beforehand. The rental car company agrees to the cancellation but charges her a hefty cancellation fee. Maggie can ask the rental car company for the basis for this charge, and this should also be specified in the contract. It has to be based on a reasonable estimate of their actual losses for the time period and their administration charges.
Brad hires a car for work and drives around Tauranga. He goes over the toll bridge a few times and forgets to pay the charges. When he returns the car he is billed extra for the road tolls, which includes an administration fee. This is within the terms and conditions of the hire contract so he has to pay the extra bill.