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Last Minute Car Renters Benefit from Hidden Price Drops

Unlike airlines that charge customers higher fares the closer to the departure date you make your reservation, some car rental firms actually lower the price as the rental date draws nearer.  They don’t advertise that fact, they just do it quietly.

Example: MrConsumer helped a friend book a 12-day rental starting on August 22 from Logan airport in Boston. At the end of July — approximately three weeks in advance — the total rate including taxes was in the high $400s for Alamo — and that was using a coupon and a group discount.

Exactly two weeks before the start date of the rental, just for the fun of it, MrConsumer checked prices again at Alamo on a new reservation, using a better coupon — $40 off a 10-day rental.  Between the coupon and a new price reduction, the exact same rental dropped to $420.

*MOUSE PRINT:

Not bad, a savings of about $60.

Checking prices again exactly one week before the rental was scheduled to begin revealed another price drop of close to $100. It was now down to $337.

*MOUSE PRINT:

Wow, that’s a total savings of almost $150 compared to the price that would have been charged on the earliest reservation. 

And, checking the rates one day later, the price dropped to $317.

Now, on August 17, just five days before the rental, the price dropped again:

*MOUSE PRINT:

We are now under $300 for the rental, an almost $200 savings compared to the price quoted at the end of July.

It can’t get any lower, can it?

*MOUSE PRINT:

Wow.. as of Wednesday, August 18 — just four days before the rental — the price dropped over $30 to $267. Will the discounts ever end?

Two days before the car rental was scheduled to begin, the price dropped one last time, albeit by only $7.

*MOUSE PRINT:

Just to finish the price history of the rental, the day before the actual rental, the price jumped up to $414.91.  And on the day of the rental itself, the price was $434.68.  Amazingly, the highest price Alamo offered was the first one — for the reservation made over three weeks before the actual rental date. The total savings for MrConsumer’s friend amounted to over $220 by making weekly, and then daily checks of prices as the rental date drew near.

Surprisingly, in this case, it was substantially cheaper renting at the airport than from an in-town location. (The opposite is usually true.) Compounding the problem of high rates is that string of junk fees and taxes that boosts the price substantially, no matter how low the published rate is per day.

Because no one knows if prices are going to go up or down in any particular case, or with any particular car rental firm,  it is still wise to book early (using all the discounts and coupons you can find), but check again repeatedly  as the rental date approaches.  If you find a lower price, book the new reservation, then cancel the old one.

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Toyota: Spends $1 Million an Hour on Safety?

Unless you have been asleep for the past month or two, you probably have seen the bright red Toyota commercial touting their commitment to safety:

It says:

“At Toyota, we care about your safety. That’s why we’re investing a million dollars every hour to improve our technology and your safety. It’s an investment that has helped Toyota win multiple top safety pick awards for 2010 by the Insurance Institute for Highway Safety. No other brand has won more. These top safety picks and all our new safety innovations are available at Toyota.com/safety . “

The average TV watcher will likely take away the message that Toyota cares about safety, has won a lot of safety awards, and is spending a million dollars an hour to improve safety.

Mouse Print* asked the company how they arrived at the million dollars an hour figure.

*MOUSE PRINT:

“The $1 million figure represents Toyota’s total global spending on R&D to enhance the safety and technology of its vehicles. [Toyota] projects $760 billion yen [to be spent in FY2011] on R&D. Breaking down the calculations, 90 yen to the dollar equals $8.44 billion, which works out to $2,318,310 per day or $965,962 an hour, rounded to $1 million an hour. In any event, any fluctuations in the yen would impact the exact final figure.”

The key issue is not so much that they rounded up the figure to a million dollars an hour (exaggerating the amount spent by almost $30 million a year) but rather that the number is TOTAL spending on research and development, not just on safety issues. The company could not provide a number for the actual amount just spent on safety, but it certainly is less than the total spent on R&D, and therefore is not $1 million dollars an hour.

When this discrepancy and interpretation of the commercial was pointed out to Toyota, they responded:

“As the commercials mention, the $1 million figure represents Toyota’s R&D spending on new technology and safety, much of it allocated to quality and safety features.”

If you parse the key sentence in the commercial, it does indeed say that they are spending $1 million an hour to “improve our technology AND your safety.” But by using the term “safety” seven times in 30 seconds, and displaying the words “safety” or “safe” on the screen for much of the commercial, listeners are likely to get the net impression that Toyota is spending a million dollars an hour to “improve our technology FOR your safety.” We don’t think the average consumer would take away from the commercial that the company is spending some number less than a million dollars an hour on safety.

In Massachusetts, we have an advertising regulation that provides:

“An advertisement as a whole may be unfair or deceptive although each representation separately construed is literally true.”

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CVS: Sign Up for Offers, Get a $4 Coupon?

In the CVS drugstore circular on August 1, the company promised to give customers who signed up for their email list a $4 coupon:

The unreadable fine print in the reduced size picture above only refers to the company’s privacy policy, and that people already on their list are not eligible.

Seemed like an easy way to save $4 to Linda D., a regular Mouse Print* reader. So she signed up at their website. She  filled out her name and email address on the page that contained this description (actual size):

So far, so good. Then she got an email from CVS with her coupon:

Excuse me, $4 off a $20 purchase? Where did that come from? There was no mention whatsoever about this coupon requiring a minimum purchase in the circular. Even visiting the CVS website on the page where you fill in your name and email address, there was no disclosure right on that page either [since changed as noted below].  If you were to click to see the sample coupon, you would have seen the $20 minimum purchase requirement, but few would probably have a reason to view the sample coupon.

Most people would only find out they’ve been hoodwinked after they had given CVS their personal information.

Mouse Print* contacted the PR folks at CVS to ask if they didn’t think this promotion was deceptive, and whether they would now provide people who signed up with a no-strings-attached $4 off coupon. They responded, in part:

“On the sign-up page, a sample coupon was displayed setting forth the details of the offer.

While we feel the information was available, CVS/pharmacy appreciates customer feedback and moving forward, we have enhanced the language for this ad to indicate more clearly that this is an offer for a $4 off $20 coupon. This change has already been made online at www.cvs.com/email. We have also made this change to our circular and it will be reflected on the online circular beginning on 8/22 and due to printing lead times, the new ad will begin running in the printed circular the week of 9/5.”

So, basically CVS decided against doing the honorable thing right away — offering those who signed up based on the misleading ad a no-strings-attached $4 coupon. And notice that they made no mention of running a retraction in newspapers across the country, as might be required by various state advertising laws.

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