Hertz has been through it lately. First, it was the controversy over arresting customers who were falsely accused of stealing their rental cars. Then came the EV debacle, where renters were given electric vehicles as “Manager’s Specials” without any guidance about charging, range, or how long they’d take to refuel.
Despite all of that, Hertz somehow managed to dodge lasting damage. The headlines faded, a few jokes were made, and most people kept booking. Even the shift away from EVs seemed to go unnoticed by the average traveler.
But this time? The backlash isn’t going away.
When a Machine Accuses You
Hertz has quietly rolled out an automated system that uses AI-powered scanners (developed by UVeye) to inspect rental cars for damage as customers enter and exit the lot. If the system detects something, it can instantly generate a bill—sometimes for hundreds of dollars. And if you pay immediately, they’ll even give you a discount.
This isn’t just a convenience feature. It’s a revenue mechanism that removes the human element from the equation—and that’s the problem. Customers aren’t being given a fair chance to explain or dispute the damage. Instead, they’re being judged and billed by a machine—and told to pay now, or else.
That’s the line Hertz crossed. And it’s why this time, the fallout feels different.
We Know What Rental Cars Look Like—And So Does Hertz
Anyone who’s ever rented a car knows that minor dents and scratches are part of the game. In fact, many of us spend time taking pictures or videos of the car before we drive away—just to be safe.
Example of the kind of minor damage we’ve seen on rental cars in the past—never an issue… until now?
But here’s the disconnect: Hertz is more than willing to rent you a car with minor damage—but now they’re charging you for similar imperfections if the AI happens to find them. And it’s not just for the repair. Renters are getting charged for loss of use and administrative fees, even when it’s extremely unlikely that the car will be pulled from service for a tiny scuff.
It feels less like damage recovery and more like an automated cash grab.
Our Experience: Why We Skipped Hertz
We recently rented from a Hertz-operated location in Austin. As we exited the garage, we saw this:
The Hertz AI scanner at the exit — hard to miss, and a bit intimidating.
We passed through the scanner with no issue. Thankfully, it wasn’t running when we returned the car. But just seeing it in action gave us pause. The more we read about people being wrongly billed, the less confident we felt.
So on our next trip, we skipped Hertz (and their other companies, Dollar and Thrifty) entirely and rented from Avis. It cost a little more—but it was worth it to avoid the risk.
It’s Not Just Us
We’re far from the only ones. Here are just a few examples of what’s being reported:
- A renter was charged $440 for a one-inch wheel scuff, even though that size is below Hertz’s supposed damage threshold (The Autopian).
- Others say they were billed for phantom damage, such as reflections, dirt, or small surface marks. One customer with video proof of a clean return was ignored by customer service and only had the charges dropped after a significant effort (Futurism).
- Complaints on Reddit are mounting, with users warning others to “never rent from Hertz again” and calling the automated system a “scam.”
This time, the backlash isn’t limited to a single bad customer service story—it’s systemic. People are sharing their stories publicly, and trust in Hertz is eroding fast.
Final Thought
AI isn’t the problem here. The real issue is how Hertz is using it: to charge customers without proper oversight, transparency, or human review. What might have been a useful efficiency tool is being seen as a threat—and that’s because people don’t trust that Hertz is being fair.
Hertz underestimated the backlash because they didn’t realize just how fragile that trust was. And unless they rethink how this technology is implemented—and put real humans back into the process—they’re going to keep losing business from customers who no longer feel safe renting from them.
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