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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9 comments
The leaders that allowed this to happen should be fired for arrogance and stupidity. Sadly, it’s all too common these days.
Agreed and Amen! But you know what would REALLY be helpful? A list (it would need to be kept updated, of course) of the airports where these scanners are installed. That way, we’d know (in targeted fashion, which may speak more loudly to Hertz!) where to avoid Hertz and send our collective message.
The arrest issue. didn’t fade in my mind. They moved me completely away from Hertz and into the arms of National, which treats me like a human being. This latest development just makes it clearer to me that Hertz doesn’t deserve my business.
Couldn’t agree more. I used to rent with hertz worldwide, on roughly 30 trips annually.
Since they implemented these scanners I’ve stopped using them in the USA and shifted to either Enterprise/National or Avis.
And same goes for the rest of the world and the benefits (such as UC) weren’t available in Europe anyway.
I was President’s Club with Hertz and a frequent renter for two decades. I loved skipping the line, checking the board, and going right to the car. They also streamlined the drop off. But I had several issues a few years back (no cars for a reservation, board being out and waiting an hour in line, etc etc) and started renting elsewhere in addition to Hertz. Once I hear about this two months ago, I changed two existing reservations from Hertz and don’t plan to rent from them ever again. Just too many headaches.
This WAS our go-to rental car company, even with the arrests of innocent customers. No more. We will not rent from a Hertz location with this evil machine. We will actually just try to avoid rental cars completely since this cancer will inevitably spread (no CT Scan or MRI required to make that diagnosis!)
Customers are not buying AI solutions to improve operations, replace people, or accelerate activities. And AI Companies are pitching their solutions for immediate ROI through tasks such as this. Tech CEO’s realize the only way to Unicorn status is to sell instant payback, and this is what we’re all left with, meanwhile we use our retail investor brains to cheer them on. Like voting for politicians, you reap what you sow.
Among all of their other massive and well-publicized failures, Hertz would be the company that I would trust the LEAST with something like this.
I never used them much before, despite having “Presidents Circle” status via a CC. Now I sure as heck won’t use ’em.
I am retired now. For decades, I was president Circle status with Hertz and travel every week. I was very loyal to the brand. As a retiree I still rent cars but mostly stopped renting from Hertz and their other two brands that they own due to people being arrested for car theft. Budget became my go to rental. However, a couple weeks ago I rented a car at BWI from Hertz. They were no problems, but I had anxiety issues about any little scratch or ding that the car might have upon return. Luckily, nothing occurred. But that’s the last Hertz owned product. I will ever rent.