Hertz's admission about its damage scanners

Daily Mail​

2 days ago

Hertz has finally admitted its new dystopian damage detectors make costly mistakes following an avalanche of complaints from furious customers. The second-largest car rental company has rolled out vehicle scanners - packed with thousands of cameras and strips of LED lights - at six US airports to make it easier to spot damage. But the controversial systems triggered outrage, with customers saying they have been hit with huge fees for miniscule scuffs and dents they did not cause or that do not even exist.
Previously, Hertz steadfastly defended the technology, insisting it was introduced solely to improve vehicle safety. But the company has now confessed to the Daily Mail that errors can happen. It would not specify how often the scanners are wrong, stating only that discrepancies from its new, fee-inducing tech 'are the exception'. One such exception was a case highlighted by the Daily Mail earlier this year.
A Navy sailor named Nadia had returned a sedan to the Hertz lot in Hartsfield Airport, Atlanta, in April. But a few hours after driving the car through the Orwellian-style scanner, she received a message demanding $935: $500 for damage and $435 in fees. The new technology had flagged what it thought were two minor dents on the passenger side. 'I knew for a fact I didn't cause any of the damage,' Nadia told the Daily Mail.
After publicizing her case, Hertz backtracked and dropped its demand for payment. But she is not alone. So far, six Hertz renters have alerted the Daily Mail to shocking bills for damage they did not cause. They said they have then struggled to contest the charges or speak directly with a representative. Adam Foley claimed he was wrongly charged $285 for two minor blemishes on his rented Buick. Hertz maintained it found fineable damage.
However, collision repair specialist and chief marketing officer for EpicVIN, Alex Black, said that after looking at the pictures provided by Hertz, 'it's plausible one fine is a reflection or a smudge, not an actual dent'. He added that he would charge no more than $150 for a fix. 'It's a shakedown that is extremely off-putting,' Foley told the Daily Mail. Meanwhile, a Newark Airport customer shared an email thread after receiving a $416.95 bill for 'cosmetic damage to the tire rim'.
'We paid because the rental report threatened us with legal consequences,' the driver said. 'We were traveling and had a tight schedule. The webpage for the claim provided no way to argue with a real person.' Another renter in Atlanta was hit with a $190 fine for a minor dent in June. And one driver received a $440 fine for a small scuff on the wheel. Despite mounting customer complaints, Hertz said it plans to install more scanners at rental lots across the US.
In April, Hertz told the Daily Mail that its scanners , which are part of a partnership with Israel-based AI startup UVeye, would only be used to guarantee vehicle safety. The scanners aim to improve damage detection by analyzing cars' undercarriages and tire tread wear - areas often missed by manual inspection - as they enter and leave the lot. Customers can request copies of their initial scans, and Hertz said it does not charge for body damage smaller than the size of a golf ball.
The Daily Mail asked UVeye to clarify whether its systems have led to fines for smaller scuffs and marks, but the company did not respond. 'For over 100 years, manual damage inspections have caused confusion and frustration, creating unnecessary friction with customers,' Hertz CEO Gil West said during the company's most recent earnings call. 'This technology is designed to bring much-needed precision, objectivity and transparency to the process.' For Hertz, adopting upgraded technology is a financial necessity. The company has been losing hundreds of millions of dollars each quarter, partly due to investing heavily in a fleet of rapidly depreciating cars .
Preserving vehicle values has become central to Hertz's financial turnaround . The rental giant now lists fleet depreciation per vehicle as the top priority in fiscal metrics, with products such as UVeye helping to reduce losses and drive the company back toward profitability. Hertz is not alone in adopting automated damage detection. Other rental giants, including Sixt, Enterprise and potentially Avis, are starting to roll out similar technologies across the globe. In one instance, Sixt charged a customer $600 for damage that occurred before his trip. The company later apologized for the mix-up.
But as these scanners become more widely used, renters increasingly face the risk of unexpected fees and an ongoing struggle to prove their innocence. 'For years, vehicle damage inspections have caused confusion and frustration,' a Hertz spokesperson told the Daily Mail. 'The process was manual, subjective, and inconsistent, and that isn't good enough for our customers or our business. With digital vehicle inspections, we're introducing much-needed precision, objectivity, and transparency to the process – giving our customers greater confidence that they won't be charged for damage that didn't occur during their rental, and a more efficient resolution process when damage does occur.'
Of the over 500,000 rentals scanned so far, more than 97 percent showed no billable damage. We know change of this scale takes time, and we're listening, learning, and improving every day. As we said from the start, our goal through this initiative is to enhance the safety, quality, and reliability of our fleet and to create a more consistent rental experience for our customers. 'This particular case was escalated and reviewed, and we did not pursue any damage charges. Discrepancies are the exception — and when they do occur, we are committed to making it right.'