Gasoline Car Rental Service Option: Is It Wise?

That statement in one form or another has been a part of car rentals since the beginning. In the early days, it was a straightforward matter of principle. You used it, you replaced it. At some point between then and now, someone realized that “there’s a lot of money to be made from a tank of gas in rentals.

For those of you who don’t know, let’s explain your car rental refueling options. When you rent a car, the car usually comes with a full tank of gas. In some circumstances, it comes with a partially full tank. In any case, the rental company will give you three options. Return it at the same level you got it, prepaid (full) for a full tank of gas (GSO) and bring it back empty, or bring it back empty and pay a higher price per gallon skipped refueling charge (FSO).

The Fuel Service Option (FSO) is almost always the most expensive option. Up and down the California coast, most cities have FSO charges of around $5.99 per gallon (and with recent prices, even higher). Across the country, it’s not much better. While your mileage may vary based on the actual price per gallon, FSO charges are almost always a good dollar per gallon more expensive than the prevailing GSO (prepaid) rate or the rate of local gas stations. It may seem like there’s no good reason to use FSO, but there is. While most FSO users are people with more money than time or people who forgot to fill their gas tank, there is a segment where it is cheaper to use this service than any other.

If you have a discount code, it may be due to your employer. Some employers, like Microsoft and Government Contracts like Lockheed Martin, have negotiated rates where the same dollar amount is charged for refueling across the country. Depending on the market, it may not be that bad. In one circumstance, a friend of mine who worked for one of the companies listed above took a trip to Kona, Hawaii. On that trip, the refueling price for the fuel service option was less than the prices per gallon of all local gas stations within 5 miles of the airport. In that case, it is always better to return the car as it is.

At the other end of the spectrum, the GSO option is a prepaid full tank of gas at a specified rate. In most car rental agencies, the GSO price is the average of the three nearest gas stations. With this average, it multiplies the tank capacity by that number and offers it as a flat rate to fill the tank. But buyer beware. If the tank is not completely empty when you return it, you do not get a refund for the gas you use. You’ve effectively paid for a full tank of gas and if it’s not “empty” when you return, you’ve just given the rental car agency free gas.

So, to recap, when should you use FSO (Fuel Service Option)?

• Only when you have no other choice
• Only when your company discount provides you with a special rate for refueling
• For those who have more money than time

And when should I refuel with the OSG option?

• Trips where you know you will have the car for more than a week
• Trips you know you’ll be driving more than 400 miles on
• When you know that you will have little time to return

Some final tips. When you leave the rental area, make a note of the nearest service station. If you have time, it’s often good to drive right in and fill up on gas to make sure it was fully filled when you received it. Many of today’s tanks allow up to 50-100 miles before the needle drops below the maximum level. If the agency indicated that the tank is full, the nozzle should click almost immediately (3/10 of a gallon). But to be okay, you really don’t need to worry if it’s less than 3/4 gallon, unless 85 cents is enough to argue and waste 20 minutes. If you put more than that, take the receipt to the counter when you return the car and have the amount of gas deducted from the bill.

If you have a GPS unit, lock the location of the nearest car rental area and gas station to save you time when returning. Some of the best laid plans are ruined by getting lost trying to get back to the airport. If you’re traveling in a group, assign someone to look for rental car return signs, the exit ramp, the nearest restaurant, and other things you may need on your way back to the airport.

Under no circumstances should you buy the most expensive grade of gasoline! Let me repeat it in clearer terms. for cheap gasoline. All car rental agencies buy the cheapest gas allowed by law. Don’t feel guilty about covering that car with a more expensive grade of gasoline. The car will break down and be sold for abuse long before the gasoline causes problems for the car.