Let’s face it, no one likes surprise charges—especially after renting a car.
Yet that’s exactly what some Hertz customers say they’re dealing with, thanks to the company’s high-tech damage scanners.
And just as this backlash heats up, Hertz has dropped its latest financial update—and the numbers are a mixed bag.
Earnings Show Improvement, But Losses Remain
Hertz reported a loss of $294 million for the most recent quarter.
While that’s still in the red, it’s a notable improvement from the same time last year, when the company posted a massive $865 million loss.
Even compared to the previous quarter’s $443 million hit, things seem to be moving in the right direction.
Revenue-wise, Hertz brought in $2.18 billion—slightly better than the $2.16 billion Wall Street was expecting.
According to CEO Gil West, this progress isn’t accidental.
He credits “smarter fleet management, improved utilization, and enhanced customer experience” for the company’s gradual turnaround.
As he put it: “Our transformation is taking hold.”
Customers Still Upset Over AI Damage Scanners
Despite the financial uptick, Hertz is still dealing with fallout from a controversial piece of tech: automated vehicle scanners designed to spot damage when renters return their cars.
Since April, customers have been voicing their frustration over what they say are unfair or even inaccurate damage charges.
Several drivers told DailyMail.com they were hit with fees ranging from $130 to a staggering $935 after passing through the AI scanner—often without ever noticing any damage themselves.
Worse still, when they tried to challenge the charges, they were met with automated chatbot responses instead of real help from customer service.
Hertz Defends The System, But Not Everyone’s Convinced
So far, Hertz maintains that the majority of customers using the scanner aren’t being charged at all.
But that’s been little comfort to those who say they’ve been wrongly billed.
None of the customers who spoke out said they recognized the supposed damage cited in their claims.
And with little recourse besides chatbots, frustration continues to mount.
Hertz executives are expected to tackle the issue head-on during a scheduled conference call at 9 a.m., where they’ll likely face questions about how the system works—and how the company plans to regain customer trust.
Other Rental Companies Are Following Suit—With Similar Problems
It’s not just Hertz experimenting with AI scanners.
Sixt, another rental brand with about 100 locations across the U.S., is also using similar tech—and it’s already facing some of the same issues.
One Sixt customer recently received a $600 charge for vehicle damage that turned out to be incorrect.
The company has since apologized, but the incident highlights growing concerns over the accuracy and accountability of these automated systems.
What’s Next?
As AI continues to make its way into the rental car world, the industry may have to rethink how it balances efficiency with fairness.
For now, all eyes are on Hertz—both for its slow financial recovery and the brewing customer backlash it’s yet to fully address.
Stay tuned—things could get bumpier from here.
