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Renting a Car? Expect to Pay More, Explain More : Transportation: Agencies raise rates, check drivers’ records but improve vehicle security.

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TIMES TRAVEL WRITER; <i> Reynolds travels anonymously at the newspaper's expense, accepting no special discounts or subsidized trips. </i>

If you rent cars regularly, you’ve already noticed that rates are rising. But that’s just one of three major trends reshaping the rental-car business these days--and consumers have much to gain by taking note of all three.

While prices are rising, safety features are growing more common, and rental-car companies are getting more choosy about whom they’ll trust with a car. Each of these trends is likely to deepen. Here’s a quick look at each issue:

* Rental rates are rising because U.S. car makers are, after a long dry spell, selling more cars to the public. During the years when retail sales were slow, the overstocked Detroit car makers (who own hefty portions of most of the nation’s largest rental-car companies) sold large numbers of new vehicles to rental firms at bargain prices, then bought them back as used cars. But since 1992, car makers have been raising their sale prices and cutting their buy-back prices, leaving rental firms with cost increases estimated as high as 30% per year.

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The rental firms have saved some money by keeping their fleets in circulation longer; industry officials say the average rental car these days probably has 6,000-8,000 miles on its odometer, up from 4,000-6,000 two years ago. But the new higher dealer prices made raising rental rates a priority, and Hertz, Avis and their smaller siblings are now telling anyone who will listen that for the last decade, rental-car rates have been unnaturally low.

After initial faltering in the move to bump up rates--pricing in the industry is highly competitive--Hertz last fall pushed its prices up roughly 10%, then backed off a little as its competitors followed only part way. Then two months ago, Hertz announced another hike of 5%-15%. Others have followed, and more such moves are expected.

“One thing you can be sure of,” says Geoffrey Corbett, executive vice president for sales and marketing for National InterRent. As the next year or two progress, rental-car rates “will not be cheaper.”

* Spurred by demand from a security-minded public, and further energized by the recent rash of crimes against Florida tourists in rental cars, rental-car companies are rapidly adding safety features to their fleets nationwide.

In the Hertz 1993 fleet (the largest in the country, numbering 230,000 vehicles), 30% of vehicles had anti-lock brakes, 59% had driver-side air bags and 29% had passenger-side air bags. A year later, 49% had anti-lock brakes, 82% had driver-side air bags and 68% had passenger-side air bags. Hertz, which offers 14,000 cars with installed cellular phones in 52 U.S. cities, this month also announced that drivers in those cars can now make free pre-programmed calls to 911 (for law-enforcement emergency service) or 611 (for Hertz emergency road service).

Among National’s cars, the percentage of driver-side air bags rose from 41% to 82% in the last year, and a variety of other features--power windows, power locks and anti-lock brakes among them--rose from various figures to 99%.

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Avis, meanwhile, this month began a two-month trial at New York’s La Guardia Airport in which about 30 cars are being equipped with communications devices that will allow law-enforcement authorites, once alerted by a call, to locate and track the vehicle.

* Rental car companies are starting to look carefully at the driving records of prospective renters--mostly in New York and Florida, but also in California. This trend began in 1992, when Hertz started using computer communications systems to check New York Department of Motor Vehicles records before handing over keys to renters. The major rental companies have now instituted similar programs in New York and Florida and occasionally elsewhere, with varying rules about what disqualifies someone as a renter. (Among the convictions that disqualify a Hertz customer: drunk driving or vehicle theft in the past 36 months.) Hertz reports that fewer than 1% of prospective renters are denied cars, but some programs had much higher numbers in early weeks of their programs. A Budget spokeswoman reports that company’s “decline” rate in New York started at 16% in late 1992, and quickly fell to 5%-7%.

Industry officials expect the list of scrutinized states to grow longer. Hertz and Budget started checking the records of California driver’s license holders in October, 1993. Here’s an important warning for renters uncertain about their records: In several programs, including Hertz’s, rental agents are supposed to mention the DMV checks when they accept your reservation. But they won’t actually do the checking until you appear at a counter to collect keys. If the computer kicks up damning information then, you’re in a strange city, carless. (Company officials say that methodology is necessary because 20% of all reservations turn out to be no-shows, and that their companies can’t afford to bear the cost of checking records of customers who may never arrive. They also note that drivers could rack up offenses after making their reservations but before appearing to pick up their rental cars.)

Reynolds travels anonymously at the newspaper’s expense, accepting no special discounts or subsidized trips. To reach him, write Travel Insider, Los Angeles Times, Times Mirror Square, Los Angeles 90053.

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