Automotive Fleet
MenuMENU
SearchSEARCH

Some Rental Cars Keep Tabs on their Drivers via Telematics

Yungsoo Son's recent road trip was mostly for pleasure. But according to a report in the Associated Press on January 13, the car rental bill he was hit with at the end is a cautionary tale for the business travelers who make up the bulk of the auto rental industry's customers.

by Staff
January 19, 2004
4 min to read


Yungsoo Son's recent road trip was mostly for pleasure. But according to a report in the Associated Press on January 13, the car rental bill he was hit with at the end is a cautionary tale for the business travelers who make up the bulk of the auto rental industry's customers. Son, who manages a grocery store in Georgetown, Ontario, and his wife, picked up a Ford Escort at a Payless Car Rental outlet in San Francisco in November and embarked on a 12-day road trip. First, they drove to Las Vegas, 50 miles east of the California state line, and from there 200 miles to the Grand Canyon in Arizona, before circling back to Palm Springs, Calif. They then traveled west to the coast to drive on state Highway 1 back to Northern California. Son received a shock when he returned the car. The $259.51 bill he expected had ballooned to $3,405.05 — most of it a result of a $1-a-mile fee for each of the 2,874 miles driven. It turned out that by crossing the state line, he had violated his contract with Payless. "If we had known we couldn't drive the car outside California, we wouldn't have rented it," Son was quoted as saying in the Associated Press story. Penalties for taking a rental vehicle beyond state lines or national borders are not new. But the way in which Son's surcharge was applied was somewhat novel. The rental company presented him with a map showing his exact route outside California as relayed by a tracking device in his car. According to the article, Son said he was surprised to learn that his movements were being tracked. Some car rental companies have come to rely on telematics — which combines satellite-based Global Positioning System (GPS) tracking, wireless communications and vehicle monitoring systems — to keep tabs on their vehicles. About a quarter of the rental cars in the United States are equipped with tracking technology, analysts estimate. The industry views telematics as a way to enforce its contracts, but some customers regard it, at best, as a means to make more money and, at worst, as an invasion of privacy. Neil Abrams, an auto rental consultant, said early uses of GPS technology in rental cars, like the Hertz NeverLost system, were intended to help motorists find their way. But, according to the Associated Press, recent efforts have quietly focused on catching renters who drive out of state or break speed laws. Abrams says it is not always easy to tell if a car is being monitored, although the fine print of a rental contract should disclose the fact. "It could be anything from an antenna on your rental car to something that's internal and can't be seen," he said. Some tracking technologies simply relay a car's coordinates back to a rental franchisee, though more sophisticated versions can keep tabs on any damage to the vehicle and even disengage the engine by remote control if the car is stolen or driven out of the country. If Son had taken the time to read the fine print, he would have seen a disclosure in an addendum to his rental contract warning that the vehicle might be equipped with a tracking device and that driving outside California would cost him $1 a mile or more. Son appealed his bill to Payless and to Acceleron Corporation, the owner of the San Francisco Payless franchise. In an internal memorandum to Mike Harley, Payless's president and chief operating officer, Kathy Johnson, the company vice president, reported that "the client was informed of the geographical restrictions throughout the reservation and rental process," reported the Associated Press. Johnson says the San Francisco franchisee has had geographic restrictions on its cars "for a number of years," and that it added tracking devices gradually to its fleet in 2003. Son also considers the tracking device an invasion of his privacy. He is disputing his credit card charge and is considering suing Payless, contending that, among other things, it failed adequately to disclose the tracking device and violated his right to privacy. It would not be the first time a motorist has taken a car rental company to court over a tracking device. According to the Associated Press, in 2002, a Budget Rent A Car franchisee in Tucson was sued by at least four customers after they were billed $1 a mile for crossing specified state lines, with the extra fees for two of them totaling more than $7,000. The cases were settled out of court, and the Budget franchisee no longer charges $1 a mile for rentals taken beyond areas authorized by its rental agreements.

Topics:Operations

More Operations

Handshake graphic featuring BBL Fleet and Velcor Leasing Corporation logos announcing BBL Fleet’s acquisition of Velcor to expand fleet management services nationwide.
Operationsby News/Media ReleaseMay 8, 2026

BBL Fleet Acquires Velcor Leasing Corporation

BBL Fleet expanded its footprint in the fleet management industry with the acquisition of Velcor Leasing Corporation of Madison through a stock purchase agreement finalized Feb. 27, 2026.

Read More →
Graphic reading “What’s New From Lytx at Protect 2026?” over a blue digital network background highlighting Lytx fleet technology and AI-powered safety solutions.
Operationsby News/Media ReleaseMay 6, 2026

Lytx Introduces New AI Fleet Technologies at Protect 2026

The company introduced new AI-driven fleet safety and operations technologies during its annual user conference.

Read More →
Cover image for the “5th Annual Market Pulse Report” by Element titled “Navigating fleet management in 2026: Data and insights shaping the future of fleet and mobility.” The design features an aerial view of a cable-stayed bridge with vehicles traveling on a highway beside a dense green forest. A teal graphic panel overlays the lower portion of the image, with the Element logo and tagline “Intelligence in motion” at the bottom.
SponsoredMay 6, 2026

Fleet Costs Are Rising: Here’s How Leaders Are Responding

Fleet leaders are under pressure to reduce costs, adapt to economic uncertainty, and make smarter decisions. See how peers across North America are responding with real data, proven strategies, and forward-looking insights. Download the 2026 Market Pulse Report to benchmark your strategy and uncover where you can gain an edge.

Read More →
Ad Loading...
A blue Automotive Fleet graphic representing the weekly AF News Recap series.
Operationsby Faith HowellMay 4, 2026

From Waffle House to AI: Fleet Trends You Need to Know

In this AF news recap, host Faith Howell covers how Waffle House stepped up during disaster response and new AI tech on the market.

Read More →
OperationsApril 30, 2026

Fleet Operations in the Age of AI: Navigating Ethical and Legal Challenges

AI is no longer a future concept for fleets—it’s already embedded in the tools, data, and decisions that operators rely on every day. In this episode of the Fleet Forward Podcast, recorded live at Fleet Forward, industry leaders take the conversation beyond hype to examine what responsible AI adoption really looks like in fleet operations.

Read More →
OperationsApril 30, 2026

Factory Installed vs. Aftermarket: Choosing the Right Telematics Path & Managing the Data

As fleets rethink how they capture, manage, and act on vehicle data, telematics is at a major inflection point. In this episode of the Fleet Forward Podcast, we dive deep into one of the most pressing questions facing fleet leaders today: Should you rely on OEM factory-installed connectivity, aftermarket devices, or a hybrid of both?

Read More →
Ad Loading...
OperationsApril 30, 2026

What Real-Time Data Reveals About EV Cost, Performance, and Scalability

Experts from telematics analytics, fleet-as-a-service operations, and national EV benchmarking share how real-time data is reshaping fleet strategy—dispelling assumptions, validating best practices, and exposing costly missteps.

Read More →
OperationsApril 30, 2026

Planning Through Policy Shifts: What Fleets Must Track in 2026

A powerhouse panel featuring experts from the American Automotive Leasing Association, CalSTART, and municipal fleet leadership dives into the realities of navigating shifting emissions rules, regulatory waivers, federal agency actions, the future of the EPA’s endangerment finding, and the push for unified standards. They also examine the impacts of tariffs, autonomous vehicle policy, battery innovation, and the accelerating global EV market.

Read More →
OperationsApril 30, 2026

Managing Market Turbulence with Strategic Fleet Insights

This episode kicks off with a deep dive into the technologies and market forces reshaping today’s fleet landscape. Host Chris Brown is joined by Laolu Adeola (Leke Services), Tyson Jomini (J.D. Power), and Richard Hall (ZappiRide) to break down real-world data, shifting incentives, and practical strategies fleet leaders can use right now.

Read More →
Ad Loading...
Clipboards with flooded cars in background.
Disaster Responseby Chris BrownApril 30, 2026

Adapting Fleet Policy When Disasters Strike

In the middle of natural disasters fleet managers must shift priorities to protect people and assets. What policy items should be loosened, and when should the line be held?

Read More →