I’m looking into prices to hire a car for some visitors. From previous experience hiring a car on island, I’ve noticed the base price quoted on websites can be wildly different to the total amount charged. It seems one of the reasons for this is a charge for Vehicle Environmental Recovery Fee and Licence Recovery Fee. In some cases, this fee is more than the daily cost of the car. After looking at a few different car rental websites, the information on these charges is not really very clear. Some companies say it is a “compulsory fee”, while some companies say it is a “government” tax. I can’t find any information from government regarding these charges. Also, the amount charged by each company varies from US$6.50 up to US$10 per day. Surely if this is a government-enforced tax, the amount charged should be the same for all the companies? Are these really government taxes or is this a charge that is being used by the rental companies to increase their daily rate without increasing the “published” rate? It seems very misleading.


Auntie’s answer: I approached a source in the industry who explained the fees. Without going into his detailed description and chronology of the government-levied fees on car-hire companies, he said that several years ago, when government first imposed environmental fees on hire cars for such things as batteries and tyres, the businesses collectively decided it was necessary to recoup some of the cost. After that, licensing fees were raised, leading to additional so-called recovery fees.

When you book a car, you can find these charges itemised on their websites, though some companies may call them ‘fees’ and others incorrectly refer to them as ‘taxes’.

As you mention, the charges do vary since this amount is not regulated by the government and is set by each individual car rental business. I guess some feel a need to recover a larger portion of the fees than others.

Depending on the time of year, the cost of hiring a car can also vary, with low-season fees often so low that the extra charges will add up to more than the basic cost of the vehicle. I can see how that would be annoying, but there doesn’t seem to be anything untoward going on.

I’m not sure this will make you feel any better, but car-hire companies in the US also add various fees to the bill, such as an energy surcharge and vehicle licensing cost recovery, so the situation in Cayman is not unique.