What explanation is Budget required to provide regarding 'loss of turnback' when seeking payment for vehicle damage?

According to Budget's 2025 Franchise Disclosure Document, when seeking payment for vehicle damage, Budget must clearly disclose any portion of the charge that is attributable to 'loss of turnback'. This includes situations where the vehicle is totaled or stolen and Budget is seeking compensation based on any turnback amount.

The disclosure must include an explanation of what 'loss of turnback' means and how it was calculated. According to the FDD, 'turnback' means any preset price, premium, bonus, or formula that could result in Budget receiving more than the vehicle's fair market value upon repurchase by the vehicle's original vendor, financer, or their designee. 'Fair market value' means the vehicle's price as listed in an industry-wide and generally accepted publication or directory of used car values, or the resale price received in a commercially reasonable sale.

This requirement ensures transparency for the renter, providing them with a clear understanding of the charges they are incurring beyond the actual repair costs or fair market value of the vehicle. It also prevents Budget from misrepresenting the renter's obligation to make any payment as a result of the loss of or damage to a rental vehicle, and the value of a vehicle that has been lost or damaged. This disclosure helps renters make informed decisions about optional Loss Damage Waivers (LDW) and understand their potential financial responsibilities in case of vehicle damage or loss.