And you thought Christmas came early

Have you ever rented a car?  I do from time to time when I'm out and about the country.  

Easy to do and easy to find a cheap rate.  The problem some people have is returning the car when the contract period ends.

Wait, what?!  What are you talking about Willis?! 

Say you rent a car on Monday the 9th of the month.  The contract says you are to return it on Friday the 13th of the month.  Friday the 13th comes round and you decide you like this car so much that you're gonna keep it. 

That's "keep" as in you're not going to buy it - except for the rental price you paid on your credit card.  I mean, it's such a sweet deal.  You paid maybe $40 for a car that typically costs anywhere from $30-$38,000.  

Didn't have to deal with the bank.  Didn't have to deal with financing (well, except for the monthly charge on the credit card which you're probably going to default on, anyway).

Yep, sounds like a sweet deal all around.  Except that what you're doing is stealing. 

Ooooooh, most people don't like being told they're doing wrong and stealing is such a nasty word.  So, nay, nay, you're not stealing the car, you're just uhhhhhh borrowing it....on an extended basis.  

Yeah, no. You're stealing the car. Congratulations, you are now a car thief.

See, the reality of things is that people who rent cars but don't return them are committing a crime usually called grand theft or vehicle embezzlement which involves breaching the rental contract and is a form of theft of services. 

What the car rental company does when a car doesn't come back: 

1. After a renter fails to return a car, the rental company will first attempt to contact the renter by phone and try to charge the credit card on file for the additional rental days and any late fees.
2. If the renter continues to ignore calls and payments aren't made, the company may escalate the issue to a specialized risk or recovery division.
3. The company might also attempt to charge additional funds to cover potential damages or the vehicle's value, potentially tying up the renter's credit line.
4. Eventually, the rental company will report the vehicle to law enforcement as stolen, initiating a criminal investigation.

What the (now) car thief can expect after the theft:

1. The renter can be arrested and charged with grand theft auto or vehicle embezzlement.
2. Law enforcement will attempt to locate and recover the vehicle.
3. The renter may be ordered by the court to pay restitution for the car's value or any damages caused. 
4. A conviction can result in a criminal record and further legal penalties. 

States generally look at this sort of THEFT as a misdemeanor or a felony based on a few factors, such as:

• The value of the vehicle

• Whether the offender (at the point they took possession) had intent to permanently deprive

• Whether there was a fraud or false representation involved

• Notices demanded by statute (some states require written demand before prosecuting)

• How long after the due date or after a written demand

While each state generally does their own thing, the legal doctrines commonly associated with failure to return a rented vehicle include:

• Failure to return rental vehicle statutes: specific laws saying it is a crime to not return a rented vehicle after the rental period expires.

• Conversion / fraudulent conversion: using or withholding someone else’s property in a way inconsistent with the owner’s rights.

• Theft / Larceny: when the behavior rises to the level of permanently depriving the owner of the vehicle.

• Embezzlement: in some states, because the renter originally had lawful possession, failing to return can be an embezzlement if there is intent to permanently deprive.

• Hiring with intent to defraud: obtaining the vehicle under false pretenses, or misrepresenting things, can trigger fraud or similar charges.

So, how have the courts dealt with people who don't return rentals?

Hertz Corp. v. Jackson, 617 So. 2d 1051 (Fla. 1993).
In this case, the renter did not return the car by the due date of the rental term. Hertz contended that the failure to do so constituted a “breach of custody amounting to a species of conversion or theft.”

Holding: The Florida Supreme Court affirmed summary judgment for the rental company on grounds that, under the facts — including that the car was never returned, notice was made, and the company reported the car stolen — the situation amounted to conversion/theft. 

Alamo Rent-A-Car, Inc. v. Mendenhall, 937 P.2d 69 (Nev. 1997)
Facts: A person renting a car from Alamo failed to return it, then fraudulently obtained a new title, sold the car, etc. Alamo reported the vehicle stolen.

Holding: The court held that the buyer (Mendenhall) who purchased it for value and without notice of the defect could be bona fide purchasers entitled to possession, so they got the car back. The case illustrates what can happen when someone renting fails to return it and engages in misrepresentation.

Ming v. Interamerican Car Rental, Inc., 765 So. 2d 650 (Fla. 2000)
In this case, there was a question of whether using the vehicle beyond the rental term (or beyond what was agreed) constituted conversion.

Holding: The Florida court held that whether conversion occurs depends on the particular facts, e.g. whether the renter asserted dominion inconsistent with the owner’s rights, etc. 

Other related legal maneuvers:

Nationwide Rental Car Theft Scheme

• Case Summary: Eight individuals were indicted for a nationwide scheme involving the theft of 19 rental cars valued at approximately $1.1 million. The operation targeted high-end vehicles across the United States.

• Outcome: All eight defendants pleaded guilty to various charges, including wire fraud and identity theft. Sentencing dates were scheduled between December 2024 and February 2025.

• Citation: U.S. Department of Justice, "Eight Plead Guilty, Admit Nationwide Rental Car Theft Scheme" (November 14, 2024).

2. El Paso Rental Car Theft Ring

• Case Summary: In December 2024, authorities in El Paso, Texas, apprehended individuals involved in the theft of 20 vehicles from a rental company. The stolen vehicles were tracked to locations in Juarez, Mexico.

• Outcome: Several suspects were arrested, and multiple stolen vehicles were recovered. Investigations continued into the broader network involved in the thefts.

• Citation: City of El Paso Police Department, "20 Cars Stolen From Rental Company" (December 11, 2024).

3. California Assembly Bill 1197

• Legislative Update: In July 2025, California enacted Assembly Bill 1197, which allows rental car companies to use electronic surveillance technology to locate stolen, abandoned, or missing rental vehicles under specific conditions.

• Relevance: This legislation addresses the issue of un-returned rental vehicles by enabling rental companies to track and recover vehicles more efficiently.

What all this means is that if you're thinking of stealing a rental car, the government is gunning for you.

So, while you think you're in the clear and that no one is gonna catch you, you're going to get caught and you're going to be spending time in jail if you think stealing a rental was an easy snatch and grab.