Autoblog

Ford defends ballooning fleet sales

Chris Shunk — Sat, 31 Mar 2012 16:03:00 EST

Filed under: SUV, Truck, Government/Legal, Crossover, Ford

"Fleet" is sort of a dirty word when describing vehicle sales, and the Detroit Three have traditionally been quite smitten with bulk buyers. Unfortunately fleet sales have been demonized for a reason. They can adversely affect resale values, and since fleet buyers tend to expect warehouse store pricing, they're obviously not great for the bottom line, either. But one automaker seems more than happy to sell to fleets: Ford.

Bloomberg reports that a larger percentage of Ford's overall sales are going to fleets, rising from 22 percent of in 2006 to 27 percent in 2011. Of those vehicles, 41 percent reportedly went to the likes of Hertz and Enterprise. That leaves the rest of the sales at the local, state and federal level, plus a smattering of commercial buyers. In other words, needy customers with cash in hand. And those buyers tend to want high-margin rides like trucks, crossovers and SUVs; vehicles Ford make money on.

Ford fleet director Kevin Koswick tells Bloomberg that the automaker knows what it's doing, adding "I don't see it as an issue as long as you manage your fleet and you're balanced in what you do."

Ford defends ballooning fleet sales originally appeared on Autoblog on Sat, 31 Mar 2012 16:03:00 EST. Please see our terms for use of feeds.

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Toyota kicks off year with sharply increased fleet sales

Zach Bowman — Thu, 16 Feb 2012 10:30:00 EST

Filed under: Car Buying, Toyota, Earnings/Financials

Toyota can attribute much of its uptick in sales last month to fleets. While the automaker saw its sales leap by 7.5 percent compared to a year earlier, Newsday.com reports Toyota sold 47 percent more cars and trucks to fleet customers in the U.S. than in January 2011. Without the fleet sales, the improvement would have been less than one percent. All told, rental companies accounted for 93 percent of the automaker's fleet sales in January, with the remainder going to other organizations.

Toyota and other Japanese automakers have always been reticent to embrace fleet sales. Doing so is not only generally less profitable than individual consumer sales, but can also lead to degraded brand image and resale value. Last month, Ford was cited for having 45 percent of the company's Focus going toward fleets.

Toyota, meanwhile, says the news isn't the start of a trend. When Toyota factories were hobbled by earthquake and tsunami activity in Japan last year, the automaker put a stop to fleet sales altogether to keep its dealerships fed. According to Bob Carter, Toyota U.S. sales chief, the company promised to make up deliveries to its fleet customers, and January represents the automaker fulfilling that promise. Carter also said that while fleet sales will be high once again in February, things should return to normal once again in March.

Toyota kicks off year with sharply increased fleet sales originally appeared on Autoblog on Thu, 16 Feb 2012 10:30:00 EST. Please see our terms for use of feeds.

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Man buys used Chrysler minivan from Thrifty, finds $500K in cocaine

Chris Shunk — Mon, 14 Nov 2011 19:00:00 EST

Filed under: Minivan/Van, Government/Legal, Chrysler

I once rented a 2001 Mustang Convertible from Hertz in Nebraska. When placing the rental paperwork in the glove box I found a crisp $5 bill, which I promptly exchanged for a Big Mac and fries. That was lucky, but the following story is not.

Mercury News reports that Charles Preston, a doctor in Santa Clara, California, purchased a used 2008 Chrysler Town & Country from a Thrifty rental car office and got much more than his $14,000 paid for.

After about 15 months with the minivan, Preston brought the van to a local shop to get the brakes worked on. The mechanic offered to take a look at why the windows wouldn't roll down, and the solution presented itself in the form of $500,000 in cocaine wrapped in purple cellophane.

Preston, who purchased the van so he could use it to deliver food to local homeless people, immediately contacted the police, who seized the cocaine. The police also told the owner to return the van and have it checked for tracking devices. The concern was that there could be some very unhappy drug dealers tracking their large load of illegal narcotics.

As you could probably guess, Preston was keen to taking the Town & Country drug-mobile back to Thrifty in exchange for a new van, but the local rental car store told him that they would only pay Kelley Blue Book value for the van, or $4,000 less than he paid for it. But once management at Thrifty heard of the potentially dangerous gaffe, they offered to replace the van with a vehicle that wasn't packed with several kilos of coke.

Man buys used Chrysler minivan from Thrifty, finds $500K in cocaine originally appeared on Autoblog on Mon, 14 Nov 2011 19:00:00 EST. Please see our terms for use of feeds.

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Budget experiments with discounted ad-covered rental cars... would you? [w/poll]

Jeff Glucker — Wed, 03 Aug 2011 14:02:00 EST

Filed under: Marketing/Advertising, Earnings/Financials

Everyone is looking to save a buck these days. Still, there are expenses that you just can't avoid, and whether traveling for business or pleasure, a rental car is often included in the budget. According to USA Today, an Atlanta Budget car rental office is trying a new tactic to help bring down the cost of renting a vehicle, and it involves you becoming a mobile billboard.

A handful of cars in the fleet are getting the vinyl wrap treatment courtesy of Wrap Media Group, and the result is a rolling advertisement available to customers at a greatly discounted daily rate. How much of a discount? One customer secured a weekly rental that usually costs $400 for a mere $88.

That's $312 off for you bean counters at home. Quite a bargain as long as they don't get pushy with the insurance options too. So, would you be interested in saving some bucks in exchange for turning the car you're renting into a rolling billboard? Have your say in our poll below.

View Poll

Budget experiments with discounted ad-covered rental cars... would you? [w/poll] originally appeared on Autoblog on Wed, 03 Aug 2011 14:02:00 EST. Please see our terms for use of feeds.

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New kit enables you to rent your car out with an iPhone like Zipcar

Jeff Glucker — Fri, 27 May 2011 13:30:00 EST

Filed under: Etc., Technology

Getaround Car Rental System - Click above for high-res image gallery

A new startup called Getaround is looking to jump into the car rental business by following a similar path laid out by Zipcar. Getaround is a bit different, however, because the fleet of rentals are comprised of customer-supplied personal vehicles. This is peer-to-peer car rental, and we're intrigued.

Getaround co-founder Sam Zaid states that vehicles in the United States sit idle for an average of 22 hours every day. By signing your car up for use as a rental vehicle, you (and Getaround) can turn an idle situation into one that makes money.

The car sharing system works by creating a network of users that are connected via iPhone app and the Getaround website. Those wishing to rent their vehicles will receive a car kit that sits on the dash. When a customer has selected a car they wish to rent, you locate the car on a map and use your iPhone to unlock the vehicle. That gets you inside the car, where you can have access to a key hidden somewhere on the inside.

Rates vary by car, but the prices we've seen listed on the Getaround website seem quite reasonable. A Mini Cooper will cost you $5.50 per hour, a BMW Z4 can be had for $15 and you can tool around San Francisco in a Tesla Roadster for $50 per hour. The rate structure is a good incentive to keep people from putting serious mileage on your vehicle, but it also provides a fair deal at an hourly rate. Insurance is covered by Getaround thanks to backing from an unnamed provider, and it's full coverage.

Rental fees are broken down so that Getaround takes in 60 percent of the profit while the car owner receives the other 40. If you're interested in joining beta testing of the program, Getaround is currently offering the program to residents of San Francisco and San Diego.

If you don't mind the having to re-adjust your seat every time you get in your own car and you've got faith in your fellow motorists, this seems like a potential win-win situation for those looking to earn a few extra bucks.

New kit enables you to rent your car out with an iPhone like Zipcar originally appeared on Autoblog on Fri, 27 May 2011 13:30:00 EST. Please see our terms for use of feeds.

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Hertz offers $2.24B for Dollar-Thrifty

Chris Shunk — Mon, 09 May 2011 17:40:00 EST

Filed under: Etc., Government/Legal

Hertz and Avis have been fighting to get their hands on Dollar-Thrifty for over a year now, with the latest volley coming from the Hertz camp. According to Bloomberg, the world's largest airport rental car company has offered $72 per share for Dollar-Thrifty, or 24 percent more than a recent offer from Avis. The offer consists of of $57.60 in cash and .8546 Hertz shares per share of Dollar-Thrifty.

In September, Dollar-Thrifty rejected an offer from Hertz that added up to about $1.44 billion in cash and stocks. Avis had countered the last bid with an offer of $45.79 per share and .6543 of its shares. The two companies had decided to delay a deal while seeking regulatory approval, but we're guessing Dollar-Thrifty is no longer interested in that deal. And since the bidding war seems to be escalating, some analysts feel that the Hertz bid is likely not the last to come from the competing rental car companies.

While both Avis and Hertz have so far come up empty in their bid to snap up their rival, the biggest winners so far have been Dollar-Thrifty shareholders. The stock has reportedly gone up 79 percent since Hertz first bid for the rental car giant back in April, which has worked to drive up the buy price for the company. A share of Dollar-Thrifty stock was worth only 63 cents early in 2009.

Hertz offers $2.24B for Dollar-Thrifty originally appeared on Autoblog on Mon, 09 May 2011 17:40:00 EST. Please see our terms for use of feeds.

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Rental car fuel tops $9/gallon in U.S.

Chris Shunk — Wed, 04 May 2011 13:29:00 EST

Filed under: Etc.

It's never a good idea to return a rental car with less than a full tank of gas. The reason? The rental car companies usually charge a fee if you don't fill up before dropping off. And according to a report in USA Today, that fee has, in some cases, gotten a lot steeper.

The national newspaper polled 102 rental companies at 13 major airports to gauge how much is being charged per gallon for renters who don't fill up before returning their loaner. Surprisingly, 54 of those airports were charging less than the average fuel price at local stations, likely because many companies haven't adjusted their per-gallon charge to reflect rising gas prices. Another 43 rental stores were charging more than the average gas station.

Meanwhile, the Hertz rental company is in a league of its own. The USA Today poll shows that the rental giant was charging $9.29 per gallon of petrol at 13 locations. Dollar and Thrifty weren't far behind at a pair of locations, with a price of $8.99/gal. For perspective, at $9/gal, it would take around $275 to fill up the typical full-size pickup, and about $110 to top off a Ford Focus.

While those are some ridiculous pump prices, this is one instance when the punishment is nearly 100 percent avoidable. After all, if you don't want to get slapped with a $9.29/gal bill, all you need to do is fill up before dropping off the vehicle. Unfortunately, you're still going to pay well over $4/gal in most areas.

Rental car fuel tops $9/gallon in U.S. originally appeared on Autoblog on Wed, 04 May 2011 13:29:00 EST. Please see our terms for use of feeds.

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Report: Car rental industry advocates for two-tier recall system

Chris Shunk — Wed, 06 Apr 2011 09:32:00 EST

Filed under: Government/Legal, Recalls, Safety

Recalls can be a big problem for car rental companies. The companies make money by renting as many vehicles in advance as possible, and an entirely booked fleet can be a recipe for profits. But what happens when there is a recall on a car or truck that is already scheduled for rental? Does the rental company call the customer and tell them that their order can no longer be fulfilled? In some cases, the rental company may want to wait until the vehicle isn't needed to get the problem looked at, which could potentially put the customer at risk.

How do you fix the problem of rental car companies failing to execute their recalls in a timely manner? The New York Times reports that the American Car Rental Association, which consists of 95 companies and all major renters with the exception of Hertz, feels a two-tier recall system would work best. Under the two-tier system, the National Highway Traffic Safety Administration and automakers would determine which recalls were serious enough that they needed to be done immediately, and which ones could wait a bit. The multi-tier approach would, in theory, force rental car companies to act quickly for serious recalls, while still maintaining the luxury of waiting for the right time to repair others. Rental companies would no doubt love such an arrangement, but safety advocates aren't so sure.

NHTSA's response is that the agency takes all recalls seriously, while other advocates like Rosemary Shahan, the president of Consumers for Auto Reliability and Safety calls the proposal "rental car roulette" and says that it will "allow rental car companies to get away with renting out vehicles that are so unsafe they are being recalled." Senator Charles Schumer (D, NY) has asked the Federal Trade Commission to look into the fact that dealers are legally forbidden to sell vehicles with open recalls while rental companies can rent cars to customers with open recalls.

[Source: The New York Times]

Report: Car rental industry advocates for two-tier recall system originally appeared on Autoblog on Wed, 06 Apr 2011 09:32:00 EST. Please see our terms for use of feeds.

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Video: Car and Driver presents the Rental-Car Olympics

Chris Shunk — Mon, 07 Mar 2011 12:32:00 EST

Filed under: Videos, Cadillac, Ford, Jeep, Lincoln, Humor

Click above to watch the video after the jump

Anyone who's ever seen videos from the annual Car and Driver Lightning Lap spectacular knows that the legendary magazine can also do high-flying motion pictures. Shooting track-ready sports cars gliding around the track is one thing, but can C/D keep our attention with a bit of humor?

Car and Driver technical writer and Autoblog Podcast veteran Mike Austin and his cohorts took the reins of four rental cars to see which can win the Rental-Car Olympics. The four participating vehicles are the Mustang Convertible, an all-wheel-drive Cadillac CTS, a ~~1984~~ 2010 Lincoln Town Car and the hapless Jeep Compass. And don't expect 0-60 times or hot laps; Austin and company instead opted to judge the four vehicles on attributes like "Sumo Wrestling," and "Parking Brake Assisted Parallel Parking."

If that doesn't make you want to hit the jump, we're thinking you'll never guess which of these vehicles can go 63 miles per hour in reverse, easily besting the competition in a backwards lap. Hit the jump for some very funny stuff.

[Source: Car and Driver]

Continue reading Video: Car and Driver presents the Rental-Car Olympics

Video: Car and Driver presents the Rental-Car Olympics originally appeared on Autoblog on Mon, 07 Mar 2011 12:32:00 EST. Please see our terms for use of feeds.

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Report: Rental companies drag heels repairing recalled cars

Aaron Richardson — Mon, 28 Feb 2011 16:00:00 EST

Filed under: Government/Legal, Safety

General Motors and Chrysler have informed the National Highway Traffic Safety Administration that cars sold to rental companies aren't getting repairs done on recall for months at a time. NHTSA then started monitoring three million units from the two manufacturers in rental fleets to see how long they went unrepaired.

One month after a recall, NHTSA says that between 10 and 30 percent of cars had been repaired. By 90 days, the average was just 30 percent. According to the administration, it takes a year or more for rental companies to get more than 50 percent of their cars repaired.

According to The Detroit News, there aren't any laws on the books that say a rental company has to get a car repaired before it rents it to a customer. What's more, hundreds of recall notices go out a year, and rental cars move around a lot, making it difficult to nail them down for repairs.

According to Bob Barton, president of the American Car Rental Association, most companies place a hold on models that have been recalled, preventing them from being rented until repairs are made. The hitch, according to Barton, is that it can take months for the company to realize a recall has been issued.

NHTSA says its investigation is ongoing, and the administration noted a statement that dealerships aren't allowed to sell a recalled vehicle until repairs have been made. That said, NHTSA also doesn't have the authority to legally require that customers - including rental companies - have recall repairs made.

[Source: The Detroit News | Image: Hertz Rent-a-Car]

Report: Rental companies drag heels repairing recalled cars originally appeared on Autoblog on Mon, 28 Feb 2011 16:00:00 EST. Please see our terms for use of feeds.

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Study: Rental car companies increase customer satisfaction, Enterprise tops

Jeff Glucker — Thu, 25 Nov 2010 11:27:00 EST

Filed under: Etc.

Economists and talking heads argue endlessly about our economy on a daily basis. "It's back!," "It's almost back!" and "It's never coming back!" seem to be the leaders among the varied viewpoints we hear and read about. One sector that has apparently begun to rebound is the car rental business. Not necessarily in financial terms, but from the standpoint of customer satisfaction, America's rental car companies are returning to to a position last seen in the pre-recession days.

J.D. Power has released its annual North American Rental Car Satisfaction Study, and the results are positive for every company included in the survey. Now in its 15th year, this J.D. Power study examines customer satisfaction with the airport car rental process, and it looks at six specific factors: Costs & Fees, Pick-Up Process, Rental Car, Return Process, Reservation Process, and Shuttle Bus/Van. The highest score possible is 1,000 points and, for the 2010 study, the average Overall Satisfaction score is 750. This is up from 733 in 2009 and 734 in 2008. Every company in the survey has improved year-over-year in the survey.

This year's big winner, however, is Enterprise, which received the industry's highest rankings in customer satisfaction. Enterprise is no stranger to this award, and getting the nod in 2010 makes it seven years in a row for the rental car company. Following behind Enterprise, Hertz and National also performed quite well in the survey while Advantage, Alamo, Avis, Dollar and Thrifty rounded out the results. You can see how each one performed over at the J.D. Power results page.

[Source: J.D. Power]

Continue reading Study: Rental car companies increase customer satisfaction, Enterprise tops

Study: Rental car companies increase customer satisfaction, Enterprise tops originally appeared on Autoblog on Thu, 25 Nov 2010 11:27:00 EST. Please see our terms for use of feeds.

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Coda EV models to be available through Enterprise Rent-A-Car

Jeff Glucker — Tue, 12 Oct 2010 16:39:00 EST

Filed under: Sedan, Marketing/Advertising, Technology, Electric

All-Electric Coda Sedan - Click above for high-res image gallery

Want to drive an electric car but not ready to spend the money to own one? EV manufacturer Coda has the perfect solution for you. Coda has teamed up with Enterprise Rent-A-Car to place its all-electric sedan into the rental car company's fleet. The plan is to introduce about 100 sedans across various Enterprise locations throughout 2011.

The Coda Sedan is the company's first vehicle and it will be launched in the coming months. It's a five-passenger sedan with a full-size trunk and a cruising range of between 90 and 120 miles per charge. Coda is utilizing a 6.6 kW on-board charging system which requires six hours for a full charge, however, the system can provide a 40-mile cruising range with just a two hour charging period.

In addition to the Coda Sedan models entering the Enterprise rental fleet, the rental company will serve as a loaner car system for Coda owners. If a Coda vehicle requires service, an Enterprise rental car will be made available during the time the owner's Coda vehicle is in the shop. Read more in the official press release after the jump.

Gallery: All-Electric Coda Sedan

[Source: Coda]

Continue reading Coda EV models to be available through Enterprise Rent-A-Car

Coda EV models to be available through Enterprise Rent-A-Car originally appeared on Autoblog on Tue, 12 Oct 2010 16:39:00 EST. Please see our terms for use of feeds.

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PSA: Renting a car may result in unexpected speeding ticket charges

Zach Bowman — Fri, 06 Aug 2010 19:58:00 EST

Filed under: Government/Legal

The people at MSN Money have unearthed a little known stipulation in rental car contracts that allows the manufacturer of speed and red light cameras to directly charge your credit card if you're caught breaking the law. How? Big name rental agencies like Hertz, Avis, Advantage and Budget have an agreement with a company called ATS Processing Services to share renters' credit card and personal information. ATS operates a fair portion of the traffic enforcement cameras in the U.S., and when a rental car gets popped running a red light, the company immediately checks to see who was renting it at the time and charges his or her credit card. Oh, and they ding you for a $30 administrative fee.

This presents a few problems. Namely, it does away with that whole "due process of the law" thing on which our entire justice system is based. In their defense, the rental companies say that having ATS directly bill renters is an easier system than what used to happen. Once upon a time, when a rental car snagged a fine from a traffic enforcement camera, the rental car company was expected to pay it and then track down and charge whoever had incurred the infraction. Neither process is exactly reassuring for those who rent cars on a regular basis, but it seems to be the norm. Next time you find yourself at the rental counter, be sure to read the entire contract.

[Source: MSN Money | Image: Tim Boyle/Getty]

PSA: Renting a car may result in unexpected speeding ticket charges originally appeared on Autoblog on Fri, 06 Aug 2010 19:58:00 EST. Please see our terms for use of feeds.

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Video: Report compares rental cars to public restrooms

Steven J. Ewing — Thu, 04 Mar 2010 16:27:00 EST

Filed under: Etc., Safety, Videos

Just how clean are rental cars? - Click above to watch the video after the jump

Rental cars don't have easy lives. They can be abused and flogged by nearly anyone who wants one, and most of the people who drive these vehicles have the "it's not my car - who cares" mentality. However, a new study from the folks at The Today Show takes a deeper look into the overall cleanliness of these vehicles, pointing out some really interesting facts about the levels of bacteria found on the most commonly touched surfaces (steering wheel, gear shift, door handles, etc.).

The results are slightly shocking, and true as they may be, we find it a little odd that the reporters have compared the sanitary levels of these cars to that of a public restroom. We'll agree that it's absolutely unacceptable to find food crumbs, sticky messes, and even vomit (yes, vomit) in a ready-for-duty rental car, but we must remember that sharing germs is an inherit risk when you use anything that's moved around to hundreds of people each year. It's an interesting study nonetheless, and you can see the full details for yourself by watching the video after the jump.

[Source: MSNBC]

Continue reading Video: Report compares rental cars to public restrooms

Video: Report compares rental cars to public restrooms originally appeared on Autoblog on Thu, 04 Mar 2010 16:27:00 EST. Please see our terms for use of feeds.

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Get your grubby hands on a Bugatti Veyron for just $25k

Noah Joseph — Wed, 10 Jun 2009 10:28:00 EST

Filed under: Supercars, Bugatti, UK

Bugatti Veyron - Click above for a high-res image gallery from our first drive

Not all of us have over a million to spend on a new car, otherwise we'd all be driving Bugatti Veyrons, right? Or at least most of us would. So how about $25,000 - that's a bit closer, right? Well now you can get your hands on a Veyron for just that amount. Unfortunately the twenty-five grand will only get you one day behind the wheel of the super-fast, super-expensive supercar.

Holders Vehicle Contracts, an exotic rental company in England, has got a Veyron on its hands that it's willing to rent out to anyone who can shell out the £16,000 (about $25k). Oh, and did we mention would-be renters will need to put down a $160,000 deposit? That's a little bit steeper than the typical contract down at the your local Hertz, but then that Chevrolet Impala or Ford Mustang convertible isn't going to get you up to 250 miles per hour, now is it?

[Source: Top Gear]

Get your grubby hands on a Bugatti Veyron for just $25k originally appeared on Autoblog on Wed, 10 Jun 2009 10:28:00 EST. Please see our terms for use of feeds.

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Chicago Ferrari for hire with 'That Guy'

Frank Filipponio — Wed, 27 May 2009 17:28:00 EST

Filed under: Convertible, Performance, Etc., Marketing/Advertising, Ferrari, Humor

Ever wanted to rent a Ferrari for a special event? If you're in the Chicago area, you can get just that - with a special twist. Lucky customers can not only have a specially customized Ferrari 360 Spider at their disposal, but they also get a night out with Tony Tag! You know Tony, right? No? He's the most photographed man in the country besides the President, at least according to his website. We figured this was just a late April Fool's joke, but tragically, it isn't.

The Ferrari is available for $300 an hour with discounts for multi-hour packages. Tony even gives lessons and lets you drive his gold-accented Ferrari. It's not just any 360, either. No, this one sports a 3.8-liter engine with 495 HP! We're crappin' you negative here, folks. If there's more than one of you, Tony has you covered with a late-model Cadillac for just $250/hr. But seriously, who wouldn't want to be seen with That Guy, doing some top-down motoring in a bewinged Ferr with gold-plated wheels? I mean, seriously. Hat tip to Zach!

[Source: Automotive Addicts via Luxury4Play]

Chicago Ferrari for hire with 'That Guy' originally appeared on Autoblog on Wed, 27 May 2009 17:28:00 EST. Please see our terms for use of feeds.

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Daimler's Car2Go program coming to Austin, Texas this fall

Jonathon Ramsey — Thu, 02 Apr 2009 08:28:00 EST

Filed under: Coupe, Budget, Hatchback, Daimler, Smart, Lifestyle

Last October we advised you not to hold your breath for Daimler's Car2Go program to come to America. You can breathe again. If you live in Austin, Texas you'll be able to rent a mild hybrid Smart ForTwo by the minute this fall. Austin was chosen because of its university population and its concern for the environment.

Car2Go makes its fleet available on-demand, with a clear price structure, and you can keep the car as long as you wish. Those in the program access the vehicles by swiping a tag on their driver's licenses over a card reader on the car. As with the pilot program in Ulm, Germany the service will start in Austin with an initial fleet, expected to consist of around 200 Smarts that will be available to city employees first and then expand to public use at the conclusion of a trial period.

Gallery: smart fortwo in Texas and Germany

[Source: Canadian Driver]

Daimler's Car2Go program coming to Austin, Texas this fall originally appeared on Autoblog on Thu, 02 Apr 2009 08:28:00 EST. Please see our terms for use of feeds.

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Rental fleet sales down last year, 2009 will be worse

Jonathon Ramsey — Sat, 10 Jan 2009 14:00:00 EST

Filed under: Trends, Chrysler, Ford, GM, Earnings/Financials

Last summer, it was the Detroit Three that were restraining themselves from dumping cars into the gaping maw of fleet sales just to boost the bottom line. Turns out they had some help with that discipline: Due to last year's events, rental car fleets shrunk by 400,000 units from 2007 to 2008. As we begin 2009, rental car companies have declared they will be trimming their fleet orders and curbing the number of vehicles they keep on hand even further.

Rental car companies have been thrown under a number of buses as of late. They can't borrow money to finance purchases; the recession has hammered the travel industry; wholesale used vehicle prices are falling (making rental car fleets less valuable); and besides that, car dealers can't get the money to buy the retired rental cars anyway, which subtracts yet another revenue stream.

Rental companies have been good for something like 15% of sales from General Motors, Ford, and Chrysler. But not this year: Enterprise, which also buys for National and Alamo, will buy half the number of cars it did last year, and they'll keep those cars a couple of months longer. Hertz, Dollar, and Thrifty also said they will buy fewer cars and work them longer. The automakers have doubled incentives to encourage sales, but there are simply no teeth left in the rental business with which to bite.

Thus, don't be surprised to find a few more stains on the seats and a few more miles on the clock the next time you find yourself at the wheel of a rental car.

[Source: Automotive News, Sub Req.]

Rental fleet sales down last year, 2009 will be worse originally appeared on Autoblog on Sat, 10 Jan 2009 14:00:00 EST. Please see our terms for use of feeds.

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Advantage Rent-A-Car files for Chapter 11

Jonathon Ramsey — Tue, 09 Dec 2008 18:00:00 EST

Filed under: Etc., Earnings/Financials

Privately-held Advantage Rent-A-Car has filed for Chapter 11 bankruptcy protection and is closing almost half of its locations nationwide. Punished by, of course, tight credit, the company has also suffered from higher costs and lower revenue because of reduced consumer travel (a.k.a. the "staycation"). The company isn't closing its doors just yet, but rather looking into various options for itself and its 14 remaining affiliates, "including a sale or merger." In the mean time, it has made arrangements with Hertz to fulfill its pending rentals. With all these towels getting thrown in, there's going to be a shortage of cotton soon...

[Source: AOL Money]

Advantage Rent-A-Car files for Chapter 11 originally appeared on Autoblog on Tue, 09 Dec 2008 18:00:00 EST. Please see our terms for use of feeds.

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PSA: Top 10 rental car secrets

Chris Paukert — Wed, 14 Jun 2006 13:03:00 EST

Filed under: Etc.

The folks over at SmartMoney.com have compiled a common-sense list of the "Top 10 Things Your Retntal Company Won't Tell You." In point of fact, we'd reckon that most of the pointers are forehead-smackingly obvious, but that doesn't mean that it isn't worth a quick refresher, or a good opportunity to relay your own tips to fellow Autoblog readers in comments.

1. "We're a tax magnet."
2. "We track your every move."
3. "Our prices are etched in sand."
4. "You probably don't need our insurance."
5. "Your reservation doesn't mean bupkis."
6. "Special orders are our bread and butter."
7. "The little guys charge less."
8. "We're cutting corners anywhere we can."
9. "Think gas prices are high at the pump? Look what we charge."
10. "We offer some terrific deals - on Thursdays when the moon is full."

[Source: SmartMoney.com; New York State Insurance Department]

PSA: Top 10 rental car secrets originally appeared on Autoblog on Wed, 14 Jun 2006 13:03:00 EST. Please see our terms for use of feeds.

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