3 Facts About the Car Rental Industry
The experience of renting a car can be both pleasant and unpleasant. Everyone loves driving a different car every once in a while, but there’s often that feeling that you’re getting fleeced into buying additional products you may not really need. But despite these varied experiences, very few people are aware of the underlying companies themselves and how they operate. Here are some interesting facts about the car rental industry.
They form the basis for car disposal
As a general rule, car rental companies buy a huge portion of their vehicles subject to depreciation or repurchase programs with vehicle manufacturers. Under these programs, the manufacturers agree to repurchase vehicles at a specific price or time in the future based on certain conditions, or guarantee the depreciation rate of the cars throughout the holding period. Some companies may choose to principally rely on the used car market to dispose of used vehicles. Rental companies also have the option of selling vehicles to wholesalers who in turn sell them to used car customers directly or retail outlets for resale.
There’s not as much competition in the industry
Many people believe that car rental companies have multiple competitors. In actual sense, car rental companies are in bed together. The biggest car rental conglomerate, Enterprise Holdings, is made up of 3 companies – National, Enterprise, and Alamo. This conglomerate is owned privately and is considerably larger than Avis Budget and Hertz Global Holdings combined. Of course, Avis Budget is the second largest conglomerate combining efforts from Payless, Budget, and Avis. Keep a close eye on a car, van, minibus & truck rental website for more information.
The business has existed for over 90 years
The rental car service is a business that has been in existence for almost a century. Hertz and Avis, for instance, are considered the fathers of rental car companies. Hertz was founded in 1918 by Walter Jacobs at the age of 22 at a shop south of Chicago’s loop, a car rental established on a mere 12 Ford Model T’s. In 1923, he sold the company to John D. Hertz who changed its name to Hertz Drive-Ur-Self System. If prominence is anything to go by, Hertz is credited the popularity of the low-floor passenger bus, an invention that is attributed to additional space and a low floor that reduced loading time while increasing passenger access.
|Habib Khan is the business associate behind D.Venture, which helps people get solid info about money, investment, automotive, and more. In addition, he specializes in guest blogging about certain issues.|