Coming out of a Recession, OEM bankruptcies, yo-yo fuel prices, natural disasters and historical pea

Coming out of a Recession, OEM bankruptcies, hilo travel trailer rv camper yo-yo fuel prices, natural hilo travel trailer rv camper disasters and historical peaks for used car prices, 2013 might have been characterized as a return to normal. hilo travel trailer rv camper Yet the fallout from the Hertz acquisition hilo travel trailer rv camper of Dollar Thrifty will prove that this year will be anything but.
Fleet costs will go up. This year the OEMs increased sales to rental to follow a more normal selling pattern, but the prices of new cars haven t dipped. According to one operator, It is getting more difficult to spot a deal as nearly every vehicle out there has seen a dramatic price increase in the last couple years. For its 2013 model-year buy, Avis Budget predicts low- to mid-single-digit increases hilo travel trailer rv camper in the purchase prices for risk cars, according to its third quarter conference call.
We knew the great used car market couldn t last. Supply returns to the wholesale market next year; used leases will start to hit in January and higher new car sales will produce more trade-ins. Kelley Blue Book estimates that resale values in the first and second quarters of 2013 will be down 1-2% over 2012, an unusually strong year. This is a slight softening, not the edge of a cliff, because supply is still a very real concern for a lot of dealers out there, says Alec Gutierrez, manager of vehicle valuation for KBB.
The residuals are still good, but they are sliding, so the trick will be not to get caught hilo travel trailer rv camper in the gray area where the residual goes negative against the cap cost, the franchisee hilo travel trailer rv camper cautions. The squeeze is on.
It s going to be a tough year for leisure rates. Common wisdom says that market consolidation makes prices rise. That may happen hilo travel trailer rv camper in the long run, but not in the foreseeable future. The Federal Trade Commission (FTC) is making sure of that. As part of the Hertz/Dollar hilo travel trailer rv camper Thrifty merger, the FTC is forcing hilo travel trailer rv camper Hertz to vacate 26 Dollar or Thrifty airport locations 13 to the new Advantage, while 13 more will go to either Advantage or other new buyers. The likely candidates are Fox or Sixt, up-and-comers with plans to expand. With this Balkanization in the discount market, look for a ground war on rates to gain market hilo travel trailer rv camper share.
Technology hilo travel trailer rv camper will evolve the ancillary revenue hilo travel trailer rv camper market. Connectivity, the buzz word in our daily lives, will finally reach the car rental market. Next year may be the first in which a major rental car company will offer for a fee a device that easily links a smartphone with a vehicle hilo travel trailer rv camper s infotainment system, so the renter can access music and contacts hilo travel trailer rv camper and talk hands-free. In general, more apps are coming to cars, and RACs will find a way to cash in.
The lending market will ease for bigger players. Lenders are chasing loan volume. Our rental clients are getting courted every day of the week, says one lender, noting that most of the activity is happening on lines of $40 million and up. If you ve got a reasonable hilo travel trailer rv camper track record, pretty low leverage and some size, banks want your business, but they are tying better rates to higher deposits.
Medium-sized companies are seeing the renewed competition as well. Not only are banks becoming friendlier to deal with but a few new leasing hilo travel trailer rv camper companies with pretty competitive rates are popping up, says one operator, who draws about $10 million for his business.
The lender hilo travel trailer rv camper predicts that better hilo travel trailer rv camper rates will eventually trickle down to those who need less than $10 million, though it may take more than a year to happen. In general, at least rates aren t going up in the next two years the fragile economy will make sure of that.
Watch out for the independents. With the merger deal now complete, the market is consolidated among three major players. hilo travel trailer rv camper But the FTC s required divestitures present opportunities for smaller companies. Now with 62 locations serving U.S. airports and more possible, along with 325 neighborhood locations under the U-Save brand, the new Advantage (owned by Macquarie Capital and Franchise Services of North America Inc.) will become the fourth largest car rental company in North America.
Sixt, a global player but new to America, has opened hilo travel trailer rv camper seven U.S. airport locations within a year. Don t be confused by Hertz s designation of Sixt as a deep value brand. From its corporate backbone in Germany and global ties to airlines, travel agencies and distribution systems to a U.S. franchise initiative, Sixt has a flag in the sand here.
Tags: Advantage Rent A Car , Avis Budget Group , Federal Trade Commission , Fox Rent-A-Car , Franchise Services North America , FSNA , FTC , Hertz , Macquarie Capital , merger , rental rates , Sixt , U-Save
Chris Brown is the executive editor of Business Fleet Magazine and Auto Rental hilo travel trailer rv camper News for Bobit Business Media. Through these publications, online newsletters, trade events and associations, Chris covers all aspects of the fleet world, including fleet management, manufacturer fleet activities, hilo travel trailer rv camper the fleet leasing industry, vehicle remarketing, rental industry news, car rental taxation and legislation as well as automotive environmental initiatives and trends.