This year the OEMs increased sales to rental to follow a more normal selling pattern, but the prices

Coming out of a Recession, OEM bankruptcies, yo-yo fuel prices, natural disasters and historical rhine river travel guides peaks for used car prices, 2013 might have been characterized as a return to normal. Yet the fallout from the Hertz acquisition of Dollar Thrifty rhine river travel guides will prove that this year will be anything rhine river travel guides but.
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 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 in the gray area where the residual goes negative against the cap cost, the franchisee cautions. The squeeze is on.
Common wisdom says that market consolidation makes prices rise. That may happen 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 Thrifty merger, the FTC is forcing Hertz to vacate 26 Dollar or Thrifty airport locations 13 to the new Advantage, while 13 more will go to either Advantage rhine river travel guides 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 rhine river travel guides war on rates to gain market rhine river travel guides share.
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 s infotainment system, so the renter can access music and contacts and talk hands-free. In general, more apps are coming to cars, and RACs will find a way to cash in.
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 rhine river travel guides and up. If you ve got a reasonable 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 companies with pretty competitive rhine river travel guides rates are popping up, says one operator, who draws about $10 million for his business.
rhine river travel guides The lender predicts that better rates will eventually rhine river travel guides trickle rhine river travel guides 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.
With the merger deal now complete, the market is consolidated among three major players. But the FTC s required divestitures present opportunities for smaller companies. Now with 62 locations rhine river travel guides 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 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 rhine river travel guides , 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 News for Bobit Business Media. Through these publications, online newsletters, trade events and associations, Chris covers rhine river travel guides all aspects of the fleet world, including fleet management, manufacturer rhine river travel guides fleet activities, the fleet leasing industry, vehicle remarketing, rental industry news, car rental taxation and legislation as well as automotive environmental rhine river travel guides initiatives and trends.
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