Auto Rental News January/February 2011

ARN0910toyota.indd 1 8/26/10 4:15:38 PM

CUSTOMER SATISFACTION SURVEY:

J.D. POWER SPEAKS

HOW TO IDENTIFY AND PREVENT

INSURANCE FRAUD

RAC PROFILE: INSURANCE FIRM RENTS REPLACEMENT VEHICLES

ARN_cover.indd 991ARN_cover.indd 991 12/21/10 9:41:50 AM12/21/10 9:41:50 AM

(800) 743-1200 www.TSDWEB.com©2011 TSD. All logos, names and registered trademarks are the property of their respective corporations.

The #1 On-Demand Rental SoftwareYour Path to Profit Growth

Contact TSD today and take the next step on your path to improved profitability.

Features include: Easy one-screen open agreement, instantrate calculations for fast customer quoting, preferred andrepeat renter features, automatically calculate fuel charges,comprehensive reports for effective decision making and fleet management. Plus much more to keep your business efficient and profitable.

For more than a decade, TSD has been critical to the success of our Toyota Rent a Car dealers (TRAC)... A fleet management system that also measures performanceand reduces a dealer’s potential exposure is a must fortoday’s TRAC operator! TSD takes software and service to a new level. Lori Tennant, Southeast Toyota Distributors, LLC”

“

Guiding Rental Businesses t

REDUCE COSTS and

ARN0111_992-1.indd 992ARN0111_992-1.indd 992 12/20/10 2:08:38 PM12/20/10 2:08:38 PM

http://www.TSDWEB.com

[email protected] (978) 794-1400

Add to the Power of TSD RENTAL.NET with TSD InterfacesHigh-Speed Credit Card Processing: Interfaces with TSDRENTAL.NET so credit card authorizations and paymentsare linked to your accounting information.

Hand Held Check-In Units: Portable, hand helds work in theparking lot or inside lines. Returns drive in, your agentclicks a few keys and the return is complete.

RezCentral: Receive reservations from travel sites, corporate websites, GDS sources, and other Internet booking engines, including your own website.

WebLink: Your website bookings will be automaticallyentered into TSD RENTAL.NET and your customers willreceive instant confirmation of their reservations.

Accounting Interfaces: TSD accounting interfaces let youeliminate double-entry from your TSD RENTAL.NETManagement Software to your accounting package.

EDiCAR Insurance Replacement Rentals: Use EDiCAR toconnect to insurance companies over the Internet and driveinsurance replacement reservations to your business.

Have a question? Call TSD and speak with one of our knowledgeable product specialists.

s to Success for More Than 25 Years

INCREASE PROFITS

Visit TSD at:

NADA #813S

Car Rental Show #304

ARN0111_992-1.indd 1ARN0111_992-1.indd 1 12/20/10 2:08:40 PM12/20/10 2:08:40 PM

mailto:[email protected]

ARN0910sonoran.indd 1 8/26/10 8:30:10 AM

ARN • JANUARY / FEBRUARY 20112

table of contentsJanuary / February 2011 • Volume 24, No. 1

AUTO RENTAL NEWS (ISSN 1075-9409) (USPS 011-305) (CDN IPM# 40013413) is published bimonthly with additional issues in February and December, by Bobit

Business Media, 3520 Challenger Street, Torrance, California 90503-1640. PERIODICALS POSTAGE PAID at Torrance, California 90503-9998 and additional mailing offi ces.

POSTMASTER: Send address changes to Auto Rental News, P.O. Box 1068, Skokie, IL 60076-8068. Please allow 6 to 8 weeks for address changes to take effect. Subscription

Prices - United States $25 per year; Canada $30 per year; Foreign $75 per year. Single copy price - $10; Fact Book - $30. Please allow 6 to 8 weeks to receive your fi rst issue. Bobit

Business Media reserves the right to refuse non-qualifi ed subscriptions. Please address Editorial and Advertising correspondence to the Executive Offi ces at 3520 Challenger Street,

Torrance, California 90503-1640. The contents of this publication may not be reproduced either in whole or in part without consent of Bobit Business Media. All statements made,

although based on information believed to be reliable and accurate, cannot be guaranteed and no fault or liability can be accepted for error or omission. Printed in USA

14 How to Identify and Combat Rental Fraud Insurance expert teaches you how to identify rental “red fl ags”

and protect yourself against fraud.

16 2011 Car Rental Show Preview: Riding the Wave of Change The market is rebounding. Are you poised to take

advantage of new opportunities? Speakers and seminar

topics announced.

18 RAC Profi le: Synergy Success The synergies between an insurance fi rm and a Hertz Local

Edition lead to a successful rental operation in a small town.

22 Understanding Customer Satisfaction J.D. Power and Associates’ Stuart Greif talks about the 2010

North America Rental Car Satisfaction Study, how RACs

were graded and why brands achieved the scores they did.

FEATURES4 Editor’s Corner The Car Rental Show is about entrepreneurs.

6 Guest Editorial Bob Barton of ACRA shares New Year’s resolutions for the car rental industry.

8 Industry News Lawsuit against Avis Budget purchase of DTAG; NHTSA investigates vehicle recall repairs

24 Car Rental Q&A How to identify, report and document airport locations’ requirements for working with disadvantaged business enterprises

26 Product and Vendor News

28 Used Car Prices

30 Ad Index

32 RentAlert Industry embraces electric vehicles

DEPARTMENTS

14

16

18

ARN0111toc.indd 2ARN0111toc.indd 2 12/21/10 10:28:10 AM12/21/10 10:28:10 AM

ARN0910sonoran.indd 1 8/26/10 8:30:10 AMARN0111toc.indd 3ARN0111toc.indd 3 12/21/10 10:28:12 AM12/21/10 10:28:12 AM

ARN0506gmi.indd 1 9/3/09 9:50:37 AM

A casual search for the defi nition of entre-

preneur turns up phrases such as:

“Someone who organizes a business

venture and assumes the risk for it.”

“Th e art or science of innovation and risk tak-

ing for profi t in business.”

“Willing to take risks in order to make a profi t.”

Two words stand out in those defi nitions: risk

and profi t. If you own your own business, those

concepts are entwined. Th ose in car rental know

this all too well. Who gets into such a capital-in-

tensive operation that is beholden to the volatil-

ity of the automotive industry on one side and

the fi ckle American public on the other? Are you

people crazy? Don’t answer that. If you’re read-

ing this, at the very least you’ve fi gured out how

to survive the recession.

Entrepreneurs in the car rental industry gath-

er at the Car Rental Show. Th ey come to rub el-

bows with other entrepreneurs who have found

a niche or opportunity and have seized it. Th ey

come to roll up their sleeves and share what

works and what doesn’t in a structured forum

with other entrepreneurs from across the coun-

try. Th ese entrepreneurs come to gain the mar-

ket intelligence needed to be able to turn those

risks into profi t.

CRS is all about the entrepreneurs who make

this industry tick. It’s about licensees such as

Don Burgner, Kenneth Wright and Bob Barbush,

forefathers of the franchise system when Ameri-

cans were just beginning to understand the con-

cept of renting cars. It’s about Moises Behar, who

runs Hertz’s largest franchise in Mexico and is

pioneering the local market through a ground-

breaking partnership with Wal-Mart. It’s about

Chris McIntyre, who worked out of his garage

and with partner Jeff Brown formed EagleRider,

the world’s largest renter—and buyer—of Har-

leys in the U.S.

CRS is about people who are fi guring out new

technologies to save you time and money, such as

New Jersey-based Dollar licensees Sarah and Steven

Romanowski who have integrated the iPad into

their rental check-out process. It’s about Sharky

Laguana, founder of indie rock band Creeper

Lagoon. Laguana started Bandago Van Rentals,

which caters to touring musicians and is doing

it green. And then there’s Matthew Holowinski,

who left his post as a top salesperson for Avis in

Chicago to start his own RAC with one car, no

location and no fi nancing. He’s about to move

into a new location to serve O’Hare and will be

listed on some major travel portals.

I’ve met all of those people at the Car Rental

Show. It’s energizing to be in a room with people

who are driven to succeed. It’s contagious. And

you can bet you won’t get that through an email

or a telephone call.

When I get back in the offi ce I’m amazed at

how much useful information I’ve picked up in

such a short amount of time. I get a year’s worth

of articles for the magazine. I’ve gone from zero

to 60 on the industry scuttlebutt in two days. I

return with a new perspective on an ever-chang-

ing industry. And, as much as the show is con-

tent driven, it’s really the people I’ve met who

have made this possible.

Calling all you risk-taking entrepreneurs: I look

forward to seeing you in Las Vegas this coming

March to hear your success story. We hope to

make you even more successful.

CRS is all about the entrepreneurs who make this industry tick—the risk takers and profi t makers. Their energy is contagious.

What I Get from the Car Rental Show

BY CHRIS BROWN

editor’s corner


ARN0111edit.indd 4ARN0111edit.indd 4 12/21/10 10:19:14 AM12/21/10 10:19:14 AM

ARN0506gmi.indd 1 9/3/09 9:50:37 AMARN0111edit.indd 5ARN0111edit.indd 5 12/21/10 10:19:14 AM12/21/10 10:19:14 AM

ARN0510purco_01.indd 1 4/28/10 9:49:10 AM

The holidays are typically the time of year when we like

to look back, refl ect on the past and create resolutions

and goals for the new year. Th is is no diff erent for the

car rental industry except that, frankly, we could all accept a

little dose of reality.

Residual values are at record levels and we are all reaping

the benefi t of this, but we didn’t cause that to happen.

Fleet levels, across the industry, have come down to more

rational levels. While some want to take credit for that, I

would suggest that 35 percent credit enhancements (if cred-

it was available at all), and discipline on the part of the man-

ufacturers in righting their own ships had more to do with

this than we did.

Taxes continue to challenge our industry. But to its cred-

it, at least Southwest Airlines told Charleston, S.C., “We don’t

want your car rental taxes.” We won, thanks to Southwest, but

we didn’t cause that to happen either.

New York wants to stop the industry from allegedly dis-

criminating by having diff erent rates based upon where peo-

ple reside. Th is interesting concept is one being practiced by

every municipality that charges airline customers a tax on car

rental to fund stadiums, pet projects and budgetary shortfalls

that their voting constituents will not have to pay.

Sen. Bill Nelson (D-FL) openly asserted that foreign tour-

ists come to America, rent cars, get in accidents and then leave

the Florida resident with no insurance holding the bag. Th at

alone justifi es the repeal of the Graves Amendment.

As a former insurance commissioner, Sen. Nelson should

know that every rental in the state of Florida, regardless of the

residence of the driver, comes with the state-required fi nan-

cial responsibility limits as set by the state. Ironically, most in-

bound Europeans tend to purchase a voucher rental that in-

cludes SLI, giving that Florida resident access to a $1 million

policy if the accident was caused by the foreign tourists —

substantially more coverage than the average citizen of Flor-

ida currently maintains.

Th e year 2010 was defi nitely a transition year for the in-

dustry, and we have made great strides in effi ciency and

profi tability, although some are not getting the message

with pricing as low as $9 per day for a car in Phoenix dur-

ing the fi rst week of December.

So, moving forward, what should our resolutions be

for 2011?

■ DISCIPLINE

● Do not over fl eet to service the peak. Th at never, ever

works in the long run.

● Price your product to earn a fair return. Garnishing mar-

ket share in the long run never works.

■ IMPLEMENT

● Let’s implement a no-show program with a credit card de-

posit similar to the hotel system. Stop the “I can’t, because they

won’t” argument. It’s long overdue! All hotels follow this, and

all airlines collect the ticket fare at the time of reservation. It has

to start somewhere. Wall Street has talked about the fi nancial

impact on the public companies. Every operator can run his or

her business better without a 35 percent no-show factor.

● Let’s implement an industry-approved car classifi cation

system similar to Europe’s. A Cobalt cannot be a compact and

an intermediate; a Versa cannot be an economy and a compact.

What is even more ridiculous is when one company classifi es

the same vehicle in diff erent categories in diff erent cities.

■ COOPERATE

● We are our own worst enemies when we choose not to work

together on legislative and taxation issues. Th e “What is bad for

_____, is worse for everyone else” attitude is so passé.

● Attend the Car Rental Show and fi nd a way to address is-

sues facing the industry collectively. Frankly, we get target-

ed because everybody knows how dysfunctional we are as

an industry.

We all run our businesses diff erently. Th at is a good thing.

We can collectively support standards and challenge taxation,

legislation and regulation collectively like every other industry

does. In the long run it will be better for our companies, our

employees and, most importantly, our customers. Th e airlines

have infuriated the customers with bag fees, seat fees, snack and

drink fees and boarding fees. No wonder they are fed up by the

time they come to get our cars. Let’s put the “customer” back

in customer service. Th ese are the things I want for car rental.

Let’s make them our New Year’s resolutions.

Bob Barton, president of the American Car Rental Association, asks the car rental industry for discipline, consensus and cooperation on the things that, if implemented, will benefi t the industry as a whole.

New Year’s Resolutions

BY BOB BARTON

guest editorial


ARN0111oped.indd 6ARN0111oped.indd 6 12/21/10 10:19:37 AM12/21/10 10:19:37 AM

• We handle damage recovery from hubcaps to total losses

• We’ve done the research, we’ve got the experience,

we’ve developed tools with you in mind

• 24/7 access to your claims and reports via our website

• Free onsite consulting and training to help you eliminate your uncollectable damages

• Licensed, bonded, and insured—a company you can trust

136 S. Main Street, Spanish Fork, Utah 84660

Toll Free 1-888-PURCO-88

Email: [email protected]

www.purco.com

Too much pressure building up?

Let us give you some relief.

Recovery Specialists for the Vehicle Rental Industry

ARN0510purco_01.indd 1 4/28/10 9:49:10 AMARN0111oped.indd 7ARN0111oped.indd 7 12/21/10 10:19:42 AM12/21/10 10:19:42 AM


http://www.purco.com

ARN0111bluebird.indd 1 12/17/10 10:06:43 AM

industry newsDollar Thrifty Names New Board Chairman

Dollar Thrifty Automotive Group Inc. announced Nov.

29 that Thomas P. Capo will be succeeded as chairman of

the board by Richard W. Neu, effective immediately.

After more than 20 years’ association with Dollar Thrifty

and 13 years as a director, Capo notifi ed the company that

he intends to retire from the board at the 2011 annual

meeting of stockholders.

Neu has been a director of Dollar Thrifty since February

2006, and most recently served as chief fi -

nancial offi cer, treasurer and director of

Cleveland, Ohio-based Charter One Fi-

nancial Inc.

Dollar Thrifty also announced on Dec.

6 several executive promotions, which are

effective Jan. 1, 2011. For more information, see the story in

“Products & Vendor News” on page TK.

NHTSA to Investigate Rental Car Recall Repairs

The National Highway Traffi c Safe-

ty Administration launched an inves-

tigation in November to determine

how quickly car rental companies fi x

recalled vehicles.

NHTSA said it will review nearly 3

million vehicles manufactured by Gen-

eral Motors, Chrysler and Ford that

were sold to car rental companies.

The agency said the investigation will

give “an indication of how complete-

ly and how quickly rental car fl eets, in

general or individually, perform nec-

essary recall-related repairs or other

remedies on the vehicles owned and

then leased for use on the roadways.”

The Center for Car Safety and

Consumers for Auto Reliability and

Safety fi led a petition with the FTC in

August to stop Enterprise and its par-

ent company from renting out unre-

paired recalled vehicles to customers.

Enterprise spokeswoman Laura

Bryant told the Detroit News the com-

pany would cooperate with NHTSA

in any inquiry involving current prac-

tices.

Currently, no federal law

requires rental car compa-

nies to fi x vehicles before

they return to service, Sha-

ron Faulkner, executive di-

rector of the American Car

Rental Association, told the

Detroit News.

Lawsuit Filed to Block Avis Budget From Acquiring Dollar Thrifty

Three Dollar franchisees fi led a lawsuit Dec. 1 against Avis Budget Group to

block its attempt to acquire Dollar Thrifty Automotive Group.

The lawsuit, brought by James Cassan, Cassan Enterprises, CMC Invest-

ments and Todd Investments, states that the acquisition is in violation of the

Clayton Antitrust Act.

Cassan is the part-owner and president of Cassan Enterprises, which owns a

Dollar franchise and a fl eet of rental vehicles that it leases to CMC Investments

and Todd Investments, according to the lawsuit.

CMC Investments and Todd Investments operate Dollar-Rent-A-Car fran-

chises at Seattle-Tacoma International Airport in Seattle and Portland Interna-

tional Airport in Portland, respectively.

The lawsuit states that the acquisition will lessen competition, increase pric-

es, reduce supply, and negatively impact service. Furthermore, it will create a

monopoly in the rental car industry and adversely impact business travelers and

consumers at airports throughout the country, the lawsuit states.

The plaintiffs also fi led a similar lawsuit against Hertz Global Holdings Inc.

and Dollar Thrifty on Sept. 23 with the same complaint.

Lawsuit Addresses Auto Renters’ Credit Card Charges for Toll Road Use

A North Carolina man is suing The Hertz Corp. in a fed-

eral lawsuit that could resolve the question of whether

renters’ credit cards can be charged, without their consent,

for toll road use, according to theNewspaper.com.

Dwight Simonson is suing Hertz for allowing American Traffi c Solutions to

place charges on customers’ credit cards without their consent. Simonson rent-

ed a Hertz automobile in Orlando, Fla., in 2009 and was billed $10.75 by ATS

for a 75 cent toll.

Since 2005, Hertz and ATS have operated a program called PlatePass, which

allows renters to use toll roads with a built-in payment system.

Simonson complains that all Hertz renters are automatically enrolled with-

out notice. Automatic service fees can be $2.50 to $3 per day, even on days

customers do not use any toll roads. Customers only see the charges after they

return their rental car. PlatePass is never specifi cally identifi ed on the standard

agreement that Hertz renters sign, nor does the agreement mention that fees

are automatically imposed even when the service is not used.


NEU

FAULKNER

ARN0111news.indd 8ARN0111news.indd 8 12/21/10 10:20:47 AM12/21/10 10:20:47 AM

ARN0111bluebird.indd 1 12/17/10 10:06:43 AMARN0111news.indd 9ARN0111news.indd 9 12/21/10 10:20:49 AM12/21/10 10:20:49 AM

ARN0710gmac.indd 1 6/24/10 2:04:01 PM

industry newsBills Target Alleged Auto Rental Geographic Discrimination

Two New York lawmakers want to stop car rental companies from

charging higher rates to residents living in certain boroughs of the state,

according to the New York Post.

Two car rental companies out of 11 that do business in the fi ve bor-

oughs — Thrifty and Dollar — charge Brooklyn, Queens and Bronx res-

idents an additional fee based on their residence. Staten Island and Man-

hattan residents are not subject to any extra fee.

Claiming geographic discrimination, state Sen. Daniel Squadron, As-

semblyman Brian Kavanagh and Manhattan Borough President Scott

Stringer say the car rental companies are taking advantage of consumers

and penalizing those who live beyond Manhattan.

State bills that Squadron and Kavanagh are sponsoring would make it

unlawful for car rental companies to charge customers more based on

where they live.

Thrifty and Dollar charge the additional fee for consumers renting in

New York state, Newark, N.J. or Philadelphia. The fee applies regardless

of where the customer intends to drive the rental car.

Experts Forecast U.S. Travel Industry to Recover in 2011

Experts forecast that the U.S. travel in-

dustry will recover in 2011. However, one

drawback of the recovery would be higher

airfare and hotel rates, according to AHN.

One indicator contributing to the antici-

pated rise in the travel industry is this year’s

lifting of travel restrictions by companies as

their fi nances improve. Experts expect the

trend to continue in 2011.

As a result, airlines are reimposing stricter

contract terms and requirements, while cor-

porate discounts are shrinking.

Industry insiders warned of a 2 to 6 per-

cent hike in domestic air fare and a 3 to 7

percent increase in international air fare.

More Americans are traveling in 2010, ac-

cording to a yearly Zagat survey released

Nov. 29. The survey found that more than

8,000 frequent fl iers reported they averaged

17.4 air trips this year, up from 16.3 in 2009.

Hertz Offers Smart Fortwo EV, Partners With CODA Automotive

The Hertz Corporation started renting smart fortwo electric drive

vehicles in December through Connect by Hertz car sharing in New

York City.

The Hertz Corporation and smart USA, a subsidiary of Penske Au-

tomotive Group Inc., announced a joint partnership on Dec. 6 to bring

smart fortwo electric drive vehicles to Connect by Hertz car sharing and

Hertz Rent A Car locations in New York, Washington, D.C., and San

Francisco.

The vehicle placements are part of the Hertz Global EV program,

which will offer a variety of 100 percent electric and plug-in hybrids to

car sharing and rental customers worldwide.

Hertz also announced in November a new partnership with CODA

Automotive, a car manufacturer that specializes in all-electric vehicles.

Hertz will add the four-door, fi ve-passenger all-electric CODA Sedan to

its California locations in 2011.

Enterprise Holdings Joins Electrifi cation Coalition

Enterprise Holdings announced that Chair-

man and CEO Andrew C. Taylor has joined the

Electrifi cation Coalition — a nonpartisan, not-

for-profi t group of business leaders representing

the entire value chain of the growing electric ve-

hicle (EV) industry.

The coalition

seeks to address

concerns raised

as a result of the

nation’s depen-

dence on petro-

leum. Other mem-

bers include top

executives from

leading companies including Cisco Systems Inc.,

Eaton Corp., PG&E Corp., Nissan Motor Com-

pany, Johnson Controls, FedEx Corp., and Sie-

mens Corp.

The coalition released a report in Novem-

ber detailing the importance of fl eet owners

and operators to the wider effort to electrify

the transportation system.

Enteprise Holdings announced in July that it

will begin adding 500 Nissan LEAFs to its fl eet in

December, and said in October that it will also

add up to 100 CODA Sedan EVs in 2011.


CODA SEDAN

SMA

RT F

ORT

WO

ELE

CTRI

C D

RIVE


What’s the fastest link between your retired inventory and thousands of dealers?

Every day, SmartAuction delivers fresh, quality pre-owned cars, trucks, vans and SUVs of nearly every make and model right to dealers’ desktops across the country. These dealers buy and sell thousands of vehicles. What’s that mean for fleet managers like you? A fast, cost-efficient way to turn today’s retired inventory into tomorrow’s cash flow.

Visit smartauction.biz or call us at 877-273-5572 (press #, option 4).

© 2010 GMAC. All rights reserved. SmartAuction is a registered service mark of GMAC.

FLEET- FOOTED.

ARN0710gmac.indd 1 6/24/10 2:04:01 PM


industry newsFOX Announces Launch of Affi liate Program

FOX Rent a Car launched its new Affi liate Program

on Nov. 1 and hired industry veteran Jeff Wedemire

to manage the program.

Wedemire has nearly 30 years of experience in the

car rental industry. For the past four years, he was di-

rector of reservation and revenue for a U.S.-based car rental company.

He has also been a district manager for National Car Rental and Thrifty

in Halifax and Calgary, Canada, as well as an account manager for VIP In-

ternational.

In addition to FOX’s announcement about Wedemire, the company

said its Mexico Affi liate opened on Nov. 1 at three locations — La Paz

Airport, Loreto Airport and San Jose Del Cabo Airport — with more to

come in the future.

Kelley Blue Book, a provider of new-

and used-vehicle information, selected the

all-new 2011 model-year vehicle winners

of its annual Best Resale Value Awards.

These awards are given to vehicles

that are expected to maintain the great-

est proportion of their original list price af-

ter fi ve years of ownership. Low-volume

vehicles and vehicles with a manufactur-

er’s suggested retail price of more than

$60,000 are excluded from award consid-

eration, except in the luxury and high-per-

formance categories.

Rental Car Fee Fails in Charleston, S.C.

A proposed 5 percent rental car fee in

Charleston, S.C. failed at the Dec. 7, 2010

Charleston County council meeting with

only one vote in favor of the fee, according

to WCSC TV.

The Charleston County council approved

the fee earlier in the year as an incentive for

discount carrier Southwest Airlines to come to

Charleston. But the measure was tabled when

airline offi cials said it was not necessary.

One councilman requested the proposed

fee appear on the Dec. 7 agenda because he

wanted to go on the record as voting against

it after Southwest Airlines rejected the offer.

ALG, a provider of residual values and depreciation data,

announced its 12th Annual Residual Value Awards on Nov.

17, with Subaru and Infi niti taking the awards for top main-

stream and luxury brands, respectively. Japanese models also

continued their overall dominance of the awards, winning 12

of the 19 individual vehicle segments.

ALG’s Residual Value Awards honor the vehicles in each

segment that are predicted to retain the highest percentage

of their MSRP after a conventional three-year period.

This year’s awards are based on 2011 model year vehicles.

2011 Residual Value Segment Winners:

● Subcompact – Honda Fit

● Compact – Hyundai Elantra

● Midsize – Subaru Legacy

● Sportscar – Mini Cooper Countryman

● Alt-Fuel – Volkswagen Golf TDI

● MPV – Honda Odyssey

● Compact Utility – Subaru Forester

● Midsize Utility – Subaru Outback

● Fullsize Utility – Mazda CX-9

● Midsize Pickup – Toyota Tacoma

● Fullsize Pickup – Ford F-Series Super Duty

● Near Luxury – Acura TL

● Luxury – Lexus LS 460

● Luxury Sportscar – Nissan GT-R

● Luxury Alt-Fuel – Mercedes-Benz E Class BlueTec

● Luxury Compact Utility – BMW X3

● Luxury Midsize Utility – Land Rover Range Rover

● Luxury Fullsize Utility – Infi niti QX56

ALG Selects Subaru, Infi niti as Top Brands for Residual Value Awards


WEDEMIRE

Kelley Blue Book Names Winners of 2011 Best Resale Value Awards■ 2011 Best Resale Value: Brand

Subaru

■ 2011 Best Resale Value: Luxury Brand

BMW

■ 2011 Best Resale Value: By Vehicle Category

● Subcompact Car: Honda Fit

● Compact Car: MINI Cooper

● Mid-Size Car: Honda Accord

● Full-Size Car: Ford Taurus

● Near-Luxury Car: Lexus IS

● Luxury Car: Audi A5

● Sports Car: Subaru Impreza WRX

● High-Performance Car: Ford Mustang GT

● Hybrid/Alt. Energy Car: Volkswagen Golf TDI

● Compact Utility Vehicle: Honda CR-V

● Mid-Size Utility Vehicle: Toyota FJ Cruiser

● Full-Size Utility Vehicle: GMC Acadia

● Luxury Utility Vehicle: BMW X5

● Hybrid/Alt. Energy Utility Vehicle: BMW X5 Xdrive35d

● Mid-Size Pickup: Toyota Tacoma

● Full-Size Pickup: Ford F-Series Super Duty

● Van: Toyota Sienna

● Wagon: Subaru Outback

■ 2011 Best Resale Value: Top 10 Models

● Audi A5

● BMW X5

● BMW X6

● Honda CR-V

● Jeep Wrangler

● Lexus GX

● Lexus RX

● Subaru Outback

● Toyota FJ Cruiser

● Toyota Tacoma

Residual values used for award calculations

are based on the November/December 2010

Kelley Blue Book Residual Value Guide. Top

10 models appear in alphabetical order.


JANUARY / FEBRUARY 2011 • ARN 13

• Repurchase and Risk vehicles with the most attractive rates in the industry • We offer all manufacturer programs as well as our own • Internet based order tracking system for car deliveries • Accessible when YOU need us

For more information, please visit our website at Milefl eet.com or call our office at (954) 915-9384

Mile Fleet is a company that solely focuses on sales to rental car companies across the country. We offer the following items:

FM

scW

ARN0111mile.indd 1 12/13/10 12:21:42 PM

Stuck in Neutral?

©2010 Dollar Rent A Car, Inc. All rights reserved. 5310 East 31st Street, PO Box 35250, Tulsa, OK 74135. Phone918.665.3930. Dollar features a wide selection of quality vehicles. This advertisement is not an offering. An offering can bemade by a prospectus filed with the Department of Law of the State of New York. This information is in no way intended toencourage the breach of any contractual obligations you may have. MN REG. No. F-2447.REP. NO. F-1308

Worldwide optimized website to increase reservationsPreferred partner on major car rental booking sitesDirect fleet purchase and retail car sales opportunitiesExclusive membership in a globally recognized brand with over 600 locationsDiscounts available for independents

Grow your business by joining the DOLLAR® network.

[email protected]

Put your business in high gear.

ARN0111dollar.indd 1 12/17/10 8:44:14 AM




Does fraud really aff ect car rental agencies?

Th e simple answer is yes. Th e Insurance

Information Institute states that 10

percent of all losses are fraudulent. Th at equates

to higher insurance premiums for everyone.

Fraud exists, but it is not easy to detect. Take the

real-life scenario below.

Fraud was not evident when the loss was fi rst

reported to our insurance group. It appeared to

be just another RLP (renter’s liability protec-

tion) rear-end accident and claim involving a

rental car. Th ere was even a police report but

something seemed amiss. Th e renter and driv-

er lived very close to one of the occupants of

the vehicle that was rear ended. A closer look

revealed that the accident involved two rental

cars, which were rented from diff erent com-

panies but within the same ZIP code.

Th e police report was quite thorough and

listed fi ve individuals in the car that was rear-

ended and four individuals, not including the

driver, in the insured rental. Th at made fi ve

potential claimants and 25/50 limits that were

quickly disappearing in a morass of bodily in-

jury claims. Liability was clear and somehow

everyone had the same lawyer.

Upon further investigation, all nine poten-

tial claimants were guests of the state peniten-

tiary system and had served prison sentences

that overlapped. An educated guess was that

they thought of this scheme in their spare time

and executed their plan once they had fi nished

paying their debt to society.

Th ankfully, the “red fl ags” were identifi ed

and this claim was referred to our special inves-

tigation unit. Th e property damage was paid,

but none of the nine potential injury claims

were ever paid. If my staff had not been prop-

erly trained in fraud awareness and detection,

$50,000 could have been paid out.

Insurance company claims departments

are continually trained in fraud awareness and

detection process. In California, every newly

hired employee, regardless of function, has a

one-hour mandatory fraud awareness and de-

tection training.

Rental car agencies do not usually ask many

detailed questions prior to renting a vehicle.

Additionally, counter agents are always eager

to sell extra liability insurance and any colli-

sion waiver coverage. Staged-accident rings

like to use rental cars because they don’t cre-

ate paper trails tying particular vehicles to the

claimants in the accident. Additionally, only

some of the rental car insurers utilize the ISO

ClaimSearch system — a master database of

all property and casualty claims utilized by

the majority of insurers — to track all acci-

dents and claimants.

Hard vs. Soft Fraud

Insurance fraud can be classifi ed as either

hard fraud or soft fraud.

Hard fraud occurs when someone delib-

erately plans or invents a loss, such as a colli-

sion, auto theft , or fi re, which is covered by his

or her insurance policy in order to receive pay-

ment for damages. Criminal rings are some-

times involved in hard fraud schemes that can

steal millions of dollars.

Soft fraud, which is far more common than

hard fraud, is sometimes also referred to as op-

portunistic fraud. Th is type of fraud consists

of policyholders exaggerating otherwise legit-

imate claims. For example, when involved in a

collision an insured person might claim more

damage than was really done to his or her car.

Soft fraud can also occur when, while obtain-

ing a new insurance policy, an individual mis-

reports previous or existing conditions in or-

der to obtain a lower premium on his or her

insurance policy.

Th e main concern for rental car agencies

Insurance expert teaches you how to identify rental “red fl ags” and protect yourself against fraud.

HOW TO IDENTIFY AND COMBAT RENTAL

FRAUDBY HOWARD J. HIRSCH

EDUCATE YOURSELF!The American Institute for Char-

tered Property Casualty Underwrit-

ers has an online educational portal,

http://www.aicpcu.org. A number of

valuable courses can be taken online

that help educate individuals in the

area of fraud detection and aware-

ness. There are also numerous online

continuing education resources where

employees can obtain detailed training

in the area of fraud detection and

prevention.

PHOTO: ©ISTOCKPHOTO.COM/DANLEAP

Do you have the

tools to identify

which of your cus-

tomers are trying

to defraud you?

ARN0111fraud.indd 14ARN0111fraud.indd 14 12/21/10 10:29:33 AM12/21/10 10:29:33 AM

http://www.aicpcu.org

ABRAMS CONSULTING GROUP, INC. Preserving the Entrepreneurial Spirit of the Auto Rental,

CarSharing, Travel Service, and Transportation Industries, WORLDWIDE, since 1982.

3020 Westchester Avenue • Purchase, NY 10577-2525(914) 696-5100 • Fax (914) 696-5101

email: [email protected]: www.abramsconsulting.com

ACG DID WHAT?

W O W !!

ACG DID WHAT?

W O W !!

ARN0111abrams.indd 1 12/20/10 2:31:51 PM

is hard fraud. Th is usually takes the form of

staged accidents or fake bodily injury claims.

Th is also includes personal injury protection

fraud, which not only includes the renter, pas-

sengers and claimants, but the treating doctors

and lawyers representing these individuals.

Th e question then becomes, “How can the

fraud be avoided?”

Identify Rental “Red Flags”

Th rough our experience in the rental in-

dustry, there are certain “red fl ags” common

to many fraudulent rental claims.

Here are the “red fl ags” that a rental coun-

ter agent can look for to help identify a rent-

al that may turn into a staged or fraudulent

accident:

• Th e customer owns a vehicle, but it is

not being serviced or repaired.

• Th e customer inquires about extra

insurance before it is off ered.

• Th e customer is a walk-in and does

not own a vehicle.

• Th e customer has a local address and

an out of state license.

• Th e customer only requests a

one-day rental.

• Th e customer pays in cash.

• Th e customer pays for the rental

with someone else’s credit card.

• Th e customer presents a foreign driver’s

license with no passport.

Protect Yourself

So what can a counter agent do to protect

against fraud? Th e easy answer is, if something

seems amiss, do not rent the vehicle. Th e prop-

er training of counter staff will help to identify

potential situations that may lead to fraudulent

or staged accidents. Identifi cation of the “red

fl ags” listed will help to eliminate some fraud.

I also suggest communicating with local law

enforcement to help identify specifi c fraudu-

lent schemes that may be present in a particu-

lar locale. Your fl eet and renter’s liability pro-

tection insurance carrier is also an excellent

resource for training.

While all fraud cannot be avoided, some

simple steps can assist the insurer in combat-

ing suspected fraud.

• Obtain a detailed accident report from

the renter and take photos of the rental

vehicle documenting all physical damage.

• Obtain police, fi re department,

paramedic and ambulance reports.

• Take photos of the renter when he or

she returns the vehicle.

• Obtain a list of all passengers in the

rental vehicle.

• Obtain e-mail addresses, cell phone

numbers and complete contact

information for the renter and all

passengers.

• Provide as much information as

possible to the insurance company.

While there is no feasible way to prevent all

fraud, taking appropriate steps in identifying


EXAMPLES OF INSURANCE FRAUD• Phony injury claims: Criminals lie about the harm they or others have

sustained in an accident.

• Infl ated damage claims: Criminals falsify the extent of damage or the true

cost of repairs to their vehicles. For example, an insurance cheat adds previous

damage to a legitimate claim, or conspires with a body shop and/or claims

adjuster to pad a repair estimate.

• Phony thefts: The owner simply abandons a vehicle and then claims it was

stolen (known as an “owner give-up.”)

• Staged accidents, such as the intentional rear-end collision.

• Falsely claiming a one-car accident was a “hit and run.”

• Inventing injuries to people who were not even in the vehicle at the time

of the accident (known as jump-ins.)

potential fraud, along with continual employ-

ee training will help to mitigate a rental agen-

cy’s vehicles from being used in fraudulent or

staged accidents. Reduction in fraud will help

keep insurance rates low and lead to greater

profi tability.

Howard J. Hirsch is vice president of claims at

Knight Insurance Group. Hirsch is a licensed

California attorney with more than 21 years of

experience in the insurance industry.

ARN0111fraud.indd 15ARN0111fraud.indd 15 12/21/10 10:29:34 AM12/21/10 10:29:34 AM


http://www.abramsconsulting.com


When a big wave washes onshore,

it has the potential to smash

what lies in its path. When the

wave recedes, what’s left looks nothing like

it did before. And so it was with the Great

Recession, crashing ashore, dismantling

infrastructure and rearranging the landscape

as we know it.

Th e car rental industry—and the auto-

motive industry—have undergone unprece-

dented changes in the past two years. If you’re

reading this, you’ve survived the tsunami. But

now what? Are you a big wave surfer, or are

you still being hit by them?

Th e 2011 Car Rental Show (CRS), present-

ed by Bobit Business Media and the Ameri-

can Car Rental Association, is structured to

provide car rental operators with the tools to

take advantage of opportunities in the wake

of the new economy. To be held at the Las

Vegas Hilton March 8-9, 2011, CRS is once

again jam-packed with education, informa-

tion and networking.

Larry De Shon and Jack Fitzgerald

to Keynote

Th is year’s keynote presenters will tie to-

gether the moving parts of the car rental in-

dustry from both the corporate and indepen-

dent perspectives.

Delivering the opening keynote address on

Tuesday aft ernoon will be Larry De Shon, vice

president of operations at Avis Budget Group.

De Shon oversees all domestic car rental op-

erations as well as quality assurance and fi eld

security for two of the largest and most well-

known brands in the travel industry.

De Shon brings to his address a unique

perspective from his experience in the air-

line and car rental industries. Prior to join-

ing Avis Budget Group, De Shon was senior

vice president of airport operations at United

Airlines. As the head of United’s worldwide

airport operations, he led an organization of

23,000 employees in 29 countries.

Jack Fitzgerald of Fitzgerald Auto Malls

will present this year’s closing keynote ad-

dress on Wednesday aft ernoon. Fitzgerald,

owner of one of the largest dealer groups

in the country, bought Rent-A-Wreck in

2006 and has been working successfully to

reinvigorate the well-known brand name.

During the Chrysler and General Motors

bankruptcies, Fitzgerald was a leader in

the fi ght by rejected auto dealers to keep

their franchises.

Always outspoken, Fitzgerald will present

a no-bias, candid discussion of recent events

aff ecting the entire automotive industry while

encouraging audience participation. Th is is

your time to “sound off !”

Preconference Seminars Return

Once again, CRS presents two precon-

ference seminars at no extra charge to max-

imize attendees’ show value.

● Tennant Group Roundtable

Th e Tennant Group Roundtable is the in-

dustry’s premiere forum for car rental op-

erator members to improve effi ciencies and

maximize profi ts in their businesses. Th e

Roundtable returns to CRS to share its exper-

tise in a two-hour preconference workshop.

In this roll-up-your sleeves seminar, attend-

ees will have the opportunity for a one-on-one

analysis of their operating and fi nancial data

by an experienced, non-competing Roundta-

ble member. Th ese statistics will be aggregat-

ed into a customized, anonymous report that

will be shared with the group.

● Welcome International Operators

A pre-conference seminar and networking

session for international car rental operators

will also return for 2011. Hosted by Angela

Margolit of Bluebird Auto Rental Systems,

this two-hour session, for international op-

erators only, is designed exclusively around

the unique and diverse challenges facing over-

seas operators. International attendees will un-

derstand the latest technologies, selling tech-

niques and trends that they can take back to

increase revenue and enhance productivity

in their operations.

General Sessions

Th e CRS general sessions present topics

that are of importance to attendees from all

facets of the industry.

The market is rebounding. Are you poised to take advantage of new opportunities?

2011 CAR RENTAL 2011 CAR RENTAL SHOW PREVIEW:SHOW PREVIEW:RIDING THE WAVE OF CHANGE

BY CHRIS BROWN

PHO

TO: ©

ISTO

CK

PHO

TO.C

OM

/EPI

CST

OC

KM

EDIA

ARN0111crs.indd 16ARN0111crs.indd 16 12/21/10 10:21:24 AM12/21/10 10:21:24 AM

● The Business Case for Going Green

In a special Wednesday morning break-

fast address, Lee Broughton, director of cor-

porate sustainability for Enterprise Holdings,

will lay out the case for economic, social and

environmental sustainability, or “the triple

bottom line.”

With the increasing proliferation of environ-

mental regulation and legislation, Broughton

will impart the need for the car rental industry

to develop a sector-specifi c position on sus-

tainability reporting and transparency before

the industry is likely mandated to do so.

● Ask the Manufacturers

Th is panel discussion will present the state

of the automotive industry from the manufac-

turers’ perspective. Panelists from domestic

and foreign OEMs will provide insight into

auto rental fl eet sales, changes in model mix,

new model off erings, build-out dates, residu-

al value projections and more. Hear from and

ask questions to the OEMs themselves.

● ACRA Update and Panel Discussion

Join Sharon Faulkner, the newly appointed

executive director of the American Car Rental

Association, and the ACRA board of directors

for an open forum on today’s issues directly

aff ecting your operation and the auto rental

industry as a whole, from legislation and taxa-

tion to standardization and policy consensus.

Th is is your chance to cause action and aff ect

change through your association.

Concurrent Seminars

Th e concurrent seminars allow attendees

to choose a topic with specifi c relevance to

their organization. More seminars are being

added as of press time.

● Carsharing – Extending Your Reach,

Improving Your Margins

Carsharing is the global transportation

phenomena estimated to be an $8-10 bil-

lion industry worldwide within the next de-

cade. Carsharing requires lower overhead

and utilization while off ering tantalizing-

ly high RPUs. Neil Abrams, president of

Abrams Consulting Group and Julian Es-

piritu, managing director of its carsharing

advisory services business unit, will explain

the carsharing business model, the compet-

itive landscape, its performance drivers and

value propositions. Whether or not carshar-

ing should be integrated into your operation,

you must be educated by the experts on this

cutting-edge rental business off shoot.

● Innovative Marketing Techniques

for Independents

Marketing and training gurus Jim Davis

and Tom Sabol of Leslie Saunders and Asso-

ciates presents a hands-on session designed

specifi cally for independents and entrepre-

neurs to maximize their shoestring market-

ing budgets. Attendees will take home ideas

on how to generate referral business and buzz

through local media, explore sponsorship op-

portunities with the highest ROI and motivate

employees to be “brand advocates.”

● Legal Rulings and Your Business

Politicians, lawmakers and judges had their

eyes on you in 2010! Leslie Pujo and Michael

LaPlaca of LaPlaca Law PC will tackle today’s

hot legal and legislative topics, including CDW

price regulation, the recovery of vehicle licens-

ing costs, new insurance steering regulations,

increases in rental car taxes, special treatment

of foreign renters and much more.

● High Risk, High Reward: Renting Exotics

Everyone looks good in a fast car—but

will they work in your rental fl eet? Noah Le-

hmann-Haupt and Rob Ferretti of Gotham

Dream Cars, one of the nation’s preeminent

exotic car rental companies, present an in-

sider’s analysis of the considerable challeng-

es and rewards of renting exotic and luxury

cars. Timid operators need not attend.

● Turbo Boost Your Fleet Plan

Are you running your rental operation

as effi ciently and profi tably as you can? Are

you utilizing your fl eet in the best way possi-

ble? When is the best time to pull rental ve-

hicles from service? What are my vehicles’

replacement costs? Is it better to run vehi-

cles in fl eet longer or replace them with new

cars? Greg Lubrani, business line director

at OPENLANE and Dave Arney of Vehicle

Rental Consulting Group provide solutions

for those questions and more.

● Rental Car Satisfaction Recovers –

Now What?

Stuart Greif, vice president and general

manager for J.D. Power and Associates’

Global Travel and Hospitality practice,

will share emerging trends and insights

from research recently performed by J.D.

Power and Associates as well as point to

opportunities for rental car companies

to better address customer pain points.

Greif will use examples from other in-

dustries to emphasize ways that car rental

companies can learn and apply lessons

to raise their performance and differen-

tiate themselves.

● Five Profi t Boosters and Five Profi t Busters

of Incremental Sales

When it comes to running a successful

operation the little things add up. Wheth-

er you’re overcoming a customer’s objec-

tion, stating your location’s name in your

opening phone greeting or having the cor-

rect incentive plan, getting the small details

and techniques right can lead to big time re-

sults! In this interactive workshop, experts

from the Frontline Performance Group will

review fi ve time-tested profi t strategies and

will caution operators on which fi ve com-

mon day practices to avoid.


WHAT’S YOUR BIG IDEA?The Profi t Making Idea session is back by overwhelming

demand! Members of the Tennant Group Roundtable will

each present an idea that has been proven to directly im-

prove profi ts in their car rental operations. Seminar attend-

ees will also have an opportunity to present a pre-approved

idea. Attendees will receive a handout for each idea presented

and will vote for the best idea. The winner will be announced at

the end of the closing keynote address and will receive a free pass

to a future Car Rental Show!

Vegas, baby!

ARN0111crs.indd 17ARN0111crs.indd 17 12/21/10 10:21:30 AM12/21/10 10:21:30 AM


Being the only rental location in a town

of 20,000 people has its advantages. Just

ask Brady Krueger, who runs a Hertz

Local Edition in Newton, Kan. His operation

is dedicated to insurance replacements.

Krueger says small towns can be diffi cult

locations for rental operations to succeed on

their own. “If other 20,000-population towns

are like we are, I don’t think [bigger rental agen-

cies] could aff ord to have an exclusively auto-

mobile rental agency sitting in that town,” he

says. “You just can’t run the volume, so to at-

tach it to another existing business is a way to

spread your name.”

In Krueger’s case, his Hertz Local Edition

operates alongside his insurance agency, Krue-

ger Insurance Management. Th e property and

casualty insurance fi rm handles personal and

commercial lines of insurance for individuals,

manufacturers, contractors and municipalities,

including the city of Newton. Th e company

also represents several insurance companies,

including Allied Insurance, and is a Progres-

sive “Signature Agent,” making it one of the

national insurer’s top agencies.

Krueger says his two businesses have oper-

ational synergies. Th ey share the same offi ce

building and personnel. More importantly, the

insurance agency can supply its clients with in-

surance replacement vehicles on the spot.

“It’s really a nice deal,” he says. “Th at’s

why we started [the car rental operation] in

the fi rst place…we just felt like that was one

more piece of customer service for the insur-

ance agency.”

Getting Into the Rental Game

Before Krueger had the Hertz operation,

he got his insurance rentals from local, in-

dependent car rental agencies. Th en insurers

switched from independent operations to na-

tional brands. “Our rental cars fi rst came from

Wichita, which is about 20 miles away. Th en

they started coming from Hutchinson, which

is about 35 miles away,” he says.

He didn’t have a problem accepting rent-

al cars from nearby cities, but he did have a

problem when the cars wouldn’t show up on

time for his customers. Aft er a couple of years

of receiving customer complaints, Krueger

decided to set up his own car rental agency.

He fi rst contacted Enterprise about setting

up shop, but was turned down due to com-

petitive reasons regarding established near-

by territories.

Krueger reached out to other car rental

companies, including Hertz, and received im-

mediate interest from the company. “Th ey re-

sponded really quickly, really positively, to us,”

he says. “I think our timing probably could not

have been better…it was right when they were

really starting to get into the insurance replace-

ment business.”

In 2002, Krueger and his wife Sheryl opened

a Hertz Local Edition. It was only the second

one operating in the state of Kansas at the time.

Th e rental operation has its own dedicated of-

fi ce and rental counter separate from the insur-

ance agency. Th e Hertz logo and photos of cars

are prominently displayed on the wall behind

the rental counter. On the outside of Krueger’s

offi ce building stands a Hertz sign and the in-

surance agency’s sign side by side.

Krueger didn’t have to add full-time per-

sonnel to get up and running in the rental car

operation. “Our existing insurance staff takes

care of the daytime rentals and returns,” he

says. “We have a dedicated Hertz telephone

line and whoever’s not on another line will be

the one who answers that.”

Th e rental operation stays open an hour lat-

er than the insurance agency, so Krueger has

two part-time rental employees who over-

see the counter and clean rental cars during

that time.

Sometimes, Krueger will join in and clean

the cars, too. “It’s a good wind down aft er the

day. You sit behind a desk and you’re on the

phone all day. You’re doing, in some cases,

some pretty intense insurance stuff ,” he says.

“And so, if I get in an hour of crawling under

dashboards and seats cleaning stuff and whisk-

ing around the vacuum and all of that, that’s a

nice little end of the day stretch out.”

Benefi ts of Insurance Rentals

As an independent agent, Krueger’s rent-

al operation operates diff erently from tradi-

tional franchise operations. For one thing, he

SYNERGY SUCCESS

BY JUSTINA LY

Sheryl and Brady

Krueger are co-

owners of a Hertz

Local Edition in

Newton, Kan. The

rental agency, which

is dedicated to insur-

ance replacements,

was only the second

one of its type oper-

ating in the state of

Kansas at the time.

The synergies between an insurance fi rm and a Hertz Local Editionlead to a successful rental operation in a small town.

ARN0111profile.indd 18ARN0111profile.indd 18 12/21/10 10:22:17 AM12/21/10 10:22:17 AM


ARN0110usave.indd 1 1/12/10 1:34:30 PM

• AUTHORIZATION CHECK LIST •

FURTHER CUSTOMER CHANGES ON THIS PROOF ARE CHARGEABLE.

Please fax this proof back by ______________ on_________________________.If not received by the above date, the ad will run as is.Thank You!

BOBIT BUSINESS MEDIA • 3520 CHALLENGER ST., TORRANCE, CA 90503 • 310-533-2400 • FAX 310-533-2501

Signature________________________________________________________________ Date_____________________

URGENT ADVERTISING PROOF

Proudly Serving the Southeast United States!

ARN1107courtney-R.indd 1 9/3/09 9:57:40 AM


ARN0510purco_02.indd 1 4/28/10 9:50:42 AM


doesn’t have to worry about fl eet acquisition.

Hertz provides him with rental vehicles, so he

doesn’t have to purchase his own. He says he

usually keeps four to seven vehicles at a time,

but no more than that.

Krueger also doesn’t have to handle any ve-

hicle maintenance or repairs. His rental opera-

tion is 20 miles from Wichita, where Hertz has

a regional offi ce, so the company sends drivers

to pick up rental cars when they need service.

“Th ey’ll send a driver down here with a good

car, and he will take back the car that’s in need

of service. So, we don’t do anything,” he says.

An additional benefi t is that, along with his

regular commission, Hertz pays Krueger a sep-

arate fee for cleaning his vehicles.

Creating Small-town Success

While Krueger may have fewer operation-

al responsibilities than his traditional franchise

peers, success as an independent agent comes

largely based on how he markets his rental op-

eration to the local public.

He promotes the rental and insurance agen-

cies together in advertisements that appear in

the local newspaper, two phone books and the

high school sports programs. In ads primarily

dedicated to the insurance agency, Krueger will

include a couple of lines to promote the rental

business along with the Hertz logo and the car

rental dedicated telephone number.

Th e consistent advertising has paid off as Krue-

ger rarely has unused or extra vehicles sitting

on his lot. “We’re usually not sitting there with

a lot of spare automobiles. And it’s just amazing

how many times we run out,” he says.

In addition to insurance rentals, which ac-

“We have a bit more knowledge of loss damage waiver than if

customers were asking about it at the local airport,” says Brady

Krueger, owner of a Hertz Local Edition and Krueger Insurance

Management in Newton, Kan. “We know how the auto policies

work and what the advantages of buying the loss damage waiver is

compared with relying on your auto policy.”

Krueger’s frontline personnel inform renters that if they don’t

purchase a loss damage waiver and rely on personal auto poli-

cies, they will fi rst have to pay their collision deductible after an

accident. Then they face additional damage charges from the car

rental company. The RAC will likely tie up their credit cards until it

receives insurance reimbursement—and that usually won’t happen

until the insurance company gets a copy of the police report and

has a chance to talk to all parties involved in the accident. These

charges can add up, especially with credit card interest rates.

Krueger says Kansas is a comparative

negligence state, which means that fault

is not necessarily absolute and could be

assigned on a percentage basis to drivers in

the accident. This increases the chances of

fault in any accident.

Drivers who are found at fault may pay

even more out-of-pocket, non-reimburs-

able expenses in addition to their collision deductibles: If a renter’s

reimbursement coverage is $30 a day and he or she crashed a

rental that goes for $45 a day, he or she would pay an additional

$15 out of pocket. In addition, the rental agency may go after the

driver for administrative fees and diminution of value charges,

which are excluded from personal auto policies.

Learning the Hard Way

Krueger recounts one insurance client who learned his

lesson the hard way. The man rented a vehicle in California and

didn’t purchase the loss damage waiver. He got involved in a

traffi c accident with a big rig and the incident took about three

months to resolve. During that time, the car rental company he

used had charged his credit card for nearly $10,000 worth of

damages.

“The loss damage waiver, if you take it,

it’s pretty much you come in, you fi ll out

the little report …and walk right back

out the door. No expense out of pocket,”

Krueger says. “We always recommend a

loss damage waiver. It’s just a vastly supe-

rior way to protect yourself than it is to

rely on your own auto policy.”

HOW TO EDUCATE CONSUMERS ON THE BENEFITS OF LOSS DAMAGE WAIVER

One benefi t of having insurance professionals running a car rental operation is that they

know how to best explain the benefi ts of a loss damage waiver to drivers.

count for 25 to 30 percent of total business,

Krueger says locals will rent vehicles for va-

cations, business trips or when their own cars

are in the repair shop for non-insurance rea-

sons. “Th e other insurance agents in town,

they will send people down here for rentals as

well,” he adds.

Krueger says whatever profi t the rental op-

eration generates, he divides and shares with

his full-time and part-time staff at the end of

the year.

He says any decline in his car rental busi-

ness won’t hurt him or his employees. “It’s not

going to aff ect anyone’s livelihood if there’s a

drop off in the car rental business. Th e insur-

ance agency does just fi ne all by itself,” he says.

“Th e Hertz income is a fraction of this offi ce’s

total revenues.”

Krueger also owns and operates a

7,200-square-foot storage unit facility next

door to his offi ce building. However, he still

appreciates the supplemental income from

his Hertz Local Edition operation. “It’s a bo-

nus—a nice sized bonus—at the end of the

year,” he says.

Jerry Vetter, a part-time employee at Krue-

ger’s Hertz Local Edition, cleans one of the

rental vehicles.

PHO

TO: ©

ISTO

CK

PHO

TO.C

OM

/KLH

49


It has never been more important to maximize recovery yet minimize expense.

Let us help you. We have the experience and tools to help you succeed,

including access to our website 24/7 for real-time progress and comprehensive

reports. Let us take the worry out of loss prevention for your operation.

136 S. Main Street, Spanish Fork, Utah 84660

Toll Free 1-888-PURCO-88

Email: [email protected]

www.purco.com

During these tough times, we’re here for you.

Recovery Specialists for the Vehicle Rental Industry

ARN0510purco_02.indd 1 4/28/10 9:50:42 AMARN0111profile.indd 21ARN0111profile.indd 21 12/21/10 10:22:25 AM12/21/10 10:22:25 AM


http://www.purco.com


Overall customer satisfaction with

rental cars has returned to pre-

recession levels aft er declining

to lower levels during the past two years,

according to the J.D. Power and Associates

2010 North America Rental Car Satisfaction

Study released in November.

Now in its 15th year, the study measures

overall customer satisfaction with renting cars

at airports by examining six factors (listed in

order of importance): costs and fees, pick-up

process, rental car, return process, reserva-

tion process and shuttle bus/van.

Overall satisfaction averaged 750 on a

1,000-point scale in 2010. Th is is an im-

provement from 733 in 2009 and 734 in 2008,

equal to the 2007 overall score, yet below the

767 score in pre-recession 2006. Satisfaction

with the reservation process, pick-up process,

shuttle bus/van and costs and fees achieved

three-year highs. Each of the rental car com-

panies included in the study has improved

in 2010 compared with 2009.

Enterprise ranked highest in customer sat-

isfaction for a seventh consecutive year and

performed particularly well in all six factors.

Enterprise is followed in the rankings by Na-

tional and Hertz, respectively.

In addition to increased satisfaction with

rental car companies in 2010, customer loy-

alty and advocacy have also improved from

2009. In 2010, one-third of business trav-

elers and 28 percent of leisure travelers in-

dicated they “defi nitely will” rent from the

same brand again—marking increases of 2

percent and 5 percent, respectively, from

2009. Advocacy rates have increased by 3

percent among business travelers and 6 per-

cent among leisure travelers from 2009. In

2010, 30 percent of travelers in both groups

say they “defi nitely will” recommend their

rental car company.

Stuart Greif, vice president of the travel

practice at J.D. Power and Associates and the

director of the study, spoke with Auto Rent-

al News to explain the survey and put some

qualitative analysis behind the numbers.

The Economy Matters

Th e roller coaster economy has had a

huge infl uence on overall scores in the past

few years.

“Th e macroeconomic conditions aff ect-

ing both business and leisure travel as well

as consumer discretionary spend have a de-

monstrable impact [on scores],” says Greif.

“Th ey pose the greatest challenge when reve-

nue is down when [car rental companies] are

looking at how to reduce operating costs and

manage profi t through a downturn.

“By quickly improving their operations

as the market started coming back, rental

car companies started reversing the negative

impact on satisfaction that cuts and deferred

investments had during the downturn,” says

Greif. “Satisfaction snapping back in 2010 is

a testament to the industry doing its best to

balance the tension between customer sat-

isfaction and hard economic realities dur-

ing this period.”

Economic conditions aff ected satisfac-

tion scores in other travel industries, says

Greif, though scores in airline surveys were

bumped up somewhat during the economic

downturn. Th at’s because lower airfares and

smaller passenger loads resulted in less con-

gestion at airports and on planes, as well as

fewer checked bag problems and fewer com-

plaints with baggage fees. Nonetheless, air-

line scores were still much lower than in 2006,

before the onset of baggage fees.

Fewer Problems Reported

Incidence of reported problems decreased

to 9 percent in 2010, compared with 11 per-

cent in 2009. Vehicle pick-up and billing had

the highest rates of reported problems.

“It’s important to note that 22 percent of

problems experienced by customers go unre-

ported, which means there was never an op-

portunity to resolve them,” says Greif. “Th e

bottom line is that prevention of problems is

a far better strategy than service recovery for

achieving high satisfaction levels.”

Scoring Details

Th e seven categories (reservation process,

pickup process, return process, rental car,

shuttle bus/van, cost and fees and then overall

satisfaction) are not weighted equally.

Generally speaking, the rental car itself con-

stitutes about 20 percent of the overall score

while the return process is roughly about 20

percent. Cost and fees make up about 25 per-

cent, while reservations, shuttle bus and van

are not weighted as heavily. Speed makes a

big diff erence, mostly in the pickup and re-

J.D. Power and Associates’ Stuart Greif talks about the 2010 North America Rental Car Satisfaction Study, how RACs were graded and why brands achieved the scores they did.

U N D E R S T A N D I N G

CUSTOMER SATISFACTION

BY CHRIS BROWN

Stuart Greif of J.D. Powers and Associ-

ates will present a seminar on how

rental operators can improve their

performance and meet customers’

needs at the 2011 Car Rental Show in

Las Vegas, March 8-9.

ARN0111jdpower.indd 22ARN0111jdpower.indd 22 12/21/10 10:22:54 AM12/21/10 10:22:54 AM

turn processes, Greif says.

Greif’s team derives from each survey

which part of the rental experience is most

important to the individual respondent and

in what proportion. Th e survey breaks down

each of the seven categories into further

components. Th e rental car category has 10

subcategories, for example. One of those is

“smell.” If one respondent graded smell with

a score of two, (i.e., the car stunk) while oth-

er subcategories fared well, and the respon-

dent scored the car overall as only a three,

that very low score for smell is weighted more

heavily in the overall average. Th e reasoning

is that the bad smell was obviously very im-

portant to that renter’s experience.

Brand Inclusion or Exclusion

Why are some brands included in some

years and not in others? J.D. Power needs

at least 100 surveys for the data to be sta-

tistically relevant and thus rank a compa-

ny in the survey.

J.D. Power tries to increase the overall

sample size of the study as a means to try to

include as many brands as possible, time and

money permitting, Greif says.

High Rates, Newer Fleets

Impact Scores

Th e industry started buying fl eet again in

the fi rst quarter of 2010, mitigating the trend

of high-mileage cars during the recession.

Newer fl eets factored into higher scores in

the rental car category for this year, and Greif

expects that positive correlation to continue

into next year’s survey.

Rental car rates have increased for leisure

travel but have held steady for corporate con-

tracts. While high rates are good for the in-

dustry, they have an adverse impact on cus-

tomer satisfaction scores, generally speaking.

Higher rates may cause lower scores moving

forward. However, “We think that the trend

will be more than off set by improvements in

the operations regarding sacrifi ces made dur-

ing the downturn,” Greif says.

Business Travelers Are Tough

Graders

Th e survey does not offi cially rank busi-

ness versus leisure, but J.D. Power does iden-

tify respondents on business or leisure trips.

In general, business travelers are tough-

er graders but they tend to be more loyal,

Greif says.

Overall, business renters graded

the industry at 738 as a whole, while

leisure travelers gave a grade of 759.

Th is higher leisure grade is true even

among the brands that focus on the

business traveler: Avis scored a 722

with business travelers and a 755 with

leisure travelers. Hertz scored 744

for business and 776 for leisure. Na-

tional scored 771 for leisure, 764 for

business. (Enterprise, for that matter, scored

775 with its business customers and a whop-

ping 792 with leisure.)

Brand Analysis

Th e biggest brand surprise in the 2010 sur-

vey was Advantage, which beat out Budget,

Dollar and Th rift y in satisfaction. Advantage

scored 731 in 2010 compared to 674 in 2008.

It is reasonable to surmise that Hertz’s own-

ership was the main factor in its improve-

ment, according to Greif.

Avis, which wins more than its fair share

of global travel awards, scored below the in-

dustry average again, as it had in 2009 and

2008. While Avis scored solidly in most

categories, it ranked a two out of fi ve in the

costs and fees category, which lowered its

overall score.

Even if two rental cars had identical pric-

ing, Greif explains, if one is delivering a better

experience for the money, it will tend to have

better scores in cost and fees as well.

Both Dollar and Th rift y have scored con-

sistently low in this survey as well as in the

past few surveys. Part of this may be due to

business model and customer segment dif-

ferences—focusing more on the lower-cost

end of the market. At the same time, Greif

points out that in the airline industry, on

which J.D. Power also conducts similar re-

search, the low-cost carriers such as JetBlue

and Southwest rank highest. Greif suggests

that there is much that Dollar and Th rift y

can learn and apply from how these airlines

approach service and how they innovate to

make the traveler’s experience more effi -

cient and enjoyable to improve their per-

formance.

Enterprise’s feat of seven consecutive

wins is remarkable. “Enterprise has really

understood what matters to travelers,” says

Greif. “The ability to have consistent per-

formance as Enterprise does and to have

three of the parent company’s top four

brands at the top shows something about

the overarching management of the com-

pany and how they focus on the custom-

er experience.”

As this is an airport-focused study, Enter-

prise’s “we’ll pick you up” benefi t is irrele-

vant to this data set, though Greif says the

RAC probably gains some positive bleed in

the customer’s mind from getting picked up

in local rental experiences.


OVERALL SATISFACTION SCORES

2006 2007 2008 2009 2010767 750 734 733 750

Business*

2006 2007 2008 2009 2010758 740 720 724 738

Leisure*

2006 2007 2008 2009 2010771 758 744 740 759

*Not an offi cial J.D. Power and Associates ranking

The 2010 North

America Rental Car

Satisfaction Study is

based on more than

11,500 evaluations

from business and

leisure travelers who

rented a vehicle at an

airport location within

the previous 30 days.

The study was fi elded

between October

2009 and September

2010.

0 100 200 300 400 500 600 700 800

786

767

762

750

749

738

731

729

723

713

Enterprise

National

Hertz

Industry Average

Alamo

Avis

AdvantageRent-A-Car

Budget

Dollar

Thrifty

J.D. POWER AND ASSOCIATES 2010 SATISFACTION STUDY

ARN0111jdpower.indd 23ARN0111jdpower.indd 23 12/21/10 10:22:54 AM12/21/10 10:22:54 AM

ARN0111crs.indd 1 12/20/10 11:21:32 AM

QI’m considering opening an airport

location. I’ve been told that the air-

port authority will want me to provide

them with a list of my minority suppli-

ers. What is this about?

— Name and location withheld

on request

A In 1953, the U.S. government

passed a law that set aside 5 per-

cent of all procurement contracts for

small businesses classified as disad-

vantaged business enterprises (DBE).

Since then the federal government has

both expanded the size of the set aside

and the definition of “socially and ec-

onomically disadvantaged.” Airports,

because they receive funds from the

Federal Aviation Administration and

other federal agencies, must meet the

Department of Transportation’s DBE

regulations.

Th e DOT includes these groups

in their classifi cation: women, Black

Americans, Hispanic Americans, Native

Americans, Asian-Pacifi c Americans,

Subcontinent Asian-Pacifi c Americans,

or other minorities found to be disad-

vantaged by the U.S. Small Business Ad-

ministration (SBA).

From the DOT web site:

“Th e U.S. Department of Transporta-

tion’s DBE (disadvantaged business en-

terprise) program provides a vehicle for

increasing the participation by MBEs

(minority business enterprises) in state

and local procurement. DOT DBE reg-

ulations require state and local trans-

portation agencies that receive DOT

financial assistance, to establish goals for

the participation of DBEs. Each DOT-as-

sisted state and local transportation agency

is required to establish annual DBE goals,

and review the scopes of anticipated large

prime contracts throughout the year and

establish contract-specifi c DBE subcon-

tracting goals.”

Since 1983, the DOT must ensure that

at least 10 percent of the funds authorized

for transit assistance programs be expend-

ed with DBEs. Since each entity receiving

DOT funds must set their goals, the goals

vary from airport to airport, but cannot

be less than 10 percent. Chicago O’Hare’s

goal is 30 percent, while Philadelphia In-

ternational Airport’s goal is 14.07 percent.

So you need to check with your airport to

see what the local requirements are and

realize that these goals may change from

time to time.

In addition to establishing goals, state

and local recipients also certify the eligibil-

ity of DBE fi rms to participate in DOT-as-

sisted projects.

Finding SuppliersTh e airport should be able to direct you

to a list of qualifi ed suppliers. For exam-

ple, the directory for Chicago’s O’Hare

is maintained and published by the De-

partment of Procurement Services of the

City of Chicago. Th e DOT has a web page,

www.osdbu.dot.gov (click on “DBE Pro-

gram”) with the DBE liaisons for each

state. Th ey should be able to direct you

to certifi ed suppliers. An article by Leslie

A. Saunders in Auto Rental News (Hand-

book 2010) on becoming a DBE noted the

Airport Minority Advisory Council. Th e

Council’s Web site, http://www.amac-org.

com/, has a directory.

Reporting and Documentation

Talking to people in the industry, the

reporting and documentation require-

ments vary from location to location and

they can be extensive. Some facilities re-

quire a yearly plan showing how you are

going to meet the DBE goals for next fi scal

year. Th is is probably not a bad idea even

if it is not required. With a yearly plan, you

have a roadmap to check against so you

are not caught at the end of the year trying

to explain why the goal was not met. Th e

plan should include the DBE suppliers

and cost of projected services. It should be

reviewed every month to make sure you

are meeting your goals.

Reporting varies from a single annu-

al report to monthly reports required by

airports such as O’Hare. Th e reports in-

clude both the dollar amount purchased

from certifi ed DBEs and good-faith ef-

forts to contract with DBEs. All eff orts

need to be documented and some loca-

tions conduct yearly audits. Failure to

meet the goals can lead to the loss of the

concession.

Note: Some information above was

obtained from various federal and air-

port web sites, as well as interviews with

present and former rental operators. Th e

requirements for these programs change

regularly and you need to get the latest

requirements from your local program

manager.

Q&AQ&AQ&A

C A R R E N T A L Q & A


Email your fl eet-related

questions to Auto Rental News

care of [email protected]

or directly to Eckhaus Fleet at

[email protected].

Eckhaus Fleet is one of the largest

independent fl eet suppliers to the car

rental industry.

PHOTO: ©ISTOCKPHOTO.COM/IOFOTO

ARN0111qa.indd 24ARN0111qa.indd 24 12/21/10 10:23:23 AM12/21/10 10:23:23 AM

http://www.osdbu.dot.gov

http://www.amac-org



Media Sponsor

For more information, visit www.CarRentalShow.com

or call 800-576-8788

The 2011 Car Rental Show

(CRS), is the industry’s

premier gathering.

Our information-packed

seminars, panels and

enlightening keynotes provide

the tools you need to put your

existing resources to work and

increase profi ts! Clear your

calendar for March 8-9, 2011

and make sure you join us in

Las Vegas! CRS12

-30.1

0

HEADQUARTERS HOTEL: Las Vegas Hilton Hotel3000 Paradise RoadLas Vegas, NV 89109

Rate: $119 (Classic Room)Phone: 800-635-7711Mention CRS or use code SCRS1R when reservingExpires February 15, 2011

In conjunction with

Session Topics to Include:

• Marketing Your Business as an Independent

• Car Sharing

• Renting Exotic Cars

• Legal and Legislative Updates

• Manufacturing Panel

• The Triple Bottom Line

• Customer Satisfaction

• Remarketing Panel

• Profi t Sharing Ideas to Use Today

Produced by Bobit Business Media

Register by February 7th & Save $100

Jack Fitzgerald, Rent-A-Wreck and Priceless

Car & Truck Rental of America

A N N O U N C I N G Opening & Closing Keynote Speakers:

Larry DeShon, Avis Budget Group, Inc.

ARN0111crs.indd 1 12/20/10 11:21:32 AMARN0111qa.indd 25ARN0111qa.indd 25 12/21/10 10:23:26 AM12/21/10 10:23:26 AM

http://www.CarRentalShow.com

AF1010jobfinder.indd 1 9/21/10 9:04:40 AM


products & vendor newsCATRALA–Hawaii Elects 2011 Offi cers, Board of Directors

CATRALA–Hawaii has elected its

2011 offi cers and board of directors.

Aaron Medina of Hertz, Garrick Higu-

chi of Thrifty Car Rental, Nick Tinebra of

Honolulu Publishing Co. and John Coffelt

of Dollar Rent A Car were reelected as president,

vice president, treasurer and secretary, respectively.

Bluebird Adds Card$ense to RentWorks System

Bluebird Auto Rental Systems has fully integrated

Card$ense, a payment processing technology, into its Rent-

Works software system (version four).

Card$ense, developed by Element Payment Services, of-

fers rental operators the ability to identify a customer’s pay-

ment card type prior to processing the transaction. Based on

this information, operators can make informed decisions on

how to handle payments, resulting in cost savings and risk re-

duction.

For example, operators can determine how the system

should respond to debit cards by selecting:

● No Check

● Notify on authorized-only deposits

● Notify on authorized-only deposits and

convert to paid

● Notify on all payments/deposits

● Do not allow

Once a debit card is detected, the rental agent will see a

message, and the words “Debit Card” will appear in red.

With Card$ense, operators can customize their settings

based on location. Updates can happen automatically as new

card types are added in the marketplace. Card$ense is avail-

able for both Acquired and Gateway (TSYS) merchants.

Card$ense requires service pack B8 of RentWorks version

four, but does not require additional hardware.

For more information, visit www.barsnet.com,

e-mail [email protected], or call 1-800-304-5805.

Dollar Thrifty Announces 2011 Offi cer Promotions

Dollar Thrifty Automotive Group announced on

Dec. 6 the following promotions, effective Jan. 1, 2011:

Jeff Cerefi ce, promoted to senior vice president; Lynne

Pritchard, promoted to senior vice president of human

resources; Mike Souza, promoted to vice president of

corporate operations; Bill Copeland, promoted to vice

president of fi nancial planning and analysis; Darren Ar-

rington, promoted to staff vice president of fl eet; Joe

Colavecchia, promoted to staff vice president of reve-

nue management; and Les Pritt, promoted to staff vice

president of corporate operations.

“These seven individu-

als have earned their pro-

motions, all having dem-

onstrated exceptional

skills, solid judgment and

rock solid dedication to

DTG’s long term suc-

cess. The board of direc-

tors and I are delighted to

announce their promo-

tions within our leadership

team,” said Scott Thomp-

son, president and CEO

of Dollar Thrifty Automo-

tive Group.

Name Title CompanyAaron Medina President The Hertz Corp.

Garrick Higuchi Vice President Thrifty Car Rental

Nick Tinebra Treasurer Honolulu Publishing Co.

John Coffelt Secretary Dollar Rent A CarDean Matsuoka Director Matson Navigation Co.Dewey Hess Director Manheim Hawaii

Greg Artaho Director Budget Rent A Car

Jim Stone Director Law Offi ces of James J. Stone

Martin Mylott Director Avis Rent A CarReggie Maldonado Director Pasha Hawaii

Don Mackintosh Honorary Member

ARRINGTON

COPELAND

CEREFICE

PRITCHARD

COLAVECCHIA

PRITT SOUZA

Card$ense

allows operators

to select how

the system

should respond

based on the

customer’s type

of payment card.

MEDINA

To contact CATRALA-Hawaii, call (808) 952-4287

or e-mail [email protected].

ARN0111products.indd 26ARN0111products.indd 26 12/21/10 10:23:49 AM12/21/10 10:23:49 AM

http://www.barsnet.com



Think the grass is greener somewhere else?

It just might be

Search for jobs in your fi eld at www.fl eetjobfi nder.com

AF1010jobfinder.indd 1 9/21/10 9:04:40 AMARN0111products.indd 27ARN0111products.indd 27 12/21/10 10:23:59 AM12/21/10 10:23:59 AM

http://www.fl

*VEHICLES NOTED HAVE HIGHER (OR EQUAL) 2008-OVER-2009 VALUES BECAUSE THE AVERAGE MILEAGE OF THE 2008 MODELS GOING THROUGH THE AUCTION IS LESS THAN THE 2009 AVERAGE MILEAGE. DATA PROVIDED BY MANHEIM MARKET REPORT, A DAILY PRICE GUIDE BASED EXCLUSIVELY ON AUCTION TRANSACTIONS. THE DATA IS BASED ON SALES AT

MANHEIM’S 80 NORTH AMERICAN AUCTIONS. THE MANHEIM INDEX (MANHEIM USED VEHICLE VALUE INDEX) AT WWW.MANHEIMCONSULTING.COM PROVIDES “TREND” DATA FOR THE MOST RECENT 12 MONTHS AND IS UPDATED MONTHLY WITH COMMENTARY AND SEGMENT ANALYSIS.


AUDI A4

2008 4D SDN 3.2L QUATTRO 21,300 22,650 22,450 22,900 21,800

BUICK LACROSSE

2009 4D SEDAN CXL 14,000 12,550 12,550 12,550 12,550

2008 4D SEDAN CXL 11,700 13,100 12,050 12,250 10,950

CHEVROLET 1500 SILVERADO 2WD V-8

2009 REG CAB 4.8L 17,650 17,750 18,400 17,900 17,150

2008 REG CAB 4.8L 14,550 13,950 14,100 14,800 14,300

CHEVROLET COBALT

2009 4D SEDAN LS 6,950 7,000 7,300 7,250 6,550

2008 4D SEDAN LS 6,450 6,600 6,700 6,600 6,250

CHEVROLET COLORADO 2WD I5

2008 EXT CAB 3.7L LT 9,700 7,550 7,250 9,400 9,800

CHEVROLET EQUINOX AWD V-6

2009 4D SUV LT 16,700 16,900 16,450 15,200 14,850

2008 4D SUV LT 11,450 12,050 12,100 10,950 11,750

CHEVROLET HHR

2009 4D SUV 2.2L LT 9,150 8,700 9,400 9,600 8,900

2008 4D SUV 2.2L LT 8,300 8,600 8,200 8,300 8,700

CHEVROLET IMPALA V-6

2009 4D SEDAN LS 3.5L 8,850 9,200 9,650 9,050 8,300

2008 4D SEDAN LT 3.5L 7,850 7,500 8,050 7,750 7,700

CHEVROLET MALIBU V-6

2009 4D SEDAN 3.9L LT 11,850 10,950 10,500 10,950 10,950

2008 4D SEDAN 3.9L LT 7,650 6,750 8,100 7,250 8,300

CHRYSLER 300

2009 4D SEDAN 11,650 11,000 12,050 12,950 12,600

2008 4D SEDAN 10,500 10,900 11,600 11,650 9,750

CHRYSLER SEBRING V-6

2009 4D SEDAN LTD 13,900 14,050 13,800 13,300 12,550

2008 4D SEDAN LTD 11,350 10,400 11,450 11,850 9,150

DODGE RAM 2WD V-8

2008 QUAD CAB 5.7L 16,200 15,300 14,950 16,100 15,950

FORD CROWN VICTORIA

2008 4D SEDAN LX 13,600 13,600 11,700 9,500 11,350

FORD EDGE

2009 FWD 4D SE 15,850 15,450 16,100 16,600 15,000

2008 FWD 4D SE 15,500 13,400 15,400 15,200 14,500

FORD EXPEDITION EL 2WD V-8

2009 4D SUV 5.4L XLT 23,700 23,550 23,550 23,400 23,550

2008 4D SUV 5.4L XLT 21,250 20,550 20,550 19,850 20,600

FORD EXPLORER 4WD V-6

2009 4D SUV 4.0L XLT 17,400 16,800 17,750 17,500 17,150

2008 4D SUV 4.0L XLT 12,250 16,050 15,050 13,450 13,500

FORD F-150 2WD V-8

2009 EXT CAB 5.4L XLT 18,450 14,650 15,950 18,350 16,650

2008 EXT CAB 5.4L XLT 13,950 11,900 11,900 13,650 13,600

FORD FOCUS

2009 4D SEDAN SE 8,750 8,600 8,900 8,750 8,750

2008 4D SEDAN SE 8,150 *8,750 8,850 8,050 8,100

FORD FUSION 4-CYL.

2009 4D SEDAN SE 11,300 11,550 11,650 10,550 11,450

2008 4D SEDAN SE 10,700 10,350 10,600 9,850 9,800

FORD RANGER 2WD V-6

2008 2D EXT CAB 3.0L XLT 11,350 11,200 11,850 10,600 11,050

FORD TAURUS

2009 4D SEDAN SEL 10,700 9,300 9,250 11,150 12,350

2008 4D SEDAN SEL 8,850 9,050 10,150 8,650 8,100

GMC CANYON 2WD

2009 CREW CAB 2.9L SLE 14,400 14,400 14,400 14,400 14,400

2008 CREW CAB 2.9L SLE 14,250 13,900 13,900 15,050 11,600

JEEP GRAND CHEROKEE 4WD V-8

2009 4D WAGON LAREDO 20,000 21,750 23,100 22,200 22,200

2008 4D WAGON LAREDO 15,900 15,400 16,200 15,900 15,900

JEEP PATRIOT 4WD V-6

2009 4D SUV SPORT 11,650 12,650 12,200 12,050 11,800

2008 4D SUV SPORT 11,600 10,900 11,400 11,350 9,100

LINCOLN MKX AWD V-6

2009 4D CROSSOVER 22,500 22,500 22,500 22,500 22,500

2008 4D CROSSOVER 22,200 22,050 22,150 21,500 21,700

LINCOLN TOWN CAR

2009 4D SEDAN SIGNATURE LTD 21,200 21,400 20,250 19,500 20,000

2008 4D SEDAN SIGNATURE LTD 19,450 18,750 19,350 19,350 20,300

MERCEDES-BENZ S-CLASS

2009 4D SEDAN S550 60,700 61,500 61,050 64,300 60,950

2008 4D SEDAN S550 49,650 44,600 44,750 46,900 47,550

NISSAN ALTIMA

2009 4D SEDAN 12,950 12,500 12,850 13,300 12,450

2008 4D SEDAN 12,750 12,250 12,800 12,300 12,250

PONTIAC GRAND PRIX

2008 4D SEDAN 8,000 8,300 9,200 8,850 7,150

PONTIAC VIBE

2009 4D WAGON 8,900 8,400 9,300 8,400 8,300

2008 4D WAGON 7,600 7,600 7,600 7,600 7,600

SAAB 9-3

2009 4D SEDAN SPORT AUTO 16,600 16,600 18,250 16,600 16,600

2008 4D SEDAN ARC AUTO 10,600 10,700 10,900 9,700 10,550

SUBARU OUTBACK

2008 4D WAGON 2.5L LTD 17,700 18,050 16,600 17,350 17,600

TOYOTA CAMRY V-6

2009 4D SEDAN LE 12,150 12,600 11,750 12,250 12,950

2008 4D SEDAN LE 12,750 12,600 12,050 12,300 11,750

TOYOTA PRIUS

2009 4D HATCHBACK 14,300 13,150 13,500 13,900 14,050

2008 4D HATCHBACK 11,950 11,350 12,500 12,700 12,900

TOYOTA TACOMA 2WD V-6

2009 DBLCAB 4.0L PRERUNNER 20,700 20,700 20,750 20,950 20,800

2008 DBLCAB 4.0L PRERUNNER 18,150 18,000 18,000 17,300 18,150

VOLKSWAGEN JETTA 5-CYL.

2009 4D SEDAN S 11,400 11,400 11,900 11,100 10,800

2008 4D SEDAN *11,800 *11,450 11,750 10,850 *10,850

VOLVO S40

2009 4D SEDAN 2.4L 13,450 13,450 13,450 13,450 13,450

2008 4D SEDAN 2.4L 10,600 10,400 10,650 10,400 11,600

SOUTH NORTH MID WESTMODEL EAST EAST WEST CENTRAL COAST

SOUTH NORTH MID WESTMODEL EAST EAST WEST CENTRAL COAST

use

d c

ar

pri

ces

$2,000

$4,000

$6,000

$8,000

$10,000

$12,000

$13,000

THE GRAPH ABOVE REFLECTS ACTUAL AUCTION PRICES RECEIVED BY SELLERS OF COM-

MERCIAL FLEET VEHICLES. THESE VEHICLES GENERALLY HAVE HIGH MILEAGE. THE TABLE

BELOW REPRESENTS THE WHOLESALE VALUES OF MODELS REGARDLESS OF SELLER.

WestCentralMidwestNortheastSoutheast P .R .

NOV-09

DEC-09

JAN-10FEB-10

MAR-10

APR-10

MAY-10JUN-10

JUL-10AUG-10

SEPT-10

OCT-10

NOV-10

MID-SIZE CAR FULL-SIZE PICKUP FULL-SIZE VAN SUV

AVERAGE AUCTION SALE PRICE – COMMERCIAL FLEET VEHICLES

ARN0111auction.indd 28ARN0111auction.indd 28 12/21/10 9:57:30 AM12/21/10 9:57:30 AM

ARN0111auction.indd 29ARN0111auction.indd 29 12/21/10 9:57:32 AM12/21/10 9:57:32 AM

CAR 2011 - the place for consignors to be

AF1210car.indd 1 11/18/10 8:58:07 AM

ad indexAbrams Consulting Group ................ 914-696-5100 .................. abramsconsulting.com .................15

Bluebird Auto Rental Systems .......... 800-304-5805 .................. barsnet.com .....................................9

Car Rental Show 2011 ....................... 800-576-8788 .................. CarRentalShow.com ....................25

Conference of Automotive

Remarketing 2011 ............................... 800-576-8788 .................. CARCONFERENCE.com ...........31

Courtney Leasing, Inc. ........................ 407-438-0083 .................. courtneyleasing.com ....................19

Dollar Rent A Car ............................... 800-555-9893 .................. dollar.com ......................................13

GMAC Smart Auction........................ 877-428-9882 .................. aboutsmartauction.com ..............11

GMI Insurance Services ..................... 800-722-3229 .................. GMI-Insurance.com ........................5

Lancer Insurance ................................. 800-782-8902 x3027 ...... lancerinsurance.com ...................C3

Mile Fleets ............................................. 954-915-9384 .................. Milefl eet.com .................................13

Purco Rental Systems, Inc. ................ 888-PURCO 88 ............... purco.com ................................. 7, 21

Sonoran National Insurance ............. 866-998-1001 .................. sonorannational.com .....................3

Toyota .................................................. 800-732-2798 .................. fl eet.toyota.com ...........................C4

TSD Rental Management

Software ................................................ 800-743-1200 .................. tsdweb.com ..............................C2-1

U-Save Auto Rental ............................ 800-438-2300 x146 ........ usave.com .......................................19

COMPANY PHONE WEBSITE PAGE

The Advertisers’ Index is provided as a courtesy to Auto Rental News advertisers.

The publisher assumes no responsibility for errors or omissions.


www.autorentalnews.com

Vice President & Group PublisherSherb Brown — (310) 533-2451

Executive EditorChris Brown — (310) [email protected]

Senior EditorJustina Ly — (310) [email protected]

Art DirectorArmie Bautista

Production ManagerBrian Peach — (310) 533-2548

Subscription Inquiries(888) 239-2455

ChairmanEdward J. Bobit

President & CEOTy F. Bobit

Chief Financial Offi cerRichard E. Johnson

Editorial ConsultantHoward Rauch

ADVERTISING MANAGERS

Regional Sales ManagerAdam Kimber(714) 496-9026

[email protected]

Great LakesRobert J. Brown 1000 W. University Dr. Ste. 209Rochester, MI 48307(248) 601-2005 Fax: (248) 601-2004

Printed in the USA

All statements made, although based on information believed to be reliable and accurate, cannot be guaranteed and no fault or liability can be acceptedfor error or omission.

®

acra

ARN0111adindex.indd 30ARN0111adindex.indd 30 12/21/10 10:27:22 AM12/21/10 10:27:22 AM

http://www.autorentalnews.com




Visit www.CARCONFERENCE.com or call 800-576-8788 to Register

March 9-10, 2011Caesars Palace, Las Vegas

CAR 2011 - the place CAR 2011 - the place for consignors to befor consignors to be

Held in conjunction with the International Automotive Remarketers Alliance (IARA)

Roundtable, and the National Auto Auction Association (NAAA) Spring Business Meeting you’ll get more bang for your buck than any other automotive remarketing conference!

Here’s a preview of topics we have in store for you:

• Forecast of Residual Values• Next Generation of Online Remarketing Technology• Impact of Social Media on Used Vehicle Sales Channel• Town Hall Meeting: Economic Forecast For 2011-2012

NAAA Comedy Show Starring

Louie Anderson!Wednesday, March 9th at 7pm

Sponsored by the Independent Auction Group, Auction Insurance Agency & Black Book

REGISTER by February 7th& SAVE $100!

CA

R11

-25.

10

AF1210car.indd 1 11/18/10 8:58:07 AMARN0111adindex.indd 31ARN0111adindex.indd 31 12/21/10 10:27:25 AM12/21/10 10:27:25 AM

http://www.CARCONFERENCE.com

ARNHB10lancer.indd 1 2/3/10 10:16:12 AM

Electric vehicles (EVs) splashed onto the automo-

tive scene in 2010 and some car rental companies

quickly embraced them as part of larger corporate

environmental initiatives. Last year, the Hertz Corpora-

tion and Enterprise Holdings announced plans to add

EVs to their respective fl eets in the United States and

started introducing plug-in vehicles to rental and car-

sharing customers.

Both Hertz and Enterprise have partnered with Nissan

and are incorporating the automaker’s all-electric LEAF

into their fl eets. Nissan says the four-door, fi ve-passen-

ger vehicle can achieve 100 miles when fully charged.

Enterprise started adding 500 Nissan LEAFs to its fl eet

in December. Enterprise said the LEAFs would initial-

ly be available in seven markets — Phoenix, Nashville,

Tenn., San Diego, Los Angeles, San Francisco, Port-

land, Ore., and Seattle — where the infrastructure ex-

ists to support the vehicles. Hertz says it will roll-out the

LEAF at select rental sites in the United States and Eu-

rope by early 2011.

Hertz and Enterprise have also partnered with CODA

Automotive, a privately-held company based in San-

ta Monica, Calif., which manufactures the all-electric

CODA Sedan. Th e automaker claims the vehicle achieves

a range of 90 to 120 miles per charge. Hertz says it will

add the four-door, fi ve-passenger all-electric CODA Se-

dan to its California locations this year. Enterprise also

said it plans to add up to 100 CODA Sedan EVs to its

fl eet this year.

In addition, Hertz has partnered with smart USA, a

subsidiary of Penske Automotive. Hertz began renting

smart fortwo electric drives to car-sharing customers in

New York City through Connect by Hertz. Th e car rent-

al company will bring additional smart vehicles to oth-

er Connect by Hertz and Hertz Rent A Car locations in

Washington, D.C. and San Francisco.

Th is recent fl eet expansion is a crucial part of the Hertz

Global EV program, which was launched last September,

and aims to provide a variety of all-electric and plug-in

hybrid vehicles to car sharing and rental customers world-

wide. In addition to the CODA, Nissan and smart elec-

tric cars, Hertz says it also plans to off er the Mitsubishi i-

MiEV and the Toyota Prius plug-in hybrid. Th e car rental

company is currently taking reservations for electric ve-

hicles at its exclusive website, www.hertzev.com.

Meanwhile, Enterprise announced Nov. 11 that Chair-

man and CEO Andrew C. Taylor joined the Electrifi ca-

tion Coalition, a nonpartisan, non-profi t group that pro-

motes policies and actions that facilitate the deployment

of electric vehicles on a mass scale. Other members of the

coalition include executives from companies including

Cisco Systems Inc., Eaton Corp., PG&E Corp., Nissan,

Johnson Controls, FedEx Corp., and Siemens Corp.

Outside of the U.S., Avis Europe announced last Feb-

ruary that it planned to make Renault electric vehicles

available for rent starting this year. Avis did not spec-

ify which EVs would be available, although Renault

planned to introduce four electric vehicles between late

2010 and 2012.

With major car rental companies jumping aboard the

EV bandwagon, independent and franchised car rent-

al operators are beginning to examine if EVs will work

for their businesses. Th ey are analyzing the infrastruc-

ture needed to sustain EVs and fi guring out how to rent

EVs to customers who are comfortable and familiar with

gas-powered cars.

Th e electrifi cation of the auto industry is part of the

larger issue of corporate sustainability.

At the 2011 Car Rental Show, Lee Broughton, director

of corporate sustainability for Enterprise, will discuss why

the industry must be proactive in seeking economic, social

and environmental sustainability, or likely be mandated

to do so, which will be more painful and costly than if the

industry takes responsibility on its own.

Car rental companies further corporate environmental initiatives by adding EVs to fl eets.

BY JUSTINA LY

Industry Embraces Electric Vehicles

rent ALERTFOR UPDATES, VISIT WWW.AUTORENTALNEWS.COM


EVs AVAILABLE FOR FLEETEckhaus Fleet is taking rental fl eet orders for the

all-electric, highway ready Mitsubishi iMiEV. First

deliveries are expected by the fourth quarter of

2011. Complete packages with quick charge units

will be available.

ARN0111rentalert.indd 32ARN0111rentalert.indd 32 12/21/10 10:27:48 AM12/21/10 10:27:48 AM

http://www.hertzev.com

ARNHB10lancer.indd 1 2/3/10 10:16:12 AMARN0111rentalert.indd 993ARN0111rentalert.indd 993 12/21/10 10:27:49 AM12/21/10 10:27:49 AM

With ten Vincentric Best Fleet Value in America awards, Toyota vehicles have won more Vincentric awards than any other fl eet automaker.

With low maintenance costs and high resale value, selecting Toyota for your fleet means you win, too.

Call 1-800-732-2798 or visit toyota.com/fleet

Options shown. Based on Vincentric’s 2010 Fleet Analysis. ©2010 Toyota Motor Sales, U.S.A., Inc.

ARN0910toyota.indd 1 8/26/10 4:15:38 PMARN_cover.indd 994ARN_cover.indd 994 12/21/10 9:41:47 AM12/21/10 9:41:47 AM

Auto Rental News January/February 2011

Documents

Transcript of Auto Rental News January/February 2011