2011 August - 1st Car Rental

Archive for August, 2011

Avis Budget Group Finishes $650 Million Bond Offering

Avis Budget Group (ABG) announced the completion of an asset-backed bond offering for its Avis Budget Rental Car Funding LLC subsidiary in an Aug. 26 press release.

The offering, which has a weighted average interest of 3.5 percent, is expected to help in refinancing ABG debt that is maturing into 2012 with a blended interested rate at more than 6 percent — which is similar to the advance rate.

“The new asset-backed bonds will enable us to extend a substantial portion of our upcoming debt maturities over five years, and do so on attractive terms,” said David B. Wyshner, ABG executive vice president and CFO.

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US Luxury car rental thieves arrested

Fourteen people have been charged in connection with a phony carjacking scheme in which luxury cars were stolen in the United States and sent through Canada to be sold in Iraq, authorities say.

Members of the criminal ring rented luxury sedans, sport utility vehicles and other cars from rental car chains in Michigan and Ohio and then drove them into Canada, according to an indictment unsealed on Wednesday.

There they filed police reports claiming that the vehicles had been either carjacked or stolen in the Detroit area, authorities said.

The arrests followed a two-year investigation by the Homeland Security Investigations (HSI) unit of the US Immigration and Customs Enforcement agency.

“Criminal groups often believe they are employing ingenious techniques to further their illicit activity,” Brian Moskowitz, special agent in charge of HSI in Detroit, said in a statement.

But authorities are equipped “to follow a lengthy paper trail to expose schemes such as this and bring those involved to justice,” he said.

Nine of the 14 suspects were arrested in Detroit and four were arrested in San Diego, authorities said. One suspect, Danieal Korkis of Sterling Heights, Michigan, remains at large, authorities said.

Barbara McQuade, the US Attorney for the Eastern District of Michigan, called the enterprise “a large-scale car-theft scheme.”

Five of the vehicles the gang allegedly reported stolen were intercepted on shipping containers in Montreal bound for Iraq, authorities said.

Export documents accompanying the five vehicles identified the exporter as Discount Auto Sales, a company owned by 57-year-old Adnan Hana of Sterling Heights, whom McQuade said was the ring’s leader.

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Corporate Car Rental Program at Avis Upgraded with RFID

Avis Car Rentals Canada

(RFIDWorld.ca) To provide corporate clients with car rentals, Avis recently upgraded its system to the ‘Avis on Location’ to provide car rental services on-site.

The upgrade allows corporate customers to rent and return vehicles on corporate campuses at virtually any location. The system is RFID-enabled and pilot tests have been conducted with many of Avis’ existing clients. The response has been very positive thus Avis is going ahead with the launch.

Avis on Location is designed to serve the hourly and daily needs of its customers so that customers can simply use their current corporate travel package or Avis Preferred (business counter-bypass program), to rent cars through their smart phones and then pick up or return vehicles at the campuses. An electronic receipt will be automatically issued as soon as the RFID tag is tracked by a reader to make sure the car has been returned.

Tom Gartland, executive vice president of sales for the Avis Budget Group said that corporations are now looking for a service that encourages environmental friendly acts as well as a service that allows for convenience in returning and picking up rented vehicles. He feels that this RFID-enabled system that Avis has incorporated is excellent in terms tracking the use of rental cars, flexibility and customer friendliness.

Avis on Location is available to clients in both Canada and the United States. The program is free to join and vehicles can be picked up immediately after enrollment. The vehicles for rent are available 24 hour of the day, 365 days a week providing clients access to all classes of cars at any given time. Avis reported that it will start enacting local sites within the next few months and will continue to expand its services into local market settings and other convenient sites for large corporation.

The Avis on Location program was demonstrated to potential customers at the Global Business Travel Association’s annual convention this month and clients were extremely positive and pleased by what they saw.

Avis is committed to improving the customer rental experience and is known for providing its corporate accounts with the best in-class management tools, including the first internet-based reporting system and the carbon dioxide emissions calculator to help companies determine the environmental impact of their car rentals on a yearly basis. The company is a leader in providing its customers with technology solutions that make travel easier such as the Avis iPhone mobile application and the Windows Phone 7 application.

Avis expands UK car hire presence

Car hire firm Avis Rent a Car, has confirmed it has doubled its number of rental locations across the UK in just nine months, bringing its total branch number in excess of 220.

The expansion comes as part of Avis’ drive to increase its retail branch network, opening up access to convenient car hire for more customers in downtown locations.

Avis’ growing network has been recently boosted by new hotel partnerships with a number of Independent hotels and Holiday Inn properties, which have seen 20 and 40 new branches opening across the length and breadth of the country respectively.

Anthony Ainsworth, commercial director at Avis UK, commented: “Over 100 per cent¬¬ growth of Avis’ town and city branches in just nine months is a significant development for the company, and puts us another step closer to realising our target of having an Avis branch within a few miles of every household in the UK.”

Anthony continued: “Avis is committed to continuing to grow its UK network of downtown branches and expects to open a further 150 locations before the end of this year, demonstrating our commitment to giving customers the choice, convenience, service and accessible hassle-free car hire solution they are seeking; when, and where, they need it.”

Ford to Supply Vehicles to Zipcar

ASSOCIATED PRESS

DEARBORN, Mich.—Ford Motor Co. and Zipcar Inc. said Wednesday the auto maker has agreed to provide hundreds of its vehicles for the car sharing service’s college campus fleets across the country.

Financial terms of the two-year agreement were not disclosed.

Under the agreement, Zipcar will add up to 650 Ford …

Airport rental-car area upgrade may soon have a contractor

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The Lee County Airports Special Management Committee ranked JDK General Contractors first to lead construction work at Southwest Florida International Airport’s car rental facilities at its meeting Tuesday.

The move to reallocate car rental space at the airport comes as some national car rental companies have merged over the years. Where Budget or Avis had been separate car rental companies, they now fall under the Avis Budget Group Inc. umbrella and Enterprise Holdings Inc. now represents Enterprise Rent-A-Car, Alamo and National Car Rental.

The port authority has been working to find a solution that makes operations smoother for rental agencies without interrupting service for customers, and the decision to lead the ranking of general contractors with Davie-based JDK came as a surprise to some committee members.

“Typically the committee selects local companies,” said Joe Burgess, who chairs the committee.

Burgess said, for him, “it was just a feeling that they gave the best presentation and had the most experience.”

The firm has led similar construction projects, shifting the layouts of car rental agency operations at many airports including two other Florida airports – in Orlando in 2010 and in Tampa earlier this year. The company also led construction for the original car rental layout at Southwest Florida International before the airport opened, said JDK’s Ken Novak.

The committee opened the floor to four general contractor companies and included proposals from Manhattan Kraft Construction, Owen Ames Kimball, and Ajax Building Corp. The Lee County Port Authority estimates the project could cost around $2 million to $2.5 million.

It also unanimously recommended adoption of a new policy that outlines compensation for real estate brokers who successfully find tenants for Lee County Port Authority property.

“It puts you on an even par with all the land that’s out there,” said Matt Taylor, CEO of Orlando-based Real Estate Research Consultants, as he addressed the committee. ” … and gives brokers equal opportunity with those sites on airport properties and those off-site.”

The port authority has no existing policy or procedures in place for leasing land.

The recommendation comes on the heels of a request from Gulf Coast Technology Center Inc. to terminate its nearly 25-acre ground lease at Southwest Florida International Airport – which the committee supported.

After more than three years and investments close to $2 million in project planning and permitting, construction on the technology and bioscience center on Madden Research Loop never started. Gulf Coast Technology is an affiliate of Denver-based John Madden Co.

Lee County commissioners will make the final decision based on the committee’s recommendations when they meet as the port authority board on Sept. 12.

Men Still Rule the Wheel When Driving Abroad-But Driving a Hire Car is …

LONDON, UNITED KINGDOM, Aug 31, 2011 (MARKETWIRE via COMTEX) –
When it comes to driving abroad it appears that men are far more
likely to do the driving than women. A new You Gov survey,
commissioned by iCarhireinsurance.com, a leading online provider of
car hire excess insurance, has found that 40% of men have driven a
hire car abroad, compared with only 20% of women(i).

Driving a hire car is also revealed to be a surprisingly stress-free
experience amongst the 799 Britons surveyed who had driven a hire car
with a partner:


        --  Only 14% saying their partner criticised their driving(ii)
        --  Only 23% of people said that they had an argument with a partner when
            driving in a hire car(ii)
        --  And indeed only 8% had received a parking or speeding ticket when
            driving a hire car(ii)
        --  40% had got lost at some point in a hire car(ii)(but this is probably
            not far off an average weekend away anyway!)

“Hiring a car should be a relaxing experience, and without all the
pressures of home life perhaps people are able to switch off and
enjoy the view rather than poking jibes at a partner’s driving!” said
Ernesto Suarez, CEO and founder of iCarhireinsurance.com. “Our only
advice, to make it as relaxing and kind on the pocket as possible, is
to make sure that you ‘buy’ excess car hire insurance ‘before you
fly’ as you could save over GBP 200(i) on a 14 day car hire for
instance compared with buying the insurance direct from the hire car
company.

“It is shocking that many people are totally unaware that if their
hire car is stolen or damaged in any way, even if it’s just a small
chip to the windscreen, they could end up with a large excess bill,”
said Ernesto Suarez.

iCarhireinsurance.com protects customers from these insurance risks
at a price significantly lower than the car rental companies charge
and also automatically covers damage to the tyres, windows, roof and
undercarriage. Its policies start from only GBP 2.99 a day (compared
to approximately GBP 17(i) per day) or annual cover for GBP 39.99.

(i)The average Nil Excess Insurance in Table 1 is EUR21.42 per day.
This multiplied by 14 (for a two week holiday) is EUR299.88 or GBP
261.12 (currency exchange as of 18/8/2011 – 1 GBP = 1.15 EUR). Buying
two weeks excess insurance cover from iCarhireinsurance.com is GBP
2.99 a day, multiplied by 14 = GBP 41.86. This gives a saving of GBP
219.26.

Notes to Editors:

YouGovSurvey

The research was undertaken for iCarhireinsurance.com by YouGov Plc.

(i)Total sample size was 2007 adults, of which 1103 have hired a car.
Fieldwork was undertaken between 29 July – 1 August 2011. The survey
was carried out online. The figures have been weighted and are
representative of all GB adults (aged 18+).

(ii)Total sample size was 799 adults who have hired a car. Fieldwork
was undertaken between 1 – 4 April 2011. The survey was carried out
online. The figures have been weighted and are representative of all
GB adults (aged 18+).


        Table 1: Excess Insurance cost for UK resident renting a VW Golf class car
         in Barcelona (Barcelona Airport) for a three day rental from 29.07.2011 -
         01.08.2011

                 -------------------------------------------------------------------
                           Only nil                                          Excess
                             Excess                   Rental Only   Rental +   % of
                   Excess Insurance Daily Excess Cost        Cost  Insurance Rental
        ----------------------------------------------------------------------------
                                    EUR (15.50 daily)
                                        (Excess still
        Avis       EUR730  EUR52.58          GBP 100)  EUR120.50  EUR173.08     44%
        ----------------------------------------------------------------------------
                                    EUR (23,45 daily)
                                        (Excess still
        Budget     EUR861  EUR70.35         EUR43,37)  EUR164.24  EUR234.59     43%
        ----------------------------------------------------------------------------
        Europcar   EUR599  EUR81.48  EUR (27.16 daily)  EUR164.97  EUR246.45     49%
        ----------------------------------------------------------------------------
        Hertz      EUR800  EUR69.03  EUR (23.01 daily)  EUR147.18  EUR216.21     47%
        ----------------------------------------------------------------------------
        Sixt       EUR350  EUR54.00  EUR (18.00 daily)  EUR130.98  EUR184.98     41%
        ----------------------------------------------------------------------------

Background on iCarhireinsurance.com

Founded in 2009, iCarhireinsurance.com is a groundbreaking new online
insurance service that takes the hassle out of hire car, car club and
van hire insurance. It offers a range of policies that are fully
comprehensive, simple to understand, unbeatable value and accepted at
all car and van rental locations worldwide.

iCarhireinsurance.com is a registered trading name of Halo Insurance
Services Limited. Halo Insurance Services Ltd was founded by Ernesto
Suarez, a leading insurance professional with 13 years’ experience in
the industry.

Halo Insurance Services Limited is registered in England number
6929208. Authorised and regulated by the Financial Services Authority
Register No. 504629 for the sale and administration of general
insurance products in the United Kingdom and throughout the European
Economic Area (EEA).

Halo Insurance Services Ltd is backed by Bridges Ventures and Magenta
Partners.

www.icarhireinsurance.com


        Contacts:
        Halo Insurance Services Ltd
        Ben Wooltorton
        Sales and Marketing Director
        +44 7739 719 570
        ben@haloinsurance.com

        Frankly PR
        Frances Knox
        +44 7850 470 123
        frances@frankly-pr.co.uk

SOURCE: Halo Insurance


        mailto:ben@haloinsurance.com
        mailto:frances@frankly-pr.co.uk

Via Zipcar, Ford Seeks Young Fans

But the Ford Motor Company is taking the view that drivers who rent from Zipcar by the hour just might be potential customers down the road.

Ford and Zipcar are expected on Wednesday to announce an unusual partnership in which the Detroit automaker will supply its vehicles to Zipcar locations on 250 college and university campuses in the United States.

The two-year program will provide Zipcar with up to 1,000 Ford Focus sedans and Escape sport utility vehicles for students who prefer short-term vehicle rentals to the trouble and expense of owning their own car.

In addition to providing the cars, Ford will offer the first 100,000 university students who sign up for Zipcar a $10 discount on the network’s $30 annual membership fee. In addition, Ford has agreed to subsidize $1 of the hourly rental rate for the first one million hours of use on any of its vehicles. The typical Zipcar rental costs $8 to $9 an hour.

The program, which starts Thursday, is a significant step in the expansion of Zipcar, based in Cambridge, Mass., which went public with an initial stock offering early this year, and in August reported strong revenue and membership growth that exceeded Wall Street expectations.

Zipcar has been a fixture in urban areas like New York, Boston, San Francisco and Washington for several years, and has been gradually moving into smaller markets like Sacramento and Providence, R.I. Recently, it has been seeking to rapidly expand its presence on college campuses.

The alliance with Ford will raise Zipcar’s presence substantially in the student market — and get more American cars into Zipcar’s fleet. Nearly all of Zipcar’s current models are foreign nameplates like the Honda Civic, the Mini Cooper and Toyota Prius.

Currently, Zipcar has more than 600,000 members in the United States, Canada and Britain.

The impetus for the new partnership began two years ago at a transportation forum when William Clay Ford Jr., Ford’s executive chairman, met Scott Griffith, Zipcar’s chairman and chief executive.

In an interview, Mr. Ford said he had become interested in car-sharing networks as part of the long-term answer of how congested cities could solve transportation issues without simply adding more vehicles.

As an ardent environmentalist, he said he could appreciate how short-term car rentals could ease fuel consumption in cities already overcrowded with privately owned vehicles.

The auto industry has been pouring vehicles into regular rental car fleets operated by big companies like Hertz and Avis, for years.

Mr. Ford said that Zipcar offered an opportunity for the automaker to reach a new demographic of younger, college-age drivers who otherwise might not try a Ford product.

“We are looking at the future of transportation more holistically,” he said. “We shouldn’t be threatened by these different business models. We should embrace them.”

Zipcar owns more than 8,000 cars and offers its members more than 30 different models. But Mr. Griffith said the deal with Ford was a powerful endorsement of its market and its services.

“Having Bill Ford and the Ford Motor Company validating Zipcar as a business model and as an emerging transportation brand is a big step for us,” Mr. Griffith said.

Zipcar has bought 650 Ford cars and S.U.V.’s to start, and will start making them available for rental within two weeks.

The membership and rental subsidies offered by Ford could entice frugal college students to give the brand a try.

“The cheaper it is, the more I would be willing to use it,” said Tyler Harangozo of Windsor, Ontario, an incoming freshman at Wayne State University in Detroit.

Mr. Harangozo was among a crowd of Wayne State students looking over the Ford Focus during orientation activities on Tuesday.

He said he expected to commute to school by bus, but appreciated the option of renting a Zipcar for a few hours if needed.

“I can’t rely on public transit to get all around Detroit,” he said. “I’ll probably need a car once in a while.”

Zipcar memberships are available to anyone who has had a driver’s license for two years and a good driving record.

That makes it especially appealing for people under the age of 21, who often cannot qualify to rent a car from a traditional daily rental agency. At Zipcar, even a teenager can become a member.

Rental fees include insurance coverage, and Mr. Griffith said background checks had generally weeded out poor drivers from its membership rolls. “If you have a D.U.I. or high-speed driving violations, you won’t be able to drive one of our cars,” he said.

Ford sees the program as an inexpensive means to introduce younger drivers to its products, particularly the compact Ford Focus. The cars are equipped with Ford’s Sync infotainment and communications systems, and they are among the most fuel-efficient models in the company’s fleet.

“It’s a great way to reach these first-time drivers,” Mr. Ford said. “And the data shows that the No. 1 reason people leave Zipcar is to buy a vehicle, and that they are heavily influenced by what they have driven as a member.”

In the past, Mr. Ford said, his company did not have the right models to attract college-age drivers.

“The Focus is the right product at the right time to reach college kids,” he said. “We don’t know where car-sharing is headed, but Ford wants to be a part of it.”

Airport rental-car area upgrade may soon have contractor – The News