Old Habits Die Hard: Some Manufactureres Still Dependent on Rental Sales [Archive] - Ford Inside News Community

: Old Habits Die Hard: Some Manufactureres Still Dependent on Rental Sales

04-19-2011, 10:43 PM

Daily Rental Fleet sales... a necessary little evil of the automotive industry. It wasn't all that long ago that Ford, GM, and Chrysler dumped far too many models into rental duty in order to keep the assembly lines running.

While fine in moderation, sales into daily rental fleets present a triple-pronged problem: They are typically sold at great discount with slim margins, they clog dealer lots with late model, low mileage used cars which compete against new car sales, and they can have serious adverse effect on resale value.

While the near collapse of the industry was enough to scare most manufacturers straight, there are still some who are dumping far too many cars into rental duty. AN&C is currently working on a comprehensive list of rental sales by manufacturer (a nearly impossible task, the manufacturers aren't too happy to cough up these stats), but in the meantime we have some observations from a recent roadtrip to one of the busiest markets in the United States for rental cars: Orlando, Fl.

These findings are by no means scientific, rather based on observations made over the course of one week hopping between attractions in the Orlando area. We perused the parking lots of Disney and SeaWorld, investigated Interstate 4, and observed the Osceola Parkway and this is what we found, listed from biggest offender on down.

Continued at LINK (http://autonewsandcommentary.blogspot.com/2011/04/old-habits-die-hard.html)

04-20-2011, 12:31 PM

Continued at LINK (http://autonewsandcommentary.blogspot.com/2011/04/old-habits-die-hard.html)

No offense to the writer of the article. However, using anecdotal evidence from personal observations in one area is ridiculous. Not every place in the country is DisneyWorld and SeaWorld. Frankly, based on how the conclusions were reached, I don't even care what the conclusions are.

If I wanted to berate companies based on anecdotal evidence from my small, local Enterprise (the only rental place in town), I would say that the rental fleet sales on Silverados must be huge. We know this is not the case. Thus, I would deserve to be ignored, much as this article does.