Rent To Buy Cars Hertz
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Rent To Buy Cars Hertz
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Being that there are various pros and cons to the rental car purchasing route, it is best to take the opportunity to have your desired vehicle checked out independently by an authorized mechanic of your choosing.
Brett Helling is the owner of Ridester.com. He has been a rideshare driver since early 2012, having completed hundreds of trips for companies including Uber, Lyft, and Postmates. In 2014 he acquired Ridester.com to share his experiences with other drivers. His insights are regularly quoted by publications such as Forbes, Vice, CNBC, and more. He is currently working on a book about working in the Gig Economy, expanding his skill set beyond the rideshare niche. Read more about Brett here.
Over a span of years, Hertz falsely accused more than 360 people of stealing rental cars, leading to arrests and jail time for innocent customers. Now, the company will pay $168 million in a settlement. Cindy Ord/Getty Images hide caption
But some of those reports have been proven to be false. In lawsuits and in press reports, stories of false accusations revealed lapses in Hertz's rental records and theft policies that led to the errors.
One Hertz customer was driving her rental car in Chicago when she got a flat tire, and she called Hertz to have the car towed, court records state. Months later, she was pulled over for wearing a seatbelt incorrectly when police informed her she had a warrant for her arrest; she was jailed for more than 30 days, she said in a lawsuit.
And a Mississippi man spent more than 6 months in jail after Hertz reported his rental car stolen; he had returned it and paid in full, but the company had failed to inform prosecutors, he said in his suit. He missed a hearing date and was incarcerated for months, the suit states.
Many of the Hertz cases involved customers who had called to extend their rental agreement, but the extensions were not properly reflected in Hertz's computer systems. Other cases involved Hertz re-renting cars that had previously been reported as stolen without rescinding the police reports, causing unsuspecting customers to be pulled over by police. At other times, stolen cars were accidentally associated with the wrong customer, resulting in an arrest warrant for someone who was out of state entirely.
Despite these varied experiences, few people know much about the underlying companies themselves, much less how they operate. Do you know who the biggest rental car company is? How many cars they own? Where they buy their cars? How long they own them? What they do with them once they're done? Or whether any of the companies themselves are good investments?
Enterprise is the largest rental car company in the world. It's number 15 on Forbes' list of America's Largest Private Corporations, and in terms of revenue, it would rank around No. 190 on the Fortune 500 if it were publicly traded. By comparison, its next largest competitor, Hertz, weighs in at No. 309.
Feeding the beastsWith fleet sizes in the six- to seven-figure range, it should be no surprise that rental car companies are the largest purchasers of cars and trucks in the United States.
Although precise figures for the industry are elusive, it isn't difficult to get a rough idea. According to the annual reports of Hertz, Avis, and Dollar Thrifty, rental car companies typically hold their vehicles for anywhere between 4 and 22 months, with an average holding period of 13 months. To put it another way, each year, they turn over roughly 92% of their respective vehicle inventories.
On average, then, these four companies potentially buy nearly 2 million cars and trucks each year. And as you can see below, a significant proportion are purchased from American car companies like Ford (NYSE: F), General Mot