The Auto Rental Industry
The 2020 COVID-19 pandemic reverberated through the auto manufacturing industry. Nationally, new vehicle inventories dropped from 3.8 million in spring 2020 to 820,000 that fall.The car rental industry has historically had high barriers to entry
Industry Experience: These are highly nuanced businesses that are difficult for new entrants to learn before costly mistakes are made.
Capital: New entrants have to purchase and finance auto fleets. Lenders feel those with little to no industry experience and unaffiliated with a brand are risky, resulting in an inability to finance a fleet at acceptable rates.
Advertising: Independent auto rental agencies are too small to advertise with online travel reservation agencies such as Expedia, Priceline, and Orbitz, where a lion’s share of reservations are made. By affiliating with NextCar and Priceless Car Rental, franchisees are well positioned on these lucrative websites.
NextCar and Priceless Car Rental are uniquely positioned as value leaders
NextCar and Priceless Car Rental advertise on travel reservation sites such as Expedia, Priceline, and Orbitz, offering customers a better value on late model automobiles than the national brands such as Hertz, Avis, and Enterprise.
NextCar and Priceless Car Rental cater to an underserved and overlooked value-conscious consumer
NP Franchise Group has proven the profit model of serving price-conscious car rental and used car purchase consumers.Here’s how it works. First, NextCar and Priceless Car Rental have a dependable fleet of often slightly higher mileage but still clean and well-maintained cars than other national brands.
Cars with higher mileage sell for less, which means that NextCar and Priceless Car Rental fleets cost less for franchises to secure than the new car fleet franchisees of national brands are required to purchase. Because their fleet costs franchisees less to acquire, both NextCar and Priceless Car Rental franchisees pass these savings along to consumers, delivering on their brand promise of affordable and reliable auto rentals and dependable used cars for sale.
Although we offer customers price advantages, the quality of their customer experience is not compromised. Vehicles offered by both NextCar and Priceless Car Rental are safe, clean and properly maintained.
It’s the same easy and enjoyable car rental or used car purchase experience that Americans have come to expect from all major brands…but at a more affordable price.
This high value offering creates recurring revenue through repeat business from both transient and resident customers. NextCar and Priceless Car Rental are the familiar, trustworthy rental and used car dealers who offer everyday Americans the right cars at the right time at the right price.
When customers speak about Priceless Car Rental and NextCar, we want them to say...
“They helped me get the right car, when I needed it, and at the right price”
Auto industry trends grow revenues
The 2020 COVID-19 pandemic reverberated through the auto manufacturing industry. Nationally, new vehicle inventories dropped from 3.8 million in spring 2020 to 820,000 that fall.That resulted in a huge shortfall in vehicles. Consequently, used vehicles have been in short supply, driving up consumer prices, creating record high margins for NextCar and Priceless Car Rental Franchise owners.
This drop in auto production and shortfall in preowned car inventories also created more consumer demand for auto rentals, which in turn created greater money-making opportunities for franchisees.
The average new car monthly payment is $750 per month and the average used car payment is $550 per month. Additionally - 50% of Americans cannot afford these new car payments. This means, now more than ever, the demand for car rental is strong and the value of used cars will remain stronger for a longer period of time.
In 2022, used car prices were 50% higher than they were in early 2020
According to the Consumer Price Index (Nov. 22) used car prices are 50% higher than they were in February 2020. This market disruption benefitted NextCar and Priceless Car Rental franchisees in several ways. These trends are proving long-lived, creating a 'new normal' for car rental companies and creating a new level of sustainable profitability for NextCar and Priceless Car Rental franchisees.
Fewer available used cars for sale prompts more rentals. The car rental market has grown 6.9% annually since 2017. Our franchisees are seeing great tailwinds from this growing industry, many hitting record volumes and profitability.
Fewer available used cars translates to higher prices, lifting margins for franchisees
A higher floor for used car valuation supports the aggregate worth of the fleets helped franchisees by reducing depreciation by creating higher resale prices of their fleet during resales.
Who makes a good franchisee?
NextCar and Priceless Car Rental are looking for two kinds of entrepreneurs and investors:- Experienced automotive industry professionals who want to participate in the growth and favorable economic conditions of both the car rental and preowned car sales markets.
- Savvy, street-smart entrepreneurs who want to capitalize on market timing and establish themselves as their community’s local, trusted car rental and preowned car company.