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August 16, 2010
www.usedcarnews.com
Rental Chain Improves Image Name’s the Same, But Inventory’s Upgraded By David Piestrzynski
Rent-A-Wreck’s name suggests it carries older, beat-up vehicles. But the Laurel, Md.-based used-car rental chain has been gaining widespread attention for having inventory on par with the national car-rental brands. Jason Manelli, Rent-AWreck’s marketing director, said the company has been working toward consistency with franchisee inventory. “On average, we try for the threeto five-year-old models,” he said. “That’s the sweet spot.” Damon Lieurance was employed at the Rent-AWreck location in Sault Ste. Marie, Mich., for several years before taking over ownership of the store last year.
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He said the decision to invest in Rent-A-Wreck was bouyed by his confidence in the chain’s new ownership. In 2006, Rent-A-Wreck was purchased by Jack Fitzgerald, founder of Fitzgerald Auto Malls. Fitzgerald’s group includes more than 30 new-car stores in Florida, Maryland and Pennsylvania. “The new ownership has done a great job with conformity among the fleets,” Lieurance said. “It’s added a lot of quality to the (Rent-A-Wreck) name.” He also said the company is still consistent in meeting the needs of each individual franchisee. Lieurance said much of his business comes from tourism. At times, the demand for rental cars can increase in a hurry. “I’ve noticed that people don’t seem to be planning their vacations ahead as much,” he said. “It’s become harder to predict the busy season.” Lieurance said he typically has 14 cars in his rental fleet, but he’s often tempted to stock more units, especially when summer rolls around with a higher demand for rentals. Manelli said Rent-A-Wreck is typically seeking new
Photo courtesy of Rent-a-Wreck WRECKS NO MORE: The Maryland-based rental chain offers a better choice of inventory at its stores these days thanks to the efforts of a new owner.
operators, so it has programs in place to meet the demands of franchisees such as Lieurance. He said Rent-A-Wreck is able to lease vehicles to its franchisees to meet any sudden need for more inventory. “This is a way for us to help get our franchisees fleeted up quickly and then help them reduce (inventory) for the slow times,” Manelli said. While Rent-A-Wreck strives for compatibility among its locations, franchisees still benefit from stocking a few lower-end vehicles.
Rick Voccio has been a Rent-A-Wreck franchisee since 2006. He gets a wide range of rental demands at his Albuquerque, N.M., lot. “We have a niche market here,” Voccio said. His rental fleet, which typically includes 45 vehicles, includes work trucks, older vehicles and the standard, newer cars. “We get a lot of hunters and contractors looking for trucks,” he said. Voccio said many of his units are used to haul gravel and other types of materials, which has created a diverse
market. His Rent-A-Wreck lot is close to the airport, which also offers steady traffic. Voccio said some of his older models are rented by people who are turned away at the airport by some of the other rental chains. They also go to people who are just looking for a good bargain. “Sometimes the rates at the airport are too high for people,” Voccio said. “By carrying some older vehicles, we’re able to offer discount prices. This gives us a steady flow of rental business.”
IN THIS ISSUE • Toyota runs away with the lead for certified sales. – Page 3
• Dealers name their auction favorites. – Page 8
• Another service contract provider fails. – Page 5
• Lease-to-own offers new opportunities. – Page 18