Leading global vehicle rental company,
Avis Budget Group Inc.
) has launched a used car sales program "Avis Direct", with a
dedicated website for automobile dealers. The recent move is part
of the company's ongoing strategy to enhance operational
The new program is exclusively available to licensed
automobile dealers. It will allow dealers to purchase from a wide
variety of late-model off-rental vehicles across the company's
Avis, Budget, Payless and Zipcar rental locations in the United
States. Avis Budget will not charge any enrollment fee or
purchase fee from the automobile dealers.
The initiative will provide an alternative solution to dispose
off the company's late model vehicles, thereby enabling it to
lower fleet costs. This will help in improving the company's
operating margin in the long run.
We remain impressed with Avis Budget's sustained focus on
productivity and cost containment initiatives, which in our view,
will help the company achieve its goal of higher operating
Costco Wholesale Corp.
) auto sales arm came up with a program for dealers alone,
whereby the latter will be able to list used vehicles for sale at
the company's website. However, it applies that the vehicles
listed at its site should have a minimum 12 months and 12,000
miles of warranty remaining. Further, for Costco members, the
automobile dealers have agreed to offer a rate lesser than the
lowest advertised price.
Carrying a Zacks Rank #3 (Hold), Avis Budget is one of the
leading vehicle rental company in North America, Australia and
New Zealand. Moreover, a formidable network of more than 10,000
rental locations and 350,000 vehicles facilitate in strengthening
its position in the highly competitive vehicle rental
This Parsippany, New Jersey-based company follows a core
global strategy of collaborating with leading travel brands to
widen its customer reach while generating additional demand for
its services. In Mar 2013, Avis Budget successfully completed the
acquisition of the world's leading car sharing network company,
Zipcar Inc. This strategic move has enabled the company to extend
its offerings from car rental to car sharing, thereby helping it
to compete with peers like
United Rentals Inc.
Hertz Global Holdings Inc.
AVIS BUDGET GRP (CAR): Free Stock Analysis
COSTCO WHOLE CP (COST): Free Stock Analysis
HERTZ GLBL HLDG (HTZ): Free Stock Analysis
UTD RENTALS INC (URI): Free Stock Analysis
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