|
Automotive Discussions Car People talking about the Car Business – This is the place where it happens |
|
Thread Tools | Display Modes |
01-04-2008, 06:20 PM | #1 |
Administrator
Join Date: Nov 2007
Posts: 14,869
|
Impact of Declining Sales to Rental Car Companies
Chrysler's Jim Press recently indicated that the company would further reduce its sales to Rental Car Companies in 2008 as it attempts to reduce its dependance on fleet sales.
He noted that although the company had made similar efforts in 2007, the effort in 2008 "will be more significant." Given that 100% of the off-rental vehicles are ultimately sold by the Dealer Body before they reach the end-consumer, what's the impact going to be to the Dealers as a result of these declining rental car sales? In a perfect world, one could argue that the reduction in sales to rental car companies will increase residuals and lower leasing costs to retail customers - ultimately increasing total vehicle sales. But in the real world, will the residuals on a Sebring or Avenger increase enough to make them attractive vehicles? Further, what happens to the customer that historically couldn't afford a new car and purchased a "program car" instead? Do they pay more for the "program car" or do they just buy something else. As always, time will tell but I'm not 100% sold that a reduction in sales to rental car companies is necessarily a good thing for Chrysler LLC or its dealers. |
02-08-2008, 11:17 AM | #2 |
Lotus Factory Guy
Join Date: Jan 2008
Posts: 182
|
On the models that are currently out there the damage has allready been done. Reducing future sales of those models to rental fleets probably will not help resale or residual values. But by not putting the new models as they are released into the fleets will improve those models.
|
Thread Tools | |
Display Modes | |
|
|
Similar Threads | ||||
Thread | Thread Starter | Forum | Replies | Last Post |
What impact will the Durango have on Grand Cherokee sales? | XDCX | Sales | 17 | 02-20-2012 03:40 PM |
USED car sales pay plans | tbrillant | Sales | 2 | 09-19-2011 08:12 AM |
How many car sales per salesperson in today's environment? | XDCX | Automotive Discussions | 12 | 08-17-2011 05:39 PM |
What impact has the '11 Grand Cherokee had on your Traffic and Sales? | XDCX | Sales | 19 | 08-04-2010 08:33 AM |
Car sales & excise tax deduction | kaks | Automotive Discussions | 1 | 02-15-2010 03:15 PM |