Australia’s largest rental company is seeking to change the way Australians rent cars.
Key points:Car Rent-a-Car is looking to sell its fleet of cars for $300m to the publicCar Rent A-Car’s owners want the business to move out of its current location in SydneyCatering company Caro has taken on the company’s leases to provide a cheaper alternative to car-rental company CariSource: Car Rent A Car (CAR)A statement from Car Rent Australia says the company is looking for $3.5 million to buy up to 10 vehicles for its fleet and lease them out.
Car Rent Australia has a lease of 12 vehicles for $5,000 a year, which means the car rental company will be able to lease out its cars for just under $300,000, according to the statement.
This is an attempt to make the business viable by making it more attractive to customers who might not otherwise be able or willing to pay the monthly lease price.
“We are looking at our business model in the next few years, in particular in terms of our leasing options and our fleet,” the statement said.
“The lease-lease arrangement has become more attractive in recent years and it is something we are considering for the future.”
Car RentA-Cater has taken up the lease-like business model of Cari.
Cari is a car rental and leasing company, but the owners want Car Rent a Car to continue operating in Sydney.
Caterin’s lease for a Car RentA Car fleet would be around 12 months, and the company could lease out cars for up to $30,000 per year, depending on the car.
“There is a real opportunity for the business in Sydney,” said Cari CEO Andrew Fennell.
“Car Rent a Caterin is an incredibly competitive business with a very successful client base.”
The company’s lease deal is being considered for a number of reasons.
The owner is in a tight financial position, having recently made significant changes to his business, including buying back shares and reducing expenses.
“This is a business that needs to be financially stable,” Mr Fennill said.
The business is also seeking a new home in Sydney, with a “substantial number of staff and customers” leaving Sydney, Mr FENNILL said.
In the past, Car Rent Cars leases have been in Sydney’s CBD, with the company leasing cars to customers in the city’s inner west.
The company is also looking to expand its fleet in Sydney to the outer suburbs, with leases in the CBD, Sydney’s outer west, and some of the northern suburbs.
Car Rental Australia has been in the news before for its recent deal to acquire the leasing company Carco.
Carrón, a Spanish car rental brand, has a successful franchise in the western suburbs of Melbourne.
The Car Rental industry is one of the biggest in the world.