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Hertz is on the verge of bankruptcy so it only follows that the risk premium for Avis is high. Just think - if nobody is flying, who is renting all those cars?
by MR4D 7y ago
Hertz is on the verge of bankruptcy so it only follows that the risk premium for Avis is high.
Just think - if nobody is flying, who is renting all those cars?
- TheAdamist 7y agoNo one, they dont even have enough parking for them to all be idle simultaneously. The airport rental agencies near me have been renting out all the stadium parking nearby to use as overflow storage.
- koolba 7y agoOn the capital side, one of the biggest assets for rental companies are their fleets. The sell them as used cars. With nobody buying cars at all and the glut of unsold new cars packing lots, those fleets are being revalued at much lower prices. It’s a double whammy.
- mrep 7y agoYeah, I saw on reddit last month a possible insurance scam in which 3500 rental cars caught fire in an overflow parking lot in florida because they are all sitting around unused [0]. [0]: https://www.cnn.com/2020/04/05/us/airport-fires-cars-trnd/index.html https://www.cnn.com/2020/04/05/us/airport-fires-cars-trnd/in...
- johnrgrace 7y agoIt wasn't an insurance scam because they don't have insurance, they are going to eat the cost of all of those vehicles.