4 ms·
Also, car manufacturers force large rental companies to buy certain mixes of cars. For example crew cab pickup trucks are a horrible category for rental compani
by cglace 6y ago
Also, car manufacturers force large rental companies to buy certain mixes of cars. For example crew cab pickup trucks are a horrible category for rental companies but they still purchase them every year. To get the insanely low prices they get on their vehicles they have to play by the manufacturers rules.
- metaphor 6y agoIt's B2B in a commodity market where competition abounds. Manufacturers like Mazda, Hyundai, etc. don't have crew cab trucks in their lineup, so is doesn't make sense that a corporation would choose to sign a contract in good faith with a manufacturer that "forces" unwanted liability on its books in exchange for volume if executives of the former didn't perceive overall net outcome as favorable.
- cglace 6y agoI never said the net outcome wasn’t favorable. I said certain categories underperform other categories by a wide margin. You are assuming the goal is to maximize RPU when he actual goal is to maximize the delta between purchase price and resale price. My whole point is that a lot of what goes on in rental doesn’t make sense unless you view it at as a business that generates used cars. However, I doubt you really care and were more interested in making a pedantic point about how contracts are voluntary agreements between rational actors.