Start A Major Car Rental Company - Accidentally
My good friend Dick [first names only] had a great eye for opportunity and he convinced me to join him at a car rental company where he was General Manager. He assured me that the company was in its last throes and there was an excellent chance that we could negotiate for the assets if it went into bankruptcy.
Thats exactly what happened and on July 1, 1967 we were owners of Capital Rent A Car, Inc. 1st National Bank of Fort Lauderdale handed us the 88 cars they held title to plus $20,000 initial working capital and a two month moratorium on the payment of the cars. Of course the cars were not worth anywhere near the money owed on them and we didnt have two dimes to rub together. But with no other opportunity we jumped in.
During the next seven years we only were able to make cash decisions, never a business decision. Problem was we were always short on the cash side. We grew because we were aggressive and innovative but always cash short. To stay alive during the next seven years we asked for and received moratoriums and we kited checks which we always made good.
We were doing business with major lenders, GMAC, Ford Motor Credit, Chrysler and about 4 or 5 local banks. They were all cooperative recognizing that we were two nice stupid boys who were sincere but unfortunately inept. However there was one company that we did not fool around with. That was Harry who had a small local car leasing business. We figured that all of our lenders were in business to lend money. Not Harry, he was in business to make a living. Although Harry did have a major, 75 or 80%, well healed partner Harry always got paid on time and without knowing it that paid dividends.
1973 came and brought Arab/Israeli the Yom Kippur war plus higher gasoline prices and a gasoline embargo the following spring. Our business model was to offer the right size car which translated means no sub compacts and heavy on the mid-size and full-size cars. Consequently after the 73-74 winter season we could not dispose of unnecessary inventory. With higher gas prices and gas shortages car wholesalers wanted to buy fuel efficient sub-compacts and maybe a few compacts. Mid-size and full-size cars were in essence, sales proof. What was offered for the larger cars was not sufficient to pay off the loans and obtain the titles. And we didnt have the cash to buy the titles so we ended up looking at unnecessary cars.
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Washington TimesAvis Tests Mobile TV in FloridaTelevision BroadcastThe service was launched July 6 in Orlando, Fort Lauderdale, Miami, Tampa and West Palm Beach. Avis is charging $8.95 per day or $62.65 weekly for 22 video AT&T CruiseCast Now Offered in Some Florida Avis RentalsAvis to test TV service in Orlandoall 11 news articles »