How To Approach You Car Selling

Selling a used car to the best car buyer in order to get a reasonable amount against the sale of your car is an art. Many people do not know the art of how to sell a car smartly and simply hire the car dealer to sell the car. Like everything has pros and cons, same is the case with hiring the services of any car dealer. The benefit of hiring the services of such a professional entity is that you can keep yourself saved from the hassle of finding the best vehicle buyer worthy of paying the expected amount. Moreover, you will not be involved in the procedure of negotiation for the selling price. However, it has been usually noticed that if you ask the services of any car dealer without knowing the worth of your used car then he may commit less selling price to increase his profit. Hence, to avoid such a situation, it is recommended to prefer the below-mentioned two approaches:

• Find a reliable vehicle dealer on whom you can trust. For this, you can consider online reviews of old vehicle sellers, who preferred a dealer to sell a used car and got a good price.
• Find out the worth of your car before contacting any dealer to get the real price by selling your car to any best vehicle buyer. For this purpose, you can contact any car expert or mechanic.

However, in case you neither want to involve any car dealer to sell your car nor want to make effort on your own then you can contact any professional entity, which claims we buy any car. Such entities not only provide you the actual value of your car based on its registration number but also buy any vehicle of any make and model even if it is damaged. Hence, contacting such an entity is beneficial if your car is damaged and is unable to get you a good price. In such a scenario, it will be worthy to sell you car to any automobile professionals instead of asking any individual best car buyer to buy my car now.

Last option is to sell your automobile on your own to a private best car buyer. With this approach, you will be able to make good money by doing some efforts. The systematic approach to sell a used vehicle on your own is as follows:

• Find the actual value of your car.
• If your car value is according to your expectation and you do not want to make any other effort then advertise to sell your automotive. However, in case, the value of your car is less than your expectation then it is the time to increase its worth before selling it to any best car buyer.

• Increasing the value of your vehicle is not a big issue, as in this, you will have to focus on the interior and exterior of your car. Keep in mind that if the handle of your car window is not working or the exterior of your car got faded colors then definitely the car buyer will not pay more money. You need to understand that every car buyer keeps the margin of repair in his mind before paying the price to the car seller.
• Repair your car, attend the potential vehicle buyers, and choose the right one to sell your car.

Tips About Car Tuning You Should Know

Having a luxurious car like Jaguar, Aston Martin, Bentley, Ferrari or Lamborghini in itself is the matter of proud for their owners because these vehicles are not just cars but the symbol of power, comfort and luxuriousness mounted in one unit. There would be hardly owner of such cars who will intend to go for any modification in his beloved car, but interestingly in recent years, it is witnessed that the generation next owners of these cars are not satisfied with the features that are packed by their respective car makers in their vehicles.

These generation next car drivers are always in hunt of such techniques that are helpful in deriving much from their powerful giants. Interestingly, going through this craze now day’s trend of car tuning has gained huge popularity across the world, facilitating the car owners to enjoy enhanced performance of their car to its full extent.

What is car tuning: In the simple words car tuning may be defined as the method of modifying certain features of the car depending upon your requirements and preferences. This might surprise to most of the car owners, including both expert and novice drivers, there are various components in a car which can be modified depending upon the choice of the car owner. Some of the common components which can be modified are spoilers, air vents, engine, wheels which can be tuned depending upon the requirements of the car owner.

In other words, it can be said tuning the car facilitates the car owner to personalize the car get more from it by making it compatible to his needs. For instance, if following the trend of buying an expensive luxurious car you bought a car with an engine configuration of 4.0 litre, but after some time you realize that you are not able to cater its fuel requirement on driving it regularly. By tuning the car you can change its engine configuration to 2.0 litre and enjoy not only its regular drive, but also notice the huge savings on fuel investment.

Factors to consider before getting your car tuned: Although the fashion of tuning the car is flourishing at jet dynamic speed across the world, especially among the youth. But, it doesn’t mean that following the blind race you also join the team and found yourself cheated after driving it. Therefore, to avoid any such problem in future it would be better to get yourself acquainted with complete knowledge related to the subject. But now the question arises from where you can get your doubts cleared from? For this you can consider the following factors:

1. Forums: As referred above today as the trend of car tuning has gained huge popularity among the car enthusiasts, there are various online forums which are assisting the novice drivers in making them aware about the benefits of car tuning and teaching them about the whole fuss of the process. Joining these forums will help in getting all your doubts cleared by experts and also you will get the feedback from the car owners having the car tuned according to their requirements.

2. Seeking the help of an expert: Consulting an expert will help you in broadening your knowledge about car tuning in a much better way. Contacting an expert will benefit you in having the face to face interaction with him and discussing your doubts in a broader way. Moreover, going through the condition of your car the expert will be able to suggest you necessary modifications that could be implemented on your car.

3. Going through the literature: If you have enough time with you then the best way is to read the available literature on the car tuning and not only broaden your knowledge but also develop yourself as an expert of tuning the car. Although it will be a time-consuming project, but doing this will undoubtedly clear your all doubts. Moreover, after reading the available literature you might even be able to tune your car at your end. As now a days there are various car modifiers that offer do it yourself chip for car tuning which can be activated by connecting with on board diagnostic port.

 

Guide To Buying Car For Women

Buying a new car, or a car that’s new to you, can be a minefield. Women are traditionally vulnerable to con men when buying cars, taking their cars for a service or anything else related to motoring for that matter. Although we’d like to think that times have changed, and in the most part they have, there are still car sales people waiting for an innocent looking female to trot through the door. This applies to men too, so don’t be offended! At CoverGirl Car Insurance we want you to get the best deal, cheap insurance and above all a great car. So, we’ve compiled a concise guide to what can be one of the most expensive purchases you’ll have to make.

The first thing you will need to do is decide whether you want a new or used car. You probably have a make and model in mind already, so it’s best to do as much research into the car as possible. You can look in trade guides and on the internet to get some ideas about the production and engineering of your desired car. If you go to the dealer armed with this information then you will know what to look for and will know about any parts of the car that are particularly expensive to replace. Whilst doing your research you could also look out for any common problems with your car. For example certain vehicles have notoriously bad electrics and you could be left having to pay a large bill to have them repaired.

So what’s the best bet, new or used?

Buying a new car

Buying a new car gives you the peace of mind that your car hasn’t been rescued from an accident and ‘cut and shut’ (more about this later). Plus you don’t have to worry about service history and recurring problems.

If you decide to buy a new car then you have three options. You can either buy from dealership, from a broker or by personal import from Europe. There are pros and cons to each option so you should look carefully at each to decide what’s best for you. The benefits and pitfalls of each are as follows:

Dealership: Many dealers offer cheap finance schemes with frequent special offers, you can take the car for a test drive and you also may be able trade in your existing car. This is often a more expensive option so it’s worth looking around.

Broker: It is often cheaper to buy through a broker and relatively easy to organise. You may not be able trade your car in.

Personal imports from Europe: Cheaper in the majority of cases. However this is not the easiest way to buy a car. You’ll have to put in quite a bit of work.

What to check when you collect your car
We advise that you check your new car over before you drive off the forecourt. There are a few key things to check:

o That you’ve got a copy of the dealers pre-delivery inspection form

o Check that all lights, electrics, sound systems, alarms, door locks and windscreen wipers work

o Check for any scratches and check that there is no damage to the interior

o Check you’ve got the spare tyre and any tools that are supposed to come with the car

o Make sure you’ve got the manual and service book

Buying a used car

When you buy a used car there are a few more pitfalls to look out for but you can bag yourself a bargain if you look in the right place. It can also be great fun deciding whether you want a sexy classic like an Alfa Romeo Spider or a bargain run-around like a Ford Ka. Whether you chose to buy from a dealer or from the private market you’ll need see the history of the car. This is really important. You can either buy from a franchised dealer, a used car dealer or privately. Here are some of the pros of buying from each:

Franchised dealer: One of the safest places to buy a car. You’ll get a great choice from a franchise. You can get used or nearly new cars. A franchised dealership also might know the entire history of the car. They will also provide you with a warranty, so if anything goes wrong you can take it back and they will fix it.

Used car dealer: They will usually have checked that there is no bad history or outstanding finance. Most dealers have an excellent reputation but you should exercise some caution and again, do your own research about the type of car you’ve chosen. You will usually get at least a 3 month warranty from a used car dealer. But check to see what it covers. Service items like tyres, exhausts and brake pads are not usually covered.

Private purchase: Best place for an excellent bargain. This is the riskiest way to buy a car as the car could have been involved in an accident, and might not belong to the seller. You should ask to meet at the sellers’ home or work and ask the following questions:

1. Is it your car?

2. Has the car ever been in an accident?

3. Can I have a signed receipt?

‘Cut and shut’, counterfeit parts, car ringing and clocking

Unfortunately there are many unscrupulous people out there wanting to make a buck out of the innocent car buyer. Some of the tactics undertaken by an unethical minority leave drivers with dangerous, illegal and unreliable cars. Many cars are stolen and sold on or taken from accidents and patched up to look like new. The following are some ploys that con men use to cheat the buyer:

‘Cut and Shut’

This is when two cars are taken from a scrap yard after write off accidents and welded together. This is extremely dangerous and potentially difficult to spot. Look for mismatched panels, traces of paint on window seals and door handles, mismatched upholstery and signs of serious repair work. It is very difficult to spot a cut and shut but it’s worth a closer inspection in case the person who carried out the work has cut corners.

Counterfeit parts

These are fraudulent copies of genuine manufacturer branded components. They are intended to deceive motorists and can be incredibly realistic. They are however not intended to be safe. Their makers don’t care about the potential safety threat to future drivers. They have started to make fake brake pads, discs and steering linkages. All of these could cause fatal accidents if they go wrong. You probably won’t have the opportunity to check parts before they are fitted to your new car, but it is something you should be aware of when buying a second hand vehicle.

‘Car ringing’

This is where a stolen car has its identification number changed. The vehicle identification number is taken from vehicles that have been written off in an accident. By forging these details thieves can pass off stolen cars as the genuine article to innocent car buyers. Once you’ve paid for a ‘ringer’, it’s too late. It does not belong to you and if it is traced it will be returned to the original owner, so you will lose out considerably. You can look out for this by checking all documents to see if they look forged. If there is little or no paperwork you should also be suspicious.

‘Car clocking’

This is when the car’s odometer is reduced to make it look as if the car has not done as many miles as it has. This makes cars look more valuable than they are. If the mileage of a car looks suspiciously low you should look for other tell tale signs such as wear and tear to the pedal rubbers and seats.

All of the above are seriously detrimental to the buyer and will leave you with a stolen, dangerous or faulty vehicle. If you have any doubts it is advisable to get an independent vehicle inspector to check the car before you buy it. This will avoid any potential fraud and will eliminate the risk to you.

Good luck!

Buying a car should be fun. You could end up with the car of your dreams – if you follow our guide. It really is worth checking for any discrepancies before you make the purchase. There are many ways to check the history and safety of the car so it’s easy to do and worth it in the long term.

 

Understanding Car Rental Industry

Market Overview

The car rental industry is a multi-billion dollar sector of the US economy. The US segment of the industry averages about $18.5 billion in revenue a year. Today, there are approximately 1.9 million rental vehicles that service the US segment of the market. In addition, there are many rental agencies besides the industry leaders that subdivide the total revenue, namely Dollar Thrifty, Budget and Vanguard. Unlike other mature service industries, the rental car industry is highly consolidated which naturally puts potential new comers at a cost-disadvantage since they face high input costs with reduced possibility of economies of scale. Moreover, most of the profit is generated by a few firms including Enterprise, Hertz and Avis. For the fiscal year of 2004, Enterprise generated $7.4 billion in total revenue. Hertz came in second position with about $5.2 billion and Avis with $2.97 in revenue.

Level of Integration

The rental car industry faces a completely different environment than it did five years ago. According to Business Travel News, vehicles are being rented until they have accumulated 20,000 to 30,000 miles until they are relegated to the used car industry whereas the turn-around mileage was 12,000 to 15,000 miles five years ago. Because of slow industry growth and narrow profit margin, there is no imminent threat to backward integration within the industry. In fact, among the industry players only Hertz is vertically integrated through Ford.

Scope of Competition

There are many factors that shape the competitive landscape of the car rental industry. Competition comes from two main sources throughout the chain. On the vacation consumer’s end of the spectrum, competition is fierce not only because the market is saturated and well guarded by industry leader Enterprise, but competitors operate at a cost disadvantage along with smaller market shares since Enterprise has established a network of dealers over 90 percent the leisure segment. On the corporate segment, on the other hand, competition is very strong at the airports since that segment is under tight supervision by Hertz. Because the industry underwent a massive economic downfall in recent years, it has upgraded the scale of competition within most of the companies that survived. Competitively speaking, the rental car industry is a war-zone as most rental agencies including Enterprise, Hertz and Avis among the major players engage in a battle of the fittest.

Growth

Over the past five years, most firms have been working towards enhancing their fleet sizes and increasing the level of profitability. Enterprise currently the company with the largest fleet in the US has added 75,000 vehicles to its fleet since 2002 which help increase its number of facilities to 170 at the airports. Hertz, on the other hand, has added 25,000 vehicles and broadened its international presence in 150 counties as opposed to 140 in 2002. In addition, Avis has increased its fleet from 210,000 in 2002 to 220,000 despite recent economic adversities. Over the years following the economic downturn, although most companies throughout the industry were struggling, Enterprise among the industry leaders had been growing steadily. For example, annual sales reached $6.3 in 2001, $6.5 in 2002, $6.9 in 2003 and $7.4 billion in 2004 which translated into a growth rate of 7.2 percent a year for the past four years. Since 2002, the industry has started to regain its footing in the sector as overall sales grew from $17.9 billion to $18.2 billion in 2003. According to industry analysts, the better days of the rental car industry have yet to come. Over the course of the next several years, the industry is expected to experience accelerated growth valued at $20.89 billion each year following 2008 “which equates to a CAGR of 2.7 % [increase] in the 2003-2008 period.”

Distribution

Over the past few years the rental car industry has made a great deal of progress to facilitate it distribution processes. Today, there are approximately 19,000 rental locations yielding about 1.9 million rental cars in the US. Because of the increasingly abundant number of car rental locations in the US, strategic and tactical approaches are taken into account in order to insure proper distribution throughout the industry. Distribution takes place within two interrelated segments. On the corporate market, the cars are distributed to airports and hotel surroundings. On the leisure segment, on the other hand, cars are distributed to agency owned facilities that are conveniently located within most major roads and metropolitan areas.

In the past, managers of rental car companies used to rely on gut-feelings or intuitive guesses to make decisions about how many cars to have in a particular fleet or the utilization level and performance standards of keeping certain cars in one fleet. With that methodology, it was very difficult to maintain a level of balance that would satisfy consumer demand and the desired level of profitability. The distribution process is fairly simple throughout the industry. To begin with, managers must determine the number of cars that must be on inventory on a daily basis. Because a very noticeable problem arises when too many or not enough cars are available, most car rental companies including Hertz, Enterprise and Avis, use a “pool” which is a group of independent rental facilities that share a fleet of vehicles. Basically, with the pools in place, rental locations operate more efficiently since they reduce the risk of low inventory if not eliminate rental car shortages.

Market Segmentation

Most companies throughout the chain make a profit based of the type of cars that are rented. The rental cars are categorized into economy, compact, intermediate, premium and luxury. Among the five categories, the economy sector yields the most profit. For instance, the economy segment by itself is responsible for 37.7 percent of the total market revenue in 2004. In addition, the compact segment accounted for 32.3 percent of overall revenue. The rest of the other categories covers the remaining 30 percent for the US segment.

Historical Levels of Profitability

The overall profitability of the car rental industry has been shrinking in recent years. Over the past five years, the industry has been struggling just like the rest of the travel industry. In fact, between the years 2001 and 2003 the US market has experienced a moderate reduction in the level of profitability. Specifically, revenue fell from $19.4 billion in 2000 to $18.2 billion in 2001. Subsequently, the overall industry revenue eroded further to $17.9 billion in 2002; an amount that is minimally higher than $17.7 billion which is the overall revenue for the year 1999. In 2003, the industry experienced a barely noticeable increase which brought profit to $18.2 billion. As a result of the economic downturn in recent years, some of the smaller players that were highly dependent on the airline industry have done a great deal of strategy realignments as a way of preparing their companies to cope with eventual economic adversities that may surround the industry. For the year 2004, on the other hand, the economic situation of most firms have gradually improved throughout the industry since most rental agencies have returned far greater profits relative to the anterior years. For instance, Enterprise realized revenues of $7.4 billion; Hertz returned revenues of $5.2 billion and Avis with $2.9 billion in revenue for the fiscal year of 2004. According to industry analysts, the rental car industry is expected to experience steady growth of 2.6 percent in revenue over the next several years which translates into an increase in profit.

Competitive Rivalry Among Sellers

There are many factors that drive competition within the car rental industry. Over the past few years, broadening fleet sizes and increasing profitability has been the focus of most companies within the car rental industry. Enterprise, Hertz and Avis among the leaders have been growing both in sales and fleet sizes. In addition, competition intensifies as firms are constantly trying to improve their current conditions and offer more to consumers. Enterprise has nearly doubled its fleet size since 1993 to approximately 600,000 cars today. Because the industry operates on such narrow profit margins, price competition is not a factor; however, most companies are actively involved in creating values and providing a range of amenities from technological gadgets to even free rental to satisfy customers. Hertz, for example, integrates its Never-Lost GPS system within its cars. Enterprise, on the other hand, uses sophisticated yield management software to manage its fleets.

Finally, Avis uses its OnStar and Skynet system to better serve the consumer base and offers free weekend rental if a customer rents a car for five consecutive days Moreover, the consumer base of the rental car industry has relatively low to no switching cost. Conversely, rental agencies face high fixed operating costs including property rental, insurance and maintenance. Consequently, rental agencies are sensitively pricing there rental cars just to recover operating costs and adequately meet their customers demands. Furthermore, because the industry experienced slow growth in recent years due to economic stagnation that resulted in a massive decline in both corporate travel and the leisure sector, most companies including the industry leaders are aggressively trying to reposition their firms by gradually lessening the dependency level on the airline industry and regaining their footing in the leisure competitive arena.

The Potential Entry of new Competitors

Entering the car rental industry puts new comers at a serious disadvantage. Over the past few years following the economic downturn of 2001, most major rental companies have started increasing their market shares in the vacation sector of the industry as a way of insuring stability and lowering the level of dependency between the airline and the car rental industry. While this trend has engendered long term success for the existing firms, it has heightened the competitive landscape for new comers. Because of the severity of competition, existing firms such as Enterprise, Hertz and Avis carefully monitor their competitive radars to anticipate Sharpe retaliatory strikes against new entrants. Another barrier to entry is created because of the saturation level of the industry.

For example, Enterprise has taken the first mover advantage with its 6000 facilities by saturating the leisure segment thereby placing not only high restrictions on the most common distribution channels, but also high resource requirements for new firms. Today, Enterprise has a rental location within 15 miles of 90 percent of the US population. Because of the network of dealers Enterprise has established around the nation, it has become relatively stable, more recession proof and most importantly, less reliant on the airline industry compared to its competitors. Hertz, on the other hand, is utilizing the full spectrum of its 7200 stores to secure its position in the marketplace. Basically, the emergence of most of the industry leaders into the leisure market not only drives rivalry, but also it varies directly with the level of complexity of entering the car rental industry.

The Threat of Substitute

There are many substitutes available for the car rental industry. From a technological standpoint, renting a car to go the distance for a meeting is a less attractive alternative as opposed to video conferencing, virtual teams and collaboration software with which a company can immediately setup a meeting with its employees from anywhere around the world at a cheaper cost. In addition, there are other alternatives including taking a cab which is a satisfactory substitute relative to quality and switching cost, but it may not be as attractively priced as a rental car for the course of a day or more. While public transportation is the most cost efficient of the alternatives, it is more costly in terms of the process and time it takes to reach one’s destination. Finally, because flying offers convenience, speed and performance, it is a very enticing substitute; however, it is an unattractive alternative in terms of price relative to renting a car. On the business segment, car rental agencies have more protection against substitutes since many companies have implemented travel policies that establish the parameters of when renting a car or using a substitute is the best course of action.

According to Tracy Esch, an Advantage director of marketing operations, her company rents cars up to a 200-mile trip before considering an alternative. Basically, the threat of substitute is reasonably low in the car rental industry since the effects the substitute products have do not pose a significant threat of profit erosion throughout the industry.

The Bargaining Power of Suppliers

Supplier power is low in the car rental industry. Because of the availability of substitutes and the level of competition, suppliers do not have a great deal of influence in the terms and conditions of supplying the rental cars. Because the rental cars are usually purchased in bulk, rental car agents have significant influence over the terms of the sale since they possess the ability to play one supplier against another to lower the sales price. Another factor that reduces supplier power is the absence of switching cost. That is, buyers are not affected from purchasing from one supplier over another and most importantly, changing to different supplier’s products is barely noticeable and does not affect consumer’s rental choices.

The Bargaining Power of Buyers

While the leisure sector has little or no power, the business segment possesses a significant amount of influence in the car rental industry. An interesting trend that is currently underway throughout the industry is forcing car rental companies to adapt to the needs of corporate travelers. This trend significantly reduces supplier power or the rental firms’ power and increases corporate buyer power since the business segment is excruciatingly price sensitive, well informed about the industry’s price structure, purchase in larger quantities and they use the internet to force lower prices. Vacation buyers, on the other hand, have less influence over the rental terms. Because vacationers are usually less price sensitive, purchase in lesser amounts or purchase more infrequently, they have weak bargaining power.

Five Forces

Today the car rental industry is facing a completely different environment than it did five years ago. Competitively speaking, the revolution of the five forces around the car rental industry exerts some strong economic pressure that has significantly tarnished the competitive attractiveness of the industry. As a result of the economic downturn in recent years, many companies went under namely Budget and the Vanguard Group because their business infrastructure succumbed to the untenability of the competitive environment. Today, very few firms including Enterprise, Hertz and Avis return a slightly above-average revenue compared to the rest of the industry. Realistically speaking, the car rental sector is not a very attractive industry because of the level of competition, the barriers to entry and the competitive pressure from the substitute firms.

Strategic Group Mapping

As a moderately concentrated sector, there is a clear hierarchy in the car rental industry. From an economic standpoint, disparities exist from a number of dimensions including revenue, fleet size and the market size each firm holds in the market place. For instance, Enterprise dominates the industry with a fleet size of approximately 600,000 vehicles along with its market size and its level of profitability. Hertz comes in second position with its number of market shares and fleet volume. In addition, Avis ranks third on the map. Avis is among one of the companies that is having issues recovering its revenue margins from prior to the economic downturn. For instance, in 2000 Avis returned revenues of approximately $4.23 billion. Over the course of the next several years following 2000, the revenue of Avis has been significantly lower than that of 2000. As a way of reducing uncertainty most companies are gradually lessening the level of dependency on the airline industry and emerging the leisure market. This trend may not be in the best interest of Hertz since its business strategy is intricately linked to the airports.

Key Success Factors

There are many key success factors that drive profitability throughout the car rental industry. Capacity utilization is one of the factors that determines success in the industry. Because rental firms experience loss of revenue when there are either too few or too many cars sitting in their lots, it is of paramount importance to efficiently manage the fleets. This success factor represents a big strength for the industry since it lowers if not completely eliminates the possibly of running short on rental cars. Efficient distribution is another factor that keeps the industry profitable. Despite the positive relationship between fleet sizes and the level of profitability, firms are constantly growing their fleet sizes because of the competitive forces that surround the industry. In addition, convenience is one of the crucial attributes by which consumers select rental firms. That is, car rental consumers are more prone to renting cars from firms that have convenient rental and drop off locations. Another key success factor that is common among competing firms is the integration of technology in their business processes. Through technology, for instance, the car rental companies create ways to meet consumer demand by making renting a car a very agreeable ordeal by adding the convenience of online rental among other alternatives. Furthermore, firms have integrated navigation systems along with roadside assistance to offer customers the piece of mind when renting cars.

Industry Attractiveness

There are many factors that impact the attractiveness of the car rental industry. Because the industry is moderately concentrated, it puts new market entrants at a disadvantage. That is, its low concentration represents a natural barrier to entering the industry as it allows existing firm to anticipate sharp retaliations against new entrants. Because of the risks associated with entering the industry among other factors, it is not a very attractive sector of the marketplace. From a competitive standpoint, the leisure market is 90 percent saturated because of the active efforts of Enterprise to dominate this sector of the market. On the other hand, the airport terminals are heavily guarded by Hertz. Realistically speaking, entry in the industry offers low profitability relative to the costs and risks associated. For most consumers, the main determining factors of choosing one company over another are price and convenience. Because of this reason, rental firms are very circumspect about setting their rates and that generally force even the industry major players in the position of offering more to the consumers for less just to remain competitive. Hertz, for example, offers wireless internet to its customers just to add more convenience to their travel plans. Avis on the other hand, offers free weekend specials if a customer rents a car for five consecutive weekdays. Based on the impact of the five forces, the car rental sector is not a very attractive industry to potential new market entrants.

Conclusion

The rental car industry is in a state of recovery. Although it may seem like the industry is performing well financially, it is nonetheless gradually regaining its footing relative to its actual economic position within the last five years. As a way of insuring profitability, besides seeking market shares and stability, most companies throughout the chain have a common goal that deals with lowering the level of dependency on the airline industry and moving toward the leisure segment. This state of motion has engendered some fierce competition among industry competitors as they attempt to defend their market shares. From a futuristic perspective, the better days of the car rental industry have yet to come. As the level of profitability increases, I believe that most of the industry leaders including Enterprise, Hertz and Avis will be bounded by the economic and competitive barriers of mobility of their strategic groups and new comers will have a better chance of infiltrating and realizing success in the car rental industry.