Rent-A-Wreck is a franchise for a business providing used car rental and leasing. It was founded in 1968 and started franchising in 1973.
They say that they used this name just so that people will easily remember them. They get calls from people asking if they rent out wrecks but their answer is that their fleet of trucks, cars, and vans are all well maintained and clean. They are not wrecks but they are known for having very low prices.
They rent out vehicles for business or for pleasure with vehicles ranging from economy cars, SUV’s, station wagons, full sized sedans, and also box trucks, pick-up trucks, cargo vans, 15 passenger vans and mini vans. They now have 160 locations all over the United States. They have 35 locations in other countries such as Sweden, Norway, and Denmark. They also have one location that is still owned and operated by the company.
What are the terms, conditions, and requirements on renting a vehicle from Rent-A-Wreck?
Their locations usually require that the renter has to be at least 18 years old but some location requires the renter to be at least 25 years old. Some would require those less than 25 years old to present a credit card and the rates for them may be higher. The rates may vary for every location and they add taxes depending on the state and additional airport surcharge on airport locations. There are also additional charges for additional equipments such as CD players, GPS systems, and other equipments available such as ski racks.
What are some car rental jargons that you should know about?
First is the Collision Damage Waiver or CDW. This is what you need to avail of for the rental company to be the one to pay for damages to the rented vehicle. If you do not take this option, it means that you will need to pay for the damages that the vehicle may incur and it may sometimes mean paying for the full cost of the vehicle in itself. Another is the Personal Accident Insurance or PAI, Supplemental Liability Insurance or SLI, and Personal Effects Coverage or PEC.
Cost and requirements on running a Rent-A-Wreck franchise
You need to have a net worth of $250,000 and a total liquid asset of at least $50,000. Expect to be investing about $124,000 to $381,000. The cost of Rent-A-Wreck franchise fee is $12,000 with an on-going royalty fee of $30 per car per month. This is for a renewable five year term agreement. You will need about two employees to run one location. They allow multi-unit ownership and absentee ownership.
What is included in the franchise package?
There will be one week training at the headquarters and at your location as needed. There will also be classes at the counter and marketing seminars. You will be receiving newsletters and toll free phone number. You will be provided assistance at the grand opening. You will be given access to the internet and to purchasing cooperatives. Expect to be attending meetings and receiving occasional field evaluations. For marketing support, there will be ad slicks, co-op advertising, regional advertising, and national media.
Rent-A-Wreck Contact Details
You may reach them at:
Address: 105 Main Street Laurel, MD 20707
Phone: (240) 581-1359