With unavailable credit and the cutbacks in leisure and business travel, rental car companies are joining the many companies seeking federal aid. A bill passed the House last month that allows low-interest government loans to rental companies to buy new cars and trucks. It faces an uncertain future in the Senate.
Rental car companies are saying that they had to slash their fleet orders since they could not find enough credit from private lenders and investors for inventory purchases.
“We all have the need and desire” to buy new vehicles, Robert Barton, president of the American Car Rental Association, told Automotive News. “We just need the mechanism to get it done.”
Barton said that rental car companies usually finance their fleet purchases by borrowing cash from automakers’ finance companies and large banks – both sources which remain “very tight.”
Yes – we totally understand that companies like Hertz needs and desires to add cars like the Corvette ZHZ pictures above. We’re thinking eGMCarTech should get some TARP money as well.