Thrifty Car Sales Touts Local Dealers
24 January 2000
Thrifty Car Sales Touts Local Dealers; Plans Aggressive Growth With Enhanced Franchise Program
ORLANDO, Fla., Jan. 24 -- Thrifty Car Sales, the nationally
franchised retail used car sales brand, today showcased some of its charter
dealers, and announced plans to have open a total of 60 stores in the next
12 months.
Ironically, the aggressive growth plans of Thrifty Car Sales as a
nationally branded, locally franchised dealer network come at a time when an
alternative dealership model, that of the "big box" used car superstore, has
been declared a failure.
"Clearly, the used car superstores underestimated the entrepreneurial
power of the local dealer," said Jay Betz, President of Thrifty Car Sales.
"It is the local dealer who has been key to the success of the U.S. automotive
industry since inception."
According to Betz, the Thrifty Car Sales strategy is founded in the belief
that no one is better able to service the customer than the local
entrepreneur.
"Nobody knows the business or a market better than the local dealer," said
Betz. "As a franchisor, Thrifty has focused on preserving the strengths of
the branded and independent dealer in developing Thrifty Car Sales. Our role
is to leverage our franchise support expertise and business know-how to
provide the strategic support services and brand identity our dealers need.
"Thrifty is, inescapably, the best franchise alternative for local
entrepreneurs looking for the leverage of a national brand in used car sales.
No one else has a program that even comes close."
Interest in Thrifty Car Sales among independent and branded dealers was
even higher than expected when the new franchise brand was first announced at
last year's National Automobile Dealers Association convention in San
Francisco. More than 500 dealer prospects expressed an interest in purchasing
a Thrifty Car Sales franchise, many of whom were already associated with a
manufacturer brand.
"This came as somewhat of a surprise," said Betz. "While we had expected
a high level of interest from independent dealers, with some interest from
branded dealers, we, in fact, received an outstanding response from branded
dealers. As a result we have further enhanced the Thrifty Car Sales program
over the past few months to better accommodate this broader target market.
The bottom line is that Thrifty Car Sales provides qualified dealers with yet
another branded outlet that can blend well with their existing business
strategy."
As part of the enhancements made to the program, the company has added
even more automotive and financial partners to further broaden the products
and service offerings of an already stellar line-up of partners.
"Our dealers told us what they wanted, and we have delivered," said Betz.
"That's why we have added partners like PRIMUS, Automotive Finance
Corporation, Banc One Credit Company and TranSouth Financial Corporation.
Independents won't find this breadth of options on their own, and branded
dealers can supplement their existing offerings to aid in expansion." (See
other news release for details).
To date, Thrifty Car Sales has dealers in 15 U.S. cities, with an
additional 24 cities that have been approved and have franchise agreements
pending. By the end of First Quarter, it is expected that Thrifty Car Sales
will have over 30 open locations.
Thrifty currently has dealer representation in these cities: Flagstaff
and Peoria, Ariz.; Aurora, Colo.; Sebring, Fla.; Belleville and Freeport,
Illinois; Independence, Mo.; Bartlesville, Grove and Tulsa, Okla.; and Arcola,
Houston, McAllen, Brownsville and Harlingen, Texas.
The company's ambitious goal of 60 stores in the next 12 months includes
markets that range from large metropolitan cities to smaller communities
scattered throughout the U.S.
"Thrifty, Inc. is bullish on the long-term success of the Thrifty Car
Sales brand, as it leverages our company's long-standing history of success in
the franchise arena," said Don Himelfarb, President and CEO of parent company,
Thrifty, Inc. "From a big-picture perspective, Thrifty Car Sales enables us
to continue to diversify our traditional revenue base and leverage off the
significant growth we have seen on the car rental side in 1999."
It is expected that approximately 50% of Thrifty Car Sales locations will
be owned by branded dealers, 40% by independent dealers, and 10% by current
Thrifty Car Rental franchise owners. To date, four Thrifty Car Rental
franchise owners have purchased Thrifty Car Sales locations in the cities of
Aurora, Colo., Sebring, Fla., Belleville, Ill., and Brownsville, Harlingen and
McAllen, Texas, with more to follow.
While last year's target of 40 locations by year end has not been
completely realized, Betz is not apologetic.
"Our target of 40 locations in 1999 was simply arbitrary," said Betz.
"After evaluating the high level of response received at NADA, as well as the
length of time involved in the franchise sales process, we made a conscious
decision to take it slow. Our fundamental goal is to realize quality growth
with strong dealers and strategic partners who are well-matched to Thrifty Car
Sales, and vice versa.
"Clearly, year one was a development year for Thrifty Car Sales. This
year, we are well positioned for significant locational growth."
Built on more than 41 years of experience as the leader in car rental
franchising under the Thrifty Car Rental brand name, Thrifty Car Sales
provides a full range of franchise program products and services, including
marketing and operational support; vehicle supply programs; an array of
floorplan and retail financing options; and private-labeled products.
Thrifty Car Sales, Inc., with its affiliate Thrifty Car Rental, are
subsidiaries of Thrifty, Inc. Thrifty Car Sales operates a franchised retail
used car sales network that was launched last year, and is growing nationwide.
Thrifty Car Rental is one of the world's largest international car rental
franchise networks, consisting of over 1,200 locations in 67 countries around
the world. Thrifty, Inc. is a subsidiary of Dollar Thrifty Automotive Group,
Inc. .