What was the amount of vehicle depreciation and lease charges, net, for Budget in 2022?
Budget Franchise · 2025 FDDAnswer from 2025 FDD Document
ology applied and measurable inputs used, and the mathematical accuracy of the calculation.
/s/ DELOITTE & TOUCHE LLP New York, New York February 14, 2025
We have served as the Company's auditor since 1997.
Avis Budget Group, Inc. CONSOLIDATED STATEMENTS OF OPERATIONS (In millions, except per share data)
| Y | 11, | |||
|---|---|---|---|---|
| 2024 |
Source: Item 21 — FINANCIAL STATEMENTS (FDD page 79)
What This Means (2025 FDD)
According to Budget's 2025 Franchise Disclosure Document, the vehicle depreciation and lease charges, net, for the year 2022 was $828 million. This figure represents the total expenses related to the depreciation of vehicles and lease charges, after accounting for any gains or losses from the sale of vehicles.
For a prospective Budget franchisee, understanding vehicle depreciation and lease charges is crucial because it represents a significant operating expense. The net amount includes depreciation expense, lease charges, and any gains or losses from the sale of vehicles. This indicates how Budget manages its fleet and the costs associated with it.
Fluctuations in this amount from year to year can be influenced by factors such as changes in the size and composition of the fleet, the terms of lease agreements, and the market conditions for used vehicles. Monitoring these trends can provide insights into Budget's financial performance and its strategies for managing vehicle-related costs. Franchisees should consider these costs when evaluating the overall profitability and sustainability of a Budget franchise.