What were Budget's total assets under vehicle programs in 2023?
Budget Franchise · 2025 FDDAnswer from 2025 FDD Document
46 | | | 5,798 | 2,402 | 299 | 8,499 | | | 14,269 | 3,159 | — | 17,428 | | | 1,446 | 761 | 123 | 2,330 |
(a) Includes unallocated corporate assets which are not attributable to a particular reportable segment,
Provided below is information classified based on the geographic location of our subsidiaries.
| Jnited States | All Other Countries | Total | _ | |
|---|---|---|---|---|
| 2024 Revenues Assets exclusive of assets under vehicle programs Assets under vehicle programs Net long-lived assets | $ 8,583 6,720 15,295 1,465 | $ 3,206 2,948 4,078 904 | $ 11,789 9,668 19,373 2,369 | 3 3 |
| 2023 Revenues Assets exclusive of assets under vehicle programs Assets under vehicle programs Net long- |
Source: Item 21 — FINANCIAL STATEMENTS (FDD page 79)
What This Means (2025 FDD)
According to Budget's 2025 Franchise Disclosure Document, the company's total assets under vehicle programs in 2023 were $22,979 million. This figure represents the combined value of program cash, vehicles net of depreciation, receivables from vehicle manufacturers, and investments in Avis Budget Rental Car Funding (AESOP) LLC, a related party. These assets are specifically earmarked for Budget's vehicle-related operations and are distinct from the company's other assets.
Assets under vehicle programs are critical to Budget's operations, as they directly support the rental car business. The largest component of these assets is the net value of the vehicle fleet itself. The program cash provides liquidity for ongoing vehicle-related expenses, while receivables from manufacturers reflect expected payments from vehicle sales or repurchase agreements. The investment in Avis Budget Rental Car Funding (AESOP) LLC indicates a financial relationship where funds are channeled to support vehicle acquisitions.
It's important to note that these assets are closely tied to liabilities under vehicle programs, as detailed elsewhere in the financial statements. This structure is common in the rental car industry, where large vehicle fleets are financed through specialized debt arrangements. Potential franchisees should understand the dynamics between these assets and liabilities, as they reflect the capital-intensive nature of the car rental business. Understanding the details of these vehicle programs is essential for assessing the overall financial health and stability of Budget.