What is the total outstanding borrowing amount for 'International - Finance leases' for the Budget brand?
Budget Franchise · 2025 FDDAnswer from 2025 FDD Document
billion of bank and bank-sponsored facilities.
Committed Credit Facilities And Available Funding Arrangements
The following table presents available funding under our debt arrangements related to our vehicle programs, including related party debt due to Avis Budget Rental Car Funding, at December 31, 2024:
| Total Capacity (a) | Outstanding Borrowings (0) | Available Capacity |
|---|
Source: Item 21 — FINANCIAL STATEMENTS (FDD page 79)
What This Means (2025 FDD)
According to Budget's 2025 Franchise Disclosure Document, the total outstanding borrowing amount for 'International – Finance leases' is $17,613. This figure represents the amount Budget owes under international finance lease arrangements as of the date of the financial statements.
Finance leases are a method Budget uses to acquire vehicles for its international operations. These leases involve fixed repayment schedules and interest rates that are determined at the contract date. The weighted average interest rate on these international finance lease borrowings was 5.07% as of December 31, 2024, and 3.68% as of December 31, 2023.
Prospective franchisees should understand that these finance leases are secured by liens on the related assets, meaning that the lenders have a claim on the vehicles acquired through these leases. This information is crucial for assessing Budget's financial health and its approach to financing its international fleet. Franchisees may want to inquire about the terms and conditions of these leases to fully understand their implications.