What was Budget's total vehicle finance lease liabilities as of December 31, 2023?
Budget Franchise · 2025 FDDAnswer from 2025 FDD Document
| As of December 31, | |||||||
|---|---|---|---|---|---|---|---|
| 2024 | 2023 | ||||||
| Property leases Operating lease ROU assets | $ | 3,057 $ | 2,654 | ||||
| Short-term operating lease liabilities (e) | $ | 628 $ | 576 | ||||
| Long-term operating lease liabilities | 2,484 | 2,117 | |||||
| Operating lease liabilities | $ | 3,112 $ | 2,693 | ||||
| Weighted average remaining lease term Weighted average discount rate | 8.0 years 4.98% | 8.1 years 4.83% | |||||
| Vehicle leases Finance Finance lease ROU assets, gross Accumulated amortizati |
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 vehicle finance lease liabilities as of December 31, 2023, were $172 million. This figure represents the sum of short-term and long-term vehicle finance lease obligations that Budget had in place at the end of that fiscal year.
Vehicle finance leases are a common method for fleet-based businesses like Budget to acquire vehicles without purchasing them outright. These leases allow Budget to use vehicles for a specified period, making regular payments, and potentially having the option to purchase the vehicles at the end of the lease term. The liabilities reflect Budget's financial obligations under these lease agreements.
For a prospective franchisee, understanding these liabilities at the corporate level can provide insight into how Budget manages its fleet and finances its vehicle acquisitions. While franchisees may not directly assume these specific liabilities, they should be aware of Budget's overall financial strategy and how it impacts the availability and cost of vehicles, which are essential for operating a Budget franchise. Reviewing the trends in these liabilities over time, as presented in the FDD, can offer a clearer picture of Budget's financial health and leasing strategies.