What was the depreciation of revenue earning vehicles for Dollar Rent A Car in 2024?
Dollar_Rent_A_Car Franchise · 2025 FDDAnswer from 2025 FDD Document
:
December 31, (In millions) 2024 2023 Revenue earning vehicles $ 12,424 $ 16,164 Less accumulated depreciation (751) 11,673 (2,155) 14,009 Revenue earning vehicles held for sale, net(1) 290 642 Revenue earning vehicles, net(2) $ 11,963 $ 14,651 (1) Represents the carrying amount of vehicles classified as held for sale as of the respective balance sheet date. As of December 31, 2023, also includes the First EV Disposal Group, as defined and disclosed below.
Depreciation of revenue earning vehicles and lease charges, net includes the following:
| Years ended December 31, | ||||||
|---|---|---|---|---|---|---|
| (In millions) | 2024 | 2023 | 2022 | |||
| Depreciation of revenue earning veh |
Source: Item 23 — RECEIPTS (FDD pages 102–301)
What This Means (2025 FDD)
According to Dollar Rent A Car's 2025 Franchise Disclosure Document, the depreciation of revenue earning vehicles for the year ended December 31, 2024, was $2,896 million. This figure represents the expense recognized for the decrease in value of the vehicles used to generate rental revenue. Depreciation is a significant factor in the financial performance of Dollar Rent A Car, reflecting the wear and tear and obsolescence of its fleet.
In addition to depreciation, Dollar Rent A Car also reported a gain on the disposal of revenue earning vehicles of $673 million in 2024. Rents paid for vehicles leased amounted to $42 million. The total depreciation of revenue earning vehicles and lease charges, net, was $3,611 million for the same period. These figures provide a comprehensive view of the costs associated with maintaining and operating Dollar Rent A Car's fleet.
It's important to note that the depreciation rates are reviewed quarterly by Dollar Rent A Car's management, based on their assessment of market conditions and estimated residual values of the vehicles. This ongoing assessment ensures that the depreciation expense accurately reflects the economic reality of the fleet's value. For a prospective franchisee, understanding these depreciation dynamics is crucial for assessing the potential profitability and financial stability of a Dollar Rent A Car franchise.