What were the net expenditures for International RAC for Dollar Rent A Car in 2024?
Dollar_Rent_A_Car Franchise · 2025 FDDAnswer from 2025 FDD Document
e sheet date. See Note 5, "Revenue Earning Vehicles."
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)
- (2) As of December 31, 2023, includes the carrying amount of vehicles classified as held for sale as of the respective balance sheet date, including the First EV Disposal Group. See Note 5, "Revenue Earning Vehicles."
- (3) The consolidated total assets of Hertz Global and Hertz as of December 31, 2024 and 2023 include total assets of VIEs of $1.4 billion and $1.7 billion, respectively, which can only be used to settle obligations of the VIEs. See "Pledges Related to Vehicle Financing" in Note 7, "Debt," for further information.
| Years Ended December 31, | ||||||
|---|---|---|---|---|---|---|
| (In millions) | 2024 | 2023 | 2022 | |||
| Revenue earning vehicles and non-vehicle capital assets |
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 net expenditures for International RAC (Rental Car) operations in 2024 were $93 million. This figure represents the result of expenditures of $1,687 million and proceeds from disposals of $1,594 million.
For a prospective Dollar Rent A Car franchisee, this indicates the level of investment and returns the company experienced in its international rental car segment during that year. It is important to note that this figure reflects the overall performance of Dollar Rent A Car's international operations and may not be directly indicative of an individual franchise's potential performance.
Analyzing these figures over the three-year period (2022-2024) shows fluctuations in both expenditures and proceeds from disposals, impacting the net expenditure. In 2023, the net expenditures were ($623) million, and in 2022, they were ($638) million. These variations could be due to factors such as changes in fleet size, disposal strategies, or market conditions. A potential franchisee should investigate the reasons behind these fluctuations to better understand the financial dynamics of Dollar Rent A Car's international operations and how they might affect their investment.
Understanding the components of these net expenditures, such as fleet costs, disposal values, and operational expenses, is crucial for assessing the financial health and stability of Dollar Rent A Car's international segment. Prospective franchisees should also consider how these figures align with the company's strategic goals and future projections for international growth.