What were the proceeds from disposals for Americas RAC for Dollar Rent A Car in 2023?
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 billio
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 proceeds from disposals for the Americas RAC segment in 2023 were $4,376 million. This figure reflects the income Dollar Rent A Car received from selling off assets, specifically revenue-earning vehicles and non-vehicle capital assets, within its Americas Rental Car operations.
For a prospective franchisee, this number provides insight into the asset turnover and potential revenue streams beyond standard rental operations. It demonstrates Dollar Rent A Car's ability to recoup capital through the disposal of vehicles and other assets. Understanding the proceeds from disposals can help a franchisee assess the financial health and asset management strategies of the company.
It's important to note that these proceeds can fluctuate based on market conditions, the age and condition of the vehicles being disposed of, and the company's asset management policies. Franchisees should consider these factors when evaluating the long-term financial prospects of a Dollar Rent A Car franchise. Reviewing trends in disposal proceeds over several years, as presented in the table, can offer a more comprehensive understanding of this aspect of the business.