U.S. CHOICE AUTO RENTAL Initial Telephone and Internet Training For Basic Operations of a rental car operation Under the U. S. Choice Agreement Created and Produced by Jim Schalberg Auto Rental Training and Continuing Education www.Schalberg.com
A Properly Qualified Renter • Telephone Qualifying • Right Driver, Right Car • Qualification Questions Designed To Make A Good Rental
Telephone Qualifying • First Contact On The Phone • Focus On The Caller • Speak Slowly, Clearly And Into The Mouth Piece • Listen!!!!
Right Driver Right Car • Listen To The Customers Request • Qualifying Questions Determine Rental Equipment Then Rate • Listen To What The Answers Tell You • Does Your Customer Read And Write In English This is a simple business. You rent a good clean dependable vehicle at a fair price. All you ask your customer to do is bring it back in the same condition and pay your Bill! It is your job to ask the right questions to ensure that contract!
Qualifying Questions • Is The Renter And All Additional Drivers Over 25? • Tells You Who And How Many Drivers • Will You Be Using The Car Locally Or Going Out Of Town? • Where Is The Equipment Going • What Major Credit Card Will You Be Using? • Determining If This Is A Cash Renter • How Long Will You Need The Car? • Helps You Determine Rate • When Do You Want To Pick Up The Car? • Lets You Check Availability • Gives You An Opportunity To Turn Away An Unwanted Rental! • Decision Time!!!! Remember!Most Accidents Are Caused by Additional Drivers…Most Not Authorized. Under Age Drivers Are Almost 10 Times More Likely To Have An Accident!
Cash Rentals • Most Dangerous? Most Profitable? • Minimum, Three Proofs of Residency, All Current, No Overdue amounts • Never More Than a Week • Never Extend Over The Phone • No Additional Drivers • A Deposit is a Deposit
Passenger Van Rentals • Roll Over Danger In 15 Pass Vans Increase As The Load Increases • Right Number Of Seat Belts • Consider Two 7 Pass Vans Instead Of 15 • Most Rollovers Are Single Vehicle Crashes • Driver Must Be Well Rested • Especially Cautious On Curves • Re Enter Roadway Cautiously If Wheels Drop Off The Pavement • Check Tire Tread And Inflation At Least Once A Month • Restrict Drivers To Those Familiar With The Equipment • Inexperienced And Over Confident Drivers Contribute To Many Rollover Crashes
Cargo Truck Rentals No Truck Rentals for Off-Road Use! • What Will You Be Carrying? • Cautions • Firewood • Sand Or Gravel • Concrete, Brick, Rubble • Off Road Use • Tell The Renter The Height Of The Vehicle And To Watch For Over Hang And , Low Bridges, Tunnels Or Parking Garages – Especially Drive Through Restaurants • An Overloaded Or Improperly Used Truck Is A Loss Looking For A Place To Happen! Most Important… Right Truck for Right Job
Possible Catastrophic Losses (Million Dollar Loss) • Owners And Employees Driving Your Rental Cars And Not On A Rental Agreement • Renting Into A State That Has Vicarious Liability Laws • Negligent Entrustment • Renting A Faulty Vehicle • Making A Rental To Someone Who Cannot Handle The Vehicle Physically Or Due To The Influence Of Alcohol Or Drugs (Even Prescribed Medication)
Your Rental Contract • Neat Clean and Legible • All Information Accurate • Multiple Contact Numbers • Remember Return Date • IT IS A CONTRACT
You and Your Contract • Fill out the front of the contract properly • No Empty spaces • Drivers license must be current and present • Additional driver information must be current and complete • Insurance information must be verified • Contract must be signed in front of a rental agent
Terms and Conditions • Understand the back of your contract • Be sure to point out the Terms and Conditions to your customer • Be sure the customer acknowledges he/she understands terms and conditions
Walk Around • When Contract is complete • Take customer out to the car • Start the car and let it warm up for the customer • Walk around the car and mark any dings and scratches on the proper form • Be sure to point out that there is no Glass Damage • Show the customer that the car has four matching tires etc. • Put the customer in the car and show him/her the controls • Thank Them for the business
Upon Return • Copy mileage and fuel • Walk around the car and inspect for any damage or missing parts • Ask the customer if there were any problems with the car • Accurately close the rental agreement • Settle all charges and deposits • Thank the customer for the business
Loss Prevention Begins At The Counter • You Are The Front Line Underwriter • Your Decision To Rent Or Not To Rent Will Effect The Profitability Of Your Business • Your Job To Be Sure The Right Driver Is In The Right Car • Your Job Is To Properly Train Your Renter!
Factors In Controlling Your Losses • A Properly Qualified Renter • Proper “Written” Counter Procedures • Properly Completed Rental Agreement • Properly Trained Counter Agents • Proper Check In And Check Out Forms That Include Signatures Your Written Counter Procedures Must be Submitted for Approval to U.S. Choice!
Factors In Controlling Your Losses • Proper Vehicle Inspection • Prior To In-fleeting • Walk Around, Before And After Each Rental With A Signed Or Initialed Form • Regular Scheduled Service • Written Maintenance Procedures • Proper Maintenance Records • Document All In-house Repair Orders • Keep All Receipts For Outside Repair Orders • Require Vendors To Provide Insurance Certificate Keep All Receipts For Outside Repair Orders • Require Vendors To Provide Insurance Certificate
Proper Counter Procedures • Follow Up For Cars On Rent • Always Stay In Touch • Call Day Before Due Back • Procedures In Place For Payment • Charging In Advance • Helps Control Rental • Makes Sure All Charges Understood • Rental Agreement And Key Control • Rental Agreements Kept In Secure Location • Keys Out Of Site And Secure • Start A No Rent List Of Problem Renters Most Common Mistake Is A Rental Agreement Not Filled Out Properly Or With Missing Or Incomplete Information!
Fleet Maintenance • Regular Maintenance Saves Money • Written Policy for your Insurance Company • Not Set Up for Retail – For Rent
Your Rates • Never Written in Stone (or paper) • Combination many components • Do the Math • Where to Begin
Establishing Rental Rates • Understand Rate Structure • Understand Utilization • Expenses Categories • Find Breakeven Day • Set Your Rates Profitably • What Do You Need To Make A Profit • Shop Your Competition
Establishing Rental Rates • Rate Structure • Charged By Class • Daily Rate...Hourly Day/Calendar Day • Mileage Charges • Weekly Rate • Monthly Rate/4 Week Rate • Grace Periods/Late Charges
Establishing Rental Rates • Understanding Utilization • 30 Available Rental Days Per vehicle Per Month • vehicle On Rent 15 Days = 50% Utilization • Utilization Is: Sold Rental Days / Days Available
Establishing Rental Rates • Unit Expense • (Vehicle Depreciation, Interest, And Registration) • Direct Vehicle Expense • (Maintenance, Repairs, Gas Oil Tires) • Other Variable Operating Expense • (Vehicle Insurance, Shuttling Parking Fees) • Sales Expense • (Advertising, Yellow Pages, Marketing Items) • Personnel Expense • (Payroll, Payroll Taxes, Benefits) • Occupancy Expense • (Rent, Telephone, Building Maintenance) • General And Administration Expense • (Office Supplies, Equipment Expense, All Other)
Establishing Rental Rates • Find Breakeven Day • Set Your Rates Profitably • What Do You Need To Make A Profit • Shop Your Competition
Selling After Sale Items • What Business are we in? • Why Sell After the Sale Items? • My Customers Are Turned Off When I Offer Other Things • I Can Not Get My Employees to Understand
List of After Sale Items • Upgrades Most Common • Renters Collision Insurance • SLI PAI PEC • Drivers Charges, Additional, Under Age • Fuel, Clean Up, Pick up and Drop Charges • Boxes, Hand Trucks, Blankets Accessories • Maps, Cell Phones, Windshield Fluid • Add to the List?
Dangers • Not Presenting Properly • Using Wrong Terms • Understand the Product • Not Offering to Everyone • Not Offering to Anyone • Do Your Homework • Invite Rep to Put on a Class
Upgrades • Why Sell Upgrade • When Is the Best Time • What Is the Best Way to Sell • Remember What Business We are In
Renters Collision Insurance • Customer Responsibility • What Is Covered • Customers Insurance Coverage • Credit Card Coverage
Renters Collision Insurance • Customer Responsibility • Your Customer is responsible for damages done to the rental car • When a company is paying for the rental the renter needs to understand he is still the responsible party for payment or damages. • A better informed and educated renter will be an asset.
Renters Collision Insurance • Customers Insurance Coverage • Most Customers believe they are “Fully Covered. • Verify your customers coverage by calling his insurance company to be sure he/she will pay for damage done to the rental car. • Ask for fax verification • Be sure your customer understands what his insurance will and will not pay for.
Renters Collision Insurance • Credit Card Coverage • Many customers believe their credit card will pay for damage done to rental cars. • Many credit cards offer varying degrees of coverage. • Call the number on the back of the card to verify coverage. • Be sure your customer realizes what is covered and that he/she is responsible for the rest.
Renters Collision Insurance • Travel Guard Primary Collision Damage Waiver Insurance • Alternative solution when coverage can not be verified • Answer for those that are not insured • Solution for those that want to keep their insurance company out of the equation
Renters Collision Insurance • What Is Covered • Coverage includes cost of repairs for collision or comprehensive damage to a rental car, up to the limit of coverage, including loss of use, for which the car rental contract holds the renter responsible. • Coverage comes in two forms one for cars under $25,000.00 and one for cars over $25,000.00
Renters Collision Insurance • Selling Renters Collision Insurance • Here is a sample script for you to use. • In The Event Of An Accident, You Are Responsible For Any Damage To Or Loss Of Use To Our Rental Vehicle, Regardless Of Fault. • For $19.99 for the First Day and $10.00 Per Day After That, You Can Purchase Primary Collision Damage Waiver Insurance, Which Will Pay For Any Damage To Or Loss Of Use Of Our Vehicle As Long As You Do Not Violate The Contract. • Are You Interested In That Product?
Renters Collision Insurance • When The Customer Declines Insurance • Have your customer sign the following statement. • I understand that I have been offered Primary Collision Damage Insurance from Travel Guard, available through www.schalberg.com and have decided not to purchase. • I understand that I will be responsible for any damage or loss of use to this rental car while it is on contract to me, regardless of fault. • I understand that this rental location has no agreements with my insurance company, if any, or any credit card coverage that I have. • _____________________ ____________________ Renter Additional Renter
Other Insurance Products • SLI PAI PEC • State Minimums • What Does It Cover? • What If Customer Goes Out of State? • How to Offer these Products.
Drivers Charges • Additional Drivers Charges • Spouse? • Non Qualified? • Under Age Drivers • Policy Permit? • Multiple Drivers Charges for Companies • Convenience to Company
Additional Items • Fuel • Prepaid • Surcharges • Clean Up • Be Reasonable • Let Customer Know • Pick up and Drop Charges • Pre-arranged • After The Fact
Accessories • Boxes, Hand Trucks, Blankets, Moving Accessories • Maps, Cell Phones, Windshield Fluid • Hand Controls
Selling the Right Way • Most Aftermarket Items Are in the Rate if the Customer is Qualified Properly • Offer the Items in a Plain and Simple Manner • Have a Brochure Ready or a Counter Mat
Accident Reporting • Make Sure the Contract is Closed First • Go to a Quiet Corner • Let the Customer Fill Out the Form • Document Everything • Report as Necessary
Accident Reporting • Have Your Renter; • Contact The Police Immediately. • Fill Out The Accident Report Form • Fill Out The Claim Form • Fax All The Documents To: • Corporate Claims Service • Fax # 215-355-5702