When Maggie Dajani realized that the tire-pressure warning light was on in the van she’d rented to take six teenagers and their parents to a One Direction concert in El Paso, she took the van back to the rental company. A representative of the company, Star Limo, told her not to worry. She then continued to the concert. Shortly afterwards, the van blew two tires and rolled over. Several motorists helped drag the ten passengers out of the van, which was filling with smoke. The children went to the hospital with various injuries, and one of them reportedly received one hundred and fifty stitches as a result.
Now, the New Mexico Public Regulatory Commission has delivered a very, ahem, business-friendly verdict on the whole ordeal. Turns out that Star Limo is the beneficiary of a unique combination of regulatory conditions.
Just a couple of months ago, GM quietly announced their factory 5 year/100k mile powertrain warranty was going to henceforth be downgraded to a 60k mile powertrain warranty because their cars are all fine now and customers don’t care about long-term warranties.
About 48 hours after this was announced, my wife found herself limping along the side of a major road in our 2010 Malibu with 90k miles on the odometer, engine revving, but little transmission of power taking place between the engine and the wheels.
“You don’t have to meet me inside the airport,” I said, as Danger Girl led me by the hand to the baggage claim area of the Albuquerque Sunport. “I’m not a ten-year-old.”
“I just didn’t want you to get lost.”
“Lost?” My attention was briefly diverted by a curvaceous Latina in some sort of slutty-jumpsuit made from translucent fabric. “This is, like, the fourth-smallest commercial airport in North America.”
“Lost,” DG clarified, following my glance to the young lady who was now obliviously bending over to fix her sandal, “like that.”
True Love = Panther Love (photo courtesy: detroitweddinglimo.com):
TTAC Commentator thirty-three writes:
Not sure if this fits into your usual line of questions, but I’m looking for suggestions on renting a car for my upcoming wedding. My problem is that here in Vancouver, BC, I can’t find anyone who rents premium vehicles like a Benz or a Jaguar.
Really expensive cars are available (e.g. Ferraris, Maseratis), but I just want a luxury sedan that will seat 5 comfortably. I only need it for one of the five days. Yes, it is an Indian wedding.
Thanks! (Read More…)
Tis better to own a Leaf or an S than to rent one, it seems. According to Enterprise Holdings Inc., known for driving around in cars wrapped in branded brown paper for some reason, customers who rent electric-only vehicles from their lot soon return their sustainable rides for a one with a sustainable range based on the number of (gasoline and diesel) fuel stops along the way.
TTAC has a long tradition of digging deep into manufacturer sales data, frequently focusing on retail versus fleet sales. It’s become commonly accepted that high fleet percentages are a sign of weakness in product lines, at least as far as retail consumer preference goes. The traditionally low fleet percentages of Japanese brands have been singled out as evidence of those companies’ ability to attract crucial retail dollars, or at least their superiority in matching production to demand. And they were right. For many years, Toyota and Honda in particular could count on strong retail sales of premium-priced products in a way that the Big 3 couldn’t. Changing trends in the American vehicle market are undermining this model, though.
Onstar may have been pressured by privacy activists into dropping changes to its terms of service, but the telematics service is still betting that people want to be more connected than ever. So much so that it’s going offer a service allowing you to rent your car out to strangers.
With car sharing on the rise, my home state of Oregon is moving towards changing insurance rules to allow private “peer to peer” rentals by auto owners. The Oregonian reports that HB 3149 is headed for the Governor’s desk, having been approved by the state House and Senate. Sponsor Rep Ben Cannon explains
Most insurance policies prohibit people from using their cars for commercial purposes. This bill says someone can participate in car sharing without having to worry that their insurance will be canceled.
California is the only other state to have passed such legislation, and already Facebook-based peer-to-peer car rental firms like Getaround have popped up to fill the demand. With average car ownership costs reaching $8,000 per year according to the AAA, Cannon argues that research showing that cars sit parked for 90% of their lives proves the need for more car-sharing flexibility. And established car-sharing firms like Zipcar, which operate their own fleets don’t feel threatened by the bill, as they are not expanding beyond urban cores and as Zipcar’s CEO puts it, peer-to-peer rentals validate the car-sharing model. But would you rent your car to a stranger?
We’ve long struggled with finding the right balance of recall coverage here at TTAC, as the sheer volume of them makes it extremely difficult to separate the life-saving wheat from the irrelevant chaff. Now, it seems the rental car industry is tired of struggling with the same challenge and is lobbying the government for reform of the recall system. Bob Barton of the American Car Rental Association explains the problem to the NYT
We can’t determine the significance of a recall and whether a vehicle is no longer safe to operate or whether it can continue to operate and then should simply be brought in for service at some point in time. We simply want the manufacturers to instruct us when a vehicle needs to be grounded and we will absolutely comply.
Fair enough. Recalls are carried out for plenty of non-safety-critical problems. But where do you draw that line? And, more importantly, does the rental industry enjoy enough of a reputation for safety consciousness to assure customers that their calls for reform won’t result in any increased danger?
Think BMW sells a lot of cars in the US? The German automaker may have registered nearly 20,000 “sales” in the US last month, but according to the analysts at Polk, over 50 percent of its “sales” in 2010 were actually leases. No wonder BMW’s best-seller, the Dreier (3 Series), occupies a nearly unique position on the price-volume frontier. And apparently BMW will continue to look to non-sales for future sales growth, as Automotive News [sub] reports the firm has launched a new car-sharing joint venture in Europe aimed at bringing in a million new customers by 2020. The pitch: sleek new Bavarian metal, as well as the ability to pick up and drop off vehicles anywhere, thanks to smartphone vehicle tracking. But the biggest pitch, say BMW sources, is to people who would never buy a new BMW… or even lease one. And they’re not just talking about poor folks either…