Start A Major Car Rental Company - Accidentally

my good friend Dick [name only] had a great opportunity for the eyes, and he convinced me to join him in the car rental company in which he was general manager. He assured me that the company is the last pain and there is an excellent chance that we can negotiate for the property, if it went bankrupt.

This is exactly what happened on the first July 1967 we were the owners of capital Rent A Car, Inc. 1st National Bank of Fort Lauderdale gave us 88 cars that are eligible for $ 20,000 plus working capital and initial two-month moratorium on payment of a car. Of course, cars are not worth anywhere near the money owed to them and we did not have two dimes to rub together. However, no other options, we jumped in

During the next seven years, we have only been able to make cash decisions, never a business decision. The problem is we are still short on the cash side. We grew because we were aggressive and innovative, but always cash short. Staying alive during the next seven years we have asked for and received moratoriums, and we kited checks which are always good.

We have been doing business with major lenders, GMAC, Ford Motor Credit, Chrysler, and about 4 or 5 local banks. All were cooperative recognizing that we were two nice stupid boys who were honest, but sadly inept. But there is one company that we manage. It was Harry who has a small local business car leasing. We realize that all of our lenders are in business to lend money. Not Harry, was in business to make a living. Although Harry had a large, 75 or 80%, and cures partner Harry always got paid on time and without knowing that it paid dividends.

1973 came and brought the Arab / Israeli Yom Kippur War and the higher prices of gasoline, a gasoline embargo following spring. Our business model is to offer the right size car which means it does not have the compact and difficult for medium to full-size cars. Therefore, after the 73-74 winter season we were not able to dispose of unneeded inventory. With higher gas prices and gas shortages car wholesale want to buy a fuel efficient sub-compact, and maybe a few compact. Medium-sized and full-size cars in essence, the sales evidence. What is offered for larger cars were not enough to pay off loans and get the title. I did not have money to buy the titles so that we end up looking at a car unnecessary.

in May, surrounded by the rusting fleet we thought about the future, mainly 20th August. In Florida, back in 1974, all rental cars had to be purchased next year to mark that date. We were looking at $ 20,000 and that was all we could do is look. With the bankruptcy of us looking into the face we think about our options.

That was when Harry came to mind. He said he always wanted to be an everyday car rental business. Leasing a car is fine, but we were in an exciting part of the job. Not to say it again, he has said that a dozen times. Well, we could help him.

Luckily, Harry did not know our financial difficulties and we had more cars than they could rent. So, it was not unusual for us to lease 400 Dodge Darts delivered in June for our summer season. In July, after the car was delivered to Harry gave me the news. We had no money for the licensing of vehicles and our only alternative was filing bankruptcy. As expected, Harry, a Hungarian immigrant with a temper exploded. We reminded him that he always wants to be in the business rent a car. He needed to speak his majority partner. Our building leases can be arranged, the utilities should be paid and the Southern Bell to keep some phone numbers if their bills were paid. And Dick and I would be happy to work for a corporation and provide our expertise [?].

, which is exactly what happened. Dick and I filed for corporate and personal bankrot.Nova company first opened its doors September 1974 our five locations, Miami, Fort Lauderdale, Orlando, Tampa and West Palm. John had an accountant to act as president until Mike was hired as president of the 1976th Mike had a right of first refusal should John ever wanted to sell the company.

name Harry leasing company is Alamo Leasing. The logical name of the company rent a car has become the Alamo Rent A Car, a major car company. But this is not the rest of the story. Every thing worked out good, very good for the players.

To finish the story you should know that the majority partner John, was John D. MacArthur John D. and Catherine T. MacArthur Foundation Trust.

John died in the fall of 1977 and Mike with a group of 8 other people bought the business from the Trustees in 1978. I do not know the price, but I'm sure the commissioners do not say "we will write-off." Mike at the end, to my knowledge, was the outstanding shareholder and sold the company for a considerable amount of hundreds of millions, during the late 90-ies.

Harry got about $ 250,000 for their 20 or 25% of the company. Can you believe started a company car, about 1992, and the name of the Capital Rent A Car. When I question the wisdom of that saying that the name of happiness for me but happy for him. I'm not so sure, he died a few years later, before the capital moved to a new level.

As for me, when people are asked what I did when I went into bankruptcy, I told them that I stopped scratching.