City's Red Tape Sinks Local RAC

Mesquite Auto Rental, which had been located in Mesquite, Nevada for nearly a decade, closed its doors on April 1 after the city turned down his request to move to another location in the city, according to Mesquite Local News.

Owner Jim Olson said a city official told him the only place the city would find acceptable was on the western edge of town, near an auto mall. But the only building currently standing in that location is Mesquite Ford, meaning Olson would be forced to buy high-priced city-owned land and build a new building.

By the end of 2008, Olson had decided to close the business. Mesquite Ford invited him to move his business there because a Hertz car rental company was pulling out of the dealership. But the problems escalated from there.

While Olson was arranging to transfer his licenses, a State of Nevada official required him to obtain a used car dealer’s license. That meant he would have to complete a large number of new application forms in addition to the additional licensing fees. He said he had no intention of getting into the used car business because his car rental business did not involve selling used cars.

He also discovered he would also need a second business license from the City of Mesquite. At that point, Olson decided he’d had enough.

Olson plans to take the remainder of his rental car fleet out of state and sell the cars.

“To be candid, it is easier to close than to comply with new regulations and codes being imposed by Nevada and the City of Mesquite,” he wrote in a note on his Web site.

Comment On This Story

Comment: (Max. 10000 characters)  
Please leave blank:
* Please note that every comment is moderated.

Newsletter: Sign up to receive latest news, articles, and much more.

Read the latest

Auto Focus Blog: A blog covering fleets, auto rental and the business of cars

Why Do We Visit Capitol Hill?

Members of the American Car Rental Association met with U.S. senators, representatives, and their aides last week. Here’s why bringing the message to this forum matters.

The Customer Isn’t Always Right

Not caving to a customer with a blatant agenda may have consequences, especially for a small rental company that relies on stellar Yelp ratings to advertise. But business integrity must prevail.

The Truth Behind Compact Van Depreciation

Why are large van values holding up better than their compact counterparts, and will it last?

Job Finder: Access Top Talent. Fill Key Positions.