Hertz Global Holdings Inc. has acquired the assets of Automoti Group Inc., an online marketplace for consumers to directly purchase used cars at discounted prices. Automoti's end-to-end solutions are currently utilized by the Hertz Rent2Buy program which enables consumers to rent a car for up to three days prior to purchase. Terms of the acquisition were not disclosed.
Mark P. Frissora, chairman and CEO of Hertz, commenting on the acquisition, said, “A key element to Hertz’s reengineering has been its fleet sales, with an overall strategy of diversifying the sales channels used to sell vehicles. Automoti.com provides user-friendly technology that will enable Hertz to leverage an e-commerce platform to further develop our Rent2Buy program. By acquiring Automoti's technology, we will now own the best online car sales system, enabling Hertz to pre-sell vehicles while still on rent which will increase the revenue earned per vehicle sold.”
The transaction provides Hertz with the rights to the Automoti Web site and technology platform and intellectual and tangible property pertaining to the platform.
John Thomas, executive vice president, Global Supply Chain Management of Hertz, said, “Hertz's newly developed Rent2Buy program is a fast-growing retail sales channel designed to be customer friendly, with a three-day, try-before-you-buy test drive. Through Hertz Rent2Buy, we can extend our product offering by providing customers with a financially attractive solution for purchasing late model used vehicles in a simple, streamlined way.”
Car buyers interested in a quality, used vehicle simply need to select and reserve a vehicle of their choice for up to three days at www.hertzrent2buy.com. If the customer decides to buy the car, they keep it, complete the purchase process and the rental cost is credited against the purchase price of the car. If the customer decides not to buy the car, they return it to the renting location and the transaction is treated like a standard rental. Hertz Rent2Buy provides customers with substantial savings off of retail prices and a no hassle, one price buying experience. Hertz Rent2Buy is currently available in eight states: Alaska, California, Florida, Hawaii, Illinois, Massachusetts, New Jersey and New York. The company plans to quickly expand the program to other states in the coming months.