Ugly Duckling car RentalIgly Duckling car rental
Car Rental Ugly Duckling
Úgly Duckling Car Rental is a 30 state franchising group of car rentals. It' a car rental company that specialises in used vehicles, most of them several years old. As a matter of fact, these automobiles are mostly quite appealing, solidly built, and usually hired for much less than most of this year's model.
Car rental Ugly Duckling in Philadelphia, PA with ratings
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Riverside Ugly Duckling Car Rental, CA with ratings
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Úgly Duckling Corporation - Company Profile, Information, Business Briefing, Background Information about Úgly Duckling Corporation
The Ugly Duckling Corporation strives to be the leading company in the subprime used car sale and financial services industries. In order to achieve this, we must offer our clients outstanding value and services, recruit and retain the best people by providing them with a demanding, pleasant and profitable working atmosphere and offer our shareholders an outstanding ROI.
The Ugly Duckling Corporation is a vertical integration of the used car sector. Commenting on the 1996 Business Review, Ernest C. Garcia II, Chairman and CEO, said: "We are the only large corporation serving practically all subprime financial markets. "Ugly Duckling dealers are selling used vehicles to those with low income and little or no loan.
These merchants are part of one of the country's biggest buy-here pay-here chain, as they fund almost all the vehicles they do. The second revenue stream of Ugly Duckling is Champion Financial Services, which has a net of branches to purchase subprime instalment agreements from third parties. Third, Ugly Duckling's Cygnet subsidiary provides a line of credit to enable Ugly Duckling's second-hand car traders to grow their business.
Though Ugly Duckling's most operations take place in his home state of Arizona, it is rapidly growing into other states to solidify a very diverse industrial base. Ugly Duckling's history began in 1977 when Ugly Duckling Rent-A-Car System, Inc. was founded in Tucson by 63-year-old Thomas S. Duck, Sr.
Igly Duckling Rent-A-Car has joined a burgeoning sector that is being ruled by the Big Three: During the 70s, all car rental agencies were struggling with the scarcity of power. The 1980s saw the pricing war devouring the sector, boosted by the popularity of low-cost rental car hire businesses such as Budget Rent-A-Car and, of course, Ugly Duckling. Until 1985 Ugly Duckling was the fifth biggest car rental in the country.
His turnover amounted to 65 million dollars from 550 franchise companies in late 1985, but in 1989 the firm went bankrupt and thus ended the first stage of this history. who bought the property of Ugly Duckling Rent-A-Car. In the meantime, Garcia had to overcome some big money and law problems before he could continue.
In 1992, while his case was still in the county courthouse, Garcia founded Ugly Duckling Holdings, Inc. a company in Arizona that acquired Duck Ventures, Inc. and made it a wholly owned affiliate. Later in 1992, he bought a second dealer in Tucson.
but he stayed with Ugly Duckling. "We' re having a lot of pleasure with the goose and we' re going with the cheeks' tongue," Garcia said in the Arizona Tribune on 25 August 1996. We do not say that our vehicles are ugly or anything else, because if you look at our equipment, if you look at the vehicles.... we clearly sell a very competitively priced and neat one.
" Garcia bought three Ugly Duckling dealers in 1993. In the following year, the business constructed four brand-new car showrooms with an enhanced appearance. While still providing for those with lower income, the business wanted to do so in a more favourable environment than some subprime traders' filthy and powdery lot.
In 1994 Ugly Duckling shut down a dealer because he did not meet the high demands of the comany. In 1995, the Gilbert dealer tried to buy two to seven years newer and often twice as expensive as other Ugly Duckling dealers, but the company's facilities and funding programmes were unable to absorb this type of vehicle.
So, Ugly Duckling was selling the property and the merchant house for $1.7 million. In the mid-1990s, Ugly Duckling gained widespread exposure at his home Arizona office. "You' re going to Tucson or Phoenix and they know The Duck," said William Gibson, Cruttenden Roth's sen. c. in the Investor's Business Daily of October 14, 1996.
" Ugly Duckling offers several innovative products to help its clients buy a used car and achieve a good financial standing. Between January and March, she invited her clients to file their personal declarations and even make preparatory contributions. Once the customer has made all or almost all of his due date deposit was returned when the agreement was signed.
Third, Ugly Duckling gave eligible clients the option of obtaining a Visa credential. A $250 down payment to the payment service provider ensured that the tickets were available. As a result, Ugly Duckling's clients showed great trust and were given the possibility to reconstruct favorable loan-stories.
Fourthly, local dealers had the opportunity to carry out repairs in order to maintain the used vehicles they were selling. One of the main reasons why clients no longer paid for their car was the breakdown of their vehicles, which is why Ugly Duckling was offering its used car clients repairs work. As many Ugly Duckling clients did not have payment by credit card, the firm permitted them to make their regular instalments in ATM.
The majority of car dealership did not give this possibility to the customer. Ugly Duckling purchased Champion Financials Services from Steve Darak in 1994. Champions became a wholly owned affiliate and Darak became Ugly Duckling's cfo. Champion Financials became a second revenue stream primarily due to Ugly Duckling's ability to manage and provide contracted service capabilities.
Champion had $1.9 million in subprime when it was bought in 1994. Champion Financial Services acquired subprime instalment agreements from third parties through a chain of branches, the first of which opened in April 1995. These agreements were usually with clients with more ressources than those who bought a used car from an Ugly Duckling dealer.
By the end of 1995, after four years in the company, Ugly Duckling's finances were quite inconsistent. It was good to hear that overall revenue, most of which consisted of used car purchases, had risen steadily to $58.2 million ($47.8 million from car purchases alone) at the end of 1995.
The Arizona company Ugly Duckling Holdings, Inc. in Delaware was founded in April 1996 under the new name Ugly Duckling Corporation. When Ugly Duckling increased its used car sale, it also cut its car rental activities. More than 100 rental concessions had been concluded by August 1996, so that around 40 are still in use.
They were planning to close this kind of deal if their last franchising expired within 10 years. Ugly Duckling was transformed into a joint limited company in June 1996. At the NASDAQ securities market under the Ugly icon, his initial public offering comprised 2. 3 million ordinary stocks unsold at $6. 75 per security.
In November 1996, the Company made a $65 million offer in its second $15 per common shares, signed by Cruttenden Roth and Friedman, Billings, Ramsey & Company of Arlington, Virginia. Nasty Duckling used capital from these equity offers to open a new Arizona trader but mainly to decrease his overall indebtedness from $49. 8 million in 1995 to $26. 9 million at the end of 1996.
Ugly Duckling kept collecting cash by selling equities and other means in 1997. Among the owners were Boston's Wellington Management Company and Fort Lee, New Jersey's Kramer Spellman L.P., the owners of five per cent of the Ugly Duckling share. A number of equity market participants were astonished by the performance of this offer, as many equities in the sub-prime finance sector had recently fallen by around 30 outpercent.
" In the same paper, Ugly Duckling described how he exploited the issues in other car finance firms. At the beginning of 1997, Mercury Finance acknowledged "accounting irregularities". "Chairman Garcia said that 30 of his 35 executives had previously worked for Mercury and that "until last weekend it was a great thing.
" GE Capital raised its Ugly Duckling Corporation line of credit from $50 million to $100 million in May 1997. As part of this revolving facility, GE Capital was authorized to restrict Ugly Duckling's decision, e.g. to incur more debts, to grant senior management a loan or a loan for capital, to pay a dividend and to merge with another one.
In July 1997, Ugly Duckling announces that it has entered into an arrangement with First Merchants Acceptance Corporation for up to $10 million in funding. Former first merchants had applied for insolvency under chapter 11, so the court had to authorize any funding by Ugly Duckling for first merchants.
In 1997 Ugly Duckling opened several used car dealerships. In January, it began with the purchase of five subprime dealers and $35 million in financing agreements from Seminole Finance Corporation in the Tampa/St. Petersburg region of Florida. a subprime distribution and financial services company headquartered in San Antonio, Texas. Ugly Duckling bought seven "Red McCombs EZ Motors" used car dealers, complete with fleet and financing agreements, for $26.3 million.
Two more dealers in New Mexico were added later that year. Until August 1, 1997, Ugly Duckling ran a combined of 24 dealers in Arizona, New Mexico, Florida, Texas and Nevada, making it the country's biggest publicly owned "buy here, pay here" group. The majority of dealers comprised 100 to 300 used cars of all types aged five to ten years with an approximate mean value of $7,100.
Ugly Duckling also had 64 branches in 17 countries until August 1, 1997. They had acquired financing agreements from approximately 2,710 third parties through Champion Financial Services, Inc. Financing agreements bought by Ugly Duckling from third-party traders generally necessitated the conclusion of accident cover within 30 workingdays after a car was bought.
But Ugly Duckling was able to buy a contract for them and then invoice them for the premium. It has entered into a contract with American Bankers Insurances Group through its Drake Insurances Agency affiliate to oblige underwriting. Ugly Duckling had won around 1,200 clients through this procedure by the end of December 1996.
Though not a large part of Ugly Duckling plants, the enterprise was considering broadening its scope of duties to include living, disabilities and jobless coverage. Ugly Duckling in September 1996 reported that it was including a third contributor in its product range to complement its used car business and Champion Finance revenues.
She founded Cygnet Finance, Inc. as a wholly owned company to provide an alternate debt pool to purchase - here for payment - from third-party used carsellers. The Ugly Duckling leadership believed that many of the country's independents were capitalized and struggled to gain exposure to more conventional funding resources, allowing Cygnet to fill this inequality.
Until the end of 1996, Cygnet employed a former GE Capital agent as VP, evaluated its proprietary trader monitoring system and included its first independents trader in its financial progam. In November 1996, Ugly Duckling set up two new agencies to support these various activities.
Initially, it substituted Moses & Anshell of Phoenix for Riester Corporation of Phoenix for general commercialization. Secondly, she commissioned Dieste & Partners from Dallas to advertise the ugly duckling in Spanish. Because credit default was an apparent issue in Ugly Duckling's credit management sector, the company used its Champion Acceptance Corporation to review credit request information and use debt recovery procedures for both its own and managed credit.
Duckling's overall bottom line improved significantly in 1996 and seemed to continue in 1997. In 1996, overall sales rose by almost 30 per cent to 75 US dollars. Rather than lose the kind of cash it had in 1992, 1994 and 1995, Ugly Duckling had 1996 net income of $5. 9 million. $6 million, up 58 per cent from first quarter in 1996, and net profit hit $3. 3 million, as against $1. 1 million in the first quarter in 1996.
The number of staff rose from 652 on December 31, 1996 to 1,776 at the beginning of September 1997. Though Ugly Duckling had made great progress in just a few years, it was facing some fierce competition at the end of the 90s. A lot of new car salesmen and also car rental companies started to sell their good used vehicles.
Circuit City, for example, launched CarMax, a vast network of used car dealers. AutoNation, USA, was another gamer who bought Alamo-Rent-a-Car to have a finished supply of over 100,000 used vehicles per year. Naturally, many of these companies were selling newer vehicles to wealthier clients than Ugly Duckling.
Though Ugly Duckling generated most of his turnover with used vehicles, this share fell significantly from 82 per cent in 1995 to 71 per cent in 1996. In 1996, the Group significantly increased its earnings from interest earnings, loan disposals, serving and other earnings. ANNOUNCER: And since the corporation is financing almost all the automobiles it is selling, an investigator in the November 11, 1996 Washington Post said that Ugly Duckling was "a bench that disguised itself as a used car ticket.
" This was a good description of what seemed to be Ugly Duckling's 1997 strategy: to keep selling used vehicles, but also to be an important actor in the finance and lending aspect of the subprime used car trade. Ugly Duckling Car Sale, Inc ; Champion Acceptance Corporation ; Champion Investment Corporation ; Champion Receivables Corporation ; Champion Financial Services, Inc ; UDRAC, Inc ; Champion Receivables Corporation ; Drake Insurance Services, Inc.
In 1977 as Ugly Duckling Rent-A-Car System, Inc. Dunaj, Diana, "Ugly: Turns Beautiful Profits", Arizona Business Gazette, December 30, 1985, S. A1.Elliott, Alan R., "Swan-To-Be", Investor's Business Daily, October 14, 1996. Giblin, Paul, "Ugly Duckling Looks to Turn to Turn into a Swan mit Expansion", Arizona Tribune, 25. août 1996.
Knight, Jerry, "Dealing in Stock Cars, Both New and Used", Washington Post, 11 novembre 1996, S. WB27. Pulliam, Susan, "Ugly Duckling, Subprime Auto Lender Run by Convicted Felon, Manages to Raise Money", Wall Street Journal, 12. Februar 1997, S. C-2.