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What is Branch Overhead? Give me 3 examples
Expenses that flat Month over month regardless of whether or not we are doing business.
Rent, Utilities, and Phones
What is DE%? and what is the goal?
Percentage of vehicles we are generating revenue on
92.5%
What is the formula for Time & Miles (C&I)?
3D's!
ADR * Days in the month * DE%
What is Personnal? how do you effect it?
All branch employees: hourly, Salary, and commission
Grow your fleet
Schedules your team accordingly
Ensure your team are taking lunches
Where does Additional Driver Fee show on the PU?
Time and Miles
What is breakeven? How do you calculate it?
Sum of all expenses
What is our goal for IDW sales percentage? and why is our goal what it is?
15%
To be in the top 10 in the company!
What is number of units? benefits of growing your fleet?
Average number of cars you have in your fleet during the month.
Lowers your fixed costs
How often should you approve employee time sheets?
Daily
Who can report a converted unit as stolen?
Doug Coughlan
What is internal and external maintenance? Which is more expensive?
Internal: Service centers
External: Vendors
External
What is maintenance expense?
Cost of maintaining our vehicles, oil changes, tires, etc.
if you increase you DE% by 2%, what is the impact on your C&I?
$20.
Where do the salaries of the Accounting team and Area Managers get expensed on the Per Units?
Group Overhead
What are the four core areas of the business?
Retention
SQI
Growth
Profit
Is it possible to run more than a 100%? if so, how?
Renting vehicles in your fleet more than one time per day (EX: Customer brings car back at 12:00PM, you rent it again at 1:00PM – insurance type rentals)
How do you increase your DE%?
YES!
Phone
Red Cars
SQI
Marketing
Shop cars/deletes
Give examples of preventative and corrective maintenance and how are each expensed?
Preventative: oil changes, tires, LOFR. Spread across the region.
Corrective: engines, hub caps, mirrors. Hits branch.
What is interest?
Cost of borrowing money to purchase our vehicles
Who is our SVP?
Jared Thompson
What goes into Tax & License?
Expense for registering our vehicles
What is our Claim Dispute Process?
Pend the claim - Send it to 51ee disputes
At what percentage do we depreciate our vehicles?
1.7%
What is the difference between Time and miles (C&I) and IPC?
IPC includes Net Other
What is undoc? what is our goal? and how do you impact it?
Undocumented damage to cars that we missed upon return inspection. Goal $4.5/car.
Proper vehicle inspections
What is Cust Sat? what is the goal
write offs for customer service. goal is $2/car
Name 3 factors that go into the ARQ number:
Claim is written by management
Police report information obtained
Insurance information captured
days to shop (estimate received within 7 days of loss report)
deductible collected
What are the three types of overhead? and what are the differences between them?
which ones can you impact at the branch level
Group, Branch, & Corporate
Branch overhead
what is Corp OH for the year?
$65
What is advertising expense?
How do you get this number?
set at the beginning of the year
What is Bad Debt? What is the goal?
Bad Debt expense is an expense that represents uncollectable money for rentals that we have provided. the goal is $3/Car.
What is our BOSS Calls goal per branch?
One Per Employee Per Week!
What is operating expense?
The cost associated to running a business.
What does T&E Stand for? what is the goal? and when should we use it?
Travel and Entertainment. Goal is $2/car. Use $1 to market and $1 for the team!
what is the 35K plan
The group plan to be at 35K in fleet by FY29
What is the formula for net profit?
Operating Profit + Flip
What is direct cost?
Cost of running and operating your fleet
List two ways to decrease your personnel expense.
Grow your fleet, limit overtime through flex days, make sure employees are taking their full lunch breaks
What are the 5 things that go into bad debt? how do you impact it?***
Forececharges, Direct bills, Chargebacks, Write offs
Proper underwriting
Callbacks
Work you AR List in RFS
Proper Credit card handling
What is other expense?
Daily rental contracts, parking tickets, business cards, employee tolls, etc.
What is car wash expense? how can you impact this number?
Expenses for car wash supplies. Best practice is to purchase in bulk.
What are the 3 options the customer has when it comes for Fuel?
3P's! Prepay, post pay, and pay at the pump.
What uninsured loss?
Damage that occurs while vehicle is non revenue generating status
goal is $10
Best Practices: Proper Underwriting, Callbacks, PROPER VEHICLE INSPECTIONS, and safe driving
What is our fuel goal in the HC ?
$4/car Credit - this will put us in the top 10 in the company.
What are the 2 different types of maintenance we have? and what is the difference between them?
Preventive Maintenance: Spread to the Region (e.g oil change)
Corrective Maintenance: Expensed to the BR directly (Blown Engine)
How do you forecast BR OHD?
last month BR OHD * you last month fleet /current month fleet
List 5 expenses under direct costs.
Maintenance, Depreciation, Tax and License, Interest, DR Liability, Reserves, Miscellaneous, Fuel, Rent
What is the highest expense on the OP Board?
Depreciation
What is the highest expense on the per units?
Depreciation
What is GP call center expense?
Group call center expense, insurance agents that work for Enterprise.
we do not have that in Group 51.
What is our LPU Goal? what are 2 things you can do at your branch to ensure your LPU stays in line?
Goal is $49/car
1- Proper Underwriting
2- Proper Claim writing (ARQ)
It is February and your depreciation expense is $490, what is your depreciation in March?
$542.50
What are four ways to aid in avoiding a credit card chargeback?
Swipe card
New card if a decline happens
Card name matches drivers name
Charge card within 7 days of ticket closing
Only one CCARD charge per day
Don’t re-use the same authorization number
95%
How do you grow your fleet?
Say yes
Answer the phone
Marketing
SQi
Red Cars
What is expectation/goal for SQI?
87/90+
What is referral expense?
Kickback we have to pay to 3rd parties for sending us business
Consumer Direct, Local, Affinity, Travel Sites, Body Shop, Dealership, Insurance, Corporate
When a customer with Damage Waiver wrecks our vehicle in current month; where do you see that impact on the Per units?
LPU, which will flow into your reserves over the next 12 months.
What is the formula for calculating commission?
Net Profit * Fleet * Commission Percentage
How do you forecast interest?
Divide interest by days of month from prior month and multiply by current month days
$1.50 increase in rate, how would that impact your C&I?
$45
What happens to Depreciation expense if you grow your fleet?
Nothing
What is the maximum number of days for an employee family rental?
14 days
Will Credit Card Fees be higher in February or in March? Why?
CC Fees are higher in March due to more days in the month, plus there is generally more transactions taking place in March.
What is subro bad debt?
If you just add 10 cars to your fleet, what per unit expenses will decrease if any?
Branch Overhead, and Personnel
How do you calculate your physical damage reserves?
What report do you find this number on?
12 month rolling average of your LPU (DW losses + subro bad debt) + 10% buffer
Reserves calculator/9th Day estimate
What is MISC Expense ? Give me an example that goes into MISC Expense?
All other expenses related to our Fleet
Tow, parking tickets, PDI Credits, and roadside services for the branch.
What are the three rules for government rentals?
Full tank of gas or electric vehicles fully charged
Vehicle no more than 4 years old and under 40,000 miles
Rewrites must be done every 30 days
What is Inventory Adjustment? How do you impact it?
Deleted units that are sold. Get deletes in on a timely basis
What are the 2 factors that impact Depreciation?
Fleet mix and days in the month.
Why do we have interest?
Stephen???
What is CLUE?
Conversion, Lot Damage, Undoc, and Employee accidents and liabilities.
What is DR Liability?
3 yr rolling average of our claims up to our state minimums and lawsuits
What report is Collision and Comps found on? What is our goal?
Reserves Calculator (9th Day Estimate); $48
If the end of the month ends on a weekend, how will this affect your revenue?
Revenue will decrease if DE% is not maintained
What reports can be used to forecast DE%?
OPS, fleet rented report, days earned trending report
What is the difference between PDR and UIL loss?
UIL is vehicle is in non-revenue generating state
PDR vehicle is in a revenue generating state
You work at a 100 car store and your customer blows an engine due to lack of LOFR costing $10,000. Where will this hit on your OP Board and for how much?
$100 per car to maintenance (all $10,000)
How can you decrease your PDR?
Other Losses: Proper underwriting
Subro Bad Debt: Gathering insurance information at beginning of rental (ARQ), writing accurate and timely claim, shopping a car within 7 days of claim
Customer takes SLP, customer has $250K worth of liability damage?
Where does that hit the branch on the OP Board?
Net other
Branch 5194 has fleet of 200 Cars, running 92.5% DE and has an average daily rate of $45/day.
what is their C&I in February
$1165.5
What is disposition?
The number of days from a unit’s last rental date to the date we receipt the check for the car sale receivable (Last day of revenue – collecting payment)
Your T&M Revenue is $1,460 in March with 93% DE. What is your Average Daily Rate?
$50.64
How do you forecast personnel?
Look at trending per unit analysis report
(Personnel last mo * fleet) / estimated current mo fleet
Use # of business days
How long is a deleted unit in used car stock before it is considered aged? Why is it important that we sell units before they become aged?
30 days; vehicles are depreciating assets, and they are not generating revenue while in used car stock. We want to sell them and receive payment as quickly as possible so we can reinvest our money elsewhere. They are going to lose value in the used car market the longer they are not sold.
How do you calculate Days Earned Growth?
(Number of Days Earned CY - Number of Days Earned PY)/ Number of Days Earned PY
Which margin is better on a 30-day month:
a. $15,000 Nissan Versa for $23/day
b. $42,000 Nissan Rogue for $36/day
a. Costs us $8.50 per day, our margin is $14.50
b. Costs us $23.80 per day, our margin is $12.20
Branch 5164 gets hit with hail damage. They have 20 cars on the lot, and they each have $3,000 in hail damage on them. How do we account for the hail damage?
The branch is responsible for $2,500; the region is responsible for $22,500, and the rest will be keyed to extraordinary expense.
A 2026 Toyota Camry cost $30,000 to purchase, what is the monthly depreciation on this unit?
$510
Enterprise Purchased a Jeep Wrangler for $40,000. We had the unit on our books for 9 months exactly, then we sold the car for $38,000.
How much Inventory Adjustment did we gain/loss on this vehicle?
$4120
What are the limits for CLUE? and how much does your branch pay for?***
Conversion/Lot Damage: $2500 to the BR
Liability: First $10,000 to the BR
Undoc: 100% of the damage hits your branch
Employee Accidents: Physical Damages first $2,500 to BR
Calculate Days Earned Growth:
Number of units current month: 719
Number of units prior year month: 686
Current month DE%: 79.2%
Prior year month DE%: 76.8%
Answer: 8.1%
you are at a 150 car fleet store with an average Daily Rate of $45, would you rather have:
a) Positive 5% growth and your rate is back $2
b) Negative 10% growth and your rate up $2
A
What are the 8 founding values of ERAC.
Our brands are the most valuable things we own, Personal honesty and integrity are the foundation of our success, Customer service is our way of life, Our company is a fun and friendly place where teamwork rules, We work hard … and we reward hard work, Great things happen when we listen … to our customers and to each other, We strengthen our communities, one neighborhood at a time, Our doors are open