Our first car business was Cars Direct and between 1995 and 2005 we supplied newly imported vehicles at wholesale prices to Wellingtonians.
In 2001 a customer asked whether he could lease a car from us instead of buying it. We agreed. A short time later one of his colleagues made a similar request and we soon discovered there was a gap in the car rental/ leasing market that no one was catering for. So in 2002 “Cars Direct Leasing" was formed.
We now have hundreds of satisfied customers. The majority of our customers come from word-of-mouth. We also have many customers who have taken long-term leases from us a 2nd and 3rd time.
Other than us, the primary providers in the car rental/car leasing market are either:
- Car rental companies who need to support the overheads of a warehouse or car yard along with staff who need to be available at least 60 hours per week to provide customer service. This means that their prices for a long-term car rental need to reflect this overhead.
- Car leasing companies. These companies often have lower overheads but they typically only offer leases for new or near new vehicles. Therefore their prices need to recoup the much higher depreciation and capital investment on (near) new vehicles. (Also their leases are typically for a minimum of 3 years whereas we offer options for short term car leases).
Cars Direct Leasing fills the gap between these two primary providers.
Our main competitive advantage is our lower car rental short term and long term prices.
We do not have the overheads of a car rental company.
Our staff only need to work in this business when needed as they are also employed in one of our other enterprises from the same office.
- We do not have to recover the cost of having a car yard and dedicated office.
- We do not have the high depreciation and capital costs of a standard car leasing company because the purchase price of our cars are significantly lower.
- We frequently offer special prices below our standard price list. For example, during the car rental off season (April to November) our prices are still lower than the discounted prices that the rental car companies offer. Also, there are times when we have surplus stock. Since we do not have a yard to store surplus vehicles, we have to get them leased as soon as possible and therefore offer special discount car lease prices.
In short we can offer our customers lower prices without risk for our customers as we fund all costs related to the car except petrol.