1970: That Was a Very ___________Year

Sorry to be so ambiguous about the first year of the new decade, but you'll just have to fill in the blank for yourself. For some in the leasing and daily rental business it was a very bad year; while for others it was very good. But if you take a random sampling of industry opinion on the past 12 months, you'll have to agree that it was a very strange year.

When someone finally gets down to writing the history of our field, 1970 will probably be remembered best by a number of things that seemed initially to affect it adversely. For example, this was the year that GM discontinued its fleet allowance programs and Chrysler and Ford drastically cut theirs. It was also the year when the warranty game came to a sudden halt, leaving many lessors wondering about the fate of the maintenance lease. And let's not forget the big strike, which is bound to have long-range effects on not only all segments of the auto industry, but the entire economy as well.

In addition, a number of laws, court decisions, and governmental findings have sprung up in 1970 which can (and probably will) play havoc with our industry. We are speaking here of such things as the Mississippi law that outlaws fleet discounts; the no-fault insurance statute of Massachusetts; the recent IRS rulings on lessees' deposits; the court finding in California that makes a lessor liable for the negligence of its lessees; the tenacity of the One-Bank Holding Bill in Congress; and recent rumors that the service industries will be the next big forget for a tax-hungry and deficit-ridden Federal government.

Now, pile all this on top of an ever-softening economy. It presents a fairly bleak picture for the oncoming year.

Consequently, if you view 1970 as the year of incipient chaos, it may be that 1971 will be the year that separates the men from the boys in our field. Yet this may be a blessing in disguise. The fly-by-night, marginal companies may go under in the ensuing melee. But in view of our industry's unwritten code of ethics and long-range goals, perhaps that wouldn't be all bad. After all, who needs the notoriety that such companies give the leasing and daily rental fields?

Still, 1971 promises to be a tough year. Some economists see a bright spot on the spring horizon; but that still leaves a number of long, lean months ahead. And let's keep in mind that economists have been wrong in the past.

What can be done, then, to insure a steady (if not dramatic) rate or growth for our young field over the near-term. In answering this, I think that every leasing and daily rental company should reaffirm that it is a part of the ever-growing service industry segment of our economy. That seems elementary enough. But how many of us really act as if we fully understand the implications of that concept?

What we are talking about here is SERVICE. And from our way of interpreting that simple little word, service means PEOPLE.

Once we fully understand the basic reasoning behind that assumption, our path seems relatively clear. What, in effect, we must do is what we have been doing all along: we must find new ways to serve people. The difference is that in 1971 we must do it better than we ever have in the past.

Leasing companies should, for example, constantly refine their methods of staying on top of the used car market. They should seek closer ties with their delivering dealers to insure proper prepping, delivery, and service to their customers. They should carry the ball for their lessees on warranty claims. And last, but not least, they should put the long-range goals of their industry ahead of short-sighted, selfish motives for making a fast buck.

That last admonishment applies to the daily rental companies as well. But in with such things as the attitude of their personnel (including such things as personal appearance and telephone manner); the condition of their cars (are they really as clean as they are supposed to be?); and the avoidance of any gimmicky promotions that could leave not only a bad taste in a customer's mouth but an unexpected dent in his wallet.

If just a fraction of these tried and true suggestions are followed by the leasing and daily rental fields in 1971, we here at AF are confident that this will be an important year for our readers. It will produce an increased elimination of marginal, irresponsible companies and a strengthening of those managed by experts with a high degree of integrity.

So maybe there's some reason for hope after all. And in the long run, having hope is perhaps better than believing in Santa Claus.