Buy-Back Is Back

With Ford and GM announcing the dismissal of buy-back programs with the '71 models, it was predictable that it was only a matter of time before an enterprising entrepreneur developed one for those accounts that demanded it. Through initiative and careful planning during the past months such a new plan has been announced by Hayward Ford of Hayward, California.

This new Buy-Back Plan is nationwide in scope and is designed for all qualified daily rental companies under a guaranteed depreciation plan. It is currently being used under contract by a number of rental companies. Hayward has Volcar signed up nationally for all their Ford needs; Hertz has been signed up for the San Francisco area; Thrifty Rent-A-Car is using the plan in Chicago, Los Angeles and San Francisco; and a number of other companies have the plan "under serious consideration."

AF interviewed the originators of the plan, Art Brabant, owner of Hayward Ford (Hayward, Cal.) and Courtesy Ford (Napa, Cal) and Woody Woodard, well known veteran fleet sales manager for Brabant. Millionaire Brabant is a veteran also, with over 21 years of experience in the car market to his credit.

How It Works

The plan is offered to any qualified daily rental company on '71 model Fords (except for Pinto until depreciation is established) through April of 1971 (cars must be in service by the end of April). Brabant guarantees the Buy-Back at a 2+ percent per month depreciation over a 12 month minimum, with no maximum on time. Mileage is aimed at a 20,000 maximum on the vehicles, with a per mile charge for mileage exceeding that limit.

Currently a number of auctions across the country have agreed to guarantee Brabant and Hayward disposal of the used units through a specific agreement with the dealerships for a pre-agreed residual at disposal time. This residual is reportedly "considerably less than wholesale value." Woodard assured AF that at least two dozen other auctions have indicated a similar interest in participating. Condition reporting is mutually agreed upon through Crawford & Co., 131 Ponce De Leon Ave., N.E., Atlanta, Georgia, a nationwide adjustment network which offers condition reporting services.

Leasing Buy-Back Available

Brabant and Woodard also informed AF that now that their daily rental Buy-Back Plan is operable, they have formulated a parallel plan for leasing companies using Fords. Similar conditions apply to the leased car except for a different adjustment for depreciation over a 24-month period. Factory fleet people contacted by AF for reaction indicated that the plan has considerable merit and obviously offers the continuing opportunities to volume fleet buyers through the independent free enterprise system.