American Motors has announced two plans for daily rental customers. The first is an allowance program which will apply on all American Motors cars. The "front-money" available to the daily rental customers ranges from $25 to $275, according to model and equipment and is payable either to the customer (if he buys the car outright) or the dealer (when an acceptable repurchase agreement is entered into between the dealer and daily rental company).
The second optional plan offered by American Motors is a repurchase plan which applies to all models except the Gremlin. This plan applies to all daily rental cars ordered prior to Dec. 15, 1970 and delivered prior to Jan 31, 1971. Cars must be held a minimum of five months and must not accumulate more than 2,000 miles per month while in use. For those cars exceeding this mileage limitation, a charge of $10 per 500 miles will be levied. The repurchase price will be based on set rates of depreciation. No American Motors dealers will be involved in the buy-back of the used vehicles, which will be repurchased by American Motors used car managers, reconditioned as necessary, and sold through auctions.
Chrysler Motors, in the interest of enabling their daily rental customers to double-cycle their vehicles, has changed their original daily rental program. The original retention period of six months has been changed to five months. On those cars sold to bona fide daily rental companies through an authorized Chrysler Motors dealer on a buy-back basis, the factory assists the dealer in repurchasing the used car from the daily rental customer. This assistance is in the form of a payment of a percentage of the retail price of the car (ranging from three to five percent, depending on the car line and time of repurchase).