Utilizing a top reconditioning center, American Leasing Corporation of East Orange, New Jersey, is one of several leasing companies experiencing rapid growth. An excellent service facility, ALC reconditioning, and proper supervision of the sale of each and every used car are some of the reasons why the company has grown to a 2,500 car leasing fleet.

Under the leadership of president Milton Lewis, executive vice president John C. Lyons Jr., and vice president treasurer Arthur Steven Lewis, American continue to expand. In fact, it was a little over two years ago that ALC purchased their own two story building with a separate maintenance and recon center at 20 North Park Street, East Orange, New Jersey.

Originally called the American Credit Corporation, which dealt with retail auto financing, Milton Lewis began his business in 1943. By 1957, the firm entered the automobile leasing field. And since their entrance into leasing, their growth has been constant. By March of this year, ALC's leased car fleet of 2,500 represents a 20-percent growth rate since March 1972. From 1957 until 1972, ALC was experiencing a 10 to 15-percent rate of growth. A small part of this growth rate is due to acquisition of other small leasing companies throughout the years. However, one of the major factors in American's growth has been their ability to grow with their commercial accounts as they expanded, plus referrals from satisfied customers.

American Leasing Corporation operates on a 26-month lease, usually reconditioning their cars so they can be sold directly to retail dealers after a leasing contract has expired. Their used car department works each used car individually and tries for top dollar. "We have been able to get our finance lease accounts pluses, not minuses on close-outs", states Arthur Lewis. "We feel we are big enough to service their needs anywhere, and small enough to give individual attention to each unit."

Over 45-percent of ALC's leases are finance leases, clearly the most popular leasing type. Next popular are net leases, comprising 35-percent of ALC's business. Full service leasing represents the balance of their lease portfolio. ALC offers all types of leasing arrangements for its customers.

Although American's largest account has over 400 cars, generally the firm's customers are fleets from 10 to 200 cars - the smaller, professional businesses. Individual leasing, however, is also offered. ALC enjoys a 93-percent renewal rate from its leasing customers.

ALC also will lease almost any other type of equipment. This has included: fork lifts, yachts and airplanes, to name a few. Equipment leases of this nature usually have a three to seven year lease period.

American Leasing Corporation has a full time staff of 28. In addition, there are five full time mechanics for the recon center, and five salesmen.

ALC has approximately 350 accounts, ranging in size from 400 cars to five. At least 40-percent of ALC's business is with national accounts. The company has leased cars in every state of the Union. (ALC's dealer network stretches over the continental United States, and includes over 300 dealers handling General Motors, Ford, Chrysler and some foreign car makes.)

Termed as a model for the industry by certain newspaper accounts, ALC's facilities are completely company owned. And financial relations with their dealers are just as strong. When ALC buys nationally, dealers are paid within one week after the vehicle s delivered to a customer's local dealer.

As with other leasing firms, ALC recommends the smaller car. "We recommended Malibu coupes and Novas three years ago," said Arthur Lewis. "But at that time most accounts wanted the larger full-sized car."

The most popular leased car for ALC has been the Chevrolet. "Over 80-percent of our fleet consists of Chevrolets," says Arthur Lewis. "Next is Ford and then Chrysler. Today the trend is towards the intermediate and subcompact. However, we recommended intermediates to our full service and finance lease customers in the past, due to higher resale at the time," Arthur Lewis added.

Almost all ALC leased cars are equipped with air conditioning, vinyl interiors, power steering, power brakes and automatic transmission.

"Of course, like other leasing companies, we recommend certain things to our customer," Arthur Lewis said. Things that will help get the best price when the car is disposed. This means the right type of car, options, color and equipment."

"We try to use only original factory equipment," Arthur Lewis continued. "For example, we do not allow our dealers to put on 'gypsy' vinyl tops. In reconditioning, however, we might put it on if it warrants it for a higher resale."

RECON CENTER

At ALC's reconditioning center, detailing, upholstery work, basic clean-up and touch-up work are done, as well as some engine work. Transmission, major engine and body work are jobbed out to independent shops, specializing in quality get ready work.

"In dealing with the used vehicle," says Arthur Lewis, "Proper reconditioning and awareness of costs per vehicle is our motto. We do not recondition undesirable or excessively high mileage cars. Each used car is very important to us and is analyzed when it comes in to decide what route to take for the best results on resale."

ALC has arrangements around the country with wholesalers who pick up the cars coming off lease. Cars are always moved to the best market area. According to Arthur Lewis, many cars coming off lease in the northeast are shipped back to the home office where there is closer control over resale of the vehicle.

And many of ALC's cars go directly to retail dealers - both new and independent used car dealers with active used car operations. These are the dealers that seek out sharp, ready to retail cars. They are the best prospective customers for the reconditioned lease car because the vehicles are ready to go right on the lot. "From our home office, we ship many cars to our clientele of dealers that are bought sight unseen over the phone because they know our reputation for providing good, used retail merchandise," says Arthur Lewis.

GASOLINE AND THE USED CAR MARKET

"We, like all of us in industry, are concerned about the effects of the gas shortage on our day to day leasing operation, as well as the effect on the used car market," says president Milton Lewis. "In the past, we recommended smaller cars to our customers because of higher resale, even before the energy crisis. I think a fleet administrator should consider the safety factor involved in intermediates versus subcompacts before putting his salesmen on the highway in a subcompact. We commend, for example, the Nova over the Vega for this reason. However, we have seen a switch by some of our major accounts to the subcompacts, such as the Vega or Pinto, due to the gas shortage." Milton Lewis continued, "In recent weeks, at the wholesale auctions, we have seen the subcompacts and compacts (Vega, Maverick, Duster) bring more dollars than the full sized cars (Impala, Galaxie 500, Plymouth Fury). But which is really the better buy for the car buyer? Safety and comfort, or a small gas savings? Driver less ... but be comfortable and safe."