Knowing what Chrysler does for its "buyback" program for rental car companies, It constantly perplexes me as to how they continue to stay in business. Chrysler is perhaps the most expensive of all the manufacturers for rental cars. Dollar's agreements with them either must be simply fantastic, or they are charged with making up revenue from other sources.

for example, based on the information I have for my chrysler cars in the standard rental turnback program, and knowing what the starting pay rates are for each position in my market, dollar is losing money at the rate of 1.00 per day per car, meaning they are below cost on their low rates (caveat- I do not have access to their costs, so its an assumption based on available information). So in a state, like Hawaii or florida, or california for that matter, in the summer time, the market rises, and thats all their profit during that period. During off season, they must lose money hand over fist.

so where are they getting their cash from? CDW, GSO, Recovery from Damage, Additional Drivers fees, and upsells.

Assuming that they have some killer deal with chrysler not available to the rest of us, they are on a break even model. They rent and price to break even, hoping to increase volume. With increased volume, it increases the chances for additional revenue (as above), so Their profit line must be razor thin, probably in the 5% range (assuming many factors, including raising rates in the summer or peak seasons to offs).

So in essence, beware of cheap rates. They have to make it up somewhere.