Payless Car Sales Franchise Opportunity

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Payless Car Sales Franchise Opportunity
Payless® Car Sales
                                        Franchise Opportunity

MN File #F-6677 – For CA: THESE FRANCHISES HAVE BEEN REGISTERED UNDER THE FRANCHISE INVESTMENT LAW OF THE STATE OF CALIFORNIA. SUCH REGISTRATION DOES
NOT CONSITUTUE APPROVAL, RECOMMENDATION OR ENDORSEMENT BY THE COMMISSIONER OF CORPORATIONS NOR A FINDING BY THE COMMISSIONER THAT THE
INFORMATION PROVIDED HEREIN IS TRUE, COMPLETE AND NOT MISLEADING. For NY: This advertisement is not an offering. An offering can only be made by a prospectus filed first with the
Department of Law of the State of New York. Such filing does not constitute approval by the Department of Law.
Payless Car Sales Franchise Opportunity
TODAY’S AGENDA
•   Our Corporate Structure
•   Awarding a Payless® Car Sales Franchise
•   JM&A Group Relationship
•   Payless Assurance® - Our Certified Pre-Owned Product
•   Avis Direct - Purchasing Vehicles From Our Fleet
•   Marketing
•   Payless® Website
•   Initial and Monthly Investments
•   Why Purchase a Payless® Car Sales Franchise?
•   Franchise Disclosure

                                                           ®
              America’s Used Car Company
Payless Car Sales Franchise Opportunity
CORPORATE STRUCTURE
• Headquarters – Parsippany, NJ
• Parent company – Avis Budget Group, Inc. (ABG)
    – More than 30,000 employees and 10,000 locations in 175 countries
    – Operating Entities:
       – Avis® Car Rental
       – Budget® Car Rental
       – Budget® Truck Rental
       – Payless® Car Rental
       – Payless® Car Sales
       – ZipCar®

               A good deal better… online
                                                         ®
Payless Car Sales Franchise Opportunity
AWARDING A FRANCHISE
The ideal franchise candidate is an experienced automotive professional
and/or dealer group that possesses:
    – Strong management and marketing background
    – An excellent business reputation
    – The net worth and other tools to support a planning volume of 50+
       vehicles per month for the Franchised Business
    – The right location and facility
    – A commitment to selling quality Certified Pre-Owned vehicles
Our anticipated dealer mix is:
    – 90% dealers with a manufacturer affiliation
    – 10% well-qualified independent dealers

                    Drive More… Pay Less
                                        ®
Payless Car Sales Franchise Opportunity
JM&A RELATIONSHIP
In 2011 Payless formed a strategic relationship with the JM&A Group, one of
the largest independent providers of F&I products in the automotive industry.

JM&A facilitates the following areas within the Payless® franchise system:
    – Exclusive Provider for the Payless Assurance® Certified Pre-Owned
      program
    – Preferred Provider for all F&I products
    – Preferred Provider for training in the sales department, service
      department, and F&I department

              America’s Used Car Company
                                                                ®
Payless Car Sales Franchise Opportunity
PAYLESS ASSURANCE®
Payless Assurance® is our private-labeled Certified Pre-Owned program.
The program includes:
    • Point-of-sale marketing materials
    • 125-point vehicle inspection
    • Vehicle History Report (VHR)
        – AutoCheck® is endorsed, and the cost of the VHR is reimbursed
        – CarFax® is also acceptable
    • Limited warranty
    • Travel breakdown protection
    • Roadside assistance
    • SiriusXM® Satellite Radio
                                                           ®
               A good deal better… online
Payless Car Sales Franchise Opportunity
PAYLESS ASSURANCE®
Point of sale marketing materials include:
    – Monroney-style window sticker
    – Window side sticker of inspected items
    – License plate
    – Mirror hang tag
    – Window flag
    – Warranty folio
    – String banners
    – Wall posters
    – SiriusXM® window sticker

                                         ®
                      Drive More… Pay Less
B
            WALL POSTER
                                 A
                                 N
                                 N
                                 E
                                 R

America’s Used Car Company
                             ®
AVIS DIRECT
• Avis Direct is our direct-to-dealer sales program where you can purchase
  Avis®, Budget®, Payless®, and ZipCar® vehicles from our fleet.
  It’s easy, fast, and fee-free.

• Avis Direct Advantages:
   • Approximately 350,000 professionally maintained vehicles available
      for purchase annually
   • No enrollment or buy fees
   • Hi content, high grade condition vehicles
   • Online photos and condition reports
   • A regional consultant available to work with you

                                                           ®
                A good deal better… online
MARKETING
Marketing Strategy: Payless® sells Certified Pre-Owned vehicles to value-
conscious customers looking for a superior car buying experience.
Our target market is traditional used car buyers and buyers interested in
alternatives to purchasing a new vehicle.

Marketing Mix:
• Product: Late model Certified Pre-Owned vehicles
   – Current to 5-year old vehicles with less than 80,000 miles
   – Payless Assurance® Certified Pre-Owned
• Pricing: Payless® vehicles are value priced, yet look great and have many
  years of service life remaining
   – Payless® is an action-driven brand name
        • Drive More…® Pay Less

                     Drive More… Pay Less
                                         ®
MARKETING
• Place: Payless® Car Sales franchised dealer locations across the country
• Promotion:
   – www.paylesscarsales.com and our dealer’s websites
       • A good deal better…online®
   – Dealer local market advertising
   – The New Car Alternative
       • Why pay the difference if you can’t tell the difference?
   – Nationwide system of quality dealers
       • America’s Used Car Company®

              America’s Used Car Company
                                                               ®
TRADEMARKS

                             ®   12
A good deal better… online
Payless® Website
 DealerActive, LLC is the Exclusive Provider for our corporate website
 www.paylesscarsales.com and the Payless® website for each of our dealers.
 • Website
     – Dedicated Account Representative
     – Custom Lead Generating Forms = Higher Conversions
     – Specials Page
     – Coupons
     – SEO
     – eCARmerce
 • Inventory Management & Distribution
     – Automatically send your inventory to AutoTrader, Cars.com, and over
       50 free listing sites

Drive More…
                   ®
Payless® Website
 • Responsive Website Technology
    – Optimizes and resizes automatically for computer, tablet & phones
    – Creates a better experience for the visitor
    – Registers stronger SEO results and Google Page Ranks
    – Google & Bing recommended
    – Consolidate your analytics & reporting
    – The best tablet & mobile display
    – Increased consumer usability
    – Easier site management

Drive More…
                  ®
Payless® Website
 • Video with YouTube
    – Human Voice Video
    – Fully Automated and Generated
    – 4x Higher Click Rates
    – Increase your vSEO

 • Coupon Lead Generator
    – Increase site leads by 25-35%

 • eCARmerce
    – Engage consumers more quickly

Drive More…
                  ®
INITIAL AND MONTHLY INVESTMENTS
• Initial Franchise Fee
   – $30,000 for a 5-year license (good till April 2014)
• Monthly Royalty Fee
   – $200 per month paid on the 15th of each month
• Participation in:
   – Payless Assurance® Certified Pre-Owned program thru JM&A Group
         • Pricing varies by state
   – Payless® Website thru DealerActive
         • $1,145 per month + any other services you request

                                                        ®
            America’s Used Car Company
WHY PURCHASE A FRANCHISE FROM
           PAYLESS?
                       Distinct Brand Identity
                     Clear Marketing Message
             Payless Assurance® Certified Pre-Owned
                Vehicle Purchasing From Avis Direct
    Work With The Best: JM&A Group, DealerActive, eXteresAUTO
                          Ongoing Support

             A One-Stop Automotive Solution is Available:
Payless® Car Sales + Payless® Auto Service Center + Payless® Car Rental

          America’s Used Car Company
                                                            ®
Franchising Disclosure
            This information is not intended as an offer to sell or the solicitation of an
          offer to buy a franchise. We offer franchises solely by means of our Franchise
               Disclosure Document. Certain states and foreign countries have laws
             governing the offer and sale of franchises. If you are a resident of one of
          these states or foreign countries, we will not offer you a franchise unless and
              until we have complied with all applicable legal requirements in your
                                           jurisdiction.

MN File #F-6677 – For CA: THESE FRANCHISES HAVE BEEN REGISTERED UNDER THE FRANCHISE INVESTMENT LAW OF THE STATE OF CALIFORNIA. SUCH REGISTRATION DOES
NOT CONSITUTUE APPROVAL, RECOMMENDATION OR ENDORSEMENT BY THE COMMISSIONER OF CORPORATIONS NOR A FINDING BY THE COMMISSIONER THAT THE
INFORMATION PROVIDED HEREIN IS TRUE, COMPLETE AND NOT MISLEADING. For NY: This advertisement is not an offering. An offering can only be made by a prospectus filed first with the
Department of Law of the State of New York. Such filing does not constitute approval by the Department of Law.
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