RERMAG

Volvo Rents Aims For 100 Rental Franchises By 2005

ASHEVILLE, N.C. — Volvo Construction Equipment Rents announced immediate plans to have more than 100 equipment rental franchise locations open throughout the United States by the end of 2005 and to provide more than $2 million to $3 million per store in operating and inventory financing to assist qualified franchisees in getting their businesses up and running. The company's plans call for continuing growth as franchises are added at locations throughout North America.

“The construction equipment rental industry is booming,” said Nick Mavrick, vice president of global strategy and marketing for Volvo Rents. “Our strong brand recognition, the growing demand for construction equipment, and Volvo Commercial Finance's ability to provide a comprehensive financial package to qualified franchisees allow us to look to the future with great enthusiasm.”

Volvo Commercial Finance will provide, to qualified applicants, a comprehensive financial package including fleet financing, working capital, delivery vehicle financing and leasehold improvement financing. The amount of financing for qualified applicants can be significant and is averaging from $2 million and $3 million per rental center.

Volvo Rents recently opened Capitol City Rentals, a new independently owned Volvo CE Rents franchise in Sacramento, Calif.

Greg Aguilera, president of Capitol City Rentals, has more than 20 years of experience in the rental market in the Sacramento area. Aguilera, the company's officers, shop, sales, and operations managerial staff have a combined 124 years of experience in the equipment rental business in the city.

The first independently owned rental franchise in Houston opened last month in the suburb of Humble. Owned by former Prime Equipment president and chief operating officer Pete Post and known as Post Rentals, the rental center is the first of three outlets Post plans to open in the Houston area.

Post, an executive at Prime until the company merged with Rental Service Corp. in 2000, also spent a couple of years in an executive role with NationsRent. “I guess I missed the rental business,” Post told RER. “I was impressed with the Volvo program and we began negotiating and put a deal together.” Post said his rental center's niche would be small-to-medium sized equipment targeting the small to medium-sized contractor.

“I know quite of few of them from my years at Prime,” he added. “So they'll give me a shot. But you still have to do it right and there is a lot to do starting out.” Post said he has eight employees from an impressive variety of rental backgrounds and that business conditions in Houston were good with solid customer demand.

Volvo Rents also opened a new independently owned Volvo CE Rents franchise equipment rental center in the Dallas metropolitan area.

Smithco Enterprises, LLC, opened its first Volvo CE Rents center in McKinney, Texas, a suburb of Dallas. John Smith, principal owner of Smithco Enterprises, was formerly with Prime Equipment and Rental Service Corp.

As of mid-August 2004, Volvo Rents has grown to 48 locations in North America and serves more than 35,000 end-use customers. It is No. 19 on the RER 100.

TAGS: Ar Rental News
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