REGISTER NOW! — 2024 ACRA D.C. Car Rental Conference
Don’t miss out! The expanded, larger 2024 ACRA D.C. Car Rental Conference is right around the corner and it looks like 2024 will be a sellout again! The conference is set for Sunday through Wednesday, September 15 – 18, 2024. Click here to review the updated draft schedule (Updated ACRA D.C. Conference Schedule).
Sunday and Monday — The Conference will kick off on Sunday evening with a sponsored group dinner near the Westin Arlington hotel. Monday will reprise previous ACRA “Operational Boot Camps” that cover the life cycle of purchasing, insuring, recovering, and disposing of fleet vehicles as well as many other tips for car rental operators. Monday evening will feature a sponsored cocktail reception at the Westin, followed by time available to explore the vibrant dining and nightlife scene of the Ballston area.
Tuesday – The policy education sessions on Capitol Hill on Tuesday will shift from the Capitol Visitors Center to the Kennedy Caucus Room in the Russell Senate Office Building due to the increased registration at the 2024 Conference – we simply outgrew the CVC conference rooms! Speakers and panels will range from Administration officials to legislators to congressional staff to historians, allied trade association executives and expert stakeholders in the policy areas of interest to ACRA members. 2024 ACRAPAC contributors are invited to attend the 2024 ACRAPAC Congressional Reception will once again enjoy rubbing elbows with Senators and House of Representatives Members and hearing their views on the 2024 elections and upcoming major policy developments.
Wednesday – The conference’s final day – Wednesday — again will feature ACRA members – regular operators and associate suppliers – crisscrossing Capitol Hill to meet face-to-face with House and Senate members and their staff to press for action on the federal policy issues of most importances to U.S. car rental operators – from EV infrastructure to full expensing of rental vehicles to guaranteeing access to the data generated by your vehicles. Each lobbying group will be led by an experience Capitol Hill veteran, so whether you are a first-time attendee or an “old pro” at the meetings with legislators, you will be in good hands for an interesting and exciting day on Capitol Hill!
To register for the 2024 ACRA D.C. Car Rental Conference, click here: Registration for 2024 ACRA D.C. Conference. To reserve your room at the Westin in Arlington, please follow this link to secure the ACRA conference rate: Book your group rate for American Car Rental Association 2024. The deadline for the room block is August 19, 2024.
Remember, the 2022 and 2023 ACRA D.C. Conferences sold out and the hotel ran out of rooms for attendees. So, please jump on these registration and room opportunities now so you are not excluded from the conference in 2024!
House Vehicle Data Access Legislation
ACRA and several other allied stakeholders registered our objections to a new draft of “right to repair” legislation approved by a House subcommittee in 2023 is being circulated on Capitol Hill (H.R. 906 Redline). From ACRA’s perspective, the bill is getting worse, not better. This new draft would allow vehicle manufacturers to charge vehicle owners (whether individuals or fleets) for access to their owner vehicles’ data, and potentially withhold access altogether to data unrelated to repair and maintenance data. The joint letter (Joint Letter Opposing Redlined H.R. 906) that ACRA joined urges the House Energy and Commerce Committee to not take up the revised H.R. 906 without substantial further amendments that protect the rights of vehicle owners – including ACRA members. Since the House started their August recess this week, any consideration of this bill will be postponed until September at the earliest.
Other Federal Legislative and Regulatory Updates
- Tax Bill – Unfortunately, it looks like “serious” action on federal tax legislation is “dead” for 2024. It has been rumored that Senate Majority Leader Schumer (D-NY) will bring H.R. 7024, the ACRA-supported tax reform bill containing an extension of full expensing for personal property, to the Senate floor – perhaps as soon as today (8/1/24). It is expected that all GOP senators will vote against “invoking cloture” so that the bill can be considered by the Senate. Since 60 votes are required for cloture and Democrats control only 51 seats in the Senate, Senator Schumer’s effort is sure to fail. But it will give Senate Democrats an election year talking points with respect to Republican Senators voting against expanded child tax credits (which is paired with business tax breaks in the bill approved by the House overwhelmingly earlier this year). ACRA will still push for “serious” action on full expensing on rental vehicles in 2024, but it is likely that congressional action on this and other tax matters will be stalled until 2025. Many of the tax provisions in the 2018 tax reform law will expire or start to sunset in 2025, which likely will make federal tax legislation a central focus of the House and Senate next year.
- ACRA Joins Amicus Brief to U.S. Supreme Court – ACRA has joined with the U.S. Chamber of Commerce, the Truck Renting and Leasing Association and the American Automotive Leasing Association to file an amicus (“friend of the court”) brief with the U.S. Supreme Court to overturn a D.C. Circuit Court of Appeals decision on “associational standing” in the litigation over California’s Advanced Clean Cars I program. The D.C. Circuit held in deciding ACC I that an entity, including an association such as ACRA, could only challenge a federal action if it is directly harmed by the action – as opposed to indirect negative impacts. The ACRA Board voted unanimously to join in the Chamber’s brief on this important issue.
- Senate Movement on Catalytic Converter Bill – Senators Klobuchar (DFL-MN) and Braun (R-IN) have filed the ACRA-supported catalytic converter theft reduction bill as an amendment to the National Defense Authorization Act legislation that will be considered by the Senate in September. The NDAA is considered “must pass’ legislation by September 30th each year because without it, the nation’s military doesn’t have congressional authorization to pay its bills (or its payroll!). A joint letter is being put together to support consideration of the catalytic converter bill (S. 154) on the FY 2025 NDAA bill. Some stakeholders, including auto manufacturers, have opposed S. 154.
Guest Column by Jon Dill, Director of Operations, NP Auto Group (jon.dill@npfranchisegroup.com)
Today’s Economy Bodes Well for Car Rental
The personal consumption expenditure (PCE) price index, is at 2.5% year-over-year. This is the lowest it’s been since February. Inflation continues to slow and consumer spending remains strong, but given this trend – I suspect there will be at least one rate cut this year.
What does this mean for car rental? Consumers have money and are willing to spend it AND consumers will regain confidence the economy is heading in the right direction — which will encourage more spending. But it’s not just disinflation that bodes well for car rental.
The average new car price peaked in December last year at a whopping $48,000. Now, it’s $47,000. Just $1,000 in 7 months. As inventories climb, OEM incentives are coming back. But the overall concern for consumers is affordability. The price of cars is not going to drop significantly, so consumers will keep their cars longer and longer. The average age of cars and light trucks has risen significantly since 2016. As of May 24, 2024, the U.S. hit a new record for the average age of passenger and light duty trucks at 12.6 years.
As the average age of cars on the road continues to climb – so should rental demand. From replacement rentals to vacation rentals to business rentals. And as the economy improves, so will consumer confidence. But most Americans can’t afford the average new car payment of $735 or the average used car payment of $523 per month. Affordability is essential for consumers and car rentals are already positioned as a mobility option that many consumers find affordable.
Guest Column by Wade Burnette, Client Executive, Principle Insurance Services (wburnette@principle-ins.com)
Commercial Insurance Coverage 101 for Car Rental Operators
Having adequate commercial auto insurance coverage is crucial for companies in the daily auto rental industry for several reasons:
1. Vehicle Protection: Daily auto rental companies rely heavily on their fleet of vehicles. Accidents, theft, or damage to these vehicles can disrupt operations and incur significant costs. Commercial auto insurance provides coverage for physical damage to the vehicles, ensuring that the company can repair or replace them promptly without suffering substantial financial losses.
2. Liability Coverage: Accidents involving rental vehicles can result in bodily injury or property damage to third parties. Without proper insurance, the company may be held liable for medical expenses, vehicle repairs, legal fees, and compensation for pain and suffering. Commercial auto insurance offers liability coverage, protecting the company from financial liabilities arising from such incidents.
3. Rental Loss Coverage: If a rented vehicle becomes unavailable due to an accident or damage, it cannot generate revenue for the company. Commercial auto insurance often includes rental loss coverage, compensating the company for the income lost during the vehicle’s repair or replacement period.
In addition to commercial auto insurance, daily auto rental companies should also consider the importance of employment practices liability (EPL) and cyber liability insurance:
1. Employment Practices Liability (EPL): Daily auto rental companies employ staff for various roles, including customer service, vehicle maintenance, and administration. EPL insurance protects the company against claims of wrongful employment practices such as discrimination, harassment, wrongful termination, or violation of employment laws. Given the diverse workforce and interactions with customers, the risk of such claims is significant in this industry.
2. Cyber Liability Insurance: Daily auto rental companies collect and store sensitive customer information, including personal and financial data, as part of their reservation and payment processes. In today’s digital age, cyber-attacks such as data breaches, ransomware, or phishing scams pose a significant threat to businesses, potentially resulting in financial losses, reputational damage, and legal liabilities. Cyber liability insurance helps mitigate these risks by providing coverage for expenses related to data breach response, customer notification, legal defense, and regulatory fines.
By investing in adequate commercial auto insurance, employment practices liability insurance, and cyber liability insurance, daily auto rental companies can safeguard their operations, assets, and reputation against a range of potential risks and liabilities.
ACRAPAC D.C. Congressional Reception
ACRAPAC’s Congressional Reception at the D.C. Car Rental Conference in September will be on the evening of September 17, 2024 at Charlie Palmer’s Steak on Capitol Hill. Attendees are limited to 2024 ACRAPAC contributors. A select and senior group of House and Senate legislators will join ACRA regular and associate member executives for another successful D.C. PAC reception. If you have questions about ACRAPAC, please contact Sharon or Greg.
ACRA Membership Activity
New Associate/Supplier Member
- Peak Insurance, Bay Harbor Islands, FL
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