Rental car firm comes with Northland lifestyle

Hertz Rental Cars Northland services incoming flights into nearby Kerikeri and Whangarei airports. Photo / Supplied

Hertz Rental Cars, Northland, is being marketed for sale by Richard Ridler of Link Business Broking, Ellerslie, who is to seeking interested parties to purchase all of the assets of the business as a going concern for an asking price of $580,000.

The business is situated close to the Kerikeri airport just off State Highway 1 and in central Whangarei. As well as servicing incoming flights into Kerikeri and Whangarei airports, the Hertz offices also draw clients from the larger Northland area.

Ridler says the asking price is mainly made up of the plant consisting chiefly of rental cars at $400,000, estimated stock of $10,000 and $170,000 for intangibles.

In essence, the vendor, JAL, trading as Hertz Rental Cars Northland, is offering for sale: the franchise agreement for the Northland territory with Hertz Rental Cars; the lease on a Kerikeri airport office and a Whangarei city office; a vehicle fleet; plant and office equipment; Hertz websites, internet booking and fleet management systems; access to a well-established international network and to national and international advertising and marketing through Hertz Rental Cars; a Hertz corporate client base ensuring regular and repeat client bookings and local advertising including Yellow Pages.

The intangibles comprising part of the sale also include: goodwill; all the intellectual property rights necessary for the operation of the business; the vendor's contacts including overseas suppliers; email addresses, 0800 phone number, land and mobile numbers, along with contact details of suppliers such as printers, advertising agencies, carriers and so on.

Other intangibles are advertising, promotional materials, artwork and items needed for its production, and all registrations, licences and brands necessary for the running of the business including licences for soft ware.

"Hertz Rental Cars has a franchise agreement, which will be the basis of the contract between the parties," Ridler says. "The agreement gives the business right of operation within a defined area, which is from Warkworth north up to North Cape. Any incoming purchaser will need to be approved by Hertz as a licensee."

Ridler says the business has a solid trading history and an excellent reputation in its specialist market area of quality rental cars throughout the Northland Region under the multi-national Hertz brand.

"The business has achieved good sales and profits and we understand it has a good reputation for supplying a range of quality, cost-competitive rental vehicles within its market segment."

Hertz Northland presently operates out of Kerikeri Airport on Wairoa Rd about five minutes from Kerikeri township and in Whangarei next to the Shell service station on Water St in the CBD.

There are also permanent car parks and a desk at the Whangarei airport.

"The business is managed overall by the two owners but neither works on a full-time basis. The business at Whangarei is run by the employees as was an office at Kaitaia when it was operating."

Kerikeri could be run by one full-time person plus one part time and Whangarei would be the same. The Kerikeri operation is run by the owners alongside other business interests they have while Whangarei is managed by an employee on a day-to-day basis with oversight and occasional visits by the owner.

Ridler says a new owner could spend more time working hands-on with the business and this might increase performance.

"The Kaitaia operation, run from the airport with an office and valet yard in Kaitaia itself, was closed in 2009 as a cost-saving exercise, which in hindsight was wrong," Ridler says.

"It could easily be re-opened by a new owner as a retired couple who previously ran it is keen to do so again and the airport facilities are still available.

"When operating it was generating sales of around $150-160,000 per annum, which added around $60-70,000 net bottom-line profit." Ridler says the vendor wants to move on and pursue other ventures but will be available to ensure a full handover.

"An ongoing support relationship may be considered with the new owner particularly at the Kerikeri branch."

He says business will most likely appeal to people who recognise a business at a distinct phase in its development cycle and entrepreneurs who may wish to purchase the benefits of the company's history, network, business relationships, contacts and turnover.