Business View Caribbean - October 2015 75
into purchasing their used automobiles, Budget Aruba
puts all of its retiring models through a thorough main-
tenance program. “We’ll change everything that would
not last a year,” he says, “and over the years, we’ve
developed a strong clientele base. We’re selling 81
cars this year, and we’re buying 111.” In order to stay
financially solvent and manage the constant turnover,
bank financing is imperative. “We will come up with 30
percent of the cost of the cars, the bank will come up
with 70 percent, and we’ve got a 36 month loan,” he
says.
Renting cars is also a very com-
petitive business. And, according
to Nyack, “The customer, today, is
very demanding and very cost-con-
scious. So, we move rates accord-
ing to what the competition does
so we can compete. A brand name
is nice to have, but you wouldn’t
get the business without attractive
rates. The team here strives for a
90 plus-percent utilization of the
fleet. That keeps us quite busy, but
we’re able to stay competitive, that
way.”
Eighty-five percent of Budget Aru-
ba’s business comes through the
Princess Beatrix Airport, but Nyack
says that there are many people
who want to rent for one or two days
from the hotel area. Naturally, that
is a clientele that that he wants to
attract. But, so far, exposure in that
area is limited. “We have not con-
centrated on the hotel area,” he
admits. “There is a market there.
We have at least 10 or 12 major ho-
tels, here. They’re all on the beach
side. We do have a local office down there, but what
we haven’t done is concentrated on trying to get into
the hotels and that market. We’re going to have to try
to do that.” Regardless of the intent, however, Nyack
explains that it’s not always that easy to grow. “The
government decides how many cars you have in your
fleet, so we have to request permits and sometimes
it takes awhile. You’re not just free to go ahead and
expand as you feel like.”
While growth may be slower than Budget Aruba might
like, there is nothing lacking in the company’s ability
