Payless Car Sales Franchise Opportunity

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1 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.

2 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

3 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

4 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

5 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

6 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

7 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

8 WALL POSTER B A N N E R America s Used Car Company

9 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

10 MARKETING Marketing Strategy: Payless sells Certified Pre-Owned vehicles to valueconscious 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

11 MARKETING Place: Payless Car Sales franchised dealer locations across the country Promotion: 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

12 TRADEMARKS A good deal better online 12

13 Payless Website DealerActive, LLC is the Exclusive Provider for our corporate website 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

14 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

15 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

16 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 15 th 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

17 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

18 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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