Grill Study

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Grill Study
2013-07-04 15:05:41

Help with MQi
Show Answers:

  1. What is a comp/collision reserve?
    Money set aside anticipating a comp/collision loss
  2. What can we do to affect liability reserves?
    • Drive safe
    • Not break traffic laws
    • Limit size of vehicle
  3. What goes into gross cost?
    • Depreciation
    • Comp/collision reserve
    • Liability reserve
    • Interest
    • Maintenance
    • Miscellaneous
    • Taxes and Licensing
    • Gas
  4. What is C&I and what does it stand for?
    • Customer and Internal
    • Customer- what the customer spends on the rental
    • Internal- what we bill ourselves for free days for accounts
    • Also called Time and Miles
  5. How are liability reserves calculated?
    • 3 year rolling average based on groups risk.
    • Each branch pays the same on a per car basis.
  6. What is a subrogated loss?
    A customer damages our car, didn't pay for DW, and doesn't pay for the damages in first 90 days.
  7. How is lot theft and lot damage charged?
    • Per incident
    • 1st $2,500 to branch's uninsured losses and the rest to group 50's uninsured losses.
  8. What is a DW Loss?
    Customer damages our car but purchased DW.
  9. How do you find net profit?
    OP+Vehicle adjustment=net profit
  10. What is a total loss credit?
    Customer totaled our car and didn't have DW but their insurance pays Enterprise the market value of the car.
  11. What goes into a comp/collision loss?
    • Subrogated loss
    • DW loss
    • Subrogated credit
    • Total loss credit
  12. What is a liability reserve?
    Money set aside anticipating a liability loss
  13. What causes an uninsured loss?
    • Conversion
    • Lot theft/ Lot damage
    • Undocumented damage
    • Employee loss
    • Detectable fraud
  14. How would the following scenario be expensed:
    $20,000 Enterprise car and $100,000 3rd party car crash and it is our fault?
    Our car: 1st $2,500 is expensed to branch's uninsured loss and the rest is expensed to group's uninsured loss.

    Their car: 1st $2,500 is expensed to branch's uninsured loss, the next $22,500 is expensed to group 50's uninsured loss, and the remaining is expensed to corporate's liability reserves.
  15. What is personnel expense?
    • Salary, benefits, overtime, and payroll expenses-taxes.
    • Goal is $120/car.
  16. Explain employee loss
    Branch and group handle everything until liability occurs.
  17. What is the goal for net other?
  18. What is our goal to spend on maintenance?
    As much as it take to run a safe fleet
  19. What are the founding values?
    • We work hard....we reward hard work
    • Our brands are the most valuable things we own
    • Our doors are open
    • Customer service is our way of life
    • Personal honesty and integrity are the foundation to our success
    • We strengthen our communities one neighborhood at a time
    • Great things happen when we our customer and to each other
    • Enterprise is a fun and friendly place where teamwork rules
  20. What are gross costs?
    Cost that are directly related to owning and maintaining a fleet
  21. Comp and collision reserve equation
    (1 month adjustment/current month fleet)+base reserve
  22. How to increase total income?
    • Upgrades
    • Protection
    • Tight fleet
  23. What is the goal for fuel?
    • Airport is $6
    • Homecity is $2
  24. What is an employee loss?
    Employee hits another car and is at fault
  25. What are the company attributes?
    • Customer service
    • Heritage
    • Leader
    • Financial stability
    • Great employer
    • corporate citizen
  26. When does an uninsured loss occur?
    Damage to vehicle during a non-revenue generating state
  27. What type of reserves are there?
    • Comp/Collision
    • Liability
  28. How do we find IPC?
    • C&I+net other=IPC
    • (Days in month x ADR x %DE) + net other=IPC
    • % DE= (Avg DE/Avg Fleet)
  29. Order of all categories
    • Month/year
    • # of units in fleet
    • C&I
    • Net other
    • Total income
    • Gross cost
    • Uninsured losses
    • Personnel expense
    • Car Wash
    • T&E
    • Customer satisfaction
    • Referral commission
    • Advertising
    • CCDC charge
    • Bad Debt
    • Other expenses
    • Branch overhead
    • Group overhead
    • Corporate overhead
    • Operating Profit
    • Vehicle adjustment
    • Net profit
    • ESQi
  30. How do we affect comp/collision reserves?
    • Write complete DX's
    • Collect deductables
    • Gather all insurance information to file claim
  31. How do you find net profit?
    Operating Profit+Vehicle Adjustment=Net Profit
  32. What is negligent entrustment?
    Rent a car to someone who is impaired or has an invalid driver's license
  33. What is the equation for 1 month adjustment?
    ($ spent - $ set aside)/12
  34. What goes into C&I?
    • Time and Miles
    • Young Driver fee
    • Additional Driver fee
    • COE
    • GARS Charge
  35. What is net other?
    • CDW
    • PAI
    • PEC
    • SLP
    • RAP
    • Car Seats
    • GPS
    • Mexico Insurance
  36. What could decrease our comp/collision reserves?
    • Gained cars to spread same amount of money over more cars
    • Lost a bad month one year ago
  37. What are the number of days earned?
    # of days the car earns revenue
  38. How do you calculate C&I?
    % Days Earned x Average Daily Rate x Days in the month
  39. What is the depreciation of our cars?
    2% per month
  40. Define comp/collision reserves?
    Based on one year rolling average and can increase or decrease on a monthly basis
  41. Explain conversions
    • Entire depreciated, undamaged, wholesale value of the car hit the branch in the next month
    • Avoidable with proper underwritting and callbacks
  42. What are included in the miscellaneous costs?
    Tows, impounds, and repossessions
  43. How do you find Operating Profit?
    • Total Income-Total Expense
    • (C&I+Net Other)-(Gross costs+indirect expenses)
    • OP=IPC-Expenses
  44. What is a performance income statement?
    • Shows categories in total dollar amounts rather than a per car basis
    • Breaks down income and expenses
    • More detail than a per unit analysis
    • Helpful as a backup to per unit
  45. What is a subrogated credit?
    Customer, who damaged a car, pays after the initial 90 days.
  46. What is the base reserve equation?
    (12 month of losses/12 month of fleet)x1.10
  47. What is gross negligence?
    Rent a car that we know shouldn't be rented
  48. What is T&E?
    • Travel and Expense
    • Lunches, Water for customers, and days out to reward employees
    • Goal is $3/car
  49. What is detectable fraud?
    Credit card doesn't swipe or not in renter's name
  50. How are uninsured losses expensed?
    1st $2,500 is expensed to branch's uninsured losses and the rest to group 50's uninsured losses
  51. What are the types of unlimited liability exposure?
    • Employee loss with liability
    • Employee assault on customer
    • Gross negligence
    • Negligent entrustment
    • Third party disclosure
    • False arrest
  52. Qualifications of Mexico insurance?
    • 25+years old
    • non-Mexican citizen
    • hard plates/registration
    • credit card
    • type of vehicle (up to FCAR, MVAR, Small truck)
  53. What are the types of liability loss?
    • Employee loss with liability
    • State minimum coverage if customer doesn't sign bottom of contract or doesn't have liability
  54. Specifications of Mexico insurance?
    • $29.99/day
    • comp deductable=$1,000
    • collision deductable=$500
    • glass=20% of replacement value
    • vandalism/partial theft=$1,000
    • liability=$300,000
    • legas assistance=$150,000
    • medical=$50,000
    • includes travel assistance
    • must file claim within 24 hours while still in Mexico
  55. What is total income?
    Same as IPC and Total Revenue
  56. What is the goal for C&I?
  57. What is the goal for IPC?
  58. What is the goal for gross cost?
  59. What is the goal for uninsured loss?
  60. What is the goal for personnel expense?
  61. What is the goal for T&E?
  62. What is the goal for customer satisfaction?
  63. What is the referral expense goal?
    Below group average
  64. What is the bad debt goal?
  65. What is the goal for OP?
  66. What is the goal for Vehicle Adjustment?
  67. What is the equation to find vehicle adjustment?
    Vehicle adjustment=inv adj+depreciation adj
  68. How to calculate inventory adjustment?
    inventory adj=sold price-reduced value of car (after depreciation adjustment)
  69. What is the goal for net profit?
  70. What is the ESQi plan?
    • Introduction
    • Business cards
    • Features and benefits
    • 3 critical questions
    • Success/Opportunity logs
  71. What is bad debt (0590)?
    $ owed to branch by 3rd party not collected in 90 days, 91st day hits BD
  72. What does bad debt include?
    Conversions and chargebacks
  73. What is the bad debt equation?
    ((0590s falling off + 0590 write offs + BCs (chargebacks))-previous collected)/fleet=bad debt/car for month
  74. What is a conversion?
    When renter turns our car into their own
  75. When does a conversion hit the branch?
    After 30 days, branch gets hit with wholesale (undepreciated) value of the car
  76. What is the conversion process?
    • Contact area manager when customer is -$100 and document it
    • Take steps to contact customer (calls, deposits, drive by, and document again)
    • Notify risk management (skip-trace and document)
    • Have repo co. go to address to find car (if found, pick up) (If not found, send demand letter)
    • Send out demand letters (customer has 72 hours to respond)
    • Write DX on conversion
    • Close-Pend ticket
    • Notify police that the car is stolen