In what is described as “the first deal of its kind in the limousine industry,” Dav-El livery president Scott Solombrino recently announced that his company, backed by a $10-million commitment from GE Capital Fleet Services, has entered into a lease-purchase agreement with A.H.A. Manufacturing of Mississauga, Ontario.
According to Solombrino, the transaction, which involves the lease purchase of 200 vehicles and which comes at a time “when the industry needs more than just to be able to buy cars from coachbuilders,” will enable the Dav-El network to reap the benefits of a “comprehensive program that includes a national insurance program, a national maintenance program, a national credit and acceptance program, and a rollover, buy-back program.”
“At this point in time,” states Solombrino, “the industry deserves to start running like the car-rental industry where comprehensive buying programs with incentives are put together so that fleet buyers such as Dav-El can take advantage of them. To this end, A.H.A. and GE Capital – whose Commercial Transportation Division provides leasing and financing programs for passenger-carrying, for-hire vehicles – were put to the task of coming up with a comprehensive program that would cover everything, from financing and insurance to maintenance and roll-over.”
According to Blaine Hobson, vice president of A.H.A., which will provide Dav-El with a mix of 200 fully equipped, 60-inch Lincoln limousines and restyled Town Cars, this deal may be an indicator of how deals are going to be done in the future. “It was an opportunity for an operator to buy his equipment the way any other professional fleet operator would buy his equipment, in that it covers all bases,” Hobson says.
Solombrino says that Dav-El will make this program available to all of its affiliates in 360 cities world-wide.