Avis Budget Group (CAR) risk factors, FY2024 10-K

Avis Budget Group's FY2024 10-K, filed Feb 14, 2025, lists 34 risk factors in 5 groups. There is no earlier 10-K to compare against, so the most company-specific risks are listed below.

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Risk factors listed
345 groups
Section length
10k wordsItem 1A

Avis Budget Group's biggest risks in the FY2024 10-K

  • Fleet costs and vehicle availability dominate our largest operating expenses and capital requirements.
  • Global travel demand fluctuations, fuel costs, and macroeconomic conditions directly impact our rental volumes and profitability.
  • Vehicle electrification transitions create significant strategic uncertainty and capital expenditure requirements for our rental fleet.
  • Heavy reliance on debt financing, variable interest rates, and asset-backed securities markets exposes us to severe liquidity constraints.

The risks most specific to Avis Budget Group

  • RISKS RELATED TO OUR INDUSTRY AND THE BROADER ECONOMY

    We face risks related to the high level of competition in the mobility industry

    Competition in the mobility industry is intense and price-driven, risking rental volume and account bids if our pricing is uncompetitive.

  • RISKS RELATED TO OUR INDUSTRY AND THE BROADER ECONOMY

    We face risks related to fleet costs and availability

    Fleet costs represent our largest expense, varying based on purchase prices and vehicle disposal values for both program and non-program vehicles.

  • RISKS RELATED TO OUR INDUSTRY AND THE BROADER ECONOMY

    We face risks related to safety recalls affecting our vehicles

    Manufacturer safety recalls force us to remove vehicles from our rentable fleet unpredictably, harming our business operations.

  • RISKS RELATED TO THE NATURE OF OUR BUSINESS

    We face risks related to third-party distribution channels that we rely upon

    We rely heavily on third-party distribution channels, travel agencies, online platforms, and GDS networks to generate vehicle rental reservations.

  • RISKS RELATED TO THE NATURE OF OUR BUSINESS

    We face risks related to our property leases and vehicle rental concessions

    We depend on property leases and periodic bidding for vehicle rental concessions at major airports and European train stations.

  • RISKS RELATED TO THE NATURE OF OUR BUSINESS

    We face risks related to vehicle electrification

    Vehicle electrification technologies, including hybrids, EVs, and autonomous vehicles, introduce major industry changes and operational risks.

  • RISKS RELATED TO LEGAL, REGULATORY AND ENVIRONMENTAL, SOCIAL, AND GOVERNANCE (“ESG”) RELATED MATTERS

    We face risks associated with changes in tax laws

    The Tax Cuts and Jobs Act eliminated like-kind exchanges for personal property, increasing our United States federal and state income taxes.

  • RISKS RELATED TO OUR CAPITAL STRUCTURE AND INDEBTEDNESS

    We face risks related to our current and future debt obligations, including risks related to conditions in the credit and asset-backed securities markets

    Our debt obligations and reliance on credit and asset-backed securities markets constrain our ability to satisfy financial liabilities.

  • RISKS RELATED TO OUR CAPITAL STRUCTURE AND INDEBTEDNESS

    We face risks related to increases in interest rates

    Increases in market interest rates raise our debt service obligations on variable-rate vehicle-backed borrowings.

  • RISKS RELATED TO OUR INTELLECTUAL PROPERTY MATTERS, DATA SECURITY AND PRIVACY

    We face risks related to cybersecurity breaches of our systems and information technology

    We face frequent cybersecurity attacks and network threats that could compromise our systems and increase defensive costs.

All 34 risk factors

Headings as the filing states them, in filing order.

RISKS RELATED TO OUR INDUSTRY AND THE BROADER ECONOMY

  1. 01We face risks related to the high level of competition in the mobility industry
  2. 02We face risks related to fleet costs and availability
  3. 03We face risks related to safety recalls affecting our vehicles
  4. 04Weakness or fluctuations in travel demand or general economic conditions, or a significant increase in fuel costs, can adversely impact our business
  5. 05We face risks related to political, economic and commercial instability or uncertainty in the countries in which we operate
  6. 06Ongoing military conflicts, including in Eastern Europe, are causing uncertainty that may have an adverse impact on our business, financial condition and results of operations

RISKS RELATED TO THE NATURE OF OUR BUSINESS

  1. 07Damage to our reputation or brands may negatively impact our business
  2. 08We face risks related to third-party distribution channels that we rely upon
  3. 09We face risks related to our property leases and vehicle rental concessions
  4. 10We face risks related to the seasonality of our business
  5. 11We face risks related to acquisitions, including the acquisition of existing licensees or investments in or partnerships with other related businesses
  6. 12We face risks related to vehicle electrification
  7. 13We face risks related to liability and insurance
  8. 14Additionally, current United States federal law pre-empts state laws that impute tort liability based solely on ownership of a vehicle involved in an accident. If such federal law were to change, our insurance liability exposure could materially increase
  9. 15We face risks related to fluctuations in currency exchange rates
  10. 16We face risks related to our derivative instruments
  11. 17We have in the past been, and may in the future be, impacted by impairment charges

RISKS RELATED TO LEGAL, REGULATORY AND ENVIRONMENTAL, SOCIAL, AND GOVERNANCE (“ESG”) RELATED MATTERS

  1. 18Costs associated with lawsuits, investigations or increases in legal reserves that we establish based on our assessment of contingent liabilities may have an adverse effect on our results of operations
  2. 19We face risks related to laws and regulations that could impact our global operations
  3. 20We face risks related to environmental laws and regulations
  4. 21We face risks related to ESG matters
  5. 22We face risks related to franchising or licensing laws and regulations
  6. 23We face risks related to the actions of, or failures to act by, our licensees, dealers, independent operators or third-party vendors
  7. 24We face risks associated with changes in tax laws

RISKS RELATED TO OUR CAPITAL STRUCTURE AND INDEBTEDNESS

  1. 25We face risks related to our current and future debt obligations, including risks related to conditions in the credit and asset-backed securities markets
  2. 26ability to respond to adverse changes in general economic, industry and competitive conditions, as well as changes in government regulation and changes to our business
  3. 27We face risks related to increases in interest rates
  4. 28We face certain risks related to our share repurchase program

RISKS RELATED TO OUR INTELLECTUAL PROPERTY MATTERS, DATA SECURITY AND PRIVACY

  1. 29We face risks related to our protection of our intellectual property
  2. 30We face risks related to our reliance on communications networks and centralized information systems
  3. 31We face risks related to cybersecurity breaches of our systems and information technology
  4. 32We are subject to privacy, data protection, data security and other regulations, as well as private industry standards, which could negatively impact our global operations and cause us to incur additional incremental expense or reputational harm that impacts our future operating results
  5. 33We face risks related to the market price of our common stock
  6. 34Certain provisions of our certificate of incorporation and by-laws and Delaware law could prevent or delay a potential acquisition of control of our Company, which could decrease the trading price of our common stock

Other Avis Budget Group 10-Ks

  • FY2025 10-K risk factors
    33 risks1 dropped6 reworded

    No new risks were added; one debt-covenant default and cross-default risk was dropped.

    Filed Feb 19, 2026

About this page

The headings are the filing's own. The one-line readings and the overview are automated and can be wrong: read Item 1A of the 10-K for the exact wording.