Sixt faces several challenges in the car rental industry, such as:

• High Initial Costs
  Customers are often faced with significant initial costs when purchasing a new car, such as down payment and sales tax.
• Financing Costs
  Obtaining competitive car financing often requires a complicated and time-consuming process and carries additional costs in the form of interest rates.
• Depreciation of Vehicle Value
  New cars tend to depreciate quickly, which can mean a financial loss for the owner when they try to sell the car.
• Uncertainty of Need
  The need for the type and size of car may change over time, but traditional car ownership binds customers into long-term contracts.
• Ownership Obligations
  Owning a car means customers have obligations such as insurance, taxes and maintenance that they must handle themselves.
• Maintenance and Repair Costs
  Maintaining and repairing a self-owned car can be an unexpected and expensive additional expense.
• Car Buying and Selling Inconvenience
  The process of buying and selling a car can be complicated and time consuming, and requires negotiation and administrative handling.