<PAGE>   1

                                                               Exhibit 10.33


December 3, 1999
VIA OVERNIGHT MAIL

Neal Stuart Cohen
3275 Robinson's Bay Road
Deephaven, MN 55391

         Re: Employment Letter

Dear Neal:

We are pleased to extend an offer to you to join Budget Group, Inc. ("BGI"). We
believe your background and experience are an excellent match with our business
objectives, and we are pleased that you are considering joining the BGI
management team.

Following is an outline of the terms and conditions relating to your proposed
employment by BGI.

OFFICE AND TITLE

This offer of employment is for the position of Executive Vice President, Chief
Financial Officer of BGI reporting directly to David Siegel, President and Chief
Operating Officer.

RESPONSIBILITIES AND DUTIES

You will have such duties and responsibilities as would be consistent with your
position as Executive Vice President, Chief Financial Officer of BGI.

LOCATION

Your employment with BGI will be based at our corporate office in Lisle,
Illinois.

START DATE

It is anticipated that your start date would be on or after January 1, 2000, but
not later than January 10, 2000.



<PAGE>   2

Neal Stuart Cohen
December 3, 1999
Page 2 of 7



SALARY

Your salary will be $350,000 per annum, to be paid bi-weekly and subject to
annual reviews which will be conducted in the first quarter of each calendar
year, beginning in 2001.

SIGN-ON BONUS

On commencement, you will be entitled to receive a sign-on bonus of $250,000,
which will be subject to normal withholding and all other applicable tax
deductions, as required by law. This sign-on bonus will be payable by BGI on or
about January 15, 2000.

SIGN-ON STOCK OPTIONS

You will be granted options for 250,000 shares of BGI stock pursuant to the 1994
Incentive Stock Option Plan, as amended. You will be granted these options
effective as of your start date and with a strike price equal to $6.875 per
share. These options will be subject to a four year vesting schedule (25% per
year) beginning with your start date (i.e., 62,500 options will vest in December
of 2000 and 62,500 options will vest in December of each subsequent year) and
such options will be subject to such other terms and conditions as are part of
the BGI Incentive Stock Option Plan; provided, however, all such options shall
immediately vest in the event (i) you are terminated by BGI, other than for
"Cause", (ii) you elect to terminate your employment for "Good Reason," or (iii)
you elect to terminate your employment within one year following a "Change in
Control." In such an event, such options shall be exercisable by you for a
period of 60 days following your termination date.

In addition, BGI will offer to you stock options and/or phantom stock options
equal to not less than 125,000 additional shares of BGI stock at the strike
price equal to the BGI stock price as of the close of business on the trading
day immediately preceding the stock option grant, but in no event more than $7
per share. In this regard, it would be BGI's intention to issue 125,000 stock
options to you if BGI has the ability to issue such options. However, if BGI
does not have such ability, then BGI will provide you with phantom stock. In
either case, the stock options (actual and/or phantom) will vest over a 4-year
period at the rate of 25% per year, beginning as of the grant date, which is
expected to be during the first quarter of 2000 (i.e, options will begin to vest
at the rate of 25% per year beginning in the first quarter of 2001, with an
additional 25% per year thereafter); provided, however, all such options shall
immediately vest in the event (i) you are terminated by BGI, other than for
"Cause", (ii) you elect to terminate your employment for "Good Reason," or (iii)
you elect to terminate your employment within one year following a "Change in
Control." In such an event, such options shall be exercisable by you for a
period of 60 days following your termination date.

<PAGE>   3

Neal Stuart Cohen
December 3, 1999
Page 3 of 7



EXECUTIVE STOCK PURCHASE PROGRAM

BGI will provide you with an interest free personal loan of $250,000 which is to
be used exclusively for the purchase of BGI stock, on the open market, within
not more than 30 days after receipt of the loan proceeds. In this regard, you
will, within 30 days of your purchase of BGI stock (excluding any trading days
during which the trading window would be closed because of your position as an
insider or otherwise), provide documentation to BGI evidencing such stock
purchase.

The $250,000 loan shall be forgiven at the rate of 25% per year over the first
four years of your employment with BGI. Further, BGI will provide you with
additional cash compensation in an amount sufficient to pay, on an after tax
basis, the tax consequences of any imputed interest with respect to the
above-referenced loan.

In addition, BGI will provide you with additional cash compensation in an amount
sufficient to pay, on an after tax basis, the tax consequences of any debt
forgiveness with respect to the above-referenced loan, in the event the average
BGI stock price during the month of November of each of the next succeeding four
years is not less than the stated amount, as follows:

<TABLE>
<CAPTION>

         Month of                       Average Stock Price
         November                       of not less than
         --------                       -------------------
         <S>                            <C>
         2000                                $14.00
         2001                                $21.00
         2002                                $28.00
         2003                                $35.00
</TABLE>

SIGN-ON BONUS/LOAN REPAYMENT PROVISION

Should you leave BGI's employment voluntarily and without Good Reason (as
hereinafter defined) within 12 months of your start date, the amount received as
a sign-on bonus will be repayable to BGI in full.

Should you leave BGI's employment voluntarily and without Good Reason within 48
months of your start date, the then outstanding principal balance of the loan
amount (after taking account of any loan forgiveness as provided for above) will
be repayable to BGI.

Should you sell, within 48 months of your start date, any of the BGI stock
purchased with the loan proceeds, you shall repay to BGI an amount determined in
accordance with the following:
<PAGE>   4

Neal Stuart Cohen
December 3, 1999
Page 4 of 7



<TABLE>
<CAPTION>

         Amount of Stock Sold               Repayment Amount Due to BGI
         --------------------               ---------------------------

         <S>                                <C>
         If you sell any stock during                 An amount equal to the number
         The first 12 months                          of shares sold x original stock
                                                      purchase price

         If you sell, during the                      An amount equal to the number
         First 24 months, more than                   of share sold in excess of 25%
         25% of stock purchased                       x original stock purchase price

         If you sell, during the                      An amount equal to the number
         first 36 months, more than                   of shares sold in excess of 50%
         50% of stock purchased                       x original stock purchase price

         If you sell, during the                      An amount equal to the number
         first 48 months, more than                   of shares sold in excess of 75%
         75% of stock purchased                       x original stock purchase price
</TABLE>

In this regard, you agree that BGI may deduct from your final salary payment or
other amounts due to you from BGI, the full amount owing to BGI, with any
balance to be paid by you within 30 days of your leaving.

However, should BGI decide to terminate your employment or should you elect to
terminate your employment for "Good Reason," the sign-on bonus and loan amount
shall not be repayable as herein above provided unless your employment is
terminated for "Cause".

PROFESSIONAL INCENTIVE PLAN

You will be part of the Professional Incentive Plan, which is based upon the
achievement of agreed upon company and personal performance targets. This
program will make you eligible to receive up to a 100% of your base salary as an
incentive award on an annual basis. You are guaranteed an annual incentive for
2000 of 100% of your base salary (which guaranteed annual incentive shall be
payable in the 1st Quarter of 2001).

In addition, you will be guaranteed an annual incentive for 2001 of 50% of your
base salary, if the long term compensation plan for 2001 does not pay out a
minimum of 50% of base salary. If the long term compensation plan does pay out
as stated above, your annual incentive award for 2001 will be based upon
achievement of company and personal performance targets as provided for in the
company's Professional Incentive Plan.
<PAGE>   5

Neal Stuart Cohen
December 3, 1999
Page 5 of 7



LONG TERM COMPENSATION PLAN

BGI will provide you with a long term compensation plan (which is expected to be
developed during the first quarter of 2000), which could include, but shall not
be limited to, annual stock option grants, restricted stock, stock appreciation
rights, phantom stock, a long term incentive plan and/or other forms of cash
compensation having an economic value as of the date of grant, in the aggregate,
of approximately $350,000 annually.

SUPPLEMENTAL EXECUTIVE RETIREMENT PLAN (SERP)

BGI will create and allow your participation in a SERP or some comparable
retirement program, which shall have an annual economic value of $175,000 with a
5 year vesting schedule.

SEVERANCE

You shall be entitled to severance payments in the amounts and upon those
circumstances as set forth in the Executive Agreement, as attached.

COMPANY CARS

You will receive two company cars pursuant to BGI's then current company car
policy.

WELFARE BENEFIT PLANS

Medical, dental, basic life, supplemental voluntary life, voluntary accident,
business travel accident insurance, long term disability and eligible dependent
coverage become effective on your first day of employment, as does your short
term disability coverage and medical/dental reimbursement account if you chose
to enroll. Additionally, you may enroll in BGI's SavingsPlus (401K) Plan, as
soon as you become eligible for participation in that Plan in accordance with
the then current eligibility requirements. If you are currently a member of a
qualified 401K Plan, you may be able to participate in our rollover provision.

RELOCATION REIMBURSEMENT

BGI will reimburse you for all reasonable expenses incurred by you to relocate
you and your family to the Lisle, Illinois area. Such relocation expenses shall
include items such as closing costs associated with both the sale of your
existing residence and the purchase of your new residence, exploratory trips for
you and your wife; the packing, loading and transportation of household
belongings; travel expenses to your new home

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Neal Stuart Cohen
December 3, 1999
Page 6 of 7



for both you and your family; and temporary living expenses for you of not more
than 6 months in duration while you are in the relocation process. On the other
hand, you agree to repay BGI such relocation expenses, on a pro rata basis, in
the event you voluntarily terminate your employment with BGI other than for Good
Reason or due to a Change in Control, or your employment is terminated by BGI
for "cause" (as herein above defined) at any time during the 24 month period
immediately following the conclusion of your relocation.

It is understood and agreed that you will use your best efforts to sell your
current residence; provided, however, in the event you are unable to sell your
residence within a period of 90 days from the date you list the property for
sale, then BGI will purchase such residence at a price equal to its acquisition
cost plus the cost of any fixed improvements.

If and to the extent any relocation reimbursement is deemed to be "taxable
income", BGI will provide a tax gross up for any such income.

VACATION

You will be entitled to 15 vacation days beginning in the calendar year 2000. In
addition, you will be entitled to such holidays, personal days and /or sick
days, which are generally made available to BGI executives.

ENTIRE AGREEMENT

This Employment Letter, when countersigned and returned by you, shall be a valid
and binding agreement on both you and BGI. Further, this Employment Letter and
the attached Executive Agreement, shall constitute the entire agreement between
us with respect to your employment by BGI and it is understood and agreed that
there are no representations, warranties or commitments, other than those set
forth in this Employment Letter or in the Executive Agreement, and that no
provision of either document may be amended, modified or waived except by
written agreement executed by the parties.

ACCEPTANCE

To signify your acceptance of this offer, please sign and return a copy of this
Employment Letter for our records.

APPLICABLE DEFINITIONS

For purposes of this Employment Letter, the terms "Cause," "Change in Control"
and "Good Reason" shall have the meaings ascribed thereto in the Executive
Agreement.
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Neal Stuart Cohen
December 3, 1999
Page 7 of 7



INDEMNIFICATION

The composite amended and restated by-laws of BGI as currently in effect provide
for your indemnification as an officer of BGI; those provisions or similar
provisions shall remain in effect during the term of your employment. In
addition, during the term of your employment, BGI will maintain a policy of
director and officer insurance containing reasonable and customary terms for a
company of the size and nature of BGI. On a personal note, we look forward to
having you join the BGI organization. If you have any questions regarding this
offer letter or any of its contents, please do not hesitate to contact me at
630/955-7477.

Kind regards,

Yours sincerely,



Vicki R. Pyne
Senior Vice President, Human Resources




Received and accepted


----------------------------------------

Date:
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cc:   S. Miller, D. Siegel, R. Aprati