Every year the car rental market grows by an average of 17 percent. It is also interesting that in recent years, a large number of entrepreneurs have begun to engage in car rental business, but not one of them has abandoned its activities.
There are several options for how you can open a car rental firm. To be more precise, there are two such options: the first is to lease cars, and the second is to purchase a new fleet of cars. The first option requires less money in the initial stages of business, but also greatly reduces the net profit received. At the end of the second year, the cost of leased cars purchased increases by about 17-18 percent.
It makes sense to open a car leasing business if you are going to buy about 30 cars for your fleet. Having such a number of cars, you will approximately receive 10-15 thousand dollars in income. In this case, the fleet should be cars of different classes: economy-class, business-class and executive-class. Some entrepreneurs categorically refuse to purchase cars of executive class for the fleet, fearing that they will not be in demand – this picture is mainly characteristic of small towns. Based on the experience of “promoted” and popular car rental salons, such fears are unfounded and lead to the loss of a certain share of the market and, accordingly, the resulting profits. Of course, expensive cars are rented much less often, but their rental price is several times higher, so that these cars can fully pay for themselves.
As for the question, whether it is necessary to buy for car fleet cars of domestic manufacture, this question has positive and negative sides. Of course, by value, domestic cars will be three or five times cheaper than foreign cars. For about $20,000 you can buy used domestic cars. But, further maintenance costs can exceed several times the cost of maintaining the foreign cars. In addition, the purchase of cheap cars entails the risk of idling machines (here we mean cheap domestic cars and foreign cars), because the car can simply idle without demand, thus bringing only additional costs.
How to start a car rental business?
After registering the company, you need to find an office, a place for parking, hire employees, purchase the required number of vehicles. Under the office is quite suitable space of 30-40 square meters. When choosing a place for parking, then in this case should be guided by the number of cars in the fleet, because for one car you need about 10 square meters of floor space and not less.
The minimum number of cars in the rental park should be ten pieces. Otherwise the business will not make a profit and will not even pay off. According to practice, for a fleet of ten cars will be enough parking, designed for seven cars. At the same time with the registration is necessary to conduct advertising salon for car rental.
For the maintenance of a fleet of ten cars requires the following staff: a technician who will monitor the technical condition of cars, the driver, the contractor who will work with insurance companies, an accountant, if the firm is small, you can use the services of a special firm, and manager to work with clients. If employees wish, some positions can be combined.
Potential clients
Rental car of domestic production is about 20-30 dollars, and the rental of foreign cars 50-80 dollars, it follows that the rental car is available for wealthy people. But, in most cases, wealthy people have their own car. Then the question arises: “Who will be the client of the rental salon?”
Just car owners are the main clients of such salons. Due to different circumstances, car owners often remain without their cars: while on a business trip or on vacation, or maybe the car is in repair, in fact, the reasons may be very many. Besides people who need the car to create and support the impression and reputation can also use the services of the car rental salon.
Such people use business class cars when they go to important negotiations or a business meeting. There are also those who need the car just for a few hours. In most cases, these are some kind of celebrations: birthdays, graduations, weddings, and so on. In such cases, the car is provided together with the driver.