Car rental business is a fairly simple direction and a profitable investment. It is especially popular in resort towns or in regional centers. There, the demand for rented cars is higher than in small towns. The best part about starting a business like this is exceeding customer expectations. After all, there is nothing more valuable than a loyal regular customer. People who use the car periodically will much more often seek help from a rental company, rather than buy their own personal transport. Before you start a business, you need to decide on the direction of the car rental system – franchise or create your own company from scratch. In the first case, you become a representative of a well-known large company, follow the instructions in the contract and pay royalties to the franchisee. We will cover the second option in the article, which means creating a car rental business on your own.
Car fleet
The backbone of any car rental company is the fleet. It is worth starting with the choice of cars. To rent a premium car, you need significant funds, so a set of middle-class cars or domestic cars will be the best solution. The client prefers companies that have a wide range of cars. This means that the effectiveness of car rental will be visible if you offer at least 5-10 options. The larger and more diverse the fleet, the better. If you have enough financial resources, you can form a fleet of cars of different classes:- Economy class is designed for those who want to get a car at the lowest price. Such cars do not have powerful engine, are not designed for racing and consume less fuel even in an urban environment. Economy-class cars include Renault Logan, Skoda Fabia, Chevrolet Spark;
- Middle class represents powerful cars with a wide range of functions. They are intended for those who appreciate, first of all, comfort. Middle-class cars include Renault Sandero, Skoda Fabia Wagon, Nissan Leaf, Peugeot 301, and Volkswagen Polo Sedan;
- Comfort class is designed for those who want to comfortably accommodate the whole family in a car. The dimensions of such cars, compared with the middle class, are larger and are unlikely to suit beginners. Comfort class cars include Mazda 3, Volkswagen Jetta TSI, Hyundai I30, and Ford Focus;
- Business class cars are chosen for business trips, such as business meetings. Business class cars include Hyundai Sonata, and Volkswagen Passat;
- SUVs are a car enthusiast’s dream. These cars have a large set of functions, and high ground clearance and are perfect for those who are going to conquer off-road. Off-road vehicles include Toyota Land Cruiser 150 Prado, Toyota RAV4, Volkswagen Tiguan, and Ford Escape;
- Minivans are designed for a large company of 7-8 people with a driver and are great for traveling. If you decide to purchase a minivan for your fleet, you can choose Toyota Sienna;
- Convertibles are two-seater. Convertibles are equipped with a powerful engine, two comfortable seats, and a large trunk. These cars include the Mercedes SLK350, and Volkswagen EOS.
Personnel
A business cannot operate without qualified employees. You will need managers to work with the front office and answer the phone; accountants to track the movement of funds; technical workers for the maintenance of the fleet. Personnel salaries are calculated on an individual basis, so a specific figure cannot be given here. When renting cars, it is also necessary to prepare a specific set of documents for each:- vehicle registration certificate;
- insurance policies;
- an agreement on the transfer of a car for rent, indicating all the nuances;
- an act of technical serviceability of the car, certified by a notary;
- maintenance document.