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Car rental is becoming an increasingly profitable business. Potential customers use car rental services in many cases, even if they have their own vehicles at their disposal.
Take even the rich Emirates as an example, where every second person has his own Bentley or Toyota Tundra. Even with such cool cars, you will see many people renting Lamborghini in Abu Dhabi, Porsche, McLaren or other luxury cars in Dubai.
One way or another, the rental business can be extremely profitable. And we will share tips on organizing it below.
Why should you go into the rental business?
First, let’s look at the main pros of such a business.
- There is no need for significant investments at the start. You may begin out by only purchasing an economy-class vehicle.
- It doesn’t take a lot of time to run the firm. You can just arrive at the parking lot in the evening to pick up and drop off the vehicle for daily rental. It is advantageous if the business owner is already involved in the car industry. Car rental doesn’t require any specialized knowledge, expertise, or abilities.
- Minimal staff expenses. You can initially run the company alone.
Who will be your target customers?
When is the car usually needed?
- Temporary absence of a car. People who cannot imagine life in the city without a car will definitely use car sharing or rental services.
- Recreational vehicle. Renting an iron horse, both ordinary and luxury, is a common practice in resort areas and tourist cities.
- Holiday car. Cars for rent are usually ordered for weddings, birthdays, proms, etc. And usually these are limousines and luxury cars.
- Auto for businessmen, foreign ministers and dignitaries. Traditionally, these cars are accompanied by a driver.
- Transport for taxi drivers. Taxi drivers who do not have a personal car or who do not want to wear out their own usually apply for rental services.
- Car test drive. Often, before buying a car, drivers go for a short test drive and often this time is not enough. You can test the model simply by renting the same car.
Top tips for business organization
At first look, renting could appear a simple business. But actually, there are several ways to earn money. One can:
- Give only automobiles;
- Autonomously engage in passenger transportation;
- Employ drivers available upon request.
Businessmen engaged in renting regularly adhere to the following rules:
Don’t ignore the law. You must register as a sole proprietorship or legal business in order to offer rental services. If not, it poses a risk of responsibility, even for criminals. All legal considerations contribute to the transaction’s security. A lease agreement should be transparently drafted, down to the last detail. It will not be unnecessary to retain the services of an expert attorney if you intend to hire more than one vehicle.
Explore the driver’s personality. The driver should ideally be at least 30 years old and have extensive driving experience. We also advise to refuse beginners who have just gotten their license and taken the wheel.
Install a GPS on all your cars. It is affordable, and the location of the automobile is always known.
Create and promote a website. Not a single rental point can do without a website, you will have to invest not only in SEO, but also in advertising.
Monitor the condition of automobiles. Autos require constant maintenance, these costs cannot be eliminated, so you should carefully calculate all planned costs. Sometimes it is more profitable to conclude a full insurance service contract.
Business has many difficulties and nuances. There are always risks, so you need to take a responsible approach to the choice of clients, although it is very difficult to distinguish unscrupulous tenants in advance. But do not despair, and soon the business will bear fruit.
