How To Start A Vehicle Rental Business
Car rental is a highly competitive market, but there are signs from the US that more customers are moving away from purchasing a vehicle and towards renting one when they need it, so there is potential for growth in this sector. Check out this article to find out exactly how car rental companies make their money.
It is also a highly regulated industry, so it’s very important to get to get to grips with the ins and outs of the sector before committing to what can be a very rewarding venture.
Given these factors, once you’ve researched the regulations and decided this is the business for you, what is the next step?
1.Type of operation
Here there are two basic choices:
- a daily operation, for tourists and alike
- a longer lease operation to businesses who need cars and vans long term.
Longer term leasing offers a more stable income, but daily rentals can be lucrative if you can get the customers through the door.
2.Put the fleet together
Again, there is a choice here. Is it better to buy the vehicles or should you lease them from someone else before renting them out? There are pros and cons for each, but you must think carefully about the position you find yourself in. Can you afford the fleet? Who will pay the maintenance? How big does the fleet need to be? What type of cars will you need to get? Who is the target clientele and what will they ask for? These are all questions that need to be answered before committing to the industry.
As you are likely to need a lot of maintenance, make sure you find a trusty local garage who can give you a good deal for loyal service.
3.Select a location
As always, this needs to be visible and accessible. It’s unlikely you will be able to set up an airport just yet, so think about the next best place. If there is a lot of tourism in the area, what type of vehicle will be needed to get to those tourist spots and how will tourists find out about you?
This is a no-brainer, but you must investigate the insurance you need as you will certainly be breaking the law without it.
5.Get a website
And invest in a web-designer who can make you look trustworthy and established.
6.Get a USP
There are some big players in this business, very well established, so what will be your Unique Selling Point that draws customers to you. There are options around price, length of deals, unique cars, 4x4s or vans. It’s your business, so your choice.
If you are interested in starting a business like this, then established experts in the field Mayday Vehicle Rentals will be able to offer advice on leasing vehicles for hire.