Car rental business is a fairly profitable and simple direction that does not require impressive financial investments. If in the recent past similar services were not in demand, now the rental business is developing at a rapid pace.
- How to start your own car rental business?
- The target audience
- What cars are best to rent?
- How much money do you need to start?
- How much can you earn by renting a car?
- What documents are needed to rent a car?
- What is OKVED for business?
- What documents are needed to rent a car?
- How to make your car rental business more profitable
How to start your own car rental business?
Firstly, you can start operating a franchise by becoming a representative of a well-known Western company. Secondly, small companies that rent out cars often operate with dealer centers. You can also organize a separate, independent company. Before choosing one form of business or another, you should evaluate its competitiveness. Registration of an enterprise does not present any special difficulties, since obtaining special licenses There is no need to rent a car.
The initial stages are the same for any type of business. It's about finding the right one office space, personnel selection, purchase of office equipment and software. There are some features in the rental business that should be studied in advance. Firstly, it is not easy to find specialists in the car rental industry. This line of business began to develop recently; there are few professionals in this field. With the increase in the number of companies providing such services, your company may not be able to withstand the intense competition.
The target audience
They rent cars, both physical and legal entities. Private individuals mean businessmen and top managers. Foreign representative offices are increasingly turning to car rental companies. This is explained by the need for cars in the absence own car parka. Moreover, many companies consider maintaining their own fleet unprofitable.
Car rental is a real business with great amount schemes for earning money. You can act as a lender and also engage in daily and hourly delivery. You can become a mediator. Starting with the purchase of one car for rent, you can gradually organize the operation of an entire fleet of vehicles.
Benefits of a business idea
We propose to consider the main benefits of such a business:
- No need for major investments at the start. At the very beginning, you can limit yourself to buying an economy class car ( Renault Logan, Lada Granta). In a relatively large city, this can bring a profit of 10-15 thousand per month. An option with minimal costs without the need to purchase a car is also possible - providing intermediary services. We will consider it separately.
- Business does not require much time investment. For daily rental All you have to do is come to the parking lot in the evening and pick up and return the car. You don’t have to be distracted from your main job or other business. It’s good if the entrepreneur is already involved in the auto business.
- Renting a car does not require any special data, experience or skills. Any citizen can do it.
- Minimum staff costs. At first, you can act independently, which cannot be said about most other types of auto business.
Target audience and car options
First, let’s figure out in what cases car rental is generally necessary:
- Temporary absence of a car. This is relevant when a person cannot imagine life in the city without a car, and he cannot urgently buy his own car.
- Recreational vehicle. The rental idea is popular in resort towns and wherever tourists come to relax.
- Holiday car. Placed in a separate category. Usually ordered for weddings, receptions, etc. Limousines and executive cars are ordered.
- Cars for visiting businessmen and dignitaries. They are usually not ignored and a car with a driver is ordered.
- Rent for taxi drivers. For those who work without their own car or do not want to use it for these purposes, this option may be optimal.
- Desire to meet specific car before the purchase. You can arrange a full test drive for the future car owner.
So your audience is ordinary car owners, tourists, businessmen, taxi drivers, private drivers. Organizations include private companies, holiday agencies, carriers.
What vehicles will be required? Let's look at it:
- An inexpensive foreign car is suitable for recreation, for example, Kia Rio. Hardly anyone will choose a domestic car.
- For taxi – from Lada Granta before Toyota Corolla and Hyundai, Kia – top models with mid-range equipment.
- For business - Toyota Camry, VW Passat etc. Business class from Korean companies is also acceptable.
- For holidays, you need to have a limousine in your fleet.
- For exceptional cases and VIPs - Lexus, Jaguar, Chrysler, Mercedes.
How to organize a business
Renting may seem like a simple scheme at first glance. In fact, there are many options for earning money. You can:
- Provide only cars;
- Study passenger transportation on one's own;
- Hire drivers on a permanent basis or have a number of options upon request.
As for directly renting out a car for a driver, there are two options:
- Car rental with subsequent purchase. The renter makes a down payment for the car. Then, according to the obligations, he pays rent for 1-2 years. Most often this is done for rent as a taxi. The scheme works like a bank loan.
- Rent without purchase. The car is rented daily. An hourly payment option is also possible - if we are talking about specific events, as is the case with a limousine for a wedding.
Which car to start with
So, we have decided on the type of business, now we have to decide which car to buy first. Everyone involved in this business does not have a common opinion on many issues. For example, is it permissible to buy domestic car or you need to immediately buy a foreign car.
If the car is rented out for taxi work– in a small town you can think about cars such as Daewoo Nexia Lada Granta and others in this price range. In Moscow and St. Petersburg, the requirements for taxi drivers are usually stricter. The best option from inexpensive - Renault Logan. Inexpensive and roomy, and not much money is spent on repairs.
Another dilemma is whether to buy a used car. Here again the opinions of entrepreneurs differ. On the one hand, there may be various “surprises”. On the other hand, the price. Let's put it this way: starting a business with a minimum of funds (less than a million rubles) by purchasing a new car is unwise. It all depends on the goals and scale. For 2 million rubles. you can buy a couple of good new cars, close to business class. Or you can organize a whole fleet of vehicles.
About clients
The most optimal option t – cooperation with corporate clients. In this case, it is best to provide them good discount. It may not be as profitable as with regular ones, but there is always a demand for a car.
Rental offers can be placed on free advertisement sites. There is also specialized services, where you can leave your car form. You can submit a commercial offer for taxi services.
Lessors who regularly rent out their cars (including owners of large fleets) share tips and recommend adhering to the following rules:
- You can't ignore the law. To provide such services, you need to register as an individual entrepreneur or legal entity. Otherwise, it threatens liability, even criminal liability.
- All legal aspects help ensure the security of the transaction. There must be a carefully drafted lease agreement that includes the smallest details. If you plan to rent out more than one car - services experienced lawyer will not be superfluous.
- At long term rental payments should be periodic, once every 1-2 weeks. This will avoid debt that the driver may not pay.
- Pay attention to the driver's personality. Check his details. Ideally, this person is over 30 years old with extensive driving experience. It is recommended to refuse to newcomers who have just started driving. Also determine how the driver plans to use the car, and whether he got a job in a good company. A medical examination will not hurt - for permanent work in a taxi. Check the driver's registration: Russian citizenship is required.
- Install a GPS tracking system on your car. It is inexpensive, and you will always know where the car is. Similar system will cost less than 8-10 thousand rubles.
When companies and individuals need to rent a car with a driver, they need to offer only proven candidates. It’s good if this person has experience driving this car more than once.
Mediation option
By providing intermediary services for car rental, you risk less - it does not require significant investments. Of course, you can later buy your own car, but that’s not what we’re talking about now.
Intermediary services require the creation of a convenient service where drivers and private companies can post their offers, and renters can easily find a suitable car.
What you should pay attention to here:
- Carefully study all offers so that the reputation of the service does not suffer.
- It is desirable to have a clear division in accordance with the class of machines and target audience. Cars of all classes should be offered with different price offers.
- Before starting a business, you need to study the market in detail: a service is useful and profitable when it can create an adequate competitive environment.
- If there are several companies in the city offering rental services, talk to their representatives personally and offer to use the service.
Now let's figure out how to create it. We'll need a site that isn't top-notch in design. The most important thing here is functionality. The requirements are as strict as in the case of a car shop. Everything must work 24 hours a day, so you need to take care of technical support in advance.
You can:
- Make a website yourself or involve familiar developers;
- Outsource turnkey website development to a web studio.
The second option is best, because not everyone can independently manage the site, its support and development. The developer will not do this for free. Outsourcing implies the presence of specific obligations of the developer, guaranteeing the uninterrupted operation of the service.
It is usually proposed to post questionnaires on cars:
- Simple foreign cars;
- Limousines;
- Business and premium class cars.
Usually the demand is greater for limousines and expensive cars– they are ordered for special events. But if you work with taxi drivers - inexpensive cars will generate regular income. You can also add trucks and buses here.
When opening a business, keep in mind that a car can be rented with driver services. You must create a filter for driving services on the service website. Acting as an intermediary, you risk much less, receiving stable passive income. Subsequently, you can think about creating your own fleet of vehicles. There are a lot of ideas, it’s up to implementation. We wish you success in developing your auto business!
Car rental is a highly competitive industry, but with proper planning and forward thinking, you can significantly reduce your risk. The old mantra “if you don't prepare, you're setting yourself up to fail” couldn't be more true. Therefore you will need to make up and rent a car. This article provides information on what is typically included in a car rental business plan and how it is structured.
Tasks
There are many things to consider if you are starting a car rental business that will be considered before financing your company. For example, exact location rental stores can play a big role in your success.
The models and styles of cars you have can also play a role, along with capabilities and subsequent marketing strategy. The budget you have to manage is relative to the expected income. Each unique factor comes together to create a car rental business plan and predict profitability.
The location of a car rental company in Russia and beyond is based on several factors, including not only the demographics of the proximity, but also the specific area within it. A car rental location at the airport is very different from a location located a few kilometers from the city center in a residential area.
It is not necessary that the car rental location be in a densely populated area, the main thing is to adjust the work accordingly.
Operations
There are several elements that cover aspects of a company's operations that need to be included in a car rental business plan. Most have already met the requirements for transactions with everything from car brands to receiving legal documents and insurance. Therefore, unless you are opening a franchise, it is important to have an operations structure in which you describe each element related to the facility's operations. This will be discussed further.
Cost of services
The cost of car rental will be influenced by such factors as the class of the car, specifications and transmission type.
Prices and car rental prices will be as follows:
- Chevrolet Cruze - 48 dollars per day.
- Peugeot 408 - 48 dollars per day.
- Nissan Almera (automatic transmission) - 48 dollars per day.
- LADA Largus - 38 dollars/day.
- Lifan Solano - 29 dollars per day.
- Chevrolet Lanos- 29 dollars/day
- Renault Logan - 26 dollars per day.
- Daewoo Nexia - 22 dollars per day.
- Chevrolet Lanos - 22 dollars per day.
- Lada Granta -20 USD/day.
Marketing plan
Primarily, car rental is based on several key factors, including good reputation, making the process easier for the customer, and promotion when users search for a rental car. The marketing section is not one-size-fits-all for all companies, so using a template or applying a one-size-fits-all answer to a strategy is unlikely to be successful or well-received by potential investors.
The car rental agency intends to conduct an extensive marketing campaign that will ensure maximum visibility for business in the target market. Below is an overview and tasks of a car rental agency.
Marketing Goals
- Establish relationships with airports and travel agents surrounding your target market.
- Introduce a local company to its target market through flyers, local newspaper advertising, and word of mouth advertising.
- Develop an online presence by creating and submitting your company's name and contact information to online directories.
Marketing Strategies
A ready-made business plan for car rental in the city may contain a number of marketing strategies that will allow the car rental agency to easily target tourists and business people to the target market.
These strategies include:
- traditional advertisements;
- advertisements posted in search engines in the Internet.
Below is a description of how a car rental business intends to market its services to the general public. The car rental agency will also use an online strategy. This is very important because many people are looking for local services such as car rental.
Register your company in online portals to potential clients could easily get to business. The website must include functionality for people who book and pay for car rentals directly through the company's online platform. This marketing function is common to most firms that rent cars to the general public.
Management Biographies
In this section of your car rental business plan, you should write a two to four paragraph bio about your work experience, education, and skill set. For each or key employee you must provide short biography in this section.
Each of us at least once in our lives thought about opening our own business, which would certainly bring more benefits and, accordingly, income, rather than what you do in your permanent job. Despite the fact that there are a lot of such people, not everyone can dare to take such a responsible step as quitting their job and risking all the resources at their disposal. For many, so-called stability is important, when they are sure that tomorrow morning they will go to work, on the fifteenth they will definitely receive an advance, and on the first - a salary. At the same time, you do not have to assume any risks; the employer is responsible for everything. But modern trend leads to the fact that even this arrangement is not always correct. IN government institutions Few people are ready to work, and in private companies the competition is such that even if you get the coveted position, if you have a mediocre attitude towards work, few of the bosses will stick with you.
Accordingly, in order to earn the amount of money you expect, you need to be a purposeful, strong-willed and strong person. This will be enough to open your own business. But, first of all, decide what exactly you want to do. After all, even though your business will not be new in a particular locality, and even if you have plenty of competitors, if you understand your chosen field perfectly, you will certainly be able to cope with all the difficulties and even take the first step in the ranking of similar enterprises, companies or stores in your city. So, in a case related to technology, try either household repair or computer equipment. With cars, you can very successfully organize a car rental business.
Which cars and where will be the most profitable to rent?
On this moment Very a large number of people own cars. More large quantity has people driver's licenses for the right to drive cars of one category or another. And the same number of people constantly attend driving schools. How can we smooth out the existing inequality between people who are able to drive a car and the prices of both the car itself and fuel, which are constantly growing. It is the car rental salon that will become the most profitable option for those who have already saved up for training and obtaining a license, but have not yet saved up for purchasing a car. Car rental employees will come to the rescue. Here you can find a car that suits you and rent it for a certain period of time. Many will think that this business is only possible in large cities such as Moscow or Saint Petersburg. But this is not at all true, because in such populated areas very well developed transport system and you are without personal car You will be able to get to your destination even faster than if you constantly stop in traffic jams.
While in small settlements people are forced to get to work either on foot or by taxi, which is not a very cheap option. It is this aspect that makes people buy cars. Not everyone has enough money for new ones, so they are forced to buy used cars, which will take longer to tinker with than to drive them. Therefore, opening your own rental store even in small towns will be quite a profitable undertaking. In addition to the fact that cars can be rented for everyday use, you can quite successfully organize their rental for any special occasions, for example, for wedding processions or for discharge from the hospital. You should also not stop only at passenger cars. Many organizations, shops and catering establishments constantly require a certain amount trucks. Therefore, their rental should also be in demand.
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Where to start opening a car rental salon?
So, having decided which city you intend to work in (in a large metropolis or in a small town), you should determine how you will organize this enterprise. Several options are possible. The most popular thing now is concluding a franchise agreement with any foreign company, providing exactly the same car rental services and start developing a business under their name.
It specifies the rights and obligations of the parties, the duration of the contract, the conditions for its possible termination and much more.
Each agreement must be written in legible handwriting and should not contain unnecessary references to various clauses of the agreement. Another option is to open a rental salon at one of the dealerships.
This is very convenient because there will be quite a lot of customers, and you can attract them right on the approach to the car sales center. But this option can only be implemented in large cities, more often in regional centers. After all, in the provinces it is very rare to find car dealerships, especially those offering car rental.
The most recent option involves opening an independent rental showroom, which will feature a certain number of cars of various brands. On the positive side The opening of organizations and companies related to cars is that in this area it is not necessary to obtain a license to provide certain services. Therefore, in order to begin all other activities for opening a rental salon, it is necessary to collect and prepare the most basic documents. To get started, you need to register as individual entrepreneur. As already mentioned, a license is not required here, so most likely you will pay only 1,500 rubles for registration. Next, you will need to register with the tax authorities and register with the pension fund. After which you are on legally You can open your own business and attract clients.
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What makes your car rental business successful?
If you yourself even go shopping, you will probably understand what makes a project successful (and, accordingly, profitable). A correctly calculated car rental business plan does not always play a significant role here (although this point is not in last place in importance). The main thing in any such business is to meet customer demand and provide a comprehensive offer in accordance with it. How more cars will be in your fleet, the better. After all, if the client does not find the car he needs here, he will find it somewhere else - from your competitors.
Today, the Moscow vehicle fleet in this direction numbers no more than one and a half thousand vehicles. At the same time, in this city there are only 2 - 3 large companies, in which the total amount of cars offered for rent is just over a hundred. Other organizations provide their clients with a small choice - from 3 to 10 cars.
Your task is to collect the necessary number of cars, by the standards of your locality, available for further rental for all occasions. Clients of such a salon can be both individuals and legal entities. Most often, this is almost impossible to do, because almost every day every manufacturer of a particular car is ready to offer more and more new brands and models of cars. Therefore, your market rental cars should also expand. The location of the salon will also be an important factor. Try to locate it either somewhere close to the city center (keeping in mind that there should be good access to it), or to train stations, airports or bus stations, where people arrive first. If this is not possible, then try to at least place advertising for your rental salon in the above places.
A car rental business is an interesting and rather unusual idea for Russia, which can bring its owner impressive profits with a minimum of physical and time costs. But you will have to invest a lot in this business, since you will need money to create your own fleet of vehicles. In order for the activity to be profitable and quickly pay off, you need to start with at least 10 - 15 machines.
Market assessment
Car rental is an interesting service. It is in great demand abroad, especially in those cities where the number of tourists is large. In Russia, the car rental niche is poorly developed. Basically, the services of such companies are used in large cities. Thus, more than half of the income from car rental comes from Moscow and St. Petersburg. Other million-plus cities have much more modest results.
The larger the settlement, the more money the entrepreneur can make money. But opening your own business in a small town makes no sense. There the service will be unclaimed. You can only rent out your car by placing free advertisements in newspapers, bulletin boards.
There is no competition in the car rental industry as such. This market segment is almost unoccupied. The exception is big cities. But even there the market is not crowded - a newcomer will be able to occupy his niche and make a profit.
To determine which cars to purchase, it is necessary to assess the demand for the service. Most often, people rent a car for the following reasons:
- Temporarily you don’t have your own car (it’s being repaired, for example);
- during rest;
- for a business trip.
Much less often, cars are rented before directly purchasing a car in order to evaluate the convenience and other properties of the vehicle.
It is not enough to estimate the demand for a service. It is important during this research to understand what kind of car a potential buyer would like to receive. When choosing a car, people evaluate the following parameters:
- convenience;
- appearance;
- price;
- Availability additional options;
- vehicle status.
Based on this, three groups of potential buyers can be identified:
- Those who want to rent cheap car. This includes the middle strata of the population. Just a few years ago it was profitable for such citizens to offer domestic cars. But now their price has increased sharply, but the cost of services has remained at the same level. Therefore, it makes sense to purchase inexpensive foreign cars. It is better to stay with Daewoo Nexia, Chevrolet Lanos or Renault Logan. These cars are among the budget ones Vehicle, but on the road they behave well.
- People who want to rent inexpensive car, but always with a machine gun. It's a little taller price category cars. They are in demand among women and youth. The number of such clients is increasing. People increasingly prefer automatic, and some of them simply do not know how to use mechanics. For such clients it is necessary to provide a separate category of cars. For example, you can buy one of the Hyundai models.
- Clients who prefer expensive cars. There are many fewer such people. They make up about 10% of all consumers. Therefore, there is no point in buying many cars in the premium segment. But at least a few options large fleet of vehicles must have. But in small business It makes no sense to buy one; often the machine simply does not recoup the costs incurred.
It is worth considering the possibility of purchasing used cars for your fleet. The age of the vehicles in this case should be about 2 - 3 years. Such a car will cost almost 2 times less than a new one, but the cost of renting it will be almost the same. This will significantly increase profitability, and the payback period may be reduced by 2 times.
Why is it worth starting a car rental business?
The idea of creating a rental business cars will do not only for an experienced entrepreneur, but also for a beginner. You can do this business if only because it has a number of the following advantages:
- Does not require major investments. Indeed, If a businessman does not have a lot of capital, he can start by buying just a few used cars. But experienced entrepreneurs are better off acquiring 10 cars at once. This will allow you to reach high level arrived.
- Minimum running costs. After purchasing a car, significant costs are eliminated. Gasoline is paid for by the client himself; breakdowns are possible, but in most cases they do not require large cash injections. And having car insurance will eliminate the need to restore it at your own expense in the event of an accident. All you need to pay is inspection and insurance.
- Possibility of receiving additional profit. When the car pays off its cost, it can be sold. This will increase your revenue and profitability levels.
- No significant time investment required. You don't have to devote all your time to this matter. It is enough to answer incoming calls, issue and receive cars. This format of doing business allows a person to work for regular work and do your own business.
- No skills or knowledge required. Indeed, you can rent a car without any special personal qualities or professionalism. Even creative thinking in this area is not necessary, because the car will sell itself. You just need to place an advertisement about the service in local newspapers, on free boards advertisements
Legal aspects
Important opening moment own business car rental is what to do here entrepreneurial activity It won't work without registration. After all, you need to document the rental agreement and provide insurance that allows you to receive compensation, even if the car was not driven by the owner. You need to do this:
- Choosing the most suitable organizational form. A small rental company can be registered as an individual entrepreneur. If there are several business owners, then it makes sense to open an LLC. But in this case you need to be prepared for a more stringent check of registration documents. In addition, LLCs have certain requirements for conducting cash transactions. Accounting for such companies is also more complex than for individual entrepreneurs, who may be exempt from accounting altogether.
- Selecting OKVED code. Here you just need to select the code from the new 2017 directory 77.11 - “Rent and leasing passenger cars and lungs vehicles» . It must be indicated when submitting an application for registration. The specified code allows you to rent cars, both with and without a driver.
- Choice of taxation regime. There are three available options- STS “income”, STS “income minus expenses” and PSN. When buying cars, it is better to choose the first scheme. But when purchasing cars on lease, it will be more profitable to pay taxes on the difference between income and expenses. In this case, leasing payments can be taken into account and the tax base can be reduced by their amount.
The feasibility of purchasing a patent must be determined independently. Its cost is different in each region. Before purchasing a patent, it is worth calculating its price, expected profit and the tax that would have to be paid under the simplified tax system.
It is important to determine the channels for promoting your business. More and more people are trying to create their own website. This solution is suitable for large companies or rentals located in large or resort cities. But in smaller settlements this option may not have the desired effect.
Therefore, it makes sense to take care of advertising in local newspapers. You can post advertisements near large hostels, hotels, and near train stations. When choosing newspapers for placing advertisements, it is better to give preference to those that are delivered to mailboxes weekly.
Additionally, it is worth adding the organization to the industry directory of your city. This way people can quickly find where to rent a car.
Minimizing possible risks
For the business to be profitable, you need to take into account possible dangers and minimize the risk of their occurrence. It is especially important to resolve the following issues:
- Age group. You can limit the minimum age or the required driving experience.
- Daily mileage limit. This will eliminate the possibility of taxi drivers renting a car. For such categories of clients, increased prices for services can be provided.
- Risk of theft, car damage. It is important to determine the amount of the deposit. The point is to receive a certain amount (usually about 5,000 - 10,000 rubles). It will be returned only after acceptance of the vehicle. You can go another way - increase the cost of rental without a deposit, for example, by 15 - 25%.
- Failure to pay a fine. In order for the client to undertake obligations to pay the fine, the corresponding clause must be provided for in the contract. It’s even better if there is a serious penalty for late payment.
Financial results
If an entrepreneur opens a rental company with 100 cars, then the initial costs will include the cost of cars, GPS navigators, DVRs and other paraphernalia. Minor expenses will be associated with advertising, purchase of office equipment and business registration. In total you will need at least 6,000,000 rubles.
The amount of expenses for one year will include the following cost items:
- insurance - 600,000 rubles;
- advertising - 50,000 rubles;
- repair, maintenance, car wash, parking - 550,000 rubles;
- rent of office space - 100,000 rubles;
- wage employees (including insurance payments) - 900,000 rubles;
- solution legal issues and disputes (it will be impossible to do without a lawyer) - 200,000 rubles.
Total: 2,400,000 rubles.
If we assume that 60% of the machines will be used 300 days a year, then the average size income will be (2,500 rubles - rental cost per day) 4,500,000 rubles. Taking into account costs, the profit will be equal to 2,100,000 rubles per year. It turns out that the profitability is about 40 - 50% even with an incomplete load on the vehicle fleet. You will be able to recoup your expenses only after 3 years.
