Car rental is a highly competitive industry, but with the right planning and forward thinking, you can significantly reduce your risk. The old mantra “if you don’t prepare, then you are ready for failure” could not be more relevant. Therefore, you will need to draw up and rent a car. This article provides information on what is usually 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, the exact location of rental stores can play a big role in your success.

The car models and styles you own can also play a role, along with the opportunities 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 the car rental company in Russia and is not only based on several factors, including not only the demographic data of the proximity, but also the specific area within it. An airport car rental location is very different from a location located a few kilometers from the city center in a residential area.

It is not necessary that the location of car rental 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 transaction requirements for everything from car brands to legal paperwork and insurance. Therefore, if you are not starting a franchise, it is important to have an operations structure in which you describe each element related to the operations of the facility. This will be discussed later.

Service cost

The cost of car rental will be influenced by such factors as the class of the car, technical characteristics and the type of transmission.

The price and price of car rental will be as follows:

• Chevrolet Cruze - $ 48 / day
• Peugeot 408 - $ 48 / day
• Nissan Almera (automatic transmission) - 48 dollars per day
• LADA Largus - 38 dollars per day
• Lifan Solano - $ 29 / day
• Chevrolet Lanos - $ 29 / day
• Renault Logan - $ 26 / day
• Daewoo Nexia - $ 22 / day
• Chevrolet Lanos - $ 22 / day
• Lada Granta -20 USD / day

Marketing plan

First of all, car rental is based on several key factors, including a good reputation, making the process easier for the client, and promotion when users search for a rental car. The marketing section is not universal for all companies, so using a template or applying a one-size-fits-all strategy answer is unlikely to be successful or well received by potential investors.

The car rental agency intends to conduct an extensive marketing campaign that will provide maximum visibility for the 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 with a target market through flyers, local newspaper advertisements, and word of mouth advertisements.
• Develop an online presence by creating and listing your company name and contact information in online directories.

Marketing strategies

A city car rental business plan may contain a number of marketing strategies that will enable the car rental agency to easily target tourists and business people to the target market.

These strategies include:

• traditional advertisements;
• ads posted on Internet search engines.

Below is a description of how the car rental business intends to market its services to the general public. The car rental agency will also use an internet strategy. This is very important as many people are looking for local services such as car rental.

Register your firm in online portals so potential clients can easily get to the 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 biography about your work experience, education, and skill set. For each or key employee, you must provide a CV in this section.

If a family or business has spare cars that are idle, they can be made a source of regular income. We analyze how to start a car rental business in a taxi: the pros and cons of a business idea, where to start and what nuances to pay attention to.

Renting a car for a taxi as a business

The essence of the business is simple: you have an extra car, you don’t plan to "tax" yourself, but finding a driver for this car and renting it to him is a sensible idea.

This approach is, by and large, not even a business, but a way of passive income. It turns into a business when an entrepreneur purchases one or more cars specifically for this and then leases them. In a situation where you rent an existing car, the risks are low - the car is already there, and if it does not go well, the car will simply continue to stand idle until it is sold. In the case of purchasing a car specifically for such a business, the losses immediately become tangible. Immediately after leaving the passenger compartment, the car loses 10% of the cost and the same amount in the first year, even if it just stands in the parking lot all this time.

To understand what this looks like in the money, let's take the lower price threshold for the three most popular taxi models. Renault Logan - for the economy variant, Skoda Rapid - for the middle class and conditional premium - Toyota Camry. The first car in the minimum configuration costs 570 thousand rubles, the second - 790 thousand rubles, the third - 1,580 thousand rubles. Thus, having bought and not immediately putting the car into circulation, an entrepreneur loses 60-150 thousand rubles - those the most 10% of the price of a new car. And this is not counting the problems with the purchase, registration and possible subsequent sale.

The first rule for those who are planning not just extra money from an idle family car, but a real business of renting a car for a taxi - all the preparatory work must be done even before purchasing a car. In order for the acquisition costs to pay off quickly, immediately after leaving the car dealership and registering with the traffic police, the driver should already sit on the car and go to earn money for you.

What should be done:

1. Decide who will be the renter of your vehicle. These can be local taxi companies, aggregators or individuals. The best option is local transport companies. You can conclude a lease agreement with them and they will take on the legal and tax burden, control over drivers, and service.
2. Understand the legal side of the issue. There are two options. First, you open an individual entrepreneur and yourself are engaged in obtaining a permit, a patent for taxi activities, pay taxes as an individual entrepreneur. The second option is that you simply conclude a lease agreement with the taxi company and pay 13% of personal income tax from the monthly amount received from them, as an individual, similar to the option with renting an apartment. The second option will require less effort and, in theory, may even be more profitable, but it is more suitable for those who do not consider it a serious business, but rent one personal car.

Important! In Moscow, permission for transportation as a taxi can only be obtained by the owner of the vehicle when registering for himself as an individual entrepreneur or legal entity

How to collect documents for a car rental business for a taxi

1. If you have chosen the option with opening an individual entrepreneur, a step-by-step algorithm of how to register your business can be found. If you want to save money, use the support of the Glavbukh Assistant service and open an IP for free. The OKVED code for this type of activity is 71.11.
2. The second required document is a permit from the Ministry of Transport for passenger transportation. It is received for each car - the owner must submit an application to the Ministry of Transport (Department of Transport) of his region through the State Service portal. There you can also find out and pay the amount of the state duty, which can be from 0 rubles in Moscow and up to several thousand in the regions.
Also, the requirements for cars differ, for example, in Moscow it is already possible to obtain a permit for a car of only yellow color, equipped with a taximeter and having the mark "Taxi" in the data sheet. In other regions, there are no such difficulties yet, but everything needs to be recognized by the place of registration of the entrepreneur.
After 10-30 days, the owner will receive a permit that is valid for 5 years.
3. The next step is to obtain a patent for taxi services, for which they submit an application to their tax authorities for the transition to the patent system. The cost of a patent for individual entrepreneurs is 18,000 rubles per year.
4. The fourth obligatory document is a lease agreement between you and the person who will use the car: a taxi aggregator, a taxi company or an individual. All the details need to be written in it: who is being serviced and when, who pays for repairs and takes out insurance, how many drivers are assigned to the car, how to act in case of disputes, etc. It is this document that should become the basis for resolving differences in the future.

Renting out taxi cars - calculating the business

For a year of operation, the car will lose 20% of the cost, and after 3 three years - half of the original price and more. It makes no sense to keep the car longer than 3 years, after this period it becomes practically unmarketable or drops very sharply in price, and most importantly, it increasingly requires repair.

Income

Calculations show that a car leased in a million-plus city brings 1.5 thousand rubles a day (often less), but no more than 40 thousand a month. Even if there are two drivers working in shifts, the car will not be on the move for about 20% of the time. This means that the maximum that can be received in a "dirty" form in a year is 450 thousand rubles.

To go to zero when renting, for example, Renaul Logan, taking into account the loss of the value of the car, you need to earn 120 thousand rubles in the first year, and 320,000 in 3 years.

Costs

• buying a car - 570,000 rubles,
• alarm system 10,000 rubles,
• gPS beacon - another 3000-5000 rubles,
• You will have to pay 5,000 rubles for a taximeter, although so far they have not been fined for it. professional drivers usually have their own DVRs and navigators, especially since there are enough phones for navigation now, but it may not be possible to save money on this, so let's add another 5000 rubles,
• a set of winter tires - another 12,000 rubles,
• insurance - approximately 25,000 rubles (OSAGO, commercial hull insurance for a taxi can cost more than 100 thousand),
• a patent for taxi services - 18,000 rubles (depending on the region),
• pension fund and compulsory medical insurance - 36,300 rubles,
• taxi permit - 5000 rubles,
• 3,000 a month will be spent on oil and filters, pads and other "expense". Those who drove a private car and went through MOT once a year will be surprised, but one must not forget that the monthly taxi run is about 10,000 km. In the second and third years, we will lay down 5,000 per month for monthly maintenance.

We summarize all income and expenses for the "Logan" option and get the following picture for a period of 3 years:

Important! Bookkeeping can be outsourced - this will allow you to seriously save money and avoid problems with the tax, because your accounting will be handled by professionals

The pitfalls of the taxi car rental business

A few tips for those who decided to try themselves in this business:

• This type of activity is suitable primarily for those who understand in detail the “internal kitchen” of a taxi company - how shifts are transferred between drivers, how to record damage to a car and the fact that a driver has undergone maintenance. One of the risks is that a second or third driver is put on the car and the car starts working without any interruptions at all; wear. To prevent such cases, it is worth negotiating a daily mileage limit.
• The probability of renting a car older than 2 years is much lower than that of a new one. This is due to the fact that during this time the machine develops a maintenance-free resource, increasingly begins to require replacement of expensive large parts and, moreover, loses its presentation. Therefore, usually cars that have been leased for 2-3 years are sold, and new ones are bought and leased to continue the business.
• Repair and maintenance is a special issue, since a taxi covers about 100 thousand kilometers a year. This means that the main operating costs will be spent on consumables: oil, brake pads, filters, tires. If you entrust the process to tenants, this can become the main source of losses, from cheating at a car service to deliberately missing maintenance, "pocketing" the money allocated for this, and as a result - the deplorable state of the car after a year of merciless operation.
• The best solution is to have a car service in mind with familiar owners or, at least, craftsmen. Another way to save money is to buy "consumables" in bulk, but this makes sense when you rent a dozen cars at a time.
• If you own a new and only car, it is better to rent it out not to taxi companies, but to look for private owners for personal lease (i.e. not to work as a taxi, but for personal use). Companies often rent cars for employees.
• When you rent a car to a taxi company, participate in the selection of drivers, do not trust this company. Give preference to married men over 40 or women. Pay attention to driving experience and history.
• OSAGO and CASCO must be drawn up taking into account the fact that there may be different persons behind the wheel. Be sure to indicate that the vehicle will be used for commercial transport. When drawing up the contract, the insurers put a special mark in the policy "The vehicle is used as a taxi". The usual policy says "Not for a taxi".

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* Calculations use average data for Russia

2 090 000 ₽

Initial attachments

180 000 ₽

70,000 - 130,000 ₽

Net profit

18 months

Payback period

Despite the emergence of car sharing, long-term car rental services remain in demand. In this article, we will consider how to enter this business with minimal investment, and what are the options for launching it.

We have recently published material about the increasingly popular service of per-minute car rental - car sharing. However, life situations are different, and often many clients are interested in the option of car rental for a longer period. There are many companies that rent out cars on the market, and most of them are successful in their business. Therefore, we propose to consider in more detail the features of this niche.

Now in Russia there are both large international companies, including Avis and Europcar, and numerous representatives of small and medium-sized businesses. Well-known brands make the main emphasis in their services on car rental at airports and hotels, while small individual entrepreneurs (and often private traders) practice renting cars for a taxi. In the first case, the rental period usually ranges from a day to several weeks, while a taxi is usually rented out for at least a month.

Even numerous car-sharing operators now offer daily rental services, and therefore serious competition cannot be avoided. However, there is at least one significant disadvantage in car sharing - the daily mileage of a car is usually limited to a modest 80 kilometers. But what if the car is taken for a vacation or as a tool for work? And therefore, despite the newfangled hobby of the population for car-sharing, traditional car rental and rental companies still have excellent prospects. As a rule, the latter have a mileage limit of 300-400 kilometers per day, or they do not exist at all. A significant trump card, isn't it?

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In today's article, we will go through various areas of car rental and will definitely focus on all the features of doing this business. So, let's begin.

Car rental business registration

Despite the fact that many novice entrepreneurs start with a car rental business "under the black flag", we still recommend having an open LLC in case of payment by bank transfer and in order to avoid unnecessary questions from the regulatory authorities. In this case, it is necessary to register the following OKVED code:

77.11 - Rent and lease of cars and light vehicles

In case some customers need to rent a car with a driver, it is better to also enter the appropriate code from the classifier:

49.32 - activities of passenger taxis and rented passenger cars with a driver

Choosing a car rental location

Many entrepreneurs who rent out cars open a small office in the industrial zone next to the car service center - to make it more convenient, if necessary, to service cars "without leaving the cash register." It will not cost much - about 20,000 rubles a month for parking and an office located nearby within walking distance.

Opening a representative office at an airport or a hotel complex is already a completely different level of costs, so for now we will take a closer look at the steps to start a business. In the future, if you feel that this is “yours” and the car rental business provides a decent level of profit, you can think about moving to a new level. It will be possible to talk about the format with the opening of modern offices in places with good traffic.

Car rental equipment

To equip the office with everything you need, you don't need much - 2-3 laptops and ordinary modern office equipment will be enough. It is quite possible to keep within 50,000 rubles. At first, there is no need to buy expensive equipment for servicing transport - it will be enough to conclude an agreement with the nearest car services. By the way, it is not uncommon for an entrepreneur to combine running several businesses in parallel - he keeps a car service and rents out cars.

To save money, you can buy basic consumables yourself. These are, first of all, automobile oils (large runs are planned), brake pads, wiper blades, washer fluid. At first, it will be enough to buy everything you need for 20-30 thousand rubles.

As a rule, service stations sell spare parts and consumables with their own mark-up, and therefore it is better to find large wholesale distributors who can give you discounts as regular customers. The more cars in the fleet, the more your savings will be.

Car purchase

The most heated debate erupts when it comes time to decide on the choice of cars for rent. Some entrepreneurs argue that it is worth taking only new cars from the salon. This choice is due to the fact that the standard three-year warranty will avoid at first the "headache" with possible machine repairs.

However, there are also opponents to this idea - even some large rental companies with serious investment funds deliberately buy only used cars for rent. Supporters of this choice believe that even new cars are quickly "killed" by customers, and therefore it makes no sense to overpay for a car from the salon.

We see that, as often happens, "the truth is somewhere in the middle."

The best option for car rental is a 3-4 year old foreign car in good condition, cost-free and inexpensive to maintain. It is worth starting a business with such models as Hyundai Solaris, Kia Rio, VW Polo.

Again, no one denies that with the next level-up, you can buy more expensive niche cars. In particular, Chevrolet Camaro, Mercedes-Benz SLK or the baby Smart ForTwo Cabrio are in great demand in car rentals at resort hotels.

Suppose that at the start you have your own or borrowed budget of 2 million rubles. This will allow you to take 4-5 economy class cars: a couple of budget "Koreans", one "deshman" version in the form of Datsun on-Do and something from the golf class, for example, Kia Ceed or Ford Focus.

Car rental staff

Since our startup does not yet involve a large amount of investment, you can limit yourself to a couple of people, not counting the business owner.

This is, first of all, a mechanic who knows well the device of the car, who will be able to take on the solution of all issues with maintenance. The same employee can deal with the current purchase of consumables, if necessary, drive cars for service or "paint brushes", engage in washing and dry cleaning.

The second person is the client manager who will deal with the interaction with customers. These are phone calls, acceptance and delivery of cars for rent, signing of lease agreements, control of payment and checking of drivers at the traffic police and FSPP databases.

The payroll for employees is usually small and amounts to 30,000 rubles of monthly salary each.

Financial performance of car rental

As we mentioned above, the main cost item when starting a car rental and rental business will be the purchase of transport. Since we have planned to buy used cars, it is imperative to thoroughly check their technical condition, check for accidents and unpaid fines.

The average cost of renting a car depends on the number of days the client takes the car. Renting a car of the Hyundai Solaris class will cost from 1,500 to 2,000 rubles, which will allow you to earn from 45,000 rubles a month from each car, that is, from 180,000 rubles in income when you rent four cars.

Ready ideas for your business

If you subtract the costs of payroll for personnel, as well as about 20,000 rubles for maintenance and replacement of consumables, there will not be much left. That is why many entrepreneurs initially save on what they can - for example, few people in Russia formalize their employees.

At first, some people do without the aforementioned personnel at all and take care of clients themselves.

Even if you do not get loans and open a business for your hard earned cash, the financial indicators from 4 cars are as follows:

Thus, the payback period at the current set parameters will be about two and a half years. However, as we have said, many entrepreneurs "pull the web of the business" themselves, without using additional hired employees. In this case, you can count not on the conditional 70,000 rubles of profit, but on 120-130,000 rubles of income.

This business model is especially often used by businessmen who rent a car for a long period of time for taxi services - for example, in Uber or Yandex.Taxi. On the one hand, this is a plus - you do not need to deal with interactions with new customers and routine with documents every day. In this case, you can not only do it yourself at first, but also run a business in another niche in parallel.

Ready ideas for your business

However, this format of work also has disadvantages - for example, accelerated wear and tear of cars when used in work on taxi aggregators. The risk of a car getting into an accident also increases with "automatic" - taxi drivers often work for 14 hours per shift or more, which leads to an increase in the risk of getting into an accident. Therefore, we strongly recommend not only to issue an OSAGO policy, but also to take care of the acquisition of CASCO. This is an additional 30-40,000 rubles of expenses for starting a business, but believe me - in the future it can significantly save your time, money and nerves.

Promotion methods

In the field of car rental and rental, according to representatives of this business, placement of relevant ads on boards such as Avito, Yula and other similar resources works well.

Those who expect to rent their cars in a taxi can establish partnerships with representatives of aggregators, who are periodically contacted by taxi drivers regarding employment.

A separate niche is corporate clients who can be found by calling and sending bulk commercial offers. Many companies require long-term leases for the needs of the company - so why not try your hand at a segment like ALD Automotive? This is just one example of how a car rental service can grow into a thriving and well-established business. Some representatives of the B2B segment rent a car for a short period. For example, for the period of a business trip of employees to your region, it can be a couple of days or even weeks. Payment can be negotiated even above the market average.

Pitfalls and possible risks

Alas, no one is insured against fraudsters - this also applies to the sphere of car rental. Some unscrupulous tenants specifically take a car for a short period of time, arranging "auto support". The black market for insurers, despite constant struggle from law enforcement agencies, still remains. And then if you do not want to receive a notification that your rented Solaris became a participant in an accident with some Mercedes S-class or Toyota Camry a day after the start of the lease, carefully check the tenants for an accident history. It is likely that he has more than a dozen accidents behind him - it is better for such clients to refuse to issue cars. Will come out more expensive.

One should not exclude the likelihood of major breakdowns - not all tenants treat their cars with care as if they were their own and do not spare the transport, driving "in the tail and in the mane." Even a budget car up to 5 years old can throw up troubles with merciless exploitation. The main "sore spots" are the wear of the suspension, the starting "maslozhor" of the engine, the kicking "automatic". For such unforeseen situations, it is always better to set aside depreciation funds from the income received - otherwise an unplanned breakdown will hurt the entrepreneur's wallet.

Business seasonality

As a rule, the largest flow of customers is observed in the summer period and before the New Year holidays. You shouldn't count on taxi drivers and corporate customers in such a season. But expect a large number of private traders who take cars for trips to the sea or to the mountains - for this purpose, it is worthwhile to agree in advance on the "affiliate program" with travel agencies, which in the peak season can become your new channel of customers.

Summing up

So, if you are not a happy resident of sunny Sochi or Yalta, at first give up the “premium”, which is costly in terms of promotion and maintenance. A well-established service of renting economy class cars will be the best option and will either bring good additional income, or, with intensive development, will grow into a separate serious business.

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Car rental business plan

Evgeniy
Everything is very clear, informative, accessible. Combined with a very low price, it is an ideal option for any entrepreneur. Thank you for giving us the opportunity to use a quality document at an affordable rate.


Evgeniy, we agree with you, this is precisely the purpose of the project, to enable as many businessmen as possible to use business plans. We understand that the real cost of the document is much higher, but at the same time, not everyone is ready to pay a round sum for it, so we make it affordable. Thank you for appreciating the business plan and we hope that it will be useful to you. I wish you success.

Car rental business plan

Ivan
Generally speaking, it's a pretty good document that provides a lot of important information. But I would like to see more specifics in it, which will be very useful to novice entrepreneurs. After all, not everyone will be able to modify the calculations for themselves.


Ivan, we agree with you, we really tried to make the document as useful as possible, but, as you rightly noted, some calculations need to be adapted to suit your capabilities, since all individual points can be taken into account only in a custom business plan, and this is much more expensive. Also, understanding the economics of an enterprise gives an indisputable plus in the future, allowing you to more effectively plan the company's activities. Good luck to you.

Car rental business plan

Michael
Although our city is small, there are many tourists in it. This was the reason that my friend and I decided to open a car rental. No sooner said than done, but we started by studying your business plan. As it turned out, we did the right thing, since we presented some aspects of creating a business in a completely different way. I can imagine what it would be like if we had not used this document. Thank you for the high-quality business plan that helped us a lot at all stages.


Michael, we are glad that we were able to help you. Indeed, from the outside it seems that it is easy to organize a business, but when you take action, many unaccounted for moments arise. When a business plan is at hand, the actions become more deliberate, and the results are expected, there is confidence, which allows you to work much more efficiently further. We wish you successful development.

The main thing about a car rental business plan

Starting a car rental business is, first of all, huge costs. And entrepreneurs planning to officially open a car rental company are trying to determine the amount that may be required for these purposes. The amount of costs depends on which way the businessman will go - whether he will act independently, or decide to purchase a franchise. At the moment, franchises of several well-known Western car rental companies can be purchased on the Russian market.

Which path to choose depends not only on the financial capabilities of the entrepreneur, but also on the situation in this market in a particular region. If, for example, a couple of companies operating under the wing of a well-known western brand already operate in your city, it may be more expedient to organize a car rental business on your own.

The cost of a franchise is usually about 25-30 thousand dollars, in addition, the company will have to transfer a certain percentage of orders to the partner every month. But in this case, the businessman will not need additional advertising costs.

Rental calculator

The minimum amount that is required in order to independently open a car rental company is 5 million rubles. The main item of expenses is the purchase of cars. Most entrepreneurs prefer foreign cars, since the maintenance of domestic cars is much more expensive, and they break down much more often. As for the choice of model, many businessmen working in this sector of the market, at first, purchase cars of the same brand. This allows you to count on a substantial discount when purchasing.

When opening a car rental business, an entrepreneur needs to purchase at least 10-12 cars. Only in this case it is possible to avoid losses in the course of the company's activities. Too large car fleet is also not advisable, since it will be much more difficult to find the required number of customers. In addition, car maintenance is costly, and the more cars a company has, the higher the costs. Each car must be insured, and the cost of the policy will average about 10% of its price. The approximate cost of servicing one car does not usually exceed 3-4 thousand rubles per month. When starting a car rental business, be sure to consider the associated costs, such as buying tires, renting parking spaces, etc.

Such a business project as car rental requires substantial expenses, and, of course, any entrepreneur does not want to throw money away. Initial investments usually pay off in 2-3 years, when it is time to change the vehicle fleet. If you want to know clearly how a car rental business works, check out the professional car rental business plan example with ready-made calculations. A comprehensive car rental business guide will enable you to close your knowledge gaps. You will understand how to start a business such as car rental and find out if it is worth creating a website that will offer car rental services.

Car rental business is a risky business. A small number of companies operate in this market, and on the one hand, this allows entrepreneurs to easily occupy an empty niche. But the problem is that such services in our country are not yet in high demand. The consumer must be taught to such an opportunity - to rent a car. As a type of business, this activity is advisable only in large cities, or in a tourist area where there are a lot of visitors.

In most settlements, such a service began to appear only 2-3 years ago. So the opportunities for businessmen who have decided to master this market sector are very tempting. No competition, which sometimes gets in the way of aspiring entrepreneurs. But this will not diminish the difficulties with finding clients. The usual methods of advertising must be carefully reviewed, because mainly foreigners - guests of the city, business travelers, tourists - will contact your company. And you need to make sure that they can quickly find out about your services.

Where are we going?

Judging by the reviews on renting a car, cars for rent, this service is most in demand among visitors. If a business traveler needs to constantly move around a foreign city, it is more profitable for him to rent a car than to spend a lot of money on taxi services. For the same reasons, there are tourists who want to explore the city on their own and slowly. In this regard, when planning to create a car rental business, you should perform a thorough analysis of the market situation in a particular region. It is necessary to determine whether your firm's services will be in stable demand. Otherwise, there can be no question of any profit.

Opening a car rental business presupposes the presence of a solid car fleet so that everyone who contacts your company can choose the car model they like. In order to satisfy the needs of customers, your fleet should have cars from economy to VIP class. If you are planning to open your own car rental in a region where extreme tourism is thriving, and people come to your area for hot or fishing, it makes sense to create a business for renting snowmobiles and ATVs. But at the same time, it is necessary to take into account the obvious seasonality of such a business, and if necessary, you can combine the ATV rental business with car rental.

Among local residents, such a service as car rental with a purchase is in demand, but building such a business is a little more difficult from a legal point of view. In addition, there are certain prospects for this type of business as limousine rental. The opportunity to ride a luxury car attracts not only brides and grooms, such services are in demand at various special events. Entrepreneurs who have carefully studied a competent sample of a car rental business plan will be able to make sure that car rental is a profitable business. This document explains in detail all the pros and cons of this type of business, and provides solutions to possible problems.

A ready-made car rental business plan from scratch with examples of opening calculations

The annual growth of car rental in Russia is 20% per year. The average turnover in this industry is about $ 2.5 million, and the annual turnover reaches $ 40 million, which is not enough in comparison with developed countries.

That is why there is a need to popularize car rental, which is still used by a rather narrow circle of consumers.

Competition

Car rental as a business with good incomes can develop only if all participants in the car rental market are taken into account, as well as find out the features of the services that are provided.

Companies in this area can be divided into the following main groups:

• representatives of the world leaders in car rental, which have a fairly large-scale vehicle fleet;
• domestic companies with a fleet of at least 50 vehicles;
• small firms with a small vehicle fleet (no more than 20 cars);
• companies that offer rental of vintage cars and exclusive brands for organizing various celebrations, weddings, festivals.

What investments do you need to make?

The car rental business is quite expensive. Thus, an entrepreneur must have at least ten vehicles that could be rented out. A good option for people who are unable to purchase vehicles for their own funds is to lease them, paying at the first stage up to 30% of the total cost.

It should be noted that CASCO insurance for each car requires significant costs, as well as the rental of the premises where the cars will be located. Some funds will have to be invested in good advertising, which will help find potential customers, since the car rental business is quite new. So, some people can constantly drive a rented car, while others are just trying to save money for their own car, without even thinking to use a car for rent.

Despite the large investments, the profitability of this business is very high - according to statistics, the payback period is only 1-2 years. It should be noted that this business (car rental) requires careful planning to develop effectively.

Defining your customer base

In order to optimally provide services in this area, you need to know who most often takes a car for rent. I must say that even renting a domestic car is quite expensive - $ 18-30 per day. This means that the clients of companies that specialize in car rental should be people with sufficient income. But, as a rule, they have their own car, sometimes not one.

Why do people still use such services? Most often, car rental clients are those who have their own car, but for a number of reasons it is not possible to use it. Unlike foreigners, our citizens are not yet accustomed to renting a car while in a foreign city, therefore, as a rule, clients are local residents and people living in remote areas. 20% of them are people who decide to rent a car for entertainment or travel purposes.

Another group of consumers is people who take a car for a short period (for example, for a day in order to appear at a business meeting in a new car). Also, don't forget about corporate clients.

Characteristics of vehicle fleets

If anyone is interested in car rental, a business plan in this area is a must. Before you start this type of making money, you should decide on the services that will be provided. So, there is a “cheap” segment, in which companies specializing in renting domestic cars operate. As a rule, "Zhiguli", which are characterized by an optimal ratio of quality and price, fall under exploitation.

It should be noted that a limited number of large companies offer domestic cars, since it is impossible to enter a more expensive segment without money to purchase hundreds of cheap cars. In addition, it should be remembered that vintage car rental is also in low demand.

Most of the car rental companies operate in the "expensive" sector, offering medium, economy and business class cars. They work with foreign cars more often for two reasons - they are more reliable and you can take a large amount of money for their rent. Most often, you can find Mitsubishi, Audi, Honda Accord, Volkswagen Passat or Skoda Octavia in the car parks of car rental companies.

Limousine rental

You should know that when making a business plan, limousine rental is the most expensive. As a rule, rent is calculated not in days, but in hours. Often such a car is taken for a short time and only for a certain event, for example, for a wedding. For example, you can rent a Lincoln for $ 60 an hour. It should be noted that such cars are rented with a driver. Renting a wedding car is most often a limousine or other expensive or unusual car.

If the clients are foreigners, then, as a rule, they want to use the services of drivers when renting "ordinary" cars. The usual extra charge for a chauffeur is about $ 60 per day. Moreover, it will work only 8 hours. To use its services for a longer time, you will have to pay extra. As a rule, car rental companies in their state do not keep drivers. They are hired to serve only specific orders, although some firms may have one chauffeur for 7-10 cars.

How to get good income?

Most professionals who understand the peculiarities of the rental market say that it is most profitable for a small or medium-sized company to keep no more than 30 cars in its fleet. Besides, it is better to rent out foreign cars. Experts say that when working with domestic cars, you will have to take two cars for one rental position (one for rent, and the other for spare parts). That is why using foreign cars is safer and, of course, cheaper.