All about buying and selling cars

A ready-made business plan for renting a car. How can you organize a car rental business How to open a car rental business

How to start your own business so that it brings a stable income? First of all, it is necessary to study the needs of the market and the demand for a particular service or product. If you live in a resort area or in your city there are historical sites, business centers that attract tourists and business travelers, then it is worth considering options for how to open a car rental, properly organize an enterprise so that it becomes profitable.

Where to start your business?

The demand for car rental is explained by the fact that in this way visitors can save on taxis and get freedom of movement. According to statistics, the majority of consumers (seventy percent) are people who have arrived from other cities or countries, and 30% are local residents. The service is very popular, especially in summer.

At the beginning of the activity, a business plan for a car rental is developed; it must take into account the experience of such organizations, their advantages and disadvantages. After that, your own business must be formalized as a legal entity. A suitable form is a limited liability company. Further - registration with the tax authorities. Then you need to choose and rent a room where the company office, garage and parking will be located.

Financial expenses

The cost of registering a company is two hundred and fifty dollars, for renting an office you will have to pay an amount from six hundred to seven hundred dollars. Cash investments will be required for the purchase of a car park and garage premises. In addition, all vehicles must be insured (for example, in case of an accident).

It is necessary that the car rental business plan includes the organization of its own repair base for equipment depreciation. You will definitely have to pay taxes, pay salaries to employees. Total expenses can be one and a half percent of the total income. You can apply for a bank loan as a start-up capital when starting a business. The main costs of starting a business include investments in advertising.

You need to start promoting a company at the same time as its registration, so that by the time it starts functioning, you have a potential client base. Information can be placed in newspapers where free classifieds are published, on Internet sites, on television. Visual advertising on city streets also helps to attract customers. Investments in the promotion of a business can be about three thousand dollars.

Unforeseen expenses are also included in the car rental business plan. These include, for example, equipping vehicles with satellite systems, which track their location. You can organize the business in another way - to purchase a franchise. Then you don't need to promote the project. After all, you will work under the name of an already well-known company.

But for the right to use its name, you will have to pay a large sum, it can range from eight hundred and ten to one million two hundred and twenty thousand rubles. In addition, such an approach will deprive you of the opportunity to act the way you want it, and you will need to obey corporate rules. You will have to pay ten percent of the profit every month for using the brand.

Car purchase

A car rental business plan requires the purchase of cars. There should be from ten to thirty, and about half of the total number are foreign cars belonging to the "economy" class. The rest are domestic models. Foreign cars can be purchased for one hundred thirty to one hundred and forty thousand dollars.

The purchase of models of the domestic auto industry will require fifty thousand dollars in American currency. If you buy used cars from hands, then the amount will decrease even more. You can keep within twenty thousand dollars. But a significant disadvantage - in this case, a major overhaul of vehicles will be required.

Services

The cost of car rental is formed in accordance with their class and brand. To make your car rental profitable, a business plan may include the following rates. The provision of a Zhiguli for temporary use will amount to nine hundred and fifty rubles per day.

For a foreign economy class car, customers will pay from 1400 to 1560 rubles, and a representative class - from 1800 to 2650 rubles for twenty-four hours. Consumers can be attracted by the system of discounts. If the client does not want to drive the car himself, he can hire a professional chauffeur in your company. Most often, this service is offered if the client hires a luxury car, a foreign car.

Staff recruitment

Undoubtedly, car rental as a business is very attractive for an entrepreneur. As in any other organization, the hiring of the firm's staff will be required. It will consist of several people.

You will need an administrator, accountant, driver, technician and security specialist. The last employee is responsible for all issues related to insurance, he contacts the insurance company, resolves disputes that arise, and coordinates rental applications.

At the beginning of the existence of the rental company, such a specialist can be attracted from outside, and not hired on a permanent basis. The duties of a technician include the delivery of machines, their routine repair and maintenance.

Payback of the enterprise

It is quite simple to calculate the profitability of a car rental. We must proceed from the workload of one machine. If this figure is seventy-five percent, then the profit for the operation of ten cars per month will be four hundred twenty thousand rubles. From this amount, taxes and salaries are paid to employees, as well as machine maintenance and possible unforeseen expenses.

Net income from the enterprise will be three thousand dollars a month or a little more. With the right organization, car rental can bring a stable income. The business will turn into a successful enterprise, it will be possible to expand it and acquire a larger fleet of cars. The business will pay off in about a year or two.

The business of renting a car is a fairly profitable and simple direction that does not require impressive financial investments. If in the recent past such services were not in demand, now the rental business is developing at a rapid pace.

How to start your own car rental business?

First, you can start a franchise business by becoming a representative of a well-known Western company. Secondly, small car rental companies often operate at dealerships. You can also organize a separate, independent company. Before choosing one or another form of doing business, you should assess its competitiveness. Registration of an enterprise does not present any particular difficulties, since renting a car does not require obtaining special licenses.

The initial stages are the same for any type of business. This is a search for a suitable office space, recruitment, purchase of office equipment and software. There are also some features in the rental business that should be studied in advance. Firstly, it is not easy to find specialists in the field of car rental. This line of business has begun to develop recently, there are few professionals in this area. With an increase in the number of companies providing such services, your firm may not be able to withstand fierce competition.

The target audience

Both individuals and legal entities can rent cars. Private individuals are businessmen and top managers. More and more often, foreign dealerships turn to car rental firms. This is due to the need for cars in the absence of their own vehicle fleet. Moreover, many companies consider maintaining their own vehicle fleet unprofitable.

What are the best cars to rent?

The number of cars that the rental company will have at its disposal depends on the scale of the activity. Representative offices of large Western firms can have up to 200 cars at their disposal, there are also small firms with no more than 10 cars. The demand is constantly growing, along with it the number of organizations specializing in car rental is increasing. Therefore, it is impossible to accurately calculate the required number of machines.

Any client prefers companies that provide a large selection of cars. The range of rented vehicles is determined by the financial capabilities of the founder of the company and his desire to expand the range of services provided. Ideally, the car fleet of a rental company should contain cars of all classes - from economy to executive.

The greatest demand is for cars of the middle and economy class. Customers rent a car in view of the urgent need for vehicles, so there is no point in spending a lot of money on executive class car rental. A person can rent a car of a certain brand, which will help him evaluate its main characteristics.

How much money do you need to start?

On average, renting an inexpensive car (a new domestic car or a 10-year-old foreign car) costs 10-12 dollars per day, or 300-360 per month. The general costs of maintaining a car and setting up a business include:

  • registration of individual entrepreneurs and obtaining documents;
  • insurance;
  • taxes;
  • purchase of engine oil, technical fluids and consumables;
  • purchase of tires;
  • advertising;
  • other costs.

In practice, the sum of the above expenses does not exceed $ 70-100 / month. It turns out that the net profit of the owner of an economy class car, which is rented, is $ 200-290 / month. Renting luxury vehicles is more expensive, but they are not in such demand as domestic cars or inexpensive foreign cars, and their maintenance costs are much higher than one hundred dollars a month.

This issue should be considered especially carefully. Most of the funds are spent on vehicle maintenance.

The ideal option is to have their own service stations, but it is beneficial to have them only for large companies. As for the storage places for cars, in such a business, cars are purchased not for a long stay in the parking lot, but for rent.

However, it is still worth foreseeing several parking spaces; when choosing the territory where your company will be located, pay attention to the availability of convenient access roads. It is better to settle down near a large shopping center, train station or airport.

The lifespan of the machine depends on various factors. The most advantageous option is to use the car as long as you can move around on it. The service life can be reduced to 3 years, in this case the car is put up for sale. The longer your vehicles are operated, the lower the quality of services provided by your company becomes. With prolonged use of the car by different drivers, it quickly becomes unusable.

All cars must be insured under the AUTOCASCO program.

There will be fewer problems with an insured car in case of an accident or theft. The client can rent a car without a liability limit; in the event of an insured event, he will have to register it on time. When renting a car with a limit, part of the liability is transferred to the client. The cost of car rental will depend on this. Several other factors also affect the rental price. First, the class of the car and the cost of its insurance. In addition, renting a car as a business may involve the purchase of vehicles or the use of leasing services. Car rental services are not cheap, so the company owner should not deliberately overcharge.

How much can you earn by renting a car

The estimated profit for a vehicle rental business organizer depends on a number of factors:

  • the number of cars and their value;
  • for what purposes vehicles are rented;
  • average market cost of these services;
  • technical condition of cars.

Even such indicators as the level of economic development and the number of population in the city of residence of the organizer of the business affect the amount of profit received from the rental of cars.

What documents are needed to rent a car

To legally rent a car, you need to complete the IP documents with the Federal Tax Service. The procedure takes place as usual, after paying the state duty, writing an application and preparing photocopies of personal documents, you need to bring all this to the tax office, and after three days you can pick up the ready-made IP papers.

What is the OKVED for business

Note! The FTS will ask you to indicate the code of the selected field of activity. In this case, it is OKVED 71.10.

What documents are needed to rent a car

When renting a car, take care of the following documents:

  • vehicle registration certificate;
  • insurance policies (CASCO and OSAGO);
  • an agreement on the transfer of a car for rent (indicating all the nuances);
  • a notarized act on the technical condition of the machine;
  • document on the passage of MOT.

How to make your car rental business more profitable

Since the rental business has started to develop recently, many clients may not be aware that such services can be used. Therefore, do not forget about advertising. You can place your ad in fashion magazines. It is imperative to create your own website and increase its traffic. Advertisements can be placed on radio or television. Advertising on TV is considered to be the most effective method, however this type of advertising is considered to be the most expensive. It is not profitable for small firms to organize such a campaign.

A marathon where you will create passive live income from scratch and learn specific strategies for investing in apartments, houses, garages, cars and even profitable websites

To begin

Do you want to start a car rental business? Then read the detailed instructions in the first person from the owner of the car rental, Natalia Starikova.

Car rental is a business of providing vehicles for temporary use.

Subjective view

Before starting a car rental, my husband and I used the service of renting cars for many years. Whether it is Moscow, where we lived at one time, renting an apartment, St. Petersburg, the Black Sea coast, where the presence of four wheels makes the rest much more interesting and varied, or my hometown, where we occasionally fly to visit.

Communicating with people who handed over cars to us, we gradually became imbued with a desire to do this type of business, especially since the information they shared made it possible to avoid the mistakes of many novice car dealers. Perhaps the idea of \u200b\u200bowning a car rental point would have remained in the plans, if not for a coincidence.

Decree, mortgage, and car loan are great in isolation, because they mean a family, a separate apartment and a new car. But all together these three phenomena become a very heavy burden that falls entirely on men's shoulders. Shortly before I stopped working, we bought me a car, which we had to pay for within three years.

Once, after calculating how much money remains after paying all contributions, I made a website about a new car rental in our city on my knees and posted several free ads on city boards. The calls went fast enough. Naturally, I explained to the callers that all the cars were overclocked, and there was only one available. Most found it too expensive, but there were also those who suited everything. A month later, I calculated the results, in 30 days the car brought one and a half monthly payments. A month later, we bought two used budget foreign cars, and it went well.

Truth of life: car rental market statistics

What is the car rental market today? What kind of money is there and who uses car rental services?

For a long time, it was almost impossible to find reliable information on these issues. After a long search, I found a press release from a large marketing agency in FOLIO Research Group, whose specialists in the first half of this year researched the car rental market and published some results.

So, in 2012, 27,200 cars were leased in the country, of which 76% were in Moscow and St. Petersburg. The market volume amounted to 21.8 billion rubles.

It turns out that one car brought its owners on average 21,800,000,000/27,200/12 \u003d 68 thousand rubles. per month. Considering that this includes expensive limousines and business class foreign cars for corporate clients, the figure looks plausible.

The share of private individuals (who took cars not for special occasions) among the clients of rental offices was 16%. It turns out that outside the two capitals, only 27200 * (1-76%) * 16% \u003d 1044 cars! All over Russia! In my opinion, this speaks of the huge potential of the market.

As for the demand structure, it looks like this:

Statistics taken from Rossiyskaya Gazeta. The survey was conducted three years ago, but little has changed since then. As then, today most of the customers turn to car rental companies to take a replacement car when their own car is being repaired, or the old one is sold and the new one has not arrived yet.

Car rental as a business from my point of view

I think car rental is a great business idea.

  1. First, she does not require high investments... You can start with a couple of machines and expand gradually. A fleet of 10 cars will allow you to have a sufficient level of well-being and do exclusively your favorite things. In the absence of force majeure circumstances, you invest only once in the very purchase of a car. After that, it remains to pass the inspection on time and pay for the insurance. And when the car has worked out a certain amount of resources (in 2-3 years), you can sell it (in the worst case, for spare parts, but they are also expensive).
  2. Secondly, she does not require much time... You can run a business and work in parallel at your main job. During the day, you answer calls, and after 6 pm you only need to drive up to the parking lot a couple of times to pick up and return the cars.
  3. Third, she does not require unique personal qualities and professional skills... You don't need to be a talented salesperson, be creative, or have a special ability to persuade. Nowadays, a car is a basic necessity, so the service will sell itself.

Legal issues

Organizational form

You can register as an individual entrepreneur or create an LLC. For a small car rental point, where one person is both the founder and the only employee, it is easier to register as an individual entrepreneur. Registration with the tax service itself will be much easier, subsequently you will not have to keep accounting records and follow the procedure for conducting cash transactions. As an individual entrepreneur, you can freely dispose of the money received.

Another point is related to taxation. You can withdraw the money earned by the LLC as a salary for yourself as a director (then you will have to pay another 13% of personal income tax) or as dividends (only once a quarter, in this case the personal income tax rate will be 9%). Select OKVED code 71.1 "Rent of cars".

For more information on all the organizational steps that need to be taken to open your business, read our article on how to open your own business. And the article which is better to open an individual entrepreneur or LLC will help you figure out which organizational form is best suited for your chosen activity.

Taxation

Car rental services allow you to choose one of three special tax regimes: STS 6%, STS 15% and the patent system. If you buy cars under a sales contract, it is more profitable to pay tax according to the 6% scheme on income. If the cars are leased, it is more convenient to pay 15% of the difference between income and expenses, because lease payments reduce the tax base. Finally, you can buy a patent, its value is set in each region separately.

I am registered in Moscow, according to the law of the city of Moscow "On Patent Taxation" the potential income from the provision of rental services is set at 900 thousand rubles. in year.

The cost of the patent will be 900,000 * 6% \u003d 54,000 rubles. in year. I show less income, I own cars by right, so I prefer to pay 6% of the income.

Do you want to know how to save on tax accounting? We bring to your attention an overview of the online service "My Business", which allows an entrepreneur to independently conduct all the accounting, without resorting to professional accountants, and at the same time without spending a lot of time and effort.

Organizational problems

Let's move on to the most important thing - the details. As you know, it is in them that the devil hides. With regard to business, these are, at first glance, secondary issues that sometimes you do not pay attention to. Communication with sales managers at Trade-in car dealerships, employees and owners of car rental points where I borrowed cars myself showed that it is just ignoring these "little things" that usually leads to the collapse of business undertakings. And yes, they do not write about this in the articles that flooded the Internet with examples of business plans written by people who do not have the slightest idea about the features of the functioning of a company of a particular profile.

I'll tell you right away: I write only about what I know from the inside, that is, about the activities of a small company located in a prosperous city of regional significance in central Russia. Large metropolitan companies play by their own rules, which I know only theoretically.

Car selection

The most important thing is to choose the models that will make up the backbone of your fleet. In solving this issue, you should focus on customer requests. People who want to take a car from us are divided into three categories. Most of them just want "Something cheaper"... This is understandable, given that the monthly cost of renting the cheapest car (including all discounts) roughly coincides with the size of the average salary (according to the State Statistics Committee, in April this year it was 29453 rubles).

A slightly smaller part wants "Something cheaper with a gun"... As a rule, these are women and young people who drove a mechanic only during training. Considering that now they are allowed to take the license exam directly on cars with a gun, the share of such clients will grow. Finally, 10 percent are ready to take any car, regardless of the price. This is the most affluent part of the clientele, accustomed to driving good cars.

Which machines to choose for each of these customer groups?

Five years ago, the lowest price segment was tightly occupied by domestically produced cars. Very large players with fleets of hundreds of VAZ vehicles worked in the Moscow market. These companies could afford to provide services at very low prices. We ourselves sometimes took a nine at the Eleks-pole at 700-800 rubles per day, and the classics could be found for 500-600 rubles per day.

Now it is not profitable to buy domestic cars for a rental company. Tariffs remained at the same level, but the price of a car rose very much. A used Lada Granta will cost one and a half times more expensive than a Daewoo Nexia of the same year of manufacture, but you can return it for a maximum of a thousand rubles (the reputation of the Lada has not disappeared anywhere).

Therefore, it is better to make up the backbone of the vehicle fleet from budget foreign cars. Usually Daewoo Nexia, Chevrolet Lanos (now ZAZ Chance) or Renault Logans are purchased for these purposes. In my opinion, Daewoo Nexia is the optimal model. At one time, we took Lanos several times and were very unhappy with the gluttony of this car (in the city it "ate" up to 14 l / 100 km).

Renault Logan has now greatly increased in price, and the "fragility" of this car makes it unreliable. Just the other day in the salon I was listening to a story about a man who bought 15 new Logans. All his cars didn't last even a year. Remember: people who take a budget car will not take care of it. Nexia - This is the most durable machine in intensive use.

One more point. It is better to take a used car, at the age of 2-3 years. A three-year Nexia costs almost half the price of a new one (after the end of the warranty period, the car drops sharply in price), which means that it will pay off twice as fast.

Of cars with a gun, budget Koreans are best suited. A three-year-old Hyundai Accent costs around 300 thousand, ZAZ Chance with an automatic transmission will cost the same amount.

When it comes to cars for dear customers, the choice is yours. I believe that it makes no sense for a small rental to buy a car specifically for this category. If a person who is accustomed to driving a good car and is willing to pay for it calls, then I offer him my personal car.

The intricacies of doing business

In this section I will tell you about the most "problematic" aspects of the functioning of a car rental. So, you have chosen the cars and bought them, now they need to be insured. And then the surprises begin. If there are no problems with OSAGO (be sure to put "unlimited number of drivers" in the options), then it is almost impossible to make a CASCO for a rental car. Most major insurance companies officially refuse to insure rental cars, and if they do, the rate can be as high as 40% of the car's market value.

What to do?

Choose the cheapest contract. This year, the Supreme Court of Russia finally protected drivers from insurers and issued a ruling that the insurance company is obliged to reimburse the cost of the stolen car, regardless of where the documents for the vehicle were and who was allowed to drive the car at the time of the theft.

Be sure to install a tracking system in every vehicle. This is a device that tracks all the movements of the car and at regular intervals sends information about its location to your phone. The cost of such a device is 5-10 thousand rubles. depending on the model. A well-hidden beacon will not only help you quickly find a car in case of theft, but also let you know if the client has violated the territorial restriction and left, for example, to another area, which is prohibited by the contract.

Where will the cars be?

If the total number of cars does not exceed 10, and at the same time at least half of them are on the road, it is best to keep unoccupied cars in an open parking lot near a large shopping or office center. It will be good if it is located near the railway and bus station, because many clients come from neighboring cities. Another option is to rent parking spaces in a paid intercepting parking lot.

Next stage - advertising, people should learn about your company. It is now generally accepted that the best way to promote a small business is to create an advertising website. Of course, a beautiful site will be a good help, but in a small town, most people (including my husband), if necessary, first look at the "services" section of the local advertising newspaper.

Submit an ad in the newspaper, which is delivered to the mailbox every week, pay for a VIP ad with a photo in "Hand in hand" (most new clients come to us from there) and on "Avito". Another effective way to promote is by registering with all sorts of local yellow pages. At least when I search for "car rental in city N", city industry directories are shown first.

Now that customers have come to you, you need to take measures to minimize risks. To do this, answer a few questions.

  • First of all, will you rent cars to residents of other areas? Many rentals refuse to serve nonresident customers, motivating the decision by their unwillingness to subsequently look for their car in remote regions. In my opinion, this fear is from the "blowing into the water" series. I myself, coming to my parents or on vacation, rent a car, for this, such services are intended. A law-abiding person will adhere to the terms of the contract under any conditions, and the question of registration will not stop a potential offender.
  • Secondly, what is the daily mileage limit you set? The standard limit is 200 km. This border helps to weed out taxi drivers who take a car to bomb. However, they usually warn about this immediately. Do you need such clients? If the car is old, and the person is willing to pay a higher rate, then why not? Another nuance is territorial limitation. By default, the machine is only operated in one region. If a client immediately warns that he needs to go to a neighboring area, then we go to meet him without raising prices.
  • Thirdly, will you rent cars to young drivers, that is, people under 21 years of age and with less than 3 years of driving experience?

The last question is related to pledge... Usually, the rental company, providing the car, withholds a certain amount from the client (5-10 thousand rubles), which serves as a deposit in case of minor damages due to the fault of the driver and the need to pay traffic fines. If the client asks, we agree to provide the car without deposit, increasing the rate by 20%.

Penalties for violation of traffic rules is a separate conversation. We had clients, after which we received three notifications a day. Include in the contract a clause on the tenant's obligation to pay a fine within 10 days (otherwise an obligation to pay a penalty of 300% arises)

If you have an agreement about fines, you don't have to worry at all. The Administrative Code states that the owner of the vehicle is not responsible if another person was driving at the time of the traffic violation.

  • How much does it cost to start a business
  • How much can you earn
    • Purchase of Hyundai Solaris
    • Purchase of Nissan Tiana
    • Rent Renolt Logan
  • Legal and regulatory framework
  • Business technologies

In recent years, car rental has become fashionable in Russia. Moreover, the service is of interest to both car owners and potential tenants. Almost everyone now has a car. And some owners, being in the office all day, rent out their car. At the same time, in the capital on such services they earn up to 2,000 rubles a day.

But imperfect legislation in the field of car rental, as well as fear for their car, often prevent owners from starting a business, even if their car is idle for hours under the windows of the office or in the garage.

However, car rental is a real and very profitable business, and if you approach its organization correctly, then earnings can be very impressive.

Where to begin. Step by step business plan

First of all, if you already have a car and want to rent it, you need to take care of the safety of the car. Experts advise, first of all, to insure your car and issue an extended hull insurance. If you have just decided to buy a car, consider which rental car is more profitable for you. After that, you can draw up a detailed business plan, without which business organization is impossible. You will need to decide on the form of ownership, decide whether to rent a car without a driver or use it as a taxi (in the latter case, you need to find good drivers). It is important to run a good advertising campaign as the car rental business is relatively new and only serious advertising can help to promote it. Moreover, large firms also rent out foreign cars in megalopolises. And their services are relatively inexpensive.

How much does it cost to start a business

You can start a car rental business with minimal investment. If you, for example, take out a loan without initial payments, then the costs can be less than 10,000 rubles. If you decide to buy a car immediately, then you need to count on the amount of 500,000 rubles or more.

How much can you earn

The average earnings for renting a car can be from 500 thousand rubles per year. In order to understand what constitutes income, let's consider several cases.

Purchase of Hyundai Solaris

The 2-year-old Hyundai Solaris was purchased for 490,000 rubles. Taking into account additional expenses, the initial investment amounted to 532,300 rubles, and the net profit that the car brought in 3 years was 1,480,000 rubles.

Case: 2 years old Hyundai solaris

Purchase of Nissan Tiana

The initial investment in the car amounted to 1,002,866 rubles, including additional costs, insurance and hull insurance. With a rental payment of 2,800 per day, the car brought net profit of 2,524,636 rubles in three years

Case: 2 years old Nissan tiana

Now let's look at examples where the initial investment is minimized.

Rent Renolt Logan

Monthly rent for Renolt logan

- 31,000 rubles income per month amounted to 72,000 rubles, that is, one car can bring a profit of 41,000 rubles per month.

Case: Rent Renolt Logan


Purchase on credit. 3 year old "Hyundai Solaris"

With a fairly high loan payment, 20,700 rubles a month, the profit for three years amounted to 1,278,000 rubles. Moreover, the initial costs slightly exceeded 7,000 rubles.

Case: 3 year old "Hyundai Solaris"

It must be remembered that the cheaper the car, the more you can earn on it. But, at the same time, an expensive car creates less headache.

Legal and regulatory framework

What is the OKVED code to indicate when registering a car rental business

To register a car rental business, you need to take into account two OKVED codes. OKVED code 71. 11 includes rental and leasing of passenger cars and light vehicles. It must be indicated if you are going to rent a car without drivers. If you decide to hire drivers and work with them, then another OKVED code 49.32 - "Provision of taxi services" will do.

What documents are needed to open a car rental business

First of all, the business will need to be registered. If you have five or more cars, then such an organizational and legal form as LLC is suitable. But it is better to start with an individual entrepreneur, especially since at first 1-2 cars are enough for renting. It is also necessary to issue: insurance, CASCO and conclude a car rental agreement.

What taxation system to choose for registering a car rental business

For a car rental business, a simplified version is quite suitable. You only need to choose to pay 6% of profits, or 15% of income minus expenses.

Do I need permission to register a car rental business

The existing legal framework for car rental in Russia is still imperfect. And in fact, you don't need any special permits to rent your car. A very important point is good advertising. She should be given special attention when organizing a business.

Business technologies

there is several ways to organize your businessthat you can make good money on: hourly car rentals, hiring drivers, or renting a taxi company.

When renting a car by the hour, it is better to focus on clients with above average income. As a rule, they take the car to go out of town, when repairing their own vehicles, or to impress business partners.

It is very profitable to hire drivers. It is best to offer jobs to familiar taxi workers. If you have a good car and better terms, they will be happy to come to you. You can search for a chauffeur using ads on Avito or consider offers of special services. One car needs at least 2 drivers so that there is no downtime and the car is constantly profitable.

When you do not have the opportunity or time to do business yourself, you can find a company that will rent your car for a certain percentage. It is also not a problem to rent a car to a taxi company, where there are often not enough good cars. Of course, in this case, the income will be less, but you will be spared many problems.

To fully decide on a strategy for conducting an automotive business, we advise you register for the intensive from an investor who has made great strides in this niche.

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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 affordable rates.

    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, which 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, there are already a couple of companies operating under the wing of a well-known western brand 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 usually does not exceed 3-4 thousand rubles per month. When starting a car rental business, be sure to take into account the associated costs, such as buying tires, renting parking spaces, etc.

A business project like 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 help you bridge the knowledge gap. 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

In stock Car rental business plan 4 23

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