All about buying and selling cars

How to start a car rental from scratch. How to start a car rental from scratch: a business plan

  • 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 car rental legislation, 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 the 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 right away, 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 rent and leasing of cars and light vehicles. It must be indicated if you will be renting 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 a permit 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 rental, 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.

The history of car rental began exactly 100 years ago. In 1916, American Joy Sounders rented out his old Ford at 10 cents a mile. The high cost of cars and low income of the population did not allow this business to develop quickly enough at that time, but already in the 60s of the 20th century, car rental was in great demand in the USA and Western Europe.

Russia today is, of course, not America at the beginning of the 20th century, but the share of transport rent in the general market of services is not very large even now. Recently, however, there has been a positive trend in the field of car rental, so if you are an active businessman and you have a desire to invest in an interesting business, then we suggest considering a business plan for car rental.

Is it possible to make money in Russia by renting a car

In Russia, such a business as car rental has never been considered a simple income. Significant investments, a large number of risks and the lack of a constant flow of customers - all this does not contribute to the inflow of investments in this type of activity.

In order for the rental to start functioning successfully and bring profit to its owner, several prerequisites must work:

  • the attractiveness of the city in which the rental is opened for foreign tourists;
  • high level of earnings of the citizens themselves;
  • suitable infrastructure (good roads, availability of car repair service centers, etc.).

Only large cities meet the listed criteria. Therefore, if an entrepreneur has such an idea as organizing a car rental, it is more promising to implement it in Russian megacities.

However, it cannot be said that in other cases car rental as a business is completely inappropriate.

By making some changes in the procedure for the provision of rental services, a businessman will be able to make a profit in a small town by renting cars.

For small towns, an entrepreneur should focus not on the advantages of a rental car over public transport, but on the provision of luxury cars for rent for representative needs and festive events.

In any locality, people order beautiful cars:

  • to meet guests or business partners;
  • for celebrating weddings and other important family celebrations;
  • for serving parties, etc.

If an entrepreneur finds an opportunity to arrange the provision of representative cars for these needs of residents and guests of the city, then his business undertaking can become quite successful.

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Car rental investment amount

To open a car rental business, the task of which is to provide customers with services for the transfer of cars for temporary paid use, it will take about 13 million rubles or 200 thousand US dollars.

This money will be spent on forming a fleet of cars of different classes, renting a room in which the fleet will be kept and registering the enterprise with the Federal Tax Service.

You have the right to independently decide for a car rental. preferable if you plan to cooperate not only with individuals, but also with organizations.

Operating costs will include staff costs. For a small rental, a staff of four employees is enough: two administrators, a mechanic and a cashier.

Regular expenses also include:

  • communal payments;
  • taxes;
  • payment for the services of a security company.

Important! When registering an enterprise that will carry out car rental activities with the Federal Tax Service, it is better to immediately choose the simplified taxation system "Income-Expenses". The fact is that cars will need to be put on the balance sheet and transport tax must be paid for them. With the simplified taxation system "Income-Expenses", you can include the costs of paying the transport tax in expenses, thereby reducing the taxable base.

Thus, according to a business plan for a car rental, it turns out that rather large initial investments are compensated by low monthly costs, which positively affects the overall payback of the entire project.

A business plan for renting executive cars for celebrating celebrations, holding parties and meeting guests is a budget option for implementing this idea. It is enough to buy two or three cars and hire one administrator.

With these resources it is possible to provide the entire business process of this type of car rental.

Most often, holiday transport is rented with a driver. On the one hand, this will increase labor costs, on the other, it will minimize the risks of transferring the car to third parties.

How to attract customers

In large cities, customers trust network car rentals more. There are several such networks operating in Russia, from which you can purchase a franchise and start working under the leadership of a well-known brand.

But the requirements for the vehicle fleet, personnel and the quality of services provided by the franchisee are quite tough.

Working under a franchise, an entrepreneur will not be able to independently decide to whom and how to rent a car. The terms of the deal require a strict selection of customers to reduce the risk of theft or damage to the vehicle:

  • age limit (from 21 years old);
  • the presence of a confirmed driving experience;
  • large collateral.

If we are talking about a small executive car rental, then it is necessary to start cooperating with restaurants, entertainment complexes and wedding salons.

How quickly the car rental will pay off

If, before opening a car rental, an investor invested 200 thousand US dollars in it, then the payback can be calculated based on the following positions:

  • 10 cars with rent of about 4 thousand rubles per day will bring 600 thousand rubles per month, considering that only half of the cars will be rented;
  • monthly costs and advertising will be about 200 thousand rubles;
  • RUB 400 thousand remains to cover the initial costs.

With such an intensity of work, investments will be returned in 2, 5 years. This is a fairly long payback period.

But if an entrepreneur finds an opportunity to rent out the maximum number of vehicles, his income can be increased to 1 million rubles, then the business will pay off in just a year. And this is quite real.

If you are interested in a car business with lower start-up costs, consider the attractiveness of other commercial ideas. Find out,

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:

Income / expense item

For 1 year, rub.

For 2 years, RUB

For 3 years, rub.

Car purchase

License

Consumption

PFR taxes, compulsory medical insurance

Winter tires

Signaling

Taximeter

GPS beacon

Navigator \\ registrar

Accounting department

Car sale

Deposit cost

Net profit

Income per month

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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Renting a car for traveling or going out of town is a common thing for a foreigner. In Russia, however, it is not as familiar to an ordinary citizen as abroad. Although there are many car rental services in Moscow. Sometimes it is much cheaper than taking a taxi somewhere. Mastering this niche is undoubtedly profitable, but a car rental business plan with calculations is the first thing to do for the success of a new venture. Without this document, starting a business on a car will not work.

How profitable is it to rent a car?

Any new venture is a risk. And in the car rental business, the risk is slightly higher than usual. Because Russia is not as developed in this area as foreign states. This is due to the banal ignorance of the common people of the existence of such a service. Therefore, it is impossible to “see” all the benefits of being able to go somewhere not by bus, but by car. Advertising is necessary for good promotion - a common man in the street should know that if you have the right and you cannot buy a car right now, you can just rent it.

Before "thinking" about how to open a car rental from scratch, you need to assess the demand for this service. Car rental clients are:

  1. People who just have their own car, but it, for example, is under repair. It is already difficult for them to "switch" to public transport, so it is easier to rent a car and not change their habits.
  2. People who just want to go out of town or take a short trip around the country, but do not have their own car.
  3. Entrepreneurs who do not own a VIP car but need to impress potential partners. Everything is important to sign the contract - the appearance and meeting of a business person in a respectable car. Such a car is often rented by young men caring for girls and wishing to drive them in a good car.
  4. People who rent a car for a long time for any need.

It turns out that there is a client. But the vehicle fleet should have cars of different classes - from the economical option to the representative one. Anyone with substantial start-up capital can include a chauffeured limousine rental service. It is better to pay for such a car hourly, because it is usually rented for special occasions (weddings, funerals), and not for the whole day. So the circle of clients becomes even wider.

The costs of opening and maintaining a car rental

A car rental business plan with calculations, first of all, assumes the availability of start-up capital, which is enough for the following table of expenses:

ConsumptionApproximate amountComment
Registration of an individual entrepreneur or LLC for self-reporting in entrepreneurial activities.10,000-15,000 rublesThe amount will be an order of magnitude higher if you transfer legal and tax affairs to a specialized company.
Rent of a place for a car park.20,000-60,000 rublesWhen about 2,000 rubles will be spent on one car per month.
Office space rental50,000 rublesThe amount depends on many factors (size, location, facilities, equipment).
Remuneration of personnel100,000-120,000 rublesThis is an administrator, accountant, manager, technician in charge of issuing and receiving cars, a security guard and tax collection from wages.
Car purchase3-5 million rublesAssuming that 5 cars are economy class, 5 are medium, 5 are business class.

Regarding the last point, you can lease cars, but it will be much more expensive, which will reduce the monthly profit by a tangible amount. Leasing purchases simplify the filling of the vehicle fleet, but it is convenient for those entrepreneurs whose business will immediately begin to generate income. Because it will be necessary to make monthly lease payments. Leasing term - 2.5 years. After this time, the car is redeemed and becomes the property of the vehicle fleet or returns to the company that provided it.

Calculation of the estimated profit from the car fleet

For the convenience of the calculation, it is better to take into account the minimum values:

  • To make a business not look like an office offering any kind of cars, you need to have at least 20-30 cars in stock. The auto industry should be both domestic and foreign.
  • On average, one car rental will be 700 rubles per day. Lada classic models are cheaper, foreign cars are more expensive.
  • Then the monthly turnover of funds will be 300-400 thousand rubles.
  • From it you will have to withhold money for staff salaries, tax deductions, car repairs (depreciation) and other expenses.
  • The net profit will be 30-50 thousand rubles.

A more significant profit can be obtained only with a proportional increase in the number of cars and if there is a demand for them.

Risks when organizing car rental

Everything related to the interaction of a car with a person sometimes encounters accidents on the roads. Therefore, you should not give out cars to everyone. Upon issue, the driver must meet certain criteria. For example, age is over 21 years old and experience is more than 3 years. It is better not to issue a business class car to those who have been previously convicted. You can think of any number of such restrictions. The main thing is that they do not greatly reduce the number of potential customers.

The average number of accidents out of 100 orders is 5. You also need to be prepared for the fact that the car can simply be stolen. Out of 500 cars, 15-20 will definitely fail and “require” investments for repairs. If the responsibility for the accident does not have to be borne (by virtue of the law), then the time during which the machine cannot be used (restoration) will become unprofitable.

There are several options for protecting your business from the risks described above:

  • all cars must be insured;
  • the client pays a deposit, which is returned to him in the absence of an emergency situation or when he was not the culprit;
  • you need to set a limit on the daily mileage, for example, no more than 200 kilometers;
  • for a successful start, a prerequisite is drawing up a business plan, an example of which can be downloaded below;
  • an advertising campaign should be started immediately after registration of an individual entrepreneur or LLC, and it is better to entrust this business to specialists.

So, starting a car rental business is an event that requires a decent start-up capital and knowledge of how everything functions. Firstly, you will have to settle all the paperwork - registration of the organization, the lease agreement for a suitable room. Secondly, it is necessary to fill the vehicle fleet with at least 30 cars (purchase, leasing). This is the biggest expense. Thirdly, it is worth organizing a well-coordinated process of issuing a car for rent (checking the client's documents, drawing up a contract with him, discussing all the nuances). Fourth, it is necessary to maintain a car fleet - to give salaries to personnel, pay rent, repair cars and endure other costs.

This is the only way to get a profitable business that brings positive and tangible profits. Any auto business is risky but rewarding. And in order to avoid possible risks or at least reduce them, it is necessary to think over the correct contract with the client and issue the car after the person meets all the requirements for him.

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