All about buying and selling cars

Car rental: business plan. Equipment and documents for the start

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. Increasingly, 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 that own 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 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 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 that 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 long-term operation 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 cars 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 renting 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 fee, 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 mandatory 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

Any business involves certain risks. But the most risky are projects that require significant financial investments to launch.

At the same time, there are other options, when there is a real one, without investing a lot of money and minimizing potential risks, reducing possible financial losses. One of them is car rental.

If even 10 years ago such services were practically not in demand, now the situation has changed significantly. This is a priority area of \u200b\u200bactivity for large cities and resort regions. Such a business has its own characteristics, which it is better to study in advance and understand its essence.

When cars are rented

Considering such a project as renting out your own car for temporary lease as a business, you should understand why this service is in demand and when a person may actually need someone else's vehicle.

People with average or high income can buy, as well as simply rent, a car. It is not worth relying only on the category of citizens with small incomes.

But there are several reasons why they prefer renting rather than buying their own vehicle.

  • There is no storage space, a person does not want to waste time and money on maintenance procedures, repairs, and insurance.
  • The car is rarely used. And a long downtime in terms of the level of negative impact on the state of the vehicle is not inferior to aggressive operation.
  • In large cities, it is sometimes easier and faster to get to work using public transport. When there are no other tasks in front of the car, buying a personal car is pointless.
  • The car is there, but now it is being repaired, but you need to go. It is often wiser to hire a car rather than wait for the car to be repaired and returned.
  • A person is a tourist who wants to move around the city, to go to the region not by car, but not by public transport. Freedom of action is essential for many travelers.
  • The driver rents a car to earn extra money. An actual option for taxi drivers, when you can get money while driving someone else's car on completely legal grounds.

All considered situations imply the ability to rent a car. It will be cheaper, more profitable and more convenient for a person than paying for a taxi or.

As for whether it is profitable for a car owner to rent out his car for a temporary lease, then you can express yourself in numbers. The most budget models can cost from 1-2 thousand rubles per day of rent. More prestigious and expensive cars are capable of bringing the owner 5-10 thousand rubles.

But whether you should rent a car or not, everyone decides for himself. There are several ways to make money with your own car. Moreover, it is not at all necessary to be behind the wheel yourself. It is a mistake to think that a car is capable of making a profit only if you tax on it.

How to start a business

The amount of earnings on renting a car depends on many conditions, including the number of cars the owner has. It can be either one or several vehicles at once.

Therefore, before renting your car to any private or legal entity, determine the format of your business.

If you're planning, you can select the franchise option here. The bottom line is to become a representative of a well-known company. Not a bad option for beginners, as a business like car rental can require a substantial financial investment to start a project from scratch.

If desired or necessary, a small company of its own is created. To do this, be sure to assess the level of competition and make sure that you are able to reach a certain level. It will be extremely simple to register a company, since according to our legislation, special licenses are not required for renting a vehicle.

At the initial stage, everything is done according to the standard scheme. Namely, office space, personnel are selected, office equipment and licensed software are purchased. Please note that there are not so many specialists in this area, and therefore difficulties may arise with the selection of employees with certain qualifications and work experience.

Potential audience

An important issue is the target audience, which can become a consumer of the services you offer. Ordinary individuals or legal entities can act as car leasers. Moreover, individuals or individuals are understood most often by businessmen, entrepreneurs, managers and just wealthy people.

Many foreign dealerships quite often turn to rental companies to provide themselves with the required number of cars. They do not have their own vehicle fleet, and sometimes it is not financially expedient to maintain it.

The potential client list is pretty impressive. Next, you can find out to whom you can rent a car, and in what other ways car owners who do not own cars make money, without making any special efforts. This is a good alternative to organizing a whole rental business.

Car selection

It is even more important which cars are better for renting and what will be profitable.

The number of vehicles directly depends on the scale of the rental organization. From the start, it is practically pointless to buy several dozen executive class cars, since there is a high probability that it will not go to zero, not start earning.

Large Western companies may have 100-300 vehicles in their fleet. But there are also small organizations that offer literally 10 cars.

Keep in mind that as demand will increase. It is then that it is worth expanding the vehicle fleet, adding new transport units to it.

Clients looking for a rental appreciate the choice. And the bigger it is, the better. Optimally, the vehicle fleet should contain cars of different classes, from economy to executive. Moreover, market analysis clearly shows that the highest demand and the largest volumes of profit are brought by cars of the economy class and the middle price segment. Elite foreign cars are expensive, but they are rarely rented.

How much money does it take to start a business

There are several factors you can take into account and apply them to your business plans and ideas:

  • One budget car like Hyundai Solaris or Kia Rio costs from 800 thousand to 1 million rubles, depending on the configuration. Mid-budget models cost 1.2-2 million, and the cost of prestigious cars can range from 2.5 million rubles or more. It remains only to calculate the number of cars and their type.
  • Additionally, you will need to buy or rent an office space, provide parking spaces for cars. Usually it is from 150 thousand rubles per month or more.
  • Each machine will need regular maintenance, periodic repairs. Budget models require an average of $ 100 per month for their content. The costs are much higher on prestigious models, although the potential profit is higher.
  • The organization of the office itself provides for the purchase of furniture, office equipment, software installation, Internet and telephone connection. All this will cost at least 200 thousand rubles.
  • Personnel salaries are also included in the bulk of expenses. It is difficult to give specific numbers here, but the salary of the same account manager must be at least 30 thousand rubles a month.

Add here all sorts of additional costs, advertising, promotion of a website or social networks, unscheduled repairs and other emergency situations, and you get a fairly solid total amount.

In some cases, it is much wiser to start with a minimal business in the form of renting your car or a couple of cars. A large office is not required for this, as well as a staff of employees. The main efforts will be dedicated to building awareness and finding customers.

Car rental earning potential

Provided a competently drawn up business plan for car rental and its correct implementation, earnings on such a project can be quite solid. Moreover, this is possible both in the case of renting only one personal car, and in organizing a full-fledged company.

The average market cost of renting an inexpensive or budget car per day costs 10-12 dollars. This is about $ 300-350 per month, subject to constant demand. The more expensive and more prestigious the car itself, the more money it will eventually bring from one client. The only catch is that expensive cars are rented much less often than budget and mid-budget ones.

In any business, it is important to properly manage your finances

The total costs, which include taxes, insurance, advertising, maintenance and other costs, can be $ 70-100 per month for an inexpensive car. Renting out an economy-class car, the net monthly profit from one car can be $ 200-300. If there are about 10 machines, then this is already 2-3 thousand dollars per month of work. Much depends on the level of demand, as well as the vehicle fleet itself and the interest of potential customers in your services.

Getting started without a sound car rental business plan is not recommended. You can compile it yourself, or contact specialized specialists. But the second option involves additional financial costs.

Required documents

Yes, you can rent a car unofficially, but this can entail certain negative consequences. Plus, customers who will contact you without the availability of appropriate documents and permits simply do not want to contact, and will give preference to competitors.

For legal work in this area for renting a car or one car for rent, you need to issue an individual entrepreneur through the tax service. The procedure is not complicated, it is carried out according to the standard scheme. You just need to write an application, pay the fee and present documents. After about 3 working days, you will receive a permit and will be able to start your business as a sole proprietor. After that, you can start renting your car.

The tax office will require you to indicate the code of your field of activity. In the case of car rental, the current OKVED code is 71.10.

To rent a car, you will need to have a certain package of documents, consisting of:

  • technical passport of the vehicle;
  • cASCO insurance policy;
  • insurance under the OSAGO system;
  • agreement on the transfer of the vehicle for rent with all conditions;
  • documents on the passage of the vehicle;
  • certificate of the technical condition of the car, certified through a notary.

Even beginners shouldn't have problems with basic documents. But in order to draw up a competent contract for renting your car or several cars for rent, it makes sense to contact a specialized lawyer. Having drawn up one standard contract with him for a certain fee, in the future you will only have to print it and enter data about a specific client or machine into the agreement.

Who should I rent my car to?

There is an option of earning money in the form of opening a whole car rental business with the purchase of cars and the formation of a car fleet. But there is another option, which provides for a passive or active way of earning money on your own personal car in the amount of literally one unit.

Moreover, such a small business is also capable of generating profit. The only question is who and in what format you will be in temporary possession.

Specialists in this field give several important recommendations on how to properly rent a car.

The paramount question is where exactly you can or should rent your car. In fact, there are several main options. Each of them has its own nuances.

  1. Taxi service... The most popular and easiest option is to rent a taxi. You give the car to the company that will use it for passenger transportation. In this case, the car is in constant employment mode. This allows the owner to constantly receive a stable profit in the form of a fixed amount or percentage of earnings. Before renting your car to a transportation company, check it, conclude a contract, draw up an acceptance certificate.
  2. Rental services... Objectively, many do not risk renting their own car to an almost unknown individual. In the case of a rental service, the car will be subleased, since you transfer the car to the organization, and third parties already rent the vehicle from it. There is no significant difference in terms of contract execution in comparison with a taxi. Only the conditions indicate not a fixed fee, but a percentage of the profit. What it will be is a purely individual question. Most often, the service takes from 20 to 40%, and everything else is transferred to the owner of the car. The only problem is that sometimes your car can stand idle, waiting for customers for a long time. Stable and permanent income is out of the question here.
  3. Other firms... This can include almost any organization that is not related to rental or taxi. But they may need company vehicles, not wanting to maintain their car fleet. This is not as uncommon as some might think, since for financial reasons, many companies are really not profitable to maintain their own fleet of cars.
  4. Private persons... Another option is to lease your car to a private person. This is potentially more risky if the renter is not an acquaintance or friend. It is quite difficult to check how respectable a person is. Before renting your car to a private trader, present a number of requirements to him. It must be a person with a local residence permit, his driving experience is at least 3-5 years. Be sure to conclude a contract certified by a notary. Even under such conditions, this is the most risky option for earning money on your own car.
  5. Rent with driver... This type of business will suit the owners of expensive, elite, exclusive and unusual cars. There is no longer any question of passive income, since the vehicle owner himself acts as a driver. But it is potentially a lucrative business. Rent with a driver may be in demand for weddings and other special events, for daily or hourly rentals. A business person has arrived in an unfamiliar city, he needs to visit many different places during the day or several days. Taxis are too expensive and public transport is often unacceptable. Therefore, it will be easier for the client to hire a person with a car who knows the city and will be able to drive it all this time.

As you can see, there are a lot of options for passive and active earnings. Although the latter option can be excluded if you are pursuing the goal of earning just passively, simply transferring your vehicle to another person or organization for temporary possession, thereby earning a profit.

The intricacies of the car rental business

There are a few points that you should pay special attention to so that they do not become a problem or an unpleasant surprise for you.

  1. Insurance... There are no problems with OSAGO. Simply select an unlimited number of drivers as an option. With hull insurance, everything is more difficult, since most companies refuse to insure rental cars, or deliberately increase their rates. But the law sided with the drivers, as a result of which it is now possible to issue the cheapest type of contract. The insurer is obliged to insure the car.
  2. Tracking systems... Since cars are transferred to the hands of unfamiliar people, it will be a direct necessity to install a tracker on each car. The equipment for tracking costs about 5-10 thousand rubles. In this case, you can constantly know where this or that vehicle is.
  3. Accommodation... If there are not so many cars, no more than 10 units, and half of them are in constant operation, for the rest, you can allocate a place near train stations, near large shopping and office centers. Another option is to rent parking spaces at intercepting parking lots.
  4. Advertising... They should know about you. At the initial stage, it is not necessary to create your own website, although in the long term this is a smart decision. Initially, you can get by with newspaper advertising and outdoor advertising.

You can earn money by renting your own car. Also, at present, a promising business is the opening of its own rental company. The amount of income depends on many factors. But with a competent approach, you can achieve significant progress, expand your influence and gradually increase your car fleet, attracting more and more new customers.

For beginners, for a start, it makes sense to consider the idea of \u200b\u200brenting their car. In the future, this may develop into something more serious, or it may remain a good option for passive income with a profit of 20-30 thousand rubles per month.

A car in Russia, as in the entire civilized world, has long become just a vehicle, a necessary tool for solving both personal and business problems. However, unlike other necessary things, such as a mobile gadget, the car is not always at hand, especially in various travels, business trips. To solve this problem, there is a whole car rental industry with a worldwide turnover of billions of dollars.

The concept of creating a business for the provision of car rental services (car rental) is based on the following: fundamental economic and social factors:

  • the car rental market in Russia is underestimated in comparison with its analogue in Europe, at least several dozen times. So, now the car rental market in Russia uses about 50-70 thousand vehicles, while in European countries this figure is about 2 million cars. Those. The growth potential of the car rental market in our country has good prospects, which, in particular, is proven by its expansion rates - 15-20% per year.
  • starting from 2014-2015 In Russia, there is a clear tendency of growing interest of Russian citizens and foreign tourists in routes and travel across the vast expanses of the country. This is expressed by a surge in car tourism, both in traditional Russian tourist clusters - capital cities, southern resorts, and in the expansion of the geography of car tourism up to Kamchatka, Chukotka, Yakutia, Primorsky Krai and Sakhalin. This trend has led to the growth of the market for renting special tourist vehicles - primarily off-road vehicles, jeeps, as well as transport for meeting tourists, airport transfers, etc.
  • the emergence of new information technologies makes it possible to enter the market for such new formats of car rental services as car sharing. This type of service can become not only a competing business for traditional car rentiers, but also part of their business scheme. For example, you can rent out temporarily idle vehicles on a short-term lease basis or open a separate car-sharing business on the existing material base.

To all the above factors, it should also be added that, in addition to the growth of services for renting passenger cars, the fleet of leased special automobile equipment is growing significantly - from trucks to truck cranes, aerial platforms, excavators and even snow removal, repair, road and municipal equipment.

The payback period is 27 months.

The initial investment will be equal 11 220 000 rub.

The break-even point is reached at 3 month of work of the car rental company.

Average monthly profit 421 254 rubles per month.

2. Description of the business, product or service

The main service of the company considered in this business plan is the provision of car rental without a driver. It is planned to use three main types of cars offered to customers:

1. Cars of a representative class - "Mercedes".

2. Cars of the middle class - such as "Toyota Camry" and "Volkswagen Polo"

3. Cars of general user class - "Kia Rio" type.

Basic tariffication of services - daily.

The rental rates are as follows.

1. "Toyota Camry" - 7000-8000 rubles. per day

2. "Mercedes" - 15,000 rubles. day

3. "Solaris" - 3000 rubles. per day

4. "Kia Rio" - 2800 rubles. per day

5. "Polo" - 3200 rubles. per day.

When calculating the general income scheme, the average optimal option for loading the vehicle fleet is used - 75%,

As additional services, corporate clients will be offered custom-made services - in particular, delivery to the hotel from the airport and back, accompaniment of any private or corporate events. The basic rate of the individual transfer rate is 3000 rubles per hour.

Strengths of the project:

Weaknesses of the project:

  • constant growing demand for rent;
  • a wide range of sales and service delivery channels;
  • quick adaptation to a rapidly changing market;
  • the possibility of forming an individual approach to the requests of corporate clients for the range of services and their volume.
  • competition from local businesses, network car rental corporations;
  • poor-quality work of staff, violation of the technological regulations for car maintenance;
  • risks of frequent damage and failure of vehicles;

Project opportunities:

Project threats:

  • business expansion by increasing the range of rented vehicle fleet, provision of drivers, guide-interpreters;
  • the ability to work with corporate clients;
  • the ability to create related types of business - for example, auto camping, organization of auto tours;
  • relatively high competition in the market;
  • higher prices for auto parts and fuel;
  • Increase in rent or termination of the lease agreement for a parking space, office;
  • A decrease in the purchasing power of both the population and the commercial sector, an overall decrease in demand for car rental services.

3. Description of the sales market

In order to fully implement the concept and practical design of the car rental business plan, at a minimum, you need to know the main characteristics of the market in which the service will have to be provided.

These basic characteristics of the car rental market in Russia include the following types of data:

1. The volume of the car rental market, its dynamics and regional specifics.

The Russian car rental market dates back to the very beginning of the 2000s.

For more than 15 years, the car rental market has turned from a narrowly segmented niche focused on wealthy clients in Moscow and St. Petersburg, into a developed network of specialized service firms, both domestic brands and companies operating under franchise agreements of foreign car rental companies. corporations in many cities of the country.

At the moment, the total volume of the car rental services market is at least 150-200 million dollars per year. Moreover, the dynamics of the development of this segment of transport services has been growing over the past few years at a rate of at least 15-20%. Such rates are due to the fact that the market still has a small capitalization, and, as experts say, the effect of a low base is affecting. Those. This is a situation when even in large Russian cities there are no more than a dozen rental companies with a fleet of more than 10-20 cars each. The overall assessment of the car park in Russia, working in the field of car rental, is still no more than 50-70 thousand cars, which is ten times less than, for example, in Europe, where the car rental fleet is at least 2 million vehicles.

The specificity of the car rental market in Russia is the fact that the geographical concentration of companies providing such services is mainly concentrated in Moscow and St. Petersburg (almost 70% of the market), as well as in traditional tourist regions - Krasnodar Territory, Sochi, districts adjacent to tourist clusters: Baikal, Altai Territory, Kamchatka, Primorsky Territory. It should be noted here that in the regions where tourism is mainly presented as ecological (natural), the sector of demand for rental services is concentrated on the provision of off-road vehicles for rent - jeeps, as well as car camping services (including caravan rental).

2. Market structure. The structure of the car rental market is based on the main categories of customers. These are people traveling on business trips, tourists, corporate clients. A large share is occupied by customers who do not have their own car at the moment, and tourists.

Since the car rental market in Russia is still underdeveloped, it is highly segmented. Those. there is not yet a sufficient number of strong players capable of somehow structuring and finally shaping the market. In the car rental markets, especially regional ones, there are a large number of small players who either work for a very narrow segment of customers, or provide a car rental service as an additional one (this most of all applies to hotels, tourist centers and campgrounds).

In addition, representative offices of world car rental companies, such as Avis, Herz, Europcar, Rental Cars, Сar Booking and others, began to appear actively in many large cities of Russia. The most demanded services are renting a car without a driver for business and personal purposes, including going abroad, as well as renting executive cars with a driver.

It should also be noted here that more and more competition for the standard car rental format is presented by car-sharing companies, which can at the same time be ordinary car rental companies that are actively diversifying their business. For example, if we take into account the data of research conducted by analysts at Morgan Stanley Bank, then by 2030 car sharing will occupy at least 25% of the total car rental market.

As an illustrative example, we can cite statistics for Moscow - more than 280 thousand subscribers have already registered in the Moscow car sharing system. The number of trips since September 2015 has exceeded 1.3 million. Each rental car is used by 8 customers on average over a period of 24 hours. According to the analytical agency Delimobil, the average journey time is 37 minutes.

Thus, we can conclude that the rental business will gradually shift towards the use of a combined business scheme, both an organic combination of the traditional format of providing a car for rent, and the use of car-sharing schemes for providing services to customers.

It should also be added that the sphere of car rental services in Russia will expand to a large extent due to an increase in the flow of domestic tourism, where auto tourism will take the leading place, combining both the provision of vehicles for rent and hospitality services, escort of groups of tourists guides and instructors.

4. Sales and Marketing

5. Production plan

6. Organizational structure

7. Financial plan

8. Risk factors

The car rental market in Russia is relatively young, and it is still far from full saturation and the appearance of real big players and fierce competition. However, there are a number of risks that should not be neglected when starting a car rental company. Among such risks, first of all, the following negative factors should be noted:

  • market risks associated with such unfavorable economic conditions as a decrease in consumer activity among groups of potential customers, economic crises, a decrease in the flow of tourists both within the country and arriving from other countries. There are few and very limited ways to mitigate such risks. You can use, for example, options for working with a low-budget vehicle fleet, or use idle cars partly to provide taxi services;
  • competition from new service transport technologies. This is especially true for such formats as car sharing, where the actual distribution of the time of using cars by minutes takes place. Also, some of the competition falls on services such as Uber or Yandex.Taxi, which to some extent will intercept a part of the car rental company's clients. The only effective measure to counter such risks is targeted work with certain groups of clients, for example, hotel guests, tourist groups, wedding corteges or accompanying various festive or official events (event industry)
  • the car rental business is characterized by high capital intensity, the financial threshold for entering it is quite high. In addition, the technical maintenance, maintenance of the vehicle fleet, and its legal support (insurance, tax payments) also cost significant funds (almost 25% of the company's capital turnover). Therefore, there is a risk that with a significant increase in the price of gasoline, spare parts or car insurance, the operating profit of the company may noticeably and immediately decrease. To prevent such risks, you should have a certain financial reserve and make up for the loss of profit in time (without bringing the matter to bankruptcy of the business) until the business and clients adapt to the new economic reality.

In addition to these systemic risks, one should also not discount the fact that more serious competitors are already on the horizon - self-driving cars and taxis. And even if this is still a matter of the future, nevertheless, in the next few years in large cities of Russia, one can expect the appearance of the first companies providing unmanned car rental services using modern information technologies.

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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 correctly 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 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.

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 without haste. 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

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