Car Rental as the Main Business

Car rental is a quite expensive event, but only for tenants. For car owners, their rental gives an opportunity to get a big profit.

Car Rental as the Main Business

The car rental business is a quite expensive event, but only for tenants. For car owners, their rental gives an opportunity to earn a big profit. The rental company is a serious type of business because to maintain a vehicle fleet isn’t a cheap pleasure. Before deciding to open a car rental, we recommend analyzing this segment of the market thoroughly and to draw up a business plan.

Main business or additional income?

Car rental allows earning a lot of money. But only on the condition that the owner is competitive and has found its own niche in the market. This may be a regional advantage, special offers, or specialization in a particular service.

As an extra income, almost everyone can rent a car. As for the main business, investments will be higher here. If you really want to earn money, you will have to spend money on completing and servicing the vehicle fleet, arranging all the necessary documentation and other needs.

Income earning potential

The cost of rental varies from the condition and class of a car, as well as location. In general, to rent an inexpensive car in Europe, for example, Nissan Versa costs no more than €60 per day. The rental of a premium car will cost no less than €100.

Current expenses

Current expenses include employees' salaries, utilities, insurance, replenishment, and maintenance of the vehicle fleet, rent, the Internet, creation, and support of the company's website. Hiring workers, count on a daily payment of 10 - 12 euro per hour. Taking a mechanic to the staff, it will be necessary to pay him from €30,000 a year, and a staff marketer from €25,000 a year. In the same range will cost the services of a web designer and accountant. Insurance policies will be needed for the business itself and for each car as well. In Europe, it will take at least €450 per month.

A couple of hundred euro will be needed to pay per month for utilities and the Internet. Also, from time to time you can add new cars to the fleet. In this case, it’s desirable to have in stock up to €30,000. Maintaining vehicles will cost about €450-900 per month, depending on the intensity of use and the number of customers. The monthly rent for inexpensive office space varies from €600 to €1,000. Also, when the website of the car rental company will be launched do not forget to allocate money for its updating and improvement.

Expected profits

If you have chosen a good location, filled the vehicle fleet with various models of cars, and set competitive prices, your investments will quickly begin to bring visible profit. In the first one or two years, you can count on income from €50 to €1,00,000.

Continuing to develop your business, improve the quality of service, and replenish the vehicle fleet, you can count on further stable earnings in the hundreds of thousands of euro. If you decide to expand the service area and to reach a higher level, then you can earn millions on car rental.

Where to find your first customers

If you want to create a car rental, first of all, you need to determine if the place where you live is suitable for such a business? More favorable to launch a car rental company are tourist cities such as Paris, London, etc., or any business centers. In such places, the only ones who do not have a car are tourists and travelers. So they form the basis of your target audience.

When you know your main customers, you can understand how to communicate with them, what to offer, and where to advertise. You can also start cooperating on a commission basis with travel agencies, airports, hotels, and hostels. They will recommend you to their customers for a certain percentage. That will allow you as a business owner to save on advertising and to get direct access to the target audience.

There are also special car rental solutions that makes it possible to run the whole above-mentioned operation smoothly. To achieve this and optimize the work of your business, fully integrated car rental software is required as a business enhancer. And for that, we recommend RentSyst - a car rental software designed to optimize the fleet. With the help of RentSyst, it is easy to track orders, car bookings, bookkeeping, and plan future profits and correctly distribute your time. It also contains complete information for each vehicle.

To get the maximum profit from renting a car, follow our recommendations:
  • The car rental management system includes a large amount of detailed work, so make sure that you found a suitable web resource. RentSyst rental car software will help your car rental business to the next level.
  • The larger the vehicle fleet, the more options, and potential customers.
  • Invest in advertising to let the maximum number of people of the target audience to know about you.
  • Form a unique selling proposition in order to separate your business from larger and more successful competitors.
  • Elite transport is more expensive to maintain but brings a much bigger profit with higher margins.
  • Beware of thieves and scammers. Use only proven safe software, and also do consider the deployment of in-car video surveillance cameras; especially when your vehicle fleet will operate in unknown/unsafe territories.

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IndraStra Global: Car Rental as the Main Business
Car Rental as the Main Business
Car rental is a quite expensive event, but only for tenants. For car owners, their rental gives an opportunity to get a big profit.
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