Automotive enthusiasts with a business line are increasingly starting to open their own car rental company. Nowadays, you don’t need to have a lot of cash to start a successful business. How to effectively reduce the costs of a planned investment? Is owning a car rental company profitable? How to encourage a potential customer to take advantage of the car rental offer?
Car business is hot!
Just a few years ago, car rentals were only in large Polish cities, these were individual points located most often near airports. To a large extent, this was due to the negligible interest of customers. Today the situation is completely different. Currently, there are over 1000 small and large car rental companies registered in our country, moreover every month more competition increases.
Young entrepreneurs who are interested in the automotive industry willingly take on the challenge of opening and later running a car rental company. In order for the company to be profitable and the whole enterprise to be successful, the owners of such places must demonstrate good knowledge of the market. Although it would seem that this is a business like any other, unfortunately, it requires proper preparation and, above all, large financial outlays. However, in this case, people who decide to open a rental shop do not have to take high loans from the bank. So how do you set up a business with minimal costs?
Individual business or franchise?
Beginnings can be difficult, especially if you run your own business. We usually encounter the first problems at the very beginning, when we focus on the amount of capital necessary to open a car rental company . In order for the place to function as it should and earn for itself it is necessary to provide it with high-quality safe vehicles. However, this is not all, besides, you should also remember about the costs associated with the maintenance and maintenance of vehicles and other fees arising from business management. The final cost of setting up a business largely depends on the size of the rental company. In most places offering car rental there are usually about 8-10 efficient vehicles. Of course, as the company grows, the number of cars may increase, but it is estimated that from the very beginning the own contribution of the car rental owner should be about half a million zlotys.
As you can see, the investment costs are huge, which is why people who do not have enough capital to start can use the help of the franchise network. Having an attractive location, knowledge of the proper functioning of the rental company, you can start working with a large and well-known network that rents vehicles. Which option is better? Unfortunately, this question has no clear answer, everything really depends on the approach and action plan of the future car rental owner.
Advantageous rental offer
The vast majority of car rental companies offer the possibility of renting a vehicle for short and long term. Due to attractive contract terms and affordable prices, the first option is the most popular among potential individual clients, e.g. tourists. Long-term vehicle rental is mainly addressed to entrepreneurs who have not yet managed to stock up on company cars, which would incur additional costs. To reduce the cost of income, entrepreneurs are happy to enter into an annual contract with a car rental company. Both parties benefit from this transaction.
Apart from natural persons and companies, insurance institutions often use vehicle rental services, which undertake to provide a replacement car to their customers who, as a result of a road collision, were forced to leave their personal vehicle at the mechanic’s.
How to get customers?
Are you wondering what encourages customers to use car rental services the most? In addition to the attractive rental offer, customers focus a lot on the quality of the vehicles provided. Cars should stand out impeccable appearance, both from the outside and inside. In addition, vehicles must be regularly inspected, which in turn translates into safe use. However, the easiest way to reach the customer is to find a good location, e.g. around the airport, train station, bus station, etc.
To sum up, contrary to appearances, opening your own car rental does not have to be an expensive investment. People who do not have enough capital can establish cooperation with a large franchise network, which will provide cars and customers in exchange for a convenient location.
Remember that if someone steals a car from a car rental company, you can always count on a detective from Wroclaw . He will find a stolen car for you.