HOW MANY CARS DO YOU NEED TO START A CAR RENTAL COMPANY
Do you love cars? Do you want to convert your love into your business? Do you want to invest in automobiles to make it a profitable business? Do you want to know how many cars do you need to start a rental business? Well, we have the answer to all those questions.
Starting your own business is a real blessing. You are not duty-bound to anyone. What’s more good than being your own boss? Being independent would be great and you get to keep all the rental income (except salaries to your employees). You can work from the comforts of your home. But it needs credit as well as a plan. You need to get experience with cars. There are pros and cons of every business you should consider. First, consider if the state you are living in is the best suit for your new business.
So before telling you how many cars do you need, let us give you some basic information about how to do some research before you jump down and hit a nag. It’s a long way to go from buying a car to tracking fleet maintenance.
How much it will cost to start?
It depends on the state you want to register and the type of rental you want to choose.
Even if you choose to start with one car, it may cost $50k. For a standard company, it is estimated to be 500k$ to $2 million
How many cars do you need?
Let us move towards the basic question. How many cars do you need to start a car rental business? Well. if it is an exotic rental service one car is enough to get things started. You can expand the company later. In standard car rental, we suggest at least 4-6 cars. It will make a standard company size. More cars.More rentals. More money. This is simple math. Isn’t it? But first, you decide where you are going to keep all these cars? Make sure you have a garage to park all these vehicles.
Buying cars vs leasing
Now the question comes whether you need to purchase the cars or is any other way to startup? The most important thing to make at the start is whether you want to buy the cars or get them at least. Most car rental companies are working by purchasing or leasing the vehicle of their choice. You can choose either way you want. The easiest way to go is to go for a lease by paying the cost of the contract.
Not only cars but you will need some other things too. An office, printer, your presence on the internet, insurance, vehicle maintenance tools, CCTV camera, and marketing efforts. Make sure you have your website. Give it a decent name. You have to take care of everything. From selecting a car to setting smart goals for fleet managers.
Make a great team!
For a small company, it's easy to do things on your own. From standard to large companies, a fleet manager is to be hired. The fleet manager will have to keep track of fleet maintenance performance matrices. Adding a couple of employees to make a team is essential. You will need someone to answer the phone calls. A person to keep the vehicles clean and tidy. A mechanic is also necessary. A marketing manager who will advertise your rental business not only in your area but online as well. And of course a fleet manager.
Hiring fleet manager
Finding a hardworking and seasoned fleet manager is a hard nut to crack. He is the one who will help flourish your business. Make sure you know 15 matrices every fleet manager must track. A well-maintained fleet gives more profit. It's not possible without tracking fleet maintenance and performance matrices. It helps make sure you are not stuck in costly repairs. This will be insured by the fleet manager who will keep track of fleet maintenance performance matrices.
The duties of a fleet manager include purchasing and maintaining the vehicle. The matrices every fleet manager must track are
- Licensing and compliance
- Trouble code for diagnostic
- Daily vehicle inspection report
- Keeping repair costs under control
- Fleet maintenance performance matrices
- Manage vehicle performance matrices
- Maintain checklist regarding order fulfillment
- Updated route mapping
Taking care of above all points will highly ensure to level up your fleet maintenance performance matrices. He has to manage vehicle performance metrics.
What type of vehicle do you want to add to the fleet?
You can add different models of cars according to demand in your area. Doing some research about your area and types of customers is pivotal in deciding which types of vehicles you are going to add. You can add Cars, Trucks, Vans to your fleet.
You can add luxury cars also. Keep in mind what type of customers you will get. If you want to offer your rental to families then go for larger cars and station wagon-like vehicles. But, if you if your targeted customers are in the business category, then go for high-end luxury vehicles. Make sure you track fleet maintenance in the best way.
Insurance is a must in car rental business
There are different categories. Fire insurance, theft insurance, etc. Choose which best suits you and get your vehicles insured. It will save you from later problems.
Conclusion
We hope that things will turn out fine and you will succeed in your business with all this knowledge. Beware, this business has fierce competition. Why? Because the business idea is that smart. The global car rental business will reach $124.56 billion. So it makes it the best and smart investment to make in 2022. A lot of hard work, the best plan to start a car rental business, tracking fleet maintenance, and setting up smart goals for the fleet managers will lead you towards success. And of course a lot of money. We wish you success in your new business journey.