We all have a dream… for most of us, it is retiring on a tropical beach somewhere. Starting your own car rental business might be your ticket to paradise. Before you go rushing off to turn your dreams into reality; here are our top five must-consider things you ought to know about running that car rental business.
The Top 5 Things you Should Consider about New Car Rental Businesses
When you start your own business there are a lot of things to consider. Here are our specifics for starting a car rental business of your own.
1 – Study the Market
The future looks bright for car rental firms. It is theorised that the growth in this sector will largely be due to an increase in air travel. We should see the effect of this as early as 2021. There is also a big market in environmentally-friendly vehicles. This is reinforced by a younger generation who care about the climate. If you can combine a commitment to ending fossil fuel use with your new car rental business and aim to go electric, this could impact the longevity of your firm.
See this article in Profitable Venture for more inspiration.
2 – Have you got a Lawyer?
The chances are that you are going to need to lawyer up at some point. If you rent cars, it is only a matter of time before one of your renters crashes one. If that accident goes beyond your insurance and ends up in the courtrooms; you are definitely going to need the best Chicago car accident lawyer in town.
Don’t wait for it to happen, hire a car accident attorney on retainer. It’s safer, easier, and it reassures your clients as a bonus.
3 – Think About Software
Just because you are in the car rental game, doesn’t mean you can get away with pen-and-paper record systems. You need some help from an IT specialist or firm. You can find one of these independently for hire on sites such as Upwork. You can also hire a firm to take care of your bookings if you are not technically minded.
4 – Remember Insurance!
When pricing your fleet, consider the cost of insurance per vehicle. Certain vehicles will have higher insurance premiums, so choosing the type of car with lower costs can help you with cheaper start-up fees. Remember to shop around and keep premiums down every new year.
5 – You don’t Need a Whole Fleet!
A fleet of cars might be two single cars and a van. It might be a 5-seater and an 8-seater. It doesn’t need to mean a whole fleet of cars, right from the first day. To avoid stupendous debts, build your fleet as you go. Start off with however many cars to cover costs and start paying back what you owe. Some car rental businesses start with only two cars and grow from there.
Are you Car Rental Ready?
If you think you are ready to jump head-on into the world of car rental, then go ahead. Now that you have read our considerations, we think you are primed and ready. Be careful out there though. Car accidents are common and even more so when the driver doesn’t physically own the vehicle.