With the popularity of ride-sharing apps, demand has also surged for car rental services. Entrepreneurs can choose to rent out their vehicles as units or with drivers, so passengers can have a hassle-free time going around a city. More tourists are also booking this service to ferry them from the airport to their hotel.
It can be a lucrative enterprise if you play your cards right. If you’re interested in opening a car rental business, these tips will help get you started.
Determine the rental scheme you want
For starters, you must plan your rental scheme. There are two main car rental schemes: contract hire and daily hire. Contract hire is a long-term rental, which can be monthly or quarterly depending on the needs of the client. Daily hire or short-term hire are often used by tourists or transients.
It is possible to do both, but it is highly recommended specializing in only one. Plan your rental scheme and how you want to offer your service to your target customers.
Decide on your base of operations
The next step is to decide on a certain location. Have a look at some rental spaces where your customers might frequent, and it should be near a hotel, bus station, supermarket or airport. Bear in mind that some clients will have limited access to you, and so you can offer a free shuttle as a good way to help your prospective customers.
Take into consideration the safety of your target location. Vehicles don’t come cheap, and you want your clients to feel secured and well-serviced when they arrive and leave your business premises. Consider installing a CCTV camera for everyone’s safety.
Establish your fleet
Buying your initial fleet of vehicles outright is the best move for you. Although, you also have lease options if you intend to rent and you do not have that much of a capital to send. It’s also good to have a variety of vehicles. Choose sedans, SUVs, vans and even a luxury car or two for high-end rentals. You’ll never know who will walk in and want to rent a car.
Your fleet should be well maintained at all times. You can sign up for fleet tire services in American Fork, UT for your business. This way, you’ll have a team who keeps an eye out on the safety and performance of your car’s tires. Have a team of mechanics and spare parts ready at your garage.
Before you start your car rental business, consider having insurance for your fleet. This is a must and a legal requirement for a car rental business. This is for the protection of your investment, too. Clients can potentially damage your cars and accidents are inevitable.
Never take your choice of insurance provider very lightly, and make sure to shop around for the best possible deal before you seal it. Find the best auto insurance provider in the market and strike a deal with them.
Establish an online presence
Create your own website and establish an online presence. Your business will mostly come from tourists and out of town clients, so you need advertisements with unlimited reach. The best possible way to do this is to create a website, be social and maintain active social accounts on Facebook, Twitter, Instagram or LinkedIn.
With a website, you can showcase your fleet, inform your customers about the various services you offer, and provide them with 24/7 support if anything bad happens. Check your competitors, know what they are doing and learn from their example. Make sure your website is well equipped with all the online capabilities of a competent car rental services.