Car Hire business

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S

shak187

  • #1
    Hi All!!

    i am wanting so set up a car rental business.
    obviously i am not able to buy new cars to use as rental cars, so i was thinking of leasing / hire purchase.
    is this a worthy idea?

    Wouls appreciate any advice / comments from anyone -

    Thanks

    Shak
     
    P

    Paul Shepherd

  • #3
    Hi Shak,

    Being a start up company you would need to provide business plan, cash flow projection and guarantees for finance. Providing the idea is sound and the backing is in place it is worth investigating further.
    If you need help sourcing lease companies I would be pleased to assist.
    Can e-mail me [email protected].
    I wish you every success in your new venture.
    Paul Shepherd
    25-7 Business Finance
     
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    O

    outsidethebox

    Free Member
    Oct 1, 2007
    46
    2
  • #4
    Having worked in a large rental company, you would need to have a big USP (which I cant think of what it could be) to compete with the big boys.

    I wouldnt want to start a business in this area becasue there is alot of competition and alot of people only care how cheap they are.

    The company I worked for made more money buying and selling cars than they did renting them. They sell some of the common cars for more than they buy them for. If they werent a rental compnay the manufacturers woudl sell the cars to them.

    For example a £10k fiesta they might buy for £5.5k they will rent it for as short a period as they can approx 6 months (make approx £2.5k-£3k from rental) and then sell it on for £7k or more.

    YOU WILL NOT BE ABLE TO COMPETE WITH THEIR BUYING POWER. Be careful.

    If you want any more advice PM me and I will be happy to help but id stay clear of it.
     
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    Shay

    Shay

    Free Member
    Mar 9, 2006
    430
    19
    Staines
  • #5
    Most lease companies will not lease to car hire companies, there are a few. Speak to Gille on here I think she knows someone who does.

    Other than that find yourself a dealership that will do a buyback scheme, although this is koney upfront, so rather than go through it all, if its viable let me know and I will expalin how it works.

    As has been mentioned the market is so overloaded you have to have a USP and being cheaper means you cut into your profit and to be honest for small start up car hire companies that profit is not as big as the numbers on the back of the beer coaster may suggest.

    I supplied a few car hire companies when I worked in the motor trade and most have either moved on to something else or are just happy to have their mortgage paid and thats it. Maybe ideal for most but for most setting up a business is to have a more comfortable life, not stressful even though reality is somewhat different.
     
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    T

    tinis

    Free Member
    Jan 29, 2008
    2
    0
  • #6
    Hi, I think that you should hire because it have lots of benefits. I am also a business man and I recently hired five vans from frontierleasing.co.uk It’s really very good for hiring car. There are plenty of choice and special offers for customers. So I would suggest you for this service. Hope this will help you out.
    All the best!
     
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    LINGsCARS

    LINGsCARS

    Free Member
    Feb 16, 2007
    1,761
    414
    52
    Gateshead, UK
  • #7
    Tinis is fabricating that post. Can I just say that these Fronteir leasing posts are all spam. They are occurring on forums all over the internet, from new members. Fronteir are a real company and refuse to return my emails complaining about their spamming strategy.

    Re Car Hire, I do not supply this sector. Normal finance companies seem to find it very risky and will not write business. Even a well established company in Surrey who gets his (and wife's) personal cars from me has to jump through hoops of fire to get just one normal CH car. Especially as a new-start it will be difficult, and many cars can be sourced through franchise groups you usually join, like United etc.

    This is very subjective... but there is no hidden meaning here... : most (at least 80%+ of people) contacting me "starting" a car hire business - and I must get 5-10 enquiries a week for cars from new start car rental companies - are sub-continent Asian people. I just can't figure out why there is such a cultural imbalance in this sector. Seems strange. Anyone got any genuine ideas? This is not meant as any form of criticism, just an observation.
     
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    C

    citypad

  • #10
    I used to work for a car rental company and they leased cars straight from the manufacturer. Every year or so they would swap them for brand new cars and because they were nearly all in good condition the manufacturer then sells them in their showrooms or auctions the bad ones off. The reason they lease them is because they keep costs down and they always have new models when they come and and new reg's and the manufactures know they are in good condition and can sell them on. Whenever you see one of those big trucks delivering cars to rentals companys they never go back with nothing on the back they are just swapping them.
     
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    C

    citypad

  • #12
    knottbay said:
    Hello
    I have an old 1950s car and I am considering hiring it out as a sideline. Does anyone know what rules and regulations would apply regarding setting up, insurance or anything?
    Nick
    Click to expand...

    You need to ask your local council about there chauffuer (cannot spell) regulations if your going to be one. Also you will need to purchase car rental insurance, which can be pretty pricey. an insurance broker should be able to point you in the right direction.
     
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    S

    sohailuk7

    Free Member
    Jan 26, 2010
    1
    0
  • #16
    Hi All,

    I am in the process of preparing a business plan and arranging finances for a prestige car hire in Scotland. I am undertaking the feasibility with a friend of mine as we both believe there is a demand for presitge car hire as it is not easily accessible do Joe Public. I need some info or feedback from other business minded people-

    1) Do you know of companies that lease cars to hiring companies?

    2) Do you know any insurance companies that insure cars for hire companies?

    3) Any feedback or experience from people in this business?

    Thanks

    Sohail
     
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    G

    guscat

  • #17
    Having worked in the industry I can inform you that the daily margins on hire vehicles is TINY and the big money is in selling them at the end of the 3 year period....Thats where the big boys make their cash!

    As you wont be able to do this as the cars wont be yours then its a non-starter I'm afraid....

    Find something else to do instead! (Ignore my advice at your peril) - Been there, seen it all before...
     
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    L

    lockyer

  • #18
    We have had 3 established prestige self drive hire co's as clients that have recently gone out of business. And no insurers are offering quotes on new startups at the minute, unless less than 25% of the cars are prestige, and they have a rock solid business. All directors and partners need to be over 30 too, with good credit/claim/motoring histories too.

    If you can jump through those hoops its easy;)

    good luck

    www.lockyers.co.uk
     
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