Starting A Car Rental Business

[NidemAnjum]

Hi Everyone,

I’m new here and I’m seeking business advice in relation to a market that isn’t covered in my local area, but has a large demand.

I am currently investigating a opportunity in my local area that is available, I’ll be the only company in the local area offering the service of prestige car hire. I am currently working for myself, therefore having a business background already in the waste management sector. At present I have set aside 10k setup costs with 10k cash flow, but the problem I am facing is that I am not sure how to approach companies who lease cars or provide cars to current car hire companies.

I hope to hear from someone who has either owned/setup a car hire company as I am looking to start off with a fleet of two cars and one 4x4. I have previous experience working for a rental company many many years ago, so I know that I will need to make sure I can cover the ground rent if cars are not out on hire and also gain insurance policies for fleet which will allow me to send cars out on rental.

Basically I know I won’t be able to compete with the likes of Avis, National and Europcar as their buying power is next to impossible to compete with.

Anyone with advice on this topic please get in touch. [FONT='Times New Roman','serif'][/FONT]

 

[Mitch3473]

Having both set up and run a vehicle rental operation I would stick with what you know best and concentrate on your waste management business.The margins are tight,competition is fierce and insurance and running costs are high,Just my experience.It is hard work and with 3 cars to start with you will struggle.Loose the 4x4 and replace that with either 2 mid range or vans.

 

[VictorVector]

Maybe a franchise would be the best route? You benefit from their brand, purchasing power and marketing muscle but you you add your own sales and service magic.

 

[TheGuru2010]

Hi Op,

This is a old thread by the looks but if you need a chat get in touch, know a few places where my current customers lease there vehicles.

Jamie

 

[Strata]

I currently own & run a contract hire and leasing company with a small vehicle rental division bolted on the side. If you are still looking for cars I can give you a few names of companies that supply car rental firms with vehicles.

John