Car Rental Business Opportunity for Entrepreneurs.
A car rental or car hire company is an agency that rents automobiles for a short duration instead of a fee. It is organized with different local branches and primarily is available near airports or busy city areas, or bus stops. Modern car rental companies have websites that allow reserving cars for their customers. This is a service module that helps people transit who have a car that is temporarily out of reach or out of service. Those people who have to commute outstations for business purposes or those whose cars have been damaged or destroyed and are awaiting insurance compensation. Alongside renting a car these business agencies are also offering extra products like insurance, global positioning system navigation entertainment systems, and even more mobile chargers.
Essentials of Car Rental business
A clear plan is required to successfully start a car rental business. Before starting such a business one should consider certain key factors
What is the startup and Ongoing Costs will incur
What is the size of the target market?
What are competitive charges for such startups?
How to name and register your business
Keeping in Mind the above questions let sought out the plans
Starting a Car Rental Business
This business needs a few cars to begin, an office, a computer, printers, High-speed Internet the payment of license fee, insurance for business and automobiles, vehicle maintenance charges, a closed-circuit camera to keep an eye over cars, employee/drivers' accommodation and marketing efforts.
Working expenses for a car rental business
Working expenses are those that are incurred regularly to run a business, it covers salaries, utilities, insurance, adding new vehicles to the fleet, high-speed internet, marketing, and website maintenance. A mechanic will command a yearly salary of $40000 to $70000. A marketing professional who propagates the car rental service to customers would require an annual salary of $30000 to $65000. The same salary range is applicable for accountants and web designers. The cars running in business should also need to be insured those costs around $500 to $1000 per month for all the cars.
The Expenses on Internet would cost you several hundred dollars per month. You can either buy or lease vehicles that will be added to the fleet. To add new vehicles to the fleet one must have around $20,000 to 30,000 dollars at hand.
Targeting the market
The most ideal customers are those who require car rentals for employees. Another customer base could be the business travelers who are willing to spend a considerable amount on car rentals while they are away from home.
Money generation in the Car Rental business
A car rental business garners money by renting cars to persons who need transportation while away from home, to carry out their business activities or those persons whose car is under repair and need substitute.
Customer service charge
Rates for car rentals differ by quality of vehicles and location. A low-end car would fetch rentals around $30 to $50 per day. Upscale car rentals like Mercedes-Benz or Lexus can fetch around $100 to $200 or more per day.
Profit in Car rental business
Car Rental business depends on the location, fleet of vehicles, and competitive rates. It is possible to make $50000 to $100000 per year initially for a couple of years. Continue to expand your business and you would eventually reach six-figure earnings. The business can be started in other locations that could make millions of dollars per year.
Adding more business opportunities
Old automobiles can be sold in your fleet. If a certain car gets outdated from a style perspective it can be sold or traded. If good relations are made with local or car dealers, they can steer customers when vehicles are being serviced or repaired.
Propose Good name for business
The right name for a business is important and challenging. One can use a business guide to brainstorm a name that suits a car Rental business.
If you are starting a registered proprietorship you might operate under a business name or other suitable business name different from your name.
List of Best Car Rental Companies in the USA
It is a well-known company for renting cars, which is considered for people need to rent a car. Prices of renting with Alamo are considerably low. Their prices are often better than other popular companies
Their rewards programs offer the most beneficial option, it is good enough to offer a 5 percent discount to its members, therefore the prices get much lower.
Enterprise has earned a huge reputation in the segment. This is the case with enterprises where most of its customers have given positive comments over its service. This company offers more advantages than disadvantages. The fleet of cars here offers the newest cars among the options in car rentals.
National Car Rental is US rental car agency based in Clayton, Missouri. It is owned by Enterprise holdings along with other agencies, Rent-a-Car, and Alamo Rent Car. This company ranks best among others for business travelers. They offer a new fleet of cars with reasonable rent charges. They also offer vans and trucks for customers requiring these types of vehicles.
It is one of the best car rental companies though its size is small compared to other options. Their week-long car rentals are the lowest in the market. Since it is a small company, its locations are less for availability but if it is available, one should surely go for it. It provides clean cars with a quick pick and drops facility.
SIXT car rental company was founded in Germany in the year 1912. It is the leading car rental company in the world. SIXT offers a premium segment of cars like Cadillac, Ford, BMW, Mercedes, Volkswagen, Jeep Chevrolet, Range Rover, and more. The company provides premium service at affordable prices. SIXT is present in 100 countries at 2000 locations.
Thrifty is the most widely recognized brand in the travel industry catering to cost-conscious business and leisure travelers. It was established in 1958 at Estero, Florida but now part of Hertz Corporation, it has a global presence with 1300 offices in 99 countries. The company provides sedans SUVs and minivans at major airports and cities in the USA.
Another car rental company with a long-time reputation is mostly a good one. It is a familiar brand among travelers who need value for their money. Hertz provide simple models along with Sports model and Hybrid car options. Hertz offers value for money with cleanliness.
Another car rental firm that has quite a good reputation among customers among other available options. The prices for renting a car are competitive. The offices are available across all the locations outside the airports. The pick-up and drop-off facilities are very quick.
The advantage is Canadian owned car rental company is headquartered in Orlando, Florida, and it is one of the biggest car rental companies in the United States. Their fleet consists of Mini vehicles, Economy, Compact, SUVs, and VANs. The fleet is new and offered at economical prices.
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