A car rental agent rents out cars daily or weekly at affordable prices. Car rental customers usually include travelers and business people who want to run their errands or people whose cars out of commission.
This can be a lucrative career because most working adults need to use cars and likely need to rent one at some point.
If you would like to start a car rental business, here is what you should know. The following insights will help you learn how to start making money in this career.
Requirements for Opening a Car Rental Business
Your business will require a fleet of cars, computers, an office, a stable Internet connection, printers, insurance, several car maintenance tools, a camera surveillance system, marketing tools, and employees (plus, of course, their salaries).
Expenses You Are Likely to Incur as You Run Your Business
Just like any other business, there are costs you are likely going to incur. These include utilities, salaries, and insurance; you might have to add another vehicle(s) depending on the demand, serving them, rent for the premises where you are working, marketing, and website maintenance.
Depending on how much you decide to pay your employees, expect to fork up between $8 to $12 per hour. If you have an on-site mechanic, you will pay them about $40,000 to $75,000 per year. Marketing professionals require an annual fee that ranges between $30,000 to $70,000 yearly. The same goes for web designers and an accountant. You need insurance for your business, and that will cost you between $500 to $1,000 per month.
You should be able to have at least between $20,000 to $30,000 for an additional vehicle; servicing these vehicles will cost you between $500 to $1000 per month, depending on how many clients you get. Rent should be about $800 or more, depending on your location. Website improvements will cost between $500 to $1000 per year and another $500 for marketing.
How Much Should You Charge Your Customers?
Your cost will depend on the quality of the vehicle plus the location. Low-end car rentals like the Nissan Versa are cheap, and they should cost you about $35 to $50 per day. Upscale cars like Lexus and Mercedes-Benz, however, are more expensive, and they will cost you about $100 to $200 or even more per day.
How Much Profit Should You Expect?
If you have well-serviced cars that are in good condition, and your business is strategically located, it is possible to make up to $100,000 in the first few years. If you continue growing your business by doing all the required marketing, very soon, you will be hitting the mid-six figure mark. You can even choose to open different branches across the nation; doing so will earn you millions of dollars.
How to Attract Customers
Be sure to create high-quality apps and websites for your business. Your car reservation process should be as easy as possible, and the booking process should be easy, too. You should offer competitive rates within the market and also have a wide selection of cars for people to choose from. Have a variety, from compact cars to sport utility vehicles, luxury automotive, economy vehicles, and so on.
You do not have to have hundreds of cars to start this business; start with a few, and you will grow with the business. Remember to do your research before you start. Find out which cars are more marketable, as well as how many you need and who your competitors are. Otherwise, try your hand at this lucrative career choice. We wish you the best of luck!