When a person hears about car rental and the possible costs of renting a vehicle, he immediately estimates the costs. Indeed, car rental is not a cheap pleasure, but in densely populated cities this service is in demand. The main thing is to know how to properly organize a car rental business, where to start and how much money is required.
Why rent?
Almost everyone has a car. The rental service is needed only when the vehicle is out of order or being repaired. In addition, rent is in demand among citizens of other countries who come to visit and need "wheels" to travel around a foreign city.
Who are the clients?
Car rental in Moscow or other cities costs from 1500 rubles. in a day. Consequently, the clients are wealthy people with above average earnings. People in this category have their own cars. So why do they need a rented vehicle? As the heads of already operating companies explain, rented vehicles are needed for the period of repair of a personal car.
It turns out that almost half of the clients of car rental companies are owners of their own cars. Another quarter are those people who rent transport for trips outside the city or traveling around the country.
It is worth highlighting another category of people who rent cars to confirm their solvency and "show off" in front of clients or business partners. In such a situation, VIP cars are in demand. The number of clients who arrange transport for 2-3 months or even a year is also growing.
What cars to replenish the vehicle fleet with?
The car rental fleet is divided into two categories:
- budget. Here the emphasis is on domestic transport. There are only a few offices in this segment;
- expensive. This includes cars of foreign production belonging to different classes. Beginning and experienced companies prefer foreign cars for several reasons - they are reliable, durable and help to earn money (renting a foreign car is more expensive). In order to save money, it is worth working with specific suppliers. This is a chance to reduce purchase, maintenance and follow-up costs.
Transport, which belongs to the economy class, costs customers from 1500 rubles / day. Business class cars are more expensive - from 4000 rubles / day. The "middle" category includes the following cars - Honda Accord, Skoda Octavia and others. There is also a third category - business class (Audi A6, Mercedes). For these machines, you have to pay from 7000 rubles / day. The last category is elite. Here you come across such "copies" as the Mercedes Gelend-wagen. Here, transport costs from 10,000 rubles per day.
A number of companies work with limousines, which are in demand for weddings. Unlike other cars, this transport is provided not daily, but hourly. This is due to the requests of customers who need such cars for a minimum period of time. On average, Lincoln costs from 6,000 rubles / hour. This price is due to the provision of a car with a driver.
Additional service - "attaching" the driver to other types of cars. In this case, the margin is from 2000 rubles / day. At the same time, working hours, like other employees, are eight. It makes no sense to keep a driver on the staff - it's easier to hire people for short-term work. The calculation of drivers is done according to the formula - 1 driver for 6-7 cars.
Profit
The average car rental company has a fleet of 20-30 cars (in 90% of cases, foreign cars). When working with domestic transport, each of the positions is closed by two cars. One is bought for spare parts, and the other is for operation. In the case of foreign cars, such foresight is not economically justified.
The profitability of a car rental business is on average 20-30%. Regular profit is guaranteed with a stable load of transport. The ideal option is when each of the cars works 240-250 days a year, that is, 65-70% of the time. It is difficult to achieve such a result - it is worth advertising the product and not sparing money (at least at the initial stage). At first, the cost of an advertising campaign is up to 10-15% of the budget.
A profitable option is to rent a car to representatives of large companies for up to several months. In this case, the rental price goes down, but the real profit grows along with the load on the vehicle. So, if the daily price of a car is 3000 rubles, then when renting for a month, the price goes down to the level of 1500 rubles / day.
Another advantage of a long-term rental is the ability to save time and money on finding new visitors. Costs for paperwork and control are reduced. In addition, cars are rarely loaded for 15-17 days, but here there is a real benefit, albeit at an affordable rate.
Sales revenue starts in the summer during the holiday season. On average, in warm months, the demand for rental vehicles increases by 15-20%.
Leasing to help
Filling a car fleet by buying a vehicle is an expensive pleasure, so it is easier not to buy a vehicle, but to lease it. The advantage of this method is the need for a smaller amount of initial investment and the chance of subsequent purchase of cars. With regular payments, after 2.5-3 years, the car is written off and sold at a price 30-40% lower than the original one.
Car leasing schemes vary and are beneficial for entrepreneurs. The diagram looks like this:
- A novice businessman makes an initial payment of 25-30% of the cost of the car;
- Every month (quarter), the payments stipulated by the agreement are made in the amount of up to 3-5% of the price of the car;
- Payments are made during the lease term (25 months). After this time, one of the decisions is made - the car is bought out or returned to the leasing company. If the lease payments are 27,000 rubles every month, and the profit of one car is from 50,000 rubles, then the profit is obvious.
The key point is the life of the machine. In a car rental company, this period is limited to 2-3 years. After this time, the car loses its main components - appearance and "health". The machine is more likely to be repaired and less likely to perform the immediate task. The average mileage of a rented car is 30-35 thousand kilometers. Car enthusiasts do not run over such mileage even in 5-7 years. So the sale of a car is relevant until it has lost its price at all.
Current risks
In order to avoid risks, the car should not be given to all customers who have applied, but only to reliable ones. It is important to think over the restrictions, for example, the minimum age (21 or 25 years), driving experience (from 3 years), and so on. It is believed that with age, a person grows smarter and stops using the road as a place to test the performance of a car.
It is not superfluous to "push" clients to the fact of a criminal past. This is often done informally - through special contacts in the relevant structures. If you have a criminal record, you should refuse to rent a vehicle. On the other hand, no one can guarantee the protection of the car. The risk of an accident or theft remains.
Statistics show that today 2% of all rental cars are stolen. According to other statistics, for one reason or another, up to 3-5% of the vehicle fleet breaks down. You should be prepared that out of 110-120 leases, 6-7 with an accident. Consequently, the company incurs direct financial losses that are worth covering.
Even 10-20 years ago, car rental was considered a risky business, and car rental firms were defenseless against unscrupulous clients who beat the rented cars. Today everything has changed and a number of options have appeared:
- cars in the park are subject to compulsory insurance;
- for safety reasons, customers are required to pay a cash deposit, which differs depending on the vehicle. For budget vehicles, the deposit is 20,000 rubles, and for executive cars - from 50,000 rubles. This practice covers at least part of the losses in case of problems and gives the client an incentive to return the car on time, in integrity;
- sometimes the mileage is limited The average limit is 200-300 km. This measure prevents the renter from trying to use the car for a taxi. At the same time, the wear and tear of the vehicle is also reduced. If the limit is exceeded, then the client undertakes to pay a fine.
Business in numbers
Now it's worth moving on to the interesting part - the costs of starting a business:
1. Average cost of opening:
- Company registration - from 10,000 rubles;
- Parking lot for 6-8 places - from 25,000 rubles;
- Office rent - from 30,000 rubles.
2. Hiring staff. At the initial stage, the following employees will be required - manager (director), manager, accountant, technical worker, security officer. The total cost of wages is 80-120 thousand rubles.
3. Initial investment involves the purchase of transport. In the case of leasing, an advance payment of 17-20% of the cost of the car will be required. If you take 10 cars (5 of different classes), you will need an amount of 7,000,000 rubles. Investments in advertising are also needed - from 50,000 rubles.
4. Results. Thus, the cost of opening a company is from 7,500,000 rubles, the monthly turnover is 300-400 thousand rubles, the expected monthly profit is 70-80 thousand rubles.
Conclusion
Car rental in Moscow or another city is complex in its organization and, at first glance, is not very promising. But if you build your business and organize advertising correctly, there is a chance to get a lot of clients and stable profits.
