turboman786

I'm thinking about starting a car hire business......I kinda figure that the general principal is that I lease cars from a leasing comapany, get insurance cover to hire em out and Im in business......or maybe Im being way too simplistic about this...

Does anyone have any experience of this trade?

I'd like to start with about 5 cars and I already have a good premises.....5 is just a ballpark figure which I think would be manageable for a single man operation....

So folks..can anyone advise me on:

Where to lease the cars from?
Prices of leasing...maintenance /mileage restrictions etc?
Cost of insurance and any limitations which I ought to be aware of?
How profitabel s this business...there is a real demand for hire cars around my proposed area...and I anticipate that provided I had pretty decent medium sized cars I would be Ok..
Cost of recovery(ie AA) for the fleet?

Any help would be much appreciated...

NotoriousREV

Have you looked into franchising with one of the big names?

It might be hard to compete with so few cars, for example, Avis operate on a profit margin of £2 per car per day.

Luke

NotoriousREV


Jesus..is that true???? Bloody hell thats cutting it fine

Luke

NotoriousREV


Jesus..is that true???? Bloody hell thats cutting it fine

My idea would be ..grow some good grass. You will make more money!!

ScoobyWon't

Only know about hire cars in Tenerife but I reckon the plan they use over there is pretty good.

1. Buy new cars. Get rid just before 3 years of age - Spanish law stipulates that 3 year old hire cars must have an ITV (spanish equivalent of MOT, private cars are 5 years there.)

2. Either be able to afford a large fleet (30ish) ranging from Saxo's to MPVs, have number based on customer budget e.g 15 saxo, 5 focus, 4 Seat Cordoba estaes etc working to 2 Nissan Serena MPVs or Join a pool where all cars are supplied by one dealer on part ownership. Kind of like a franchise.

3. Know the market - A saxo can be hired out at £8 per day - know the maintainence costs etc it's £8 - your servicing/valeting etc.

4. Er... sorry, too many beers. Can't think of any more

RON

I know a guy who had one van 20 years ago, he now has so many vehicles he doesn't even know how many he's got, he buy's the cars, with what would appear to be borrowed money, rents them out and sells them after 6, yes six months, so planty of cheapish car around here, but they've been ragged from day one, he's done alright out of it, he has 8 bases, numerous workers, and even rent out lorry tractor units now, strange how the cars ar always dirty thoug, I'm sure the impression would be better if the cars were clean and tidy!
Ron.

Chrisgr31

I would also suggest looking to be a franchise of one of the big chains, as the risk is minimised, you have access to a huge range of cars, possibly offer one way hire etc. Once you have learnt the business you could then go out alone.

If you go it alone I would look at buying the cars, and I would stick with one manufacturer. That way you'll get a better discount, also servicing will be easier, speak with your local dealers. Avis etc work on the basis that they buy the car for such a discount that when they sell it in 6 months time they haven't lost anything through depreciation!

Chris

Mr evolution

Phone Eurodrive in olney and say you are interested in a franchise then you can meet with someone there and they will provide you with lots of information on insurance leasing costs etc and you can get them to supply you with a business plan. Without heavy discounts on leasing prices or buying second hand fords and vauxhauls you will find it hard to compete with the bigger companies.