Hi all! been a while since I was on here.

My friend has asked me a question and its confusing me and everyone gives me a different answer.

He wants to start his own car rental firm, buying 1-10 cars to start with. Nothing major..probably golfs or passats. Simple right? not as it seems.

Its been bought to his attention...

He cant rent cars out which are financed as they are in breach of his finance contract?

So how do you get a car and legally rent it out? lease, contact hire, business lease?

Or get a bank loan and simply buy the vehicle out right. I have read about numerous cars that have been previously repossessed because they are not allowed to be rented out?

Someone steer him in the right direction.

Many thanks in advance.

H

 

Buy the cars outright

 

Like Hertz or Avis buy their cars

Steve

 

but surely even for avis and hertz buying out every single car out right is just crazy?

 

I was being sarcastic. Of course the big hire firms never buy their cars. They pay for the depreciation at a lower rate than the daily hire rate. And stiff you for damage and fuel

Steve

 

Unless it's something in a niche market like RV's or classic cars then he will never compete with hertz / avis / enterprise for bog standard rental.

do what I did which was start a business last year competing against the established players and lose a shed load of money..

Shaun

 

Do a HPI check on a major hire firms car and see who the finance is with. Then give them a ring on the number shown on the HPI report. Simples.

I suspect, the major players will lease direct from the manufacturer.