* Calculations use average data for Russia
2 090 000 ₽
Starting investments
180 000 ₽
70 000 - 130 000 ₽
Net profit
18 months
Payback period
Despite the emergence of carsharing, long-term car rental services remain in demand. In the article, we will consider how to enter this business with minimal investment, and what are the options for starting it.
Recently, we have already published material about the increasingly popular service of per-minute car rental - carsharing. However, life situations are different, and often many customers are interested in the option of car rental for a longer period. There are a lot of car rental companies on the market, and most of them are successful in their business. Therefore, we propose to consider in more detail the features of this niche.
Now in Russia there are both large international companies, including Avis and Europcar, as well as numerous representatives of small and medium-sized businesses. Well-known brands focus on car rental at airports and hotels, while small entrepreneurs (and often private traders) practice car rental under a taxi. In the first case, the rental period usually ranges from a day to several weeks, while renting a car for a taxi usually takes place for at least a month.
The service of daily rent is now offered even by numerous car sharing operators, and therefore serious competition cannot be avoided. However, carsharing has at least one significant drawback - the daily mileage of a car is usually limited to a modest 80 kilometers. But what if the car is taken for a trip on vacation or as a tool for work? And therefore, despite the newfangled passion of the population for carsharing, traditional car rental companies still have excellent prospects. As a rule, the latter have a mileage limit of 300-400 kilometers per day, or none at all. A weighty trump card, isn't it?
Earn up to
200 000 rub. a month, having fun!
2020 trend. Intelligent entertainment business. Minimum investment. No additional deductions or payments. Turnkey training.
In today's material, we will go through various areas of car rental and be sure to focus on all the features of running this business. So, let's begin.
Registration of a car rental business
Despite the fact that many aspiring entrepreneurs start with a black flag car rental business, we still recommend having an open LLC in case of payment by bank transfer and in order to avoid unnecessary questions from regulatory authorities. In this case, it is necessary to register the following OKVED code:
77.11 - rental and leasing of cars and light motor vehicles
In case some customers may need to rent a car with a driver, it is better to also enter the appropriate code from the classifier:
49.32 - activities of passenger taxis and rented cars with a driver
Choosing a car rental location
Many entrepreneurs who rent cars open a small office in the industrial zone next to the car service - to make it more convenient to service cars “on the spot” if necessary. In terms of costs, it will come out a little - about 20,000 rubles per month for parking and an office located nearby within walking distance.
Opening a representative office at an airport or a hotel complex is already a completely different level of costs, so for now, let's take a closer look at the actions at the start of a business. In the future, if you feel that this is “yours” and the car rental business provides a decent level of profit, you can think about moving to a new level. It will be possible to talk about the format with the opening of modern offices in places with good traffic.
Car rental equipment
To equip the office with everything you need, you don’t need much - 2-3 laptops and ordinary modern office equipment will be enough. It is quite realistic to meet 50,000 rubles. At first, there is no need to buy expensive equipment for transport maintenance - it will be enough to conclude agreements with the nearest car services. By the way, there are cases when an entrepreneur combines running several businesses in parallel - he keeps a car service center and rents out cars.
To save money, you can buy basic consumables yourself. First of all, these are automobile oils (long runs are planned), brake pads, wiper brushes, washer fluid. At first, it will be enough to buy everything you need for 20-30 thousand rubles.
As a rule, service stations sell spare parts and consumables with their own margin, and therefore it is better to find large wholesale distributors who can give you discounts as regular customers. The more cars in the park, the more you save.
Purchase of vehicles
The most heated debate flares up when it comes time to decide on the choice of cars for rent. Some entrepreneurs argue that it is worth taking only new cars from the salon. This choice is due to the fact that a standard three-year warranty will avoid at first a “headache” with possible machine repairs.
However, such an idea has its opponents - even some large rental companies with serious investment funds deliberately buy only used cars for rent. Supporters of this choice believe that even new cars are quickly “killed” by customers, and therefore it makes no sense to overpay for a car from the salon.
We see that, as often happens, "the truth is somewhere in the middle."
The best option for car rental may be a 3-4 year old foreign car in good condition, which does not require costs and is inexpensive to maintain. It is worth starting a business with models such as Hyundai Solaris, Kia Rio, VW Polo.
Again, no one denies that with the next level-up, you can buy more niche expensive cars. In particular, the Chevrolet Camaro, Mercedes-Benz SLK or the little Smart ForTwo Cabrio are in great demand in car rentals at resort hotels.
Suppose that at the start you have your own or borrowed budget of 2 million rubles. This will allow you to take 4-5 economy class cars: a couple of budget “Koreans”, one “deshman option” in the form of a Datsun on-Do and something from a golf class, such as a Kia Ceed or a Ford Focus.
Car rental staff
Since our startup does not yet involve a large amount of investment, you can limit yourself to a couple of people, not counting the owner of the business.
First of all, this is a mechanic who knows the device of the car well, who will be able to take care of all maintenance issues. The same employee can be engaged in the current purchase of consumables, if necessary, drive the car to the service or “painting”, engage in washing and dry cleaning.
The second person is a client manager who will deal with interaction with customers. These are phone calls, receiving and renting cars, signing lease agreements, controlling payments and checking drivers according to the traffic police and FSPP databases.
The payroll fund for employees is usually small and amounts to 30,000 rubles of monthly salary for each.
Financial indicators of car rental
As we mentioned above, the main expense item when starting a car rental and rental business will be the purchase of vehicles. Since we have planned the purchase of used cars, it is imperative to carefully check their technical condition, check for accidents and unpaid fines.
The average cost of renting a car varies from the number of days for which the client takes the car. Renting a car of the Hyundai Solaris class will cost from 1,500 to 2,000 rubles, which will allow you to earn from 45,000 rubles per month from each car, that is, from 180,000 rubles of income when renting four cars.
Ready-made ideas for your business
If we subtract the cost of the payroll for personnel, as well as about 20,000 rubles for maintenance and replacement of consumables, there will not be so much left. And therefore, many entrepreneurs at first save on everything they can - for example, few people in Russia formalize employees.
At first, some do without the above-mentioned personnel at all and are themselves engaged in maintaining clients.
Even if you don’t get loans and open a business with your hard-earned cash, the financial indicators from 4 cars look like this:
Thus, the payback period at the current given parameters will be about two and a half years. However, as we have already said, many entrepreneurs "pull the strap of business" themselves, without using additional hired employees. In this case, you can count not on conditional 70,000 rubles of profit, but on 120-130,000 rubles of income.
This business model is especially often used by businessmen who rent a car for a long period of time for taxi services - for example, in Uber or Yandex.Taxi. On the one hand, this is a plus - you do not need to deal with interaction with new customers and the routine of documents every day. In this case, you can not only manage on your own for the first time, but also run a business in another niche at the same time. Promotion methods
In the field of car rental and rental, according to representatives of this business, placing relevant ads on boards such as Avito, Yula and other similar resources works well.
Those who expect to rent cars in a taxi can establish partnerships with representatives of aggregators, who are periodically contacted by taxi drivers on the issue of employment.
A separate niche is corporate clients, which can be found by calling and mass mailing commercial offers. Many companies require long-term leases for the needs of the company - so why not try your hand at a segment like ALD Automotive? This is just one example of how a car rental service can grow into a thriving and well-established business. Some representatives of the B2B segment rent a car for a short period of time. For example, for the period of a business trip of employees to your region - it can be a couple of days or even weeks. Payment can be negotiated even higher than the market average.
Pitfalls and possible risks
Alas, no one is safe from scammers - this also applies to car rental. Some unscrupulous tenants specifically take a car for a short period of time, arranging a "auto-setup". The black market of insurers, despite the constant struggle from law enforcement agencies, still remains. And then, if you don’t want to receive a notification a day after the start of the lease that your rental Solaris has become a participant in an accident with some Mercedes S-class or Toyota Camry, carefully check the tenants for an accident history. It is likely that he has more than a dozen accidents behind him - it is better for such clients to refuse to issue cars. It will cost more.
The possibility of major breakdowns should not be ruled out - not all tenants treat their cars with care as if they were their own and do not spare transport, driving “in the tail and in the mane”. Even a budget car up to 5 years old can throw troubles with merciless operation. The main "sore points" are the wear of the suspension, the beginning "oil burner" of the engine, the kicking "automatic". It is always better to set aside depreciation funds from the income received for such unforeseen situations - otherwise an unplanned breakdown will hurt the entrepreneur's wallet.
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Business seasonality
As a rule, the largest flow of customers is observed in the summer period and before the New Year holidays. You should not count on taxi drivers and corporate customers in such a season. But wait for a large number of private traders who take cars for trips to the sea or to the mountains - for this purpose, it is worth coordinating the “partner program” with travel agencies in advance, which during the peak season can become your new channel for attracting customers.
Summing up
So, if you are not a happy resident of sunny Sochi or Yalta, at first give up the costly promotion and maintenance of the "premium". A well-established economy-class car rental service will be the best option and will either bring a good additional income, or, with intensive development, will grow into a separate serious business.
7334 people are studying this business today.
For 30 days this business was interested in 474872 times.
Profitability calculator for this business
Attention! The free business plan provided for download below is an example. The business plan that best suits the conditions of your business must be created with the help of specialists.
Car rental is the way to great success!
This story is told by a successful entrepreneur Nikolai Begun, who lives in the Moscow region and owns a small car rental business. Nikolai rented a building for an office and bought a site on which he built garages for cars. Its staff consists of five drivers, one accountant and two mechanics.
How did the idea of starting a business come about?
Cars are my weakness. As soon as I turned 18 and got my license, my parents gave me my first car, an old Moskvich.
But since it was old and required frequent repairs, sometimes I had to travel by public transport. Then the idea of creating a car rental business was born in my head.
Over the years, having collected some capital, I decided to open my own business. Before that, I already had a small auto parts store. Therefore, having a certain amount of money, I decided to realize my old dream and open my own car rental business.
We create a business plan correctly and inexpensively
I had no problems with renting an office and purchasing a site for cars. But having some business experience, I understood that I needed some kind of algorithm of actions that would help me compare income and expenses and get a good profit. This algorithm must be a valid business plan.
But after acquiring a plot of land for garages, I did not have enough funds to buy a real business plan.
Therefore, in order to implement my project, it was necessary to somehow get out, but nevertheless, I understood that the algorithm of actions was simply necessary. Otherwise, I could go broke without even starting to make a profit.
A business plan helps to take into account all the points, helps to see the shortcomings, and without it it is impossible:
- Accurately determine the initial amount required to open a business;
- Calculate how much capital and what cars will be required;
- Calculate the depreciation of the car park;
- Take into account advertising costs;
- Select the required staff.
And there are many other points that the car rental business plan contains. Therefore, without it, the entrepreneur feels like a helpless child.
So, my goal was to find a working business plan that was right for my business environment.
Ways to solve the problem
First of all, I found out how much it costs to buy a valid car rental business plan at RBC. Its cost turned out to be quite impressive and amounted to 50 thousand rubles.
The next idea was to download a business plan from a free site, which I did. But I couldn't find one that I really needed. Yes, there were various calculations, but they were either too outdated, or were not working at all.
Desperate to acquire the necessary algorithm for my actions, I shared the problem with my friend, who already had her own business and received decent income.
She advised me to buy an inexpensive business plan template and redesign it to fit my needs. I did just that, I just took and bought a ready-made business plan template for ridiculous money (550 rubles).
Next, I dealt with all the numbers that tend to change. This is the rent, and the exchange rate, and fuel. Having written out all the changing numbers, I again turned to the same friend and with her help we adjusted the purchased business plan template to my project.
So, thanks to the purchased business plan template for almost a nominal fee, I started my super profitable business, which brings me real income.
* Calculations use average data for Russia
2 090 000 ₽
Starting investments
180 000 ₽
70 000 - 130 000 ₽
Net profit
18 months
Payback period
Despite the emergence of carsharing, long-term car rental services remain in demand. In the article, we will consider how to enter this business with minimal investment, and what are the options for starting it.
Recently, we have already published material about the increasingly popular service of per-minute car rental - carsharing. However, life situations are different, and often many customers are interested in the option of car rental for a longer period. There are a lot of car rental companies on the market, and most of them are successful in their business. Therefore, we propose to consider in more detail the features of this niche.
Now in Russia there are both large international companies, including Avis and Europcar, as well as numerous representatives of small and medium-sized businesses. Well-known brands focus on car rental at airports and hotels, while small entrepreneurs (and often private traders) practice car rental under a taxi. In the first case, the rental period usually ranges from a day to several weeks, while renting a car for a taxi usually takes place for at least a month.
The service of daily rent is now offered even by numerous car sharing operators, and therefore serious competition cannot be avoided. However, carsharing has at least one significant drawback - the daily mileage of a car is usually limited to a modest 80 kilometers. But what if the car is taken for a trip on vacation or as a tool for work? And therefore, despite the newfangled passion of the population for carsharing, traditional car rental companies still have excellent prospects. As a rule, the latter have a mileage limit of 300-400 kilometers per day, or none at all. A weighty trump card, isn't it?
Earn up to
200 000 rub. a month, having fun!
2020 trend. Intelligent entertainment business. Minimum investment. No additional deductions or payments. Turnkey training.
In today's material, we will go through various areas of car rental and be sure to focus on all the features of running this business. So, let's begin.
Registration of a car rental business
Despite the fact that many aspiring entrepreneurs start with a black flag car rental business, we still recommend having an open LLC in case of payment by bank transfer and in order to avoid unnecessary questions from regulatory authorities. In this case, it is necessary to register the following OKVED code:
77.11 - rental and leasing of cars and light motor vehicles
In case some customers may need to rent a car with a driver, it is better to also enter the appropriate code from the classifier:
49.32 - activities of passenger taxis and rented cars with a driver
Choosing a car rental location
Many entrepreneurs who rent cars open a small office in the industrial zone next to the car service - to make it more convenient to service cars “on the spot” if necessary. In terms of costs, it will come out a little - about 20,000 rubles per month for parking and an office located nearby within walking distance.
Opening a representative office at an airport or a hotel complex is already a completely different level of costs, so for now, let's take a closer look at the actions at the start of a business. In the future, if you feel that this is “yours” and the car rental business provides a decent level of profit, you can think about moving to a new level. It will be possible to talk about the format with the opening of modern offices in places with good traffic.
Car rental equipment
To equip the office with everything you need, you don’t need much - 2-3 laptops and ordinary modern office equipment will be enough. It is quite realistic to meet 50,000 rubles. At first, there is no need to buy expensive equipment for transport maintenance - it will be enough to conclude agreements with the nearest car services. By the way, there are cases when an entrepreneur combines running several businesses in parallel - he keeps a car service center and rents out cars.
To save money, you can buy basic consumables yourself. First of all, these are automobile oils (long runs are planned), brake pads, wiper brushes, washer fluid. At first, it will be enough to buy everything you need for 20-30 thousand rubles.
As a rule, service stations sell spare parts and consumables with their own margin, and therefore it is better to find large wholesale distributors who can give you discounts as regular customers. The more cars in the park, the more you save.
Purchase of vehicles
The most heated debate flares up when it comes time to decide on the choice of cars for rent. Some entrepreneurs argue that it is worth taking only new cars from the salon. This choice is due to the fact that a standard three-year warranty will avoid at first a “headache” with possible machine repairs.
However, such an idea has its opponents - even some large rental companies with serious investment funds deliberately buy only used cars for rent. Supporters of this choice believe that even new cars are quickly “killed” by customers, and therefore it makes no sense to overpay for a car from the salon.
We see that, as often happens, "the truth is somewhere in the middle."
The best option for car rental may be a 3-4 year old foreign car in good condition, which does not require costs and is inexpensive to maintain. It is worth starting a business with models such as Hyundai Solaris, Kia Rio, VW Polo.
Again, no one denies that with the next level-up, you can buy more niche expensive cars. In particular, the Chevrolet Camaro, Mercedes-Benz SLK or the little Smart ForTwo Cabrio are in great demand in car rentals at resort hotels.
Suppose that at the start you have your own or borrowed budget of 2 million rubles. This will allow you to take 4-5 economy class cars: a couple of budget “Koreans”, one “deshman option” in the form of a Datsun on-Do and something from a golf class, such as a Kia Ceed or a Ford Focus.
Car rental staff
Since our startup does not yet involve a large amount of investment, you can limit yourself to a couple of people, not counting the owner of the business.
First of all, this is a mechanic who knows the device of the car well, who will be able to take care of all maintenance issues. The same employee can be engaged in the current purchase of consumables, if necessary, drive the car to the service or “painting”, engage in washing and dry cleaning.
The second person is a client manager who will deal with interaction with customers. These are phone calls, receiving and renting cars, signing lease agreements, controlling payments and checking drivers according to the traffic police and FSPP databases.
The payroll fund for employees is usually small and amounts to 30,000 rubles of monthly salary for each.
Financial indicators of car rental
As we mentioned above, the main expense item when starting a car rental and rental business will be the purchase of vehicles. Since we have planned the purchase of used cars, it is imperative to carefully check their technical condition, check for accidents and unpaid fines.
The average cost of renting a car varies from the number of days for which the client takes the car. Renting a car of the Hyundai Solaris class will cost from 1,500 to 2,000 rubles, which will allow you to earn from 45,000 rubles per month from each car, that is, from 180,000 rubles of income when renting four cars.
Ready-made ideas for your business
If we subtract the cost of the payroll for personnel, as well as about 20,000 rubles for maintenance and replacement of consumables, there will not be so much left. And therefore, many entrepreneurs at first save on everything they can - for example, few people in Russia formalize employees.
At first, some do without the above-mentioned personnel at all and are themselves engaged in maintaining clients.
Even if you don’t get loans and open a business with your hard-earned cash, the financial indicators from 4 cars look like this:
Thus, the payback period at the current given parameters will be about two and a half years. However, as we have already said, many entrepreneurs "pull the strap of business" themselves, without using additional hired employees. In this case, you can count not on conditional 70,000 rubles of profit, but on 120-130,000 rubles of income.
This business model is especially often used by businessmen who rent a car for a long period of time for taxi services - for example, in Uber or Yandex.Taxi. On the one hand, this is a plus - you do not need to deal with interaction with new customers and the routine of documents every day. In this case, you can not only manage at first on your own, but also run a business in another niche at the same time.
Ready-made ideas for your business
However, this format of work also has disadvantages - for example, accelerated wear of machines when used in work on taxi aggregators. The risk of a car getting into an accident also increases automatically - taxi drivers often work 14 hours a shift or more, which leads to an increase in the risk of getting into an accident. Therefore, we strongly recommend not only to issue an OSAGO policy, but also to take care of purchasing CASCO. This is an additional 30-40,000 rubles of expenses at the start of a business, but believe me - in the future it can significantly save your time, money and nerves.
Ways to promote
In the field of car rental and rental, according to representatives of this business, placing relevant ads on boards such as Avito, Yula and other similar resources works well.
Those who expect to rent cars in a taxi can establish partnerships with representatives of aggregators, who are periodically contacted by taxi drivers on the issue of employment.
A separate niche is corporate clients, which can be found by calling and mass mailing commercial offers. Many companies require long-term leases for the needs of the company - so why not try your hand at a segment like ALD Automotive? This is just one example of how a car rental service can grow into a thriving and well-established business. Some representatives of the B2B segment rent a car for a short period of time. For example, for the period of a business trip of employees to your region - it can be a couple of days or even weeks. Payment can be negotiated even higher than the market average.
Pitfalls and possible risks
Alas, no one is safe from scammers - this also applies to car rental. Some unscrupulous tenants specifically take a car for a short period of time, arranging a "auto-setup". The black market of insurers, despite the constant struggle from law enforcement agencies, still remains. And then, if you don’t want to receive a notification a day after the start of the lease that your rental Solaris has become a participant in an accident with some Mercedes S-class or Toyota Camry, carefully check the tenants for an accident history. It is likely that he has more than a dozen accidents behind him - it is better for such clients to refuse to issue cars. It will cost more.
The possibility of major breakdowns should not be ruled out - not all tenants treat their cars with care as if they were their own and do not spare transport, driving “in the tail and in the mane”. Even a budget car up to 5 years old can throw troubles with merciless operation. The main "sore points" are the wear of the suspension, the beginning "oil burner" of the engine, the kicking "automatic". It is always better to set aside depreciation funds from the income received for such unforeseen situations - otherwise an unplanned breakdown will hurt the entrepreneur's wallet.
Business seasonality
As a rule, the largest flow of customers is observed in the summer period and before the New Year holidays. You should not count on taxi drivers and corporate customers in such a season. But wait for a large number of private traders who take cars for trips to the sea or to the mountains - for this purpose, it is worth coordinating the “partner program” with travel agencies in advance, which during the peak season can become your new channel for attracting customers.
Summing up
So, if you are not a happy resident of sunny Sochi or Yalta, at first give up the costly promotion and maintenance of the "premium". A well-established economy-class car rental service will be the best option and will either bring a good additional income, or, with intensive development, will grow into a separate serious business.
7334 people are studying this business today.
For 30 days this business was interested in 474872 times.
Profitability calculator for this business
Now it is almost impossible to find such a person who would never think about starting his own business. After all, working for yourself promises a high income, if everything is organized correctly.
The main problem is that you can start any business only when a good idea has been formed in your thoughts and a competent plan has been drawn up for its implementation.
One of the most popular ideas is to organize your own car rental. Many people try to open a rental business, because it seems like such a simple thing to rent a car for a while and in the end get paid for it. Indeed, this type of business activity is one of the most accessible, since most people who need a car prefer to rent a car to use it as a taxi, or are looking for a lease.
But, like any other type of entrepreneurship, it has its own characteristics. Before you decide to transfer the car to someone else's use, you need to consider a few very important nuances. Initially, it is necessary to correctly draw up a contract and indicate the main terms of the transaction. This type of earnings carries certain risks and as a result, you can lose a lot of money.
To prevent this from happening, you need a properly drawn up business plan, in which you will include all planned expenses and incomes, as well as possible errors. But how do you know exactly what costs you will have to incur, and what will be the profit? What you need to remember in order not to create unnecessary problems for yourself? Let's try to figure this out.
Initial investment
Earlier we wrote that many consider this type of business to be one of the most profitable. Initially, only a small initial investment is expected. Partly it is. But only in part.
There are several important "buts". If a person is going to rent a car that has been exchanged for more than a dozen years, he must be prepared for unpleasant consequences. When traveling by such a car, especially without technical training, a potential tenant is practically guaranteed a breakdown on the road. This, in turn, may lead to demands for a refund and even compensation.
In order not to get into such a situation, you will need to carry out a complete diagnosis and necessary repairs of the machine, especially the old one. Identified malfunctions in a domestic car can cost an average of 20,000 rubles. Correcting and bringing an old foreign car into proper technical condition can cost up to 50,000 rubles or more. The best option would be if you, understanding the vehicles that you sell, can replace and repair everything you need yourself. This will save you a lot of money.
You will also have to spend money on acquiring the status of an individual entrepreneur or creating an organization. In theory, you can also engage in illegal business activities, but it’s better not to take risks. The legislation establishes a great responsibility for this.
Annual investment
And, of course, you should not build illusions that you need to spend money on only one-time technical training to start a business. Rental cars will inevitably require maintenance at least every year. Or maybe more often. In this case, how lucky.
There are necessary expenses, without which a car for rent will quickly turn into a pile of useless metal. It is unlikely that there will be a client who wants to pay his money for a rattling and constantly breaking vehicle.
Also, over time, it is worth thinking about expanding the business and accumulating the necessary amount for a major overhaul and the purchase of another car. And then - more and more. Business should not “stagnate”, it is necessary to strive for continuous development and improvement.
Some funds will have to be spent on advertising. For example, ads in newspapers and magazines, creation and maintenance of a website on the Internet, and in the long term - advertising on a local TV channel, otherwise customers will not be able to find out about the existing service.
In addition, every year you will have to renew your car insurance by purchasing an unlimited OSAGO policy. Without it, the car simply will not be able to move. In some cases, you will have to spend part of the money annually to organize a convenient parking lot.
Monthly investment
Being engaged in the organization of the lease, everything else will have to bear the current costs. The need for them will definitely arise every month. A certain amount will be needed for both current repairs and maintenance of your car. Do not forget about such "little things" as changing oil and other technical fluids.
The appearance of the car should also be as presentable as possible. After each use, it must be completely washed, and even better - also dry-clean the interior.
Someday a successful tenant will save up for his own parking lot, but for some time the car will be forced to spend the night in “foreign” parking lots. And of course you have to pay for security.
If things "go uphill", then it will be necessary to use the services of accounting organizations. With their help, you will be able to correctly calculate all taxes and fees from income-generating activities.
In order to search for potential tenants, you may have to spend funds to gain access to various databases.
Organization of workflow will require the cost of various office supplies and consumables: printer ink, paper, staplers, prints, and much, much more.
Income
So, how much can a well-organized car rental business generate? It depends on several factors.
- The class of the car being rented. For example, if a domestic car is rented, its rent will be no more than 1000 rubles per day. A foreign car will cost the tenant more: from 1,200–1,500 rubles for a Hyandai Solaris car and up to 2,000 on average for a foreign car like FordFocus.
- Number of cars for rent. Several middle-class cars will allow you to receive at least 30-90 thousand rubles a month, and maybe even more. For a year, income from renting several cars can reach up to 1-2 million rubles. The income for renting one car will be much more modest - approximately at the level of 300-400 thousand rubles a year.
- The type of locality in which the landlord operates. There will be no strong demand in a small town. In this case, maintaining a large fleet of vehicles is completely unprofitable. 1-2 cars for rent will bring about 200-300 thousand rubles of income per year. And vice versa - in the center of the metropolis, it will be necessary to try to increase the number of vehicles. High demand can provide you with a profit of up to 2 million rubles a year.
- Rental specifics. The rental car can be equipped with additional decorations and luxury for special occasions such as weddings and anniversaries. Or cars are provided for rent for traveling and conquering off-road. The price for them can be even higher than for executive models. As a result, the income will be much higher.
Profit
The level of income is a significant indicator. The only thing that matters is profit. What is the difference between these two concepts? Income represents all the financial resources that a company or citizen has received from entrepreneurial activities. And profit is the amount that remains if taxes, fees, expenses and other costs that arise in work are deducted from income.
What needs to be deducted from income to see profit? First of all, these are VAT - 18% and personal income tax, which is 13%. A legal entity will pay a tax on its income in the amount of 20%.
In addition to taxes, you need to take into account the costs of servicing and maintaining cars, paying for parking, buying insurance, etc. Only if you subtract all this, you can find out how much profit the landlord will receive in the end.
Many aspiring entrepreneurs are intimidated by the need to incur so many expenses. As a result, they abandon the idea of their business. This is extremely wrong, because there are many ways to save money and, as a result, get a decent profit. For example, you can switch to a simplified taxation system, according to which you can pay only 6% of your profits and not worry about anything else.
Also, in this case, there is no need to purchase a cash register and special equipment.
In extreme cases, you can save on parking and just park cars near your home or office. This is not as safe and somewhat risky, but such a risk is often well worth it.
Common mistakes when renting a car
So, according to statistics, when organizing a car rental, the following mistakes are most often made.
- Purchasing for rent a new car or a used car at an unreasonably high price. It makes absolutely no sense to buy a new car. It will simply pay for itself for a very long time. It will be ridden by many different people who are deeply indifferent to its condition. They obviously will not spare the car. Therefore, there is absolutely no point in overpaying. Instead, it is better to buy a few used cars without additional options.
- The appearance and aesthetic component of a used car do not matter. You should not waste time choosing a car without a single scratch and with a perfect interior. The main thing is that the body should not be rusty, especially the thresholds and bottom, and the motor and main systems should work smoothly. Thus - the main priority is the optimal ratio of price and quality. The less the car costs, the better for the business.
- Search for tenants. It must be remembered that the main goal is to make a profit. The identity of the tenant should be of little interest to you, the main thing is that he pays the money on time and provides a passport with a mark on the registration of the place of residence.
A car in Russia, as well as throughout the civilized world, has long become just a vehicle, a necessary tool for solving both personal and business problems. However, unlike other necessary things, such as, for example, a mobile gadget, a car is not always at hand, especially on various trips and business trips. To solve this problem, there is an entire industry of car rental, the turnover of which in the world is billions of dollars.
The concept of creating a business for the provision of car rental services (car rental) is based on the following: fundamental economic and social factors:
- The car rental market in Russia is underestimated compared to its counterpart in Europe by at least several dozen times. So, now about 50-70 thousand units of vehicles are used in the car rental market in Russia, while in European countries this figure is about 2 million cars. Those. The growth potential of the car rental market in our country has good prospects, which, in particular, is proved by its expansion rate - 15-20% per year.
- starting from 2014-2015 In Russia, there has been a clear trend of growing interest of Russian citizens and foreign tourists in routes and travel across the vast expanses of the country. This is expressed by a surge in car tourism, both in traditional Russian tourist clusters - capital cities, southern resorts, and the expansion of the geography of car tourism up to Kamchatka, Chukotka, Yakutia, Primorsky Krai and Sakhalin. This trend led to the growth of the market for the rental of special tourist vehicles - primarily off-road vehicles, jeeps, as well as vehicles for meeting tourists, transfers from airports, etc.
- the emergence of new information technologies allows such new formats of car rental services as carsharing to enter the market. This type of service can become not only a competitive business for traditional car renters, but also part of their business scheme. For example, you can rent temporarily idle vehicles on a short-term lease or open a separate car-sharing business using the existing material base.
To all the above factors, it should also be added that in addition to the growth of passenger car rental services, the fleet of rented special vehicles is growing significantly - from trucks to truck cranes, aerial platforms, excavators and even snow removal, repair, road and municipal equipment.
The payback period is 27 months.
The initial investment will be 11 220 000 rub.
The break-even point is reached at 3 month of operation of the car rental company.
Average monthly profit 421 254 rubles per month.
2. Description of the business, product or service
The main service of the company considered within the framework of this business plan is the provision of car rental without a driver. It is planned to use three main types of vehicles offered to customers:
1. Executive class cars - "Mercedes".
2. Cars of the middle class - such as "Toyota Camry" and "Volkswagen Polo"
3. Cars of a general user class - such as "Kia Rio".
Basic billing of services - daily.
Rental rates are as follows.
1. "Toyota Camry" - 7000-8000 rubles. per day
2. "Mercedes" - 15,000 rubles. day
3. "Solaris" - 3000 rubles. per day
4. "Kia Rio" - 2800 rubles. per day
5. "Polo" - 3200 rubles. per day.
When calculating the general income scheme, the average optimal variant of the fleet load is used - 75%,
As additional services, corporate clients will be offered services on an individual order - in particular, delivery to the hotel from the airport and back, support for any private or corporate events. The base rate for an individual transfer is 3,000 rubles per hour.
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3. Description of the market
In order to fully implement the concept and practical scheme of the business plan of a car rental company, at a minimum, it is necessary to know the main characteristics of the market in which the services will be provided.
Such basic characteristics of the car rental market in Russia include the following types of data:
1. The size of the car rental market, its dynamics and regional specifics.
The Russian car rental market dates back to the very beginning of the 2000s.
For more than 15 years, the car rental market has evolved from a narrowly segmented niche focused on wealthy clients in Moscow and St. Petersburg, into a developed network of specialized service companies, both domestic brands and companies operating under franchising agreements corporations in many cities of the country.
At the moment, the total volume of the car rental services market is at least 150-200 million dollars a year. Moreover, the dynamics of the development of this segment of transport services has been growing over the past few years at a rate of at least 15-20%. Such rates are due to the fact that the market still has a small capitalization, and, as experts say, the effect of a low base is affecting. Those. this is a situation where even in large Russian cities there are no more than a dozen rental companies with a fleet of more than 10-20 cars, each. The overall assessment of the car park in Russia operating in the car rental sector is still no more than 50-70 thousand cars, which is ten times less than, for example, in Europe, where the rental fleet is at least 2 million vehicles.
The specifics of the car rental market in Russia is the fact that the geographical concentration of companies providing such services is mainly concentrated in Moscow and St. Petersburg (almost 70% of the market), as well as in traditional tourist regions - Krasnodar Territory, adjacent to tourist clusters: Baikal, Altai Territory, Kamchatka, Primorsky Territory. It should be noted here that in regions where tourism is mainly presented as ecological (natural), the sector of demand for rental services is concentrated on the provision of off-road vehicles for rent - jeeps, as well as car camping services (including rental of motorhomes).
2. Market structure. The structure of the car rental market is based on the main categories of customers. These are people traveling on business trips, tourists, corporate clients. A large share is occupied by customers who do not have their own car at the moment, and tourists.
Since the car rental market in Russia is still underdeveloped, it has a highly segmented character. Those. there is not yet a sufficient number of strong players capable of somehow structuring and finally shaping the market. In the car rental markets, especially regional ones, there are a large number of small players who either work for a very narrow segment of customers or provide a car rental service as an additional one (this applies most of all to hotels, tourist centers and campsites).
In addition, representative offices of global car rental companies, such as Avis, Herz, Europcar, Rental Cars, Car Booking and others, began to actively appear in many large cities of Russia. The most demanded services are renting a car without a driver for business and personal purposes, including for traveling abroad, as well as renting executive cars with a driver.
It should also be noted here that car sharing companies, which can at the same time be ordinary car rental companies actively diversifying their business, are increasingly competing with the standard car rental format. For example, if we take into account the data of studies conducted by analysts at Morgan Stanley Bank, then by 2030 carsharing will occupy at least 25% of the entire car rental market.
As an illustrative example, we can cite the statistics for Moscow - more than 280 thousand subscribers have already registered in the metropolitan car sharing system. The number of trips since September 2015 has exceeded 1.3 million. Each rental car has an average of 8 customers per 24 hour period. According to the analytical agency Delimobil, the average travel time is 37 minutes.
Thus, we can conclude that the rental business will gradually shift towards the use of a combined business scheme, both an organic combination of the traditional car rental format and the use of car sharing schemes for providing services to customers.
It should also be added that the scope of car rental services in Russia will expand to a large extent due to an increase in the flow of domestic tourism, where car tourism will occupy the leading place, combining both the provision of vehicles for rent and hospitality services, escorting groups of tourists guides and instructors.
4. Sales and Marketing
5. Production plan
6. Organizational structure
7. Financial plan
8. Risk factors
The car rental market in Russia is relatively young, and it is still far from full saturation and the emergence of real big players and fierce competition. However, there are a number of risks that should not be neglected when starting a car rental business. Among these risks, first of all, the following negative factors should be noted:
- market risks that are associated with such unfavorable economic conditions as a decrease in consumer activity among groups of potential customers, economic crises, a decrease in the flow of tourists both within the country and arriving from other countries. Ways to neutralize such risks are few and very limited. You can use, for example, options for working with a low-budget fleet, or partially use idle cars to provide taxi services;
- competition from new service transport technologies. This is especially true for such formats as carsharing, where the time of using cars is actually distributed by minutes. Also, some of the competition comes from services such as Uber or Yandex.Taxi, which to some extent will intercept some of the car rental company's customers. The only effective measure to counter such risks is targeted work with certain groups of clients, for example, hotel guests, tourist groups, wedding corteges or accompaniment of various festive or official events (event industry)
- car rental business is characterized by high capital intensity, the financial threshold for entering it is quite high. In addition, technical maintenance, maintenance of the fleet, and its legal support (insurance, payment of taxes) also cost a lot of money (almost 25% of the company's capital turnover). Therefore, there is a risk that with a significant increase in the price of gasoline, spare parts or car insurance, the operating profit of the company may decrease markedly and immediately. To prevent such risks, you should have a certain financial reserve and make up for lost profits in time (without bringing the business to bankruptcy) until the business and customers adapt to the new economic reality.
In addition to these systemic risks, one should also not discount the fact that more serious competitors are already appearing on the horizon - unmanned vehicles and taxis. And even though this is still a matter of the future, nevertheless, in the perspective of several years in large cities of Russia, we can expect the appearance of the first companies providing unmanned car rental services using modern information technologies.
