Starting a car rental business is an activity with a promising future. Here are some tips to adopt to succeed in setting up a rental company.
Passionate about cars? You want to open your own car rental company? You’ve come to the right place! The management of a car rental business goes through several key steps to successfully open and consolidate its growth and profitability. Indeed, it is extremely important to manage your car rental business well and make the right management choices. So, how do you open a vehicle rental company? Note that the recommendations that follow apply to new as well as experienced professionals but also to those wishing to create a rental company for trucks, scooters, motorcycles or any other type of vehicle in the short, medium or long leases.
What training and regulations to set up a car rental business?
Before setting up a car rental business, it is recommended that you have at least several years of previous experience as an account manager or manager of a car rental company. The level required for recruitment is generally at graduate level, but you also can perfect and consolidate this experience directly through work-study programs. There is no training dedicated to this profession but many diplomas in business and management validate the essential knowledge and skills required to open acar rental company.
The rental sector is certainly a sector of the future and will tend to become more and more democratized. The regulation of a car rental company is therefore as strict as it is simple to understand. If you intend to run a car rental company, you will have to provide information on the general terms and conditions of the rental to your customers before renting cars, always check the condition of your vehicles and ask for a security deposit and liability insurance to cover your future expenses and damages. A substantial investment in a car fleet is naturally necessary before setting up a car rental company. Leasing or adopting a franchised structure can be interesting to control your investment. In many cases, car rental companies are created in the form of a limited liability company or opt for a simplified joint-stock company.
Policy, strategy and budget, what to do to manage a car rental company well?
To manage a car rental company well, it is essential to define a policy, a strategy and a budget consistent with its activity. However, establishing a general and pricing policy for a fleet of vehicles is not always obvious. Especially when you start with your first rental company. To start, study the market, supply and demand in the sector where you want to set up your rental agency. If the market has real potential, then you can draw up your business plan. Getting information and comparing the prices and strategies of your competitors in your geographical proximity is a first step. However, this does not mean that you have to copy your model on them, you will not necessarily have a competitive advantage! Worse, it could affect the profitability of your car rental business.
The most important thing to do before opening a car rental business is to clearly identify all of the costs generated by your future fleet of vehicles. It will then be much easier to establish the annual budget allocated to your fleet. The budget will then allow you to calculate the optimal number of vehicles and set a maximum operational cost per car. These operational costs include maintenance, consumption, insurance and depreciation. There are reporting and centralized information systems that will facilitate this, we will come back to this later. Once the costs have been identified and controlled, it will then be much easier to apply a consistent pricing policy for each of your vehicles. You will have a profitable model over the long term. On the other hand, analyzing the environment to implement yield management techniques and adapting prices according to the context is becoming more and more commonplace to manage a vehicle rental business properly.
I know and practice a budget adapted to my company and my fleet, what do I do next to successfully open a car rental company? As mentioned above, the pricing policy goes hand in hand with the general policy of your car rental company. More importantly, it needs to be communicated! A clear and exemplary communication of procedures to your customers, employees and colleagues clarifies many aspects, optimizes management and facilitates discussions, reservations and vehicle rentals. Believe us, this will avoid many misunderstandings and potential conflicts that are detrimental to your business! We advise you to opt for an annual update of these terms and conditions to avoid standing out for the wrong reasons in a very competitive rental market. They are the basis of any management of a car rental company. You have defined your policy, your strategy and your budget? It’s time to move on to optimizing the management of your company.
Optimize the management of a car rental company with a software program
After opening, optimizing the management of a car rental company will be crucial to the success and sustainable growth of your business. Fortunately, there are vehicle rental management software and computer systems available to help you set up a vehicle rental business. At hitechsoftware, with our expertise and experience in this field, we have developed the myrentcar online rental management solution. Easily accessible on computer, mobile and tablet to meet the mobility needs of the business, the myrentcar application centralizes and analyzes all aspects of the business to ensure a complete view of your rental business.
Benefit from considerable time and performance savings thanks to a clear and intuitive planning system. It manages all your vehicle cycles, from sales to invoicing and from reservation to contract and workshop management. Synchronizable and compatible directly with your management tools or your website, the resulting real-time data and performance will be essential for establishing a coherent policy, strategy and budget. Thanks to its many advantages and intelligent aids, myrentcar has today become indispensable for hundreds of car rental companies around the world. Would you like to open a car rental company and receive more information? Our experts are here to help you set up a car rental business, please do not hesitate to contact us by clicking here.