Love cars and looking for a business that allows you to indulge? Vehicle rental might be the thing for you. It has the potential for good profit and is scalable by the number of vehicles you command.
Ways to Go About It
There are two general methods to vehicle rentals. The first is a daily hire, often geared towards tourists, where your vehicle is leased out for a day or so. The second option is a contract hire, usually for businesses, where the vehicle is leased for longer periods of time — anywhere from a week to several months. Deciding which one to do will affect your choice in vehicle.
Acquiring Your Fleet
Purchasing quality used cars is often the better option especially if you’re just starting out. Consider, too, that the difference between a brand new car and a slightly used car could be as great as 25%. Especially if you opt to hire out to tourists and travelers, you can also try renting out recreational vehicles. There are a lot of used campers for sale if you look around. Look for local sellers because if your business is going to be in Arkansas then the vehicles you’ll purchase will already be registered there. This should save you some time in transporting and handling paperwork.
Insurance and Maintenance
Insurance is a necessity in any business and indispensable in this one. You’ll need to keep your entire fleet insured not just from accidents, but also from possible theft and other liabilities. This way, you can be assured of the security of your investments. More often than not, the expense of insuring is easily covered by your operations.
Keeping a staff to maintain your fleet may be a costly affair if you’re starting small. Try to work out a deal with a local auto repair shop in this case. Later, when you have more vehicles, you can hire an in-house mechanic.
Have a website. It’s a low-cost way to advertise and allows you to expand your reach. In addition, you will be able to transact over the Internet, giving you a 24-hour store front for your new venture.