Have you decided to go into business and want to earn a little passive income? With a small amount of money, you are considering buying a car and renting the car in a taxi. It cannot be called completely passive - you will need to work and control everything. There are a lot of nuances and pitfalls in such a business. For example, buying just one car and renting it out to just anyone is very risky and dangerous. Below, a business plan has been drawn up that will show whether it is profitable to rent a car for a taxi? Approximate calculations are taken for a city with a population of 1,000,000 people.
So, to start this business, the first thing we need is cars (10 pieces). Give preference to the Russian car industry or foreign cars? We give preference to budget foreign cars, as in basic trim levels they are equipped with air conditioners, and clients of taxi companies call just such cars during a hot period of time.
- Buying 10 cars Reno logan, from budget foreign cars, they are not the most whimsical. The chassis of these cars is very strong, many sales representatives ride them. The car must be equipped with air conditioning. 400,000 rubles approximate cost this car, in total 4,000,000 rubles your first investment.
- You definitely need to open an individual entrepreneur in the field of taxi transportation. To do this, go to the tax office, submit an application and pay state fee... Obtain a special permit for taxi transportation for each car from the Ministry of Transport of your region - 33,000 rubles. It takes 30 days to issue permits from the date of application. To do this, you need to send the relevant documents to the Ministry of Transport of your region:
- IP registration certificate;
- TIN certificate;
- copy of the applicant's passport;
- copy of the vehicle registration certificate;
- a copy of the lease agreement or vehicle lease agreement, certified by the applicant, or a copy of a notarized power of attorney for the right to dispose of the vehicle.
- Be sure to think about car insurance, MTPL or Casco? It's up to you. Casco will compensate for any damage, no matter who is to blame, but it is expensive. MTPL is an acceptable option, but risky, you will receive compensation only if your driver is not the culprit of the accident. At the same time, you understand that you need to purchase an unlimited policy. Casco - 70,000-140,000 rubles a year, OSAGO - 25,000 - 35,000 rubles a year (we choose OSAGO). All cars must have special insurance, which says that the car is used in the taxi industry. If you do not take this point into account, then in case of an accident you can be left without compensation for damage, and you will be fined one thousand rubles.
- Installation of gas equipment (1 car - 25,000 rubles). Make sure that the gas bottle does not occupy most of the trunk. The total is 250,000 rubles.
Additional options required for work:
- GPS navigator 4,000 rubles / 10pcs / 40,000 rubles
- music, covers, first aid kit, fire extinguisher, emergency sign - 5,000 rubles / 10 pcs. / 50,000 rubles
- video recorder 3,000 rubles / 10 pcs. / 30,000 rubles
- purchase winter tires and disks 120,000 tr. (12,000 - 4 wheels)
Total investment before renting out cars: 4,866,346 rubles.
When everything is ready, the cars are equipped with everything you need, documents are in hand, you need to start earning.
Where to look for a client and how to rent a car?
So, everything is ready for you, and you need drivers to rent them a car for a taxi. You should not advertise in the newspaper and take the car in a taxi to the first oncoming drivers. The first thing you should do is to find out the addresses of taxi companies in your city, which recruit drivers exclusively with their own transport. You will need to agree with the director, the foreman to hand over 10 cars for daily work in a taxi and select the right people for the job. We strongly recommend that you personally attend the casting of drivers, and give preference to people with a driving experience of more than 5-7 years. It is better to hire people aged 40-50 years - they are more accurate drivers according to statistics. Make sure the worker has a local registration. Each car will be operated by 2 people 12 hours a day. approximate cost a car for working in a taxi per day in a city with a population of one million is 1,000 rubles. The driver who will work on the rental car must give you 500 rubles for a 12-hour shift. In this case, all the costs of repairing and maintaining cars that are rented out for taxis are borne by you. We'll talk about this below.
Let's summarize how much profit we get from renting a car in a taxi. Your “dirty profit” per day from one car is 1,000 rubles. But you have to understand that humans are not robots, and cars require maintenance - which is a little downtime. The net profit will be 800 rubles per day, and 24,000 rubles per month from one car. 10 cars - 240,000 rubles.
Not bad, right?
Now we need to talk about the possible risks and dark sides of renting a car. It makes no sense to rent one or two cars for a taxi. Anything can happen to the car: an accident, fraud on the driver's side, breakdowns - your passive income will become a severe headache. And if you have 10-15 cars, then even if something unexpected happens, your business will be profitable.
With each driver, you will have a notarized agreement on renting a car for a taxi. It is advisable that the management of the company in which the drivers will work would help you with this. The driver is solely responsible for external damage to the machine. Your drivers will work in shifts, therefore, it is necessary to draw up a report of acceptance and delivery of a car between them. Another tip that will make your life easier - make an agreement with the taxi driver's foreman so that he monitors the drivers' work process and notifies you on any important matter (of course, for a certain percentage or rate).
If everything is done correctly, then it is profitable to rent a car in a taxi.
Now you need to talk about car repair and maintenance.
Each car will cover 400-500 km per day, taking into account weekends - about 10,000 km per month. It turns out that you need to change the oil every month (oil change is 2,000-2,500 rubles per car). Not cheap, I want to tell you, and therefore you need to find a car service where you, as a corporate client who brings 10 taxi cars for oil change every month, will get a discount for a regular customer. There are others expendable materials that require timely replacement: brake pads, clutch, chassis, etc. You need to conclude an agreement with car warehouses for the sale of spare parts and consumables so that they sell goods at wholesale prices. You should not expect from the drivers the careful operation of the car in a taxi. For a year of work in the taxi industry, the car covers more than 100,000 km. In principle, serious investments will not be required for this period, but further breakdowns will be more and more frequent. In such a situation, many businessmen sell cars for secondary market and buy a batch of new cars. This usually happens after 2 years, when the engine resources are running out. At first glance, it may seem unprofitable, but used cars will be more and more idle for repairs, and this is time and your money.
Approximate calculations of this business for renting a car for a taxi and profit for the year
4 866 346 rubles initial investment this business when buying 10 Reno Logan cars.
Profit from one car, which is rented for a taxi - 24,000 rubles minus 2,500 rubles monthly engine oil change, minus 1,200 brake pads (every 2 months) total 600 rubles per month for pads = 20,900 rubles and deduct transport tax about 90 rubles. Net income from one car will be 20,810 rubles.
Conditionally we consider that all organizational measures took us 2 months, so the machines worked for 10 months and earned 2,081,000 rubles. For a year you can already earn 2,497,200 rubles. Taking into account how much was invested, it did not pay off, but you have cars that can be profitably sold for about 300,000 rubles apiece, if you make pre-sale preparation... It turns out that you can earn about 2.5 million rubles per year. and return 3 million rubles. from the sale of cars. The approximate net profit will be 630,854 rubles. Then you can also buy a batch of new cars and it is just as profitable to take them in a taxi. As practice shows, cars that are rented in a taxi serve for two years with timely maintenance, then it is not profitable to maintain and maintain them.
Small conclusion
Renting a car for a taxi is profitable business if all the details are thought out carefully and a lot of money is invested. Usually, people who have worked in the taxi industry for more than one year (driver, manager, foreman, mechanic) and understand all the nuances are engaged in this business. Owners of car services, auto shops, small taxi firms - they will feel great in the business of renting a car for a taxi.
For beginners in this field, it will not be sweet, especially if you are investing the last money. You must understand that renting a car for a taxi is not renting out real estate, anything can happen to the transport (accident, theft, fraud, bad faith of the driver, natural disaster). For you, this should all be production costs.
It is better to rent cars for taxis to family people, drivers who have children, they will need this job, and they will drive more accurately. Change all consumables on time, do not let things take their course. Almost everything needs to be controlled by yourself. Drive off the cars as often as possible to adjust the camber. Large taxi companies purchase cars on lease, it is very profitable, but only available to large businessmen with a good reputation. You have an individual entrepreneur, so any goods that will be needed for cars, purchase in warehouses at wholesale prices. Every month when a vehicle is idle, do a personal test drive to determine the condition of the suspension. Remember, in this business you need to save on everything you can. The business of renting a car for a taxi is in demand, many people do not have the opportunity to buy new car, and they willingly use the opportunity to rent it to work in a taxi.
Good luck in business!
Now it is almost impossible to find such a person who has never thought 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 you have formed in your thoughts good idea and a competent plan was drawn up for its implementation.
One of the most popular ideas is organizing a rental own car... Many are trying to open a rental business, because it seems such a simple thing: to give a car for a while and in the end get paid for it. Indeed, this type of entrepreneurial activity is one of the most affordable, since most people in need of a car prefer to rent a car in order 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 an agreement and indicate the main terms of the transaction. This type of earnings carries certain risks and, as a result, you can lose very much in money.
To prevent this from happening, you need a correctly drawn up business plan, in which you will enter all the planned expenses and incomes, and also take into account possible errors. But how do you know exactly what costs you will have to incur, and what will be the profit? What do you need to remember in order not to create unnecessary problems for yourself? Let's try to figure it 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 assumed. This is partly true. But only partially.
There are several important buts. If a person is going to rent a car that has changed for more than a dozen years, he must be prepared for unpleasant consequences. When driving such a car, especially without technical training, a potential tenant is practically guaranteed a breakdown on the road. This, in turn, may entail 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 cars, especially old ones. Identified malfunctions in a domestic car can cost an average of 20,000 rubles. Correction and bringing to the proper technical condition old foreign car can cost up to 50,000 rubles or more. The best option would be if you, understanding the auto equipment that you are renting, 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, illegal entrepreneurial activity can also be engaged, but it is better not to risk it. The legislation establishes great responsibility for this.
Annual investment
And, of course, you should not create the illusion that to organize a business you will need to spend money only on a one-time technical training. Rented cars will inevitably require maintenance at least every year. Or more often. V this case- if we get lucky.
There are necessary costs without which a rental car would quickly turn into a pile of useless metal. There is hardly a client who wants to pay his money for a thundering and constantly breaking vehicle.
Also, over time, it is worth thinking about expanding the business and accumulating the necessary amount to conduct overhaul and the purchase of another car. And then more and more. Business should not "mark time", it is necessary to strive for constant development and improvement.
Certain funds will have to be spent on advertising. For example, advertisements 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 clients will not be able to find out about the existing service.
In addition, every year you will have to renew the 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 investments
When organizing a lease, you will have to bear the operating costs in addition to everything else. The need for them will definitely arise every month. A certain amount will be needed for maintenance, and for the 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, or better yet, dry cleaning 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 “other people's” parking lots. And, of course, you will have to pay for the protection on them.
If the business "goes uphill", then it will be necessary to use the services of accounting organizations. With their help, you can correctly calculate all taxes and fees from income-generating activities.
To find potential tenants, you may have to spend funds to gain access to various databases.
Organization of document flow will require the cost of various stationery and consumables: printer ink, paper, staplers, printing and much, much more.
Income
So how much revenue can a well-run car rental business make? 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 renter more: from 1200–1500 rubles for a car of the HyandaiSolaris class and up to 2000 on average for a foreign car like FordFocus.
- The 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 amount 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 area in which the landlord operates. There will be no strong demand in a small town. In this case, maintaining a large vehicle fleet is completely unprofitable. 1-2 cars for rent will bring about 200-300 thousand rubles of income per year. And, conversely, in the center of the megalopolis 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 per year.
- The specifics of the lease. The rental car can be fitted with additional furnishings and luxury for special occasions such as weddings and anniversaries. Or rental cars are provided for travel and off-road conquest. The price for them can be even higher than for the representative models. In this connection, the income will be much higher.
Profit
Income level is a significant indicator. Only profit is more important than him. What is the difference between these two concepts? Income represents all financial resources that a company or citizen received from entrepreneurial activities. And profit is the amount that remains if taxes, fees, expenses and other costs arising in the work are subtracted from income.
What do you need to subtract from income to see a profit? First of all, these are VAT - 18% and personal income tax, which is 13%. The legal entity will pay 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 lessor will receive in the end.
Many aspiring entrepreneurs are intimidated by the burden of so many costs. 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, make a decent profit. For example, you can switch to a simplified taxation system, according to which you can pay only 6% of the profit and not worry about anything else.
Also, in this case, there is no need to purchase a cash register and special equipment.
As a last resort, you can save on the parking lot and just park your cars near your home or office. It is not so safe and somewhat risky, but such a risk is often fully justified.
Frequent mistakes when renting a car
So, according to statistics, when organizing a car rental, the following mistakes are most often made.
- Acquisition of a new car or a used car for rent 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. There will be many different people who will be deeply indifferent to his condition. They obviously will not feel sorry for the car. Therefore, there is absolutely no point in overpaying. Instead, it is better to buy a few used cars with no additional options.
- The appearance and aesthetics of a used car are irrelevant. You shouldn't waste time choosing a car without a single scratch and with the perfect interior. The main thing is that the body is not rusty, especially the sills and the bottom, and the engine and main systems must work smoothly. Thus, the main priority is the optimal ratio of price and quality. The less a car costs, the better for business.
- Search for tenants. It must be remembered that the main goal is to make a profit. The personality 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 of registration of residence.
The annual growth of car rental in Russia is 20% per year. The average turnover in this industry is about $ 2.5 million, and the annual turnover reaches $ 40 million, which is small compared to developed countries.
That is why there is a need to popularize car rental, which is still used by a rather narrow circle of consumers.
Competition
Car rental as a business with good incomes can develop only if all participants in the car rental market are taken into account, as well as to find out the features of the services that are provided.
Companies in this area can be divided into the following main groups:
- representatives of the world leaders in car rental, which have a fairly large-scale fleet of vehicles;
- domestic companies with a fleet of at least 50 vehicles;
- small firms with a small vehicle fleet (no more than 20 cars);
- companies that offer rental of vintage cars and exclusive brands for organizing various celebrations, weddings, festivals.
What investments do you need to make?
The car rental business is quite expensive. Thus, an entrepreneur must have at least ten vehicles that could be rented out. A good option for people who are unable to purchase vehicles for their own funds - to lease them, paying at the first stage up to 30% of the total cost.
It should be noted that CASCO insurance for each car requires significant costs, as well as the rental of the premises where the cars will be located. Some money will have to be invested in good advertising, which will help to find potential customers, since the car rental business is quite new. So, some people can constantly drive a rented car, while others are just trying to save money for their own car, without even thinking to use a rental car.
Despite the large investments, the profitability of this business is very high - according to statistics, the payback period is only 1-2 years. It should be noted that this business (car rental) requires careful planning to develop effectively.
Defining your customer base
In order to optimally provide services in this area, you need to know who most often takes a car for rent. I must say that renting even a domestic car is quite expensive - $ 18-30 per day. This means that the clients of companies that specialize in car rental must be people with sufficient income. But, as a rule, they have their own car, sometimes not one.
Why do people still use such services? Most often, car rental customers are those who have their own car, but for a number of reasons it is not possible to use it. Unlike foreigners, our citizens are not yet accustomed to renting a car while in a foreign city, therefore, as a rule, clients are local residents and people living in remote areas. 20% of them are people who decide to rent a car for entertainment or travel purposes.
Another group of consumers is people who rent a car for a short period (for example, for a day in order to appear at a business meeting in a new car). Also, don't forget about corporate clients.
Characteristics of vehicle fleets
If anyone is interested in car rental, a business plan in this area is a must. Before you start this type of making money, you should decide on the services that will be provided. So, there is a “cheap” segment, in which companies specializing in renting domestic cars operate. As a rule, "Zhiguli", which are characterized by an optimal ratio of quality and price, fall under exploitation.
It should be noted that domestic cars offers a limited number of large companies, since it is impossible to enter a more expensive segment without money for the purchase of hundreds of cheap cars. In addition, it should be remembered that vintage car rental is also in low demand.
Most of the rental companies operate in the "expensive" sector, offering medium, economy and business class cars. They work with foreign cars more often for two reasons - they are more reliable and you can take a large amount of money for their rent. Most often in the car fleets of rental companies you can find Mitsubishi, Audi, Honda Accord, Volkswagen passat or Skoda Octavia.
Limousine rental
You should know that when making a business plan, limousine rental is the most expensive one. As a rule, rent is calculated not in days, but in hours. Often such a car is taken for a short time and only for a certain event, for example, for a wedding. For example, you can rent a Lincoln for $ 60 an hour. It should be noted that such cars are rented with a driver. Rental wedding car- this is most often a limousine or other expensive or unusual car.
If the clients are foreigners, then, as a rule, they want to use the services of drivers when renting "ordinary" cars. The usual extra charge for a chauffeur's work is about $ 60 per day. Moreover, it will work for only 8 hours. To use its services for a longer time, you will have to pay extra. As a rule, car rental companies in their state do not keep drivers. They are hired to serve only specific orders, although some firms may have one chauffeur for 7-10 cars.
How to get good income?
Most professionals who understand the specifics of the rental market say that it is most profitable for a small or medium-sized company to keep no more than 30 cars in their fleet. Besides, it is better to rent foreign cars. Experts say that when working with domestic cars you will have to take two cars for one rental position (one for rent, and the other for spare parts). That is why using foreign cars is safer and, of course, cheaper.
Any business involves certain risks. But the most risky are projects that require significant financial investments to launch.
At the same time, there are other options, when there is a real one, without investing a lot of money and minimizing potential risks, reducing possible financial losses. One of them is renting a car.
If even 10 years ago such services were practically not in demand, now the situation has changed significantly. This is a priority area of activity for large cities and resort regions. Such a business has its own characteristics, which it is better to study in advance and understand its essence.
When cars are rented
Considering such a project as renting your own car for temporary lease as a business, you should understand why this service is in demand and when a person may actually need someone else's vehicle.
People with average or high income can buy, as well as simply rent, a car. It is not worth relying only on the category of citizens with small incomes.
But there are several reasons why they prefer renting rather than buying their own vehicle.
- There is no storage space, a person does not want to waste time and money on procedures for maintenance, repair, and insurance.
- The car is rarely used. And a long downtime in terms of the level of negative impact on the state of the vehicle is not inferior to aggressive operation.
- In large cities, it is sometimes easier and faster to get to work using public transport. When there are no other tasks in front of the car, it makes no sense to buy a personal car.
- There is a car, but now it is being repaired, but you need to go. It is often wiser to hire a car rather than wait for the car to be repaired and returned.
- A person is a tourist who wants to move around the city, to go to the region not by car, but not by public transport. Freedom of action is essential for many travelers.
- The driver rents a car to earn extra money. An actual option for taxi drivers, when you can get money behind the wheel of someone else's car on completely legal grounds.
All considered situations imply the possibility of renting a car. It will be cheaper, more profitable and more convenient for a person than paying for a taxi or.
As for whether it is profitable for a car owner to lease his car for a temporary lease, then you can express yourself in numbers. The most budget models can cost from 1-2 thousand rubles per day of rent. More prestigious and expensive cars able to bring the owner 5-10 thousand rubles.
But whether you should rent a car or not, everyone decides for himself. There are several ways to make money if you have your own car. Moreover, it is not at all necessary to be behind the wheel yourself. It is a mistake to think that a car is capable of making a profit only if you tax on it.
How to start a business
The amount of income from renting a car depends on many conditions, including the number of cars the owner has. It can be either one or several vehicles at once.
Therefore, before renting your car to any private or legal entity, determine the format of your business.
If you're planning, you can choose the franchise option here. The bottom line is to become a representative of a well-known company. Not a bad option for beginners, since a business like car rental can require a solid financial investment to start a project from scratch.
If desired or necessary, a small company of its own is created. To do this, be sure to assess the level of competition and make sure that you are able to reach a certain level. It will be extremely simple to register an enterprise, since according to our legislation, special licenses are not required for renting a vehicle.
At the initial stage, everything is done according to the standard scheme. Namely, it is selected office space, staff, office equipment and licensed software... Please note that there are not so many specialists in this area, and therefore difficulties may arise with the selection of employees with certain qualifications and work experience.
Potential audience
An important issue is the target audience, which can become a consumer of the services you offer. Ordinary individuals or legal entities can act as car leasers. Moreover, individuals or individuals are understood most often by businessmen, entrepreneurs, managers and just wealthy people.
Many foreign dealerships quite often turn to rental companies to provide themselves with the required number of cars. They do not have their own vehicle fleet, and it is sometimes not financially expedient to maintain it.
The potential client list is pretty impressive. Then you will be able to find out to whom you can rent a car, and in what other ways car owners who do not own cars earn, without making any special efforts. This is a good alternative to organizing a whole rental business.
Car selection
It is even more important which cars are better for renting and what will be profitable.
The number of vehicles directly depends on the scale of the rental organization's activities. From the start, it is practically pointless to buy several dozen executive class cars, since there is a high probability that it will not go to zero, not start earning.
Large Western companies may have 100-300 vehicles in their fleet. But there are also small organizations that offer literally 10 cars.
Keep in mind that as demand will increase. It is then that it is worth expanding the vehicle fleet, adding new transport units to it.
Clients looking for a car rental appreciate the choice. And the bigger it is, the better. Optimally, the vehicle fleet should contain cars different classes, ranging from economy to executive. Moreover, the analysis of the market clearly shows that the highest demand and the largest volumes of profit are brought by cars of the economy class and the middle price segment. Elite foreign cars are expensive, but they are rarely rented.
How much money does it take to start a business
There are several factors you can take into account here and apply them to your business plans and ideas:
- One budget car type Hyundai solaris or Kia rio costs from 800 thousand to 1 million rubles, depending on the configuration. Mid-budget models cost 1.2-2 million, and the cost of prestigious cars can range from 2.5 million rubles or more. It remains only to calculate the number of cars and their type.
- Additionally, you will need to buy or rent an office space, provide parking spaces for cars. Usually it is from 150 thousand rubles per month or more.
- Each machine will need regular maintenance, periodic repairs. Budget models require an average of $ 100 per month for their upkeep. The costs are much higher for the prestigious models, although the potential profit is higher.
- The organization of the office itself provides for the purchase of furniture, office equipment, software installation, Internet and telephone connection. All this will cost at least 200 thousand rubles.
- Personnel salaries are also included in the main part of expenses. It is difficult to give specific numbers here, but the salary of the same account manager must be at least 30 thousand rubles a month.
Add here all sorts of additional costs, advertising, promotion of the site or social networks, unplanned renovation work and other emergency situations, and get a fairly solid total amount.
In some cases, it is much wiser to start with a minimal business in the form of renting your car or a pair of cars. A large office is not required for this, as well as a staff of employees. The main efforts will be dedicated to building awareness and finding customers.
Car rental potential
Provided a competently drawn up business plan for car rental and its correct implementation, earnings on such a project can be quite solid. Moreover, this is possible both in the case of renting only one personal car, and when organizing a full-fledged company.
Average market price inexpensive rent or budget car per day costs 10-12 dollars. This is about $ 300-350 per month, subject to constant demand. The more expensive and more prestigious the car itself, the more money it will ultimately bring from one client. The only catch is that expensive cars are rented much less often than budget and mid-budget ones.
In any business, it is important to properly manage your finances.
The total expenses, which include taxes, insurance, advertising, maintenance and other costs, can be $ 70-100 per month in relation to inexpensive car... Renting out an economy class car, the net monthly profit from one car can be $ 200-300. If there are about 10 cars, then this is already 2-3 thousand dollars per month of work. Much depends on the level of demand, as well as the vehicle fleet itself and the interest of potential customers in your services.
Getting started without a sound car rental business plan is not recommended. You can compile it yourself, or contact specialized specialists. But the second option involves additional financial costs.
Required documents
Yes, you can rent a car unofficially, but this can entail certain negative consequences. Plus, customers who will contact you without the appropriate documents and permits simply do not want to contact, and will give preference to competitors.
For legal work in this area for renting a car or one car for rent, you need to issue an individual entrepreneur through the tax service. The procedure is not complicated, it is carried out according to the standard scheme. You only need to write an application, pay the fee and present the documents. After about 3 working days, you will receive a permit and will be able to start your business as a sole proprietor. After that, you can start renting your car.
The tax office will require you to indicate the code of your field of activity. In the case of car rental, the current OKVED code is 71.10.
To rent a car, you will need to have a certain package of documents, consisting of:
- technical passport of the vehicle;
- CASCO insurance policy;
- insurance under the OSAGO system;
- agreement on the transfer of the vehicle for lease with all conditions;
- documents on the passage of the vehicle MOT;
- act on technical condition auto certified through a notary.
Even beginners shouldn't have any problems with basic documents. But in order to draw up a competent contract for renting your car or several cars for rent, it makes sense to contact a specialized lawyer. Having issued one standard contract with him for a certain fee, in the future you will only have to print it out and enter data about a specific client or machine into the agreement.
Who should I rent my car to?
There is an option of earning money in the form of opening a whole car rental business with the purchase of cars and the formation of a car fleet. But there is another option, which provides for a passive or active way of earning money on your own personal car in the amount of literally one unit.
Moreover, such a small business is also capable of generating profit. The only question is who and in what format you will be in temporary possession.
Experts in this field give several important recommendations on how to properly rent a car.
The paramount question is where exactly you can or should rent your car. In fact, there are several main options. Each of them has its own nuances.
- Taxi service... The most popular and simple option delivery to taxi services is considered. You give the car to a company that will use it for passenger transportation. In this case, the car is in constant employment mode. This allows the owner to constantly receive a stable profit in the form of a fixed amount or a percentage of earnings. Before renting your car to a transportation company, check it, conclude an agreement, draw up an acceptance certificate.
- Rental services... Objectively, many do not risk leasing their own car to an almost unknown person. natural person... In the case of a rental service, the car will be subleased, since you transfer the car to the organization, and third parties already rent the vehicle from it. There is no significant difference in terms of contract execution in comparison with a taxi. Only the conditions indicate not a fixed fee, but a percentage of the profit. What it will be is a purely individual question. Most often, the service takes from 20 to 40%, and everything else is transferred to the owner of the car. The only problem is that sometimes your car can stand idle, waiting for customers for a long time. Stable and permanent income is out of the question here.
- Other firms... This includes almost any organization that is not related to rental or taxi. But they may need company vehicles, not wanting to maintain their vehicle fleet. This is not as uncommon as some might think, since for financial reasons, many companies do not really find it profitable to maintain their own fleet of cars.
- Private persons... Another option is to lease your car to a private individual. This is potentially more risky if the renter is not an acquaintance or friend. It is quite difficult to check how respectable a person is. Before renting out your car to a private trader, present a number of requirements to him. It must be a person with a local registration, his driving experience is at least 3-5 years. Be sure to conclude an agreement certified by a notary. Even under such conditions, this is the most risky option for earning money on your own car.
- Rent with driver... This type of business will suit the owners of expensive, elite, exclusive and unusual cars. There is no longer any question of passive income, since the owner of the vehicle acts as a driver. But it is potentially a lucrative business. Rent with a driver may be in demand for weddings and other special events, for daily or hourly rentals. A business person has arrived in an unfamiliar city, he needs to visit many different places during the day or several days. Taxi is too expensive and public transport often unacceptable. Therefore, it will be easier for the client to hire a person with a car who knows the city and will be able to drive it all this time.
As you can see, there are a lot of options for passive and active earnings. Although the latter option can be excluded if you are pursuing the goal of earning just passively, simply transferring your vehicle to another person or organization for temporary possession, thereby earning a profit.
The intricacies of the car rental business
There are a few things to consider. Special attention so that they do not become a problem or an unpleasant surprise for you.
- Insurance... There are no problems with OSAGO. Simply select an unlimited number of drivers as an option. With hull insurance, everything is more difficult, since most companies refuse to insure rolling machines, or deliberately increase their tariffs. But the law sided with the drivers, as a result of which it is now possible to issue the cheapest type of contract. The insurer is obliged to insure the car.
- Tracking systems... Since cars are transferred to the hands of unfamiliar people, it will be a direct necessity to install a tracker on each car. The tracking equipment costs about 5-10 thousand rubles. At the same time, you will be able to constantly know where this or that vehicle is.
- Accommodation... If there are not so many cars, no more than 10 units, and half of them are in constant operation, for the rest a place can be allocated near train stations, near large shopping and office centers. Another option is to rent parking spaces at intercepting parking lots.
- Advertising... They should know about you. At the initial stage, it is not necessary to create your own website, although in the long term this is a smart decision. Initially, you can get by with advertising in newspapers and outdoor advertising.
You can earn money by renting your own car. Also, at present, a promising business is the opening of your own rental company. The amount of income depends on many factors. But with a competent approach, you can achieve significant progress, expand your influence and gradually increase your car fleet, attracting more and more new customers.
For beginners, for a start, it makes sense to consider the idea of renting their car. In the future, this may develop into something more serious, or it may remain a good option for passive income with a profit of 20-30 thousand rubles per month.
Attention! The free business plan offered for download below is a rough guide. The business plan that best suits your business conditions needs to 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 small business car rental. Nikolai rented an office building and bought out the site where 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 he was old and demanded frequent repairs, sometimes I had to use public transport. Then the idea of creating a car rental business was born in my head.
Having collected some capital over the years, 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 make my old dream come true and open own business car rental.
We create a business plan correctly and inexpensively
I had no problems with renting an office and purchasing a car site. But having some experience in doing business, I realized that I needed some kind of algorithm of actions that would help me compare income and expenses and get a good profit. This algorithm should be a valid business plan.
But after the acquisition land plot for garages, I did not have sufficient funds to buy a real business plan.
Therefore, to implement my project, it was necessary to somehow get out, but nevertheless I understood that an algorithm of actions is simply necessary. Otherwise, I could go broke without even starting to make a profit.
The business plan helps to take into account all the points, helps to see the shortcomings and without it it is impossible:
- Determine exactly the initial amount required to open a business;
- Calculate how much capital and what cars will be required;
- Calculate the depreciation of the vehicle fleet;
- Consider advertising costs;
- Find the required personnel.
And there are many more points that a car rental business plan contains. Therefore, without him, 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 in RBC. Its cost turned out to be quite impressive and amounted to 50 thousand rubles.
The next idea was to download the business plan from a free site, which I did. But I could not find the one that I really needed. Yes, there were various calculations, but they were either too outdated, or were not at all working.
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 rework it to fit my conditions. I did just that, I just took and bought a ready-made business plan template for ridiculous money (550 rubles).
Next, I figured out 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 fitted 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.
