Steps to Run a Car Rental Business Opportunity

Cars have become an important necessity in today's world; all activities from work demand to personal needs will be easily resolved supported by this vehicle. It can be seen in everyday life that even though the streets are getting crowded and congested, it still doesn't reduce the number of vehicle needs, but instead increases. This indicates that people increasingly need the need for transportation to support their respective activities. We have to be observant about the needs people need today and make it a profitable business opportunity. One of them is providing a business of rent a car in Karachi, why is it profitable? Read the discussion below.

With the increasing number of our daily activities, sometimes we don't want to be bothered with caring for a car. Of course, car vehicles used every day require routine maintenance such as car washing, periodic service, handling vehicle documents, and many other treatments. For those whose daily activities are quite dense, of course, it becomes a burden in itself, because let alone doing vehicle maintenance, just taking care of work is full all day. Especially for car service, it takes a minimum of 2-3 hours because of queues at the garage. Therefore, the car rental business is now a solution to solving the above problems; it's very practical to use the car without worrying about routine maintenance. Apart from individual tenants, car rental businesses are also widely seen by companies as operational vehicles for their employees. The reason is, of course, the same as before, they are looking for practicality. Apart from that, of course, there are many other reasons we need car rental business services. You can read the article on choosing a suitable vehicle for rental Tips for Choosing a Vehicle for a Car Rental Business

Initial Steps to Open a Business

If we want to start this business, do we need a large amount of capital to run it, considering the car's price reaches hundreds of millions of rupiah? If so, how many billions we have to prepare to provide a car for rent? Of course not. Just do a car purchase on credit; now, many leasing provides it. It tends to make it easier to purchase vehicles on credit; no need to linger; we have to come to the car showroom, show what car you want, then 2-3 days the car will be sent home. Of course, after we pay the DP first. For the experimental stage, you should buy a vehicle in 1 unit in stages first, try marketing our services to neighbors around the house, but our neighbors all own cars, why would they rent our car? Don't be pessimistic just yet; as discussed above, maybe someone already has a car, but they still need another car and don't want to be bothered with maintenance; it could happen.

After marketing around the place of residence, we can expand our promotion of services and use the way of promotion using the mass media in our city, making classifieds for example. Or it could be by using internet media, social media, and others. If you have promoted to this stage, then the car you rented will not be enough if only 1 unit is available.

Promote to Companies

The next stage of developing this car rental business is to promote our services to companies. This is the most accurate step to attract profits, how come? Companies that require car rental services, on average, need several car units to rent, so it's not just one car unit, and besides that, usually, the company doesn't rent daily, but at least weekly or even months. Of course, it's profitable, isn't it, but the services we provide are different, for example, the rental price is cheaper, but our work to promote services will also be lighter because of such a rental system.

To get tenants from our company, we have to bother a little in promoting our services; we must come to the target company and offer our services. Here we have to be smart in the offering, giving bonuses apart from discounts to attract our potential customers. If you have successfully carried out this stage, I am sure that three-car rent units will not be sufficient.

Profit Analysis

Surely this part is very much awaited by those of you who are planning to run this business, as an encouragement for us to both calculate the benefits of this car rental business opportunity ...

The rental price for one car in the same class as Avanza in one day on average is 400 thousand, of which we have to deduct it to pay for the driver, so the more or less money we get is 350 thousand. If the car's monthly installments require funds, for example 4 million (assuming installments for 4 years), then we need a little in a month, our car is rented only 12 times, and the rest can be our advantage.

Imagine if in 1 month our car was rented 25 times, then the funds obtained would be 350,000 x 25 = 8,750,000. Deducted by the cost of car installments, we still leave a profit of 4,750,000 for one car. Quite tempting, right ?? calculate yourself if we have more than three units of cars.

But still, it is just an analysis, when running it is certainly not as easy as it seems, we have to fight for it consistently so that the target of 1 unit of the car rented a month is achieved 25 times. Here I will give a few tips for running this car rental business.

Rent a car that is the latest and commonly used daily. So that car maintenance is cheaper due to new conditions and more guaranteed tenant comfort. Besides that, the latest car models are also a plus to compete with competitors in the same business.

Provide extra service to consumers. Such as providing a friendly driver and the vehicle's condition is maintained. If consumers are satisfied, there will be automatic, free, and targeted promotions from consumers who recommend to other colleagues.

Promote continuously. Post classified ads regularly in the leading mass media in your city, visit companies that need your services.

Provide convenience in renting, such as providing shuttle services and providing flexible vehicle rental packages, such as hourly, daily, monthly to yearly rentals.

Please pay attention to safety. do not rent your vehicle without a driver to a tenant; you do not know unless it is a company that uses a formal and safe agreement.