• How much does it cost to start a business
• How much can you earn
  • Purchase of Hyundai Solaris
  • Buying Nissan Tiana
  • Rent a Renolt Logan
• Legal Framework
• Business Technologies

In recent years, car rental has come into fashion in Russia. Moreover, the service is of interest to both car owners and potential tenants. Almost everyone has a car these days. And some owners, being in the office all day, rent out their car. At the same time, in the capital, such services earn up to 2,000 rubles a day.

But imperfect car rental legislation, as well as fear for their car, often prevent owners from starting a business, even if their car is idle for hours under the office windows or in the garage.

However, car rental is a real and very profitable business, and if you approach its organization correctly, the earnings can be quite impressive.

Where to begin. Step by step business plan

First of all, if you already have a car and want to rent it out, you need to take care of the safety of the car. Experts advise first of all to insure your car and issue an extended CASCO. If you have just decided to buy a car, think about which car for renting is more profitable for you to buy. After that, you can draw up a detailed business plan, without which organizing a business is impossible. You will need to decide on the form of ownership, decide whether to rent a car without a driver or use it as a taxi (in the latter case, you need to find good drivers). It is important to conduct a good advertising campaign, as the car rental business is relatively new and only serious advertising can help promote it. Moreover, large companies also rent foreign cars in megacities. And their services are relatively inexpensive.

How much does it cost to start a business

You can start a car rental business with minimal investment. If, for example, you apply for a loan without down payments, then the costs may be less than 10,000 rubles. If you decide to buy a car right away, then you need to count on an amount of 500,000 rubles.

How much can you earn

Earnings on car rental on average can be from 500 thousand rubles a year. In order to understand what income is made up of, Let's look at a few cases.

Purchase of Hyundai Solaris

A 2-year-old Hyundai Solaris was purchased for 490,000. Taking into account additional expenses, the initial investment amounted to 532,300 rubles, and the net profit that the car brought in 3 years was 1,480,000 rubles.

Case: 2 year old Hyundai Solaris

Buying Nissan Tiana

The initial investment in the car amounted to 1,002,866 rubles, including additional costs, insurance and CASCO. With a rent for a car of 2,800 per day, the car brought in three years a net profit of 2,524,636 rubles

Case: 2 year old Nissan Tiana

Now consider examples where the initial investment is minimized.

Rent a Renolt Logan

Monthly rent for Renolt Logan

- 31,000 rubles income per month amounted to 72,000 rubles, that is, one car can bring a profit of 41,000 rubles per month.

Case: Rent a Renolt Logan

Purchase on credit. 3 year old "Hyundai Solaris"

With a rather high loan payment, 20,700 rubles per month, the profit for three years amounted to 1,278,000 rubles. Moreover, the initial costs slightly exceeded 7,000 rubles.

Case: 3 year old "Hyundai Solaris"

It must be remembered that the cheaper the car, the more you can earn on it. But, at the same time, an expensive car creates less headaches.

Legal Framework

What OKVED code to indicate when registering a car rental business

To register a car rental business, you need to take into account two OKVED codes. OKVED code 71.11 includes rental and leasing of cars and light vehicles. It must be specified if you will rent a car without drivers. If you decide to hire drivers and work with them, then another OKVED code 49.32 - “Provision of taxi services” will do.

What documents are needed to open a car rental business

First of all, the business will need to be registered. If you have five cars or more, then such an organizational and legal form as LLC is suitable. But it is better to start with an individual entrepreneur, especially since at first 1-2 cars are enough for renting. It is also necessary to issue: insurance, CASCO and conclude a contract for renting a car.

Which taxation system to choose for registering a car rental business

Simplification is quite suitable for a car rental business. You only need to choose to pay 6% of profits, or 15% of income minus expenses.

Do I need permission to register a car rental business?

The existing legal framework for car rental in Russia is still imperfect. And in fact, you do not need any special permits in order to rent your car. A very important point is good advertising. It should be given special attention when organizing a business.

Business Technologies

Eat several ways to organize a business, on which you can make good money: hourly renting cars, hiring drivers, or renting a taxi fleet.

When renting a car by the hour, it is better to target customers with above-average incomes. As a rule, they take a car to go out of town, when repairing their own transport, or to impress business partners.

It is very profitable to hire drivers. It is best to offer work to familiar employees of taxi companies. If you have a good car and better terms, they will be happy to move to you. You can search for a driver on the ads on Avito or consider offers of special services. For one car, you need at least 2 drivers so that there is no downtime and the car constantly makes a profit.

When you do not have the opportunity or time to do business yourself, you can find a company that will rent your car for a certain percentage. It is also not a problem to rent a car to a taxi company, where there are often not enough good cars. Of course, in this case, the income will be less, but you will be spared from many problems.

To fully decide on the strategy of running an automotive business, we advise you register for intensive from an investor who has made great strides in this niche.

How to open your own business so that it brings a stable income? First of all, it is necessary to study the needs of the market and the demand for a particular service or product. If you live in a resort area or your city has historical sites, business centers that attract tourists and business travelers, then you should consider options on how to open a car rental, properly organize an enterprise to make it profitable.

Where to start your business?

The demand for car rental is due to the fact that in this way visitors can save on taxis and get freedom of movement. According to statistics, the majority of consumers (seventy percent) are people who have arrived from other cities or countries, and 30% are local residents. The service is very popular, especially in the summer.

At the beginning of the activity, a car rental business plan is developed, it must take into account the experience of such organizations, their advantages and disadvantages. After that, your own business must be registered as a legal entity. A suitable form is a limited liability company. Next - registration with the tax authorities. Then you need to choose and rent a room where the company's office, garage and parking will be located.

Financial expenses

The cost of registering a company is two hundred and fifty dollars; for renting an office, you will have to pay an amount of six hundred to seven hundred dollars. Cash investments will require the purchase of a car park and garage space. In addition, all vehicles must be insured (for example, in case of an accident).

It is necessary that the car rental business plan includes the organization of its own repair base for equipment depreciation. You will have to pay taxes, pay salaries to employees. In total, expenses can amount to one and a half percent of the total income. As a start-up capital, when starting a business, you can get a bank loan. The main costs of opening a business include investments in advertising.

You need to start promoting the company at the same time as registering it, so that by the time it starts functioning, you have a potential client base. Information can be placed in newspapers, where they publish free ads, on websites on the Internet, on television. Helps to attract customers and visual advertising on the streets of the city. Investments in business promotion can be about three thousand dollars.

Unforeseen expenses are also included in the car rental business plan. These, for example, include equipping cars with satellite systems that track their location. You can organize the business in another way - to purchase a franchise. Then you do not need to promote the project. After all, you will work under the name of an already well-known company.

But for the right to use its name, you will have to pay a large amount, it can range from eight hundred and ten to one million two hundred and twenty thousand rubles. In addition, such an approach will deprive you of the opportunity to act as you want, and it will be necessary to obey corporate rules. For the use of the brand will have to pay monthly ten percent of the profits.

Purchase of vehicles

A car rental business plan necessarily involves the purchase of cars. There should be from ten to thirty, and about half of the total number are foreign cars belonging to the economy class. The rest are domestic models. Foreign-made cars can be purchased for one hundred and thirty to one hundred and forty thousand dollars.

The acquisition of models of the domestic auto industry will require fifty thousand in US currency. If you buy cars from hand, with mileage, then the amount will decrease even more. You can get twenty thousand dollars. But a significant minus - in this case, a major overhaul of vehicles will be required.

Services

The cost of car rental is formed in accordance with their class and brand. To make car rental profitable, a business plan may include the following rates. The provision of Zhiguli for temporary use will amount to nine hundred and fifty rubles per day.

For an economy-class foreign car, customers will pay from 1,400 to 1,560 rubles, and for an executive class - from 1,800 to 2,650 rubles for twenty-four hours. Consumers can be attracted by a system of discounts. If the client does not want to drive the car himself, then he will be able to hire a professional driver in your company. Most often, this service is offered if the client hires a luxury car, a foreign car.

Recruitment

Undoubtedly, car rental as a business is very attractive for an entrepreneur. As in any other organization, you will need to hire staff from the firm. It will consist of several people.

You will need an administrator, an accountant, a driver, a technician and a security specialist. The last employee is responsible for all issues related to insurance, he contacts the insurance company, resolves disputes that arise, coordinates rental applications.

At the beginning of the existence of a rental company, such a specialist can be attracted from outside, and not hired on a permanent basis. The duties of a technical worker include the issuance of machines, their current repair and maintenance.

Payback of the enterprise

Calculating the profitability of car rental is quite simple. We must proceed from the workload of one machine. If this figure is seventy-five percent, then the profit for the operation of ten cars per month will be four hundred and twenty thousand rubles. From this amount, taxes and salaries of employees are paid, as well as maintenance of machines and possible unforeseen expenses.

The net income from the enterprise will be three thousand dollars a month or a little more. With the right organization, car rental can bring a stable income. The business will turn into a successful enterprise, it will be possible to expand it and acquire a larger fleet of cars. The business will pay off in about a year or two.

* 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 in their services 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?

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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 your representative office at an airport or a hotel complex is 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 expect 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.

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Profitability calculator for this business

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 has led to the growth of the rental market for special tourist vehicles - primarily SUVs, 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.

Strengths of the project:	Weaknesses of the project:
constantly growing demand for rental; a large selection of sales channels and service delivery; quick adaptation to a rapidly changing market; the possibility of forming an individual approach to the needs of corporate clients in terms of the range of services and their volume.	competition from local businesses, network car rental corporations; poor-quality work of personnel, violations of technological regulations for car maintenance; risks of frequent damage and failure of vehicles;
Project features:	Project Threats:
expanding the business by increasing the range of the leased fleet, providing drivers, guides and interpreters; opportunity to work with corporate clients; the possibility of creating related types of business - for example, car camping, organizing car tours;	relatively high competition in the market; rising prices for auto parts and fuel; Increasing the rent or terminating the lease agreement for a parking lot, office; Decreased purchasing power of both the population and the commercial sector, a general decline in demand for car rental services.

3. Description of the market

In order to fully implement the concept and practical scheme of a car rental company business plan, 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 high-traffic 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 car rental services as an additional service (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 are increasingly competing with the standard car rental format, which at the same time can be ordinary car rental companies actively diversifying their business. 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 sphere 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 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, the 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, one should have a certain financial reserve and make up for losses 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 future 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.

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Car rental business plan

Eugene
Everything is very clear, informative, accessible. In combination with a very low price, it is an ideal option for any entrepreneur. Thank you for giving us the opportunity to use a quality document at a very affordable price.


Evgeny, we agree with you that this is precisely the goal of the project, to enable as many businessmen as possible to use business plans. We understand that the real cost of a document is much higher, but at the same time, not everyone is ready to pay a round sum for it, so we make it affordable. Thank you for appreciating the business plan and we hope that it will be useful to you. I wish you success.

Car rental business plan

Ivan
Generally speaking, it is a pretty good document, which provides a lot of important information. But I would like to see more specifics in it, which will be very useful for novice entrepreneurs. After all, not everyone will be able to finalize the calculations for themselves.


Ivan, we agree with you, we really tried to make the document as useful as possible, but, as you rightly noted, some calculations need to be adapted to your capabilities, since you can take into account all individual points only in a custom business plan, and this is much more expensive. Also, understanding the economics of the enterprise gives an indisputable plus in the future, allowing you to more effectively plan the company's activities. Good luck to you.

Car rental business plan

Michael
Although our city is small, there are many tourists in it. This was the reason that my friend and I decided to open a car rental. No sooner said than done, and we started by studying your business plan. As it turned out, we did the right thing, because we imagined some aspects of creating a business in a completely different way. I imagine what would have happened if we had not used this document. Thank you for a well-written business plan, which helped us a lot at all stages.


Michael, we're glad we could help you. Indeed, from the outside it seems that organizing a business is simple, but when you start taking action, there are many unaccounted moments. When a business plan is at hand, the actions become more deliberate, and the results are expected, there is confidence, which allows you to work much more efficiently further. We wish you successful development.

The main thing about the car rental business plan

Starting a car rental business is, first of all, a huge expense. And entrepreneurs planning to officially open a car rental company are trying to determine the amount that may be required for these purposes. The amount of costs depends on which way the businessman will go - whether he will act independently, or decide to purchase a franchise. At the moment, you can purchase franchises of several well-known Western car rental companies on the Russian market.

Which way to choose depends not only on the financial capabilities of the entrepreneur, but also on the situation in this market in a particular region. If, for example, there are already a couple of companies operating under the wing of a well-known Western brand in your city, it may be more appropriate to organize a car rental business on your own.

The cost of a franchise is usually about 25-30 thousand dollars, in addition, the company will have to transfer a certain percentage of orders to the partner every month. But in this case, the businessman will not need additional advertising costs.

Rental Calculator

The minimum amount required to open a car rental company on your own is 5 million rubles. The main item of expenditure is the purchase of cars. Most entrepreneurs prefer foreign cars, since the maintenance of domestic cars is much more expensive, and they break down much more often. As for the choice of model, many businessmen working in this sector of the market at first purchase cars of the same brand. This allows you to count on a significant discount when buying.

When opening a car rental business, an entrepreneur needs to purchase at least 10-12 cars. Only in this case it is possible to avoid losses in the course of the company's activities. Too large a fleet is also not advisable, since it will be much more difficult to find the required number of customers. In addition, car maintenance is costly, and the more cars a company has, the higher the costs. Each car must be insured, and the cost of the policy will be on average about 10% of its price. The approximate cost of servicing one car usually does not exceed 3-4 thousand rubles per month. When setting up a car rental business, be sure to take into account the associated costs, such as buying tires, renting parking spaces, etc.

Such a business project as car rental requires substantial expenses, and, of course, any entrepreneur does not want to throw money away. The initial investment pays off, as a rule, in 2-3 years, when it is time to change the fleet. If you want to clearly understand how a car rental business works, check out a professional example of a car rental business plan with ready-made calculations. A detailed business guide to car rental will help you fill knowledge gaps. You will understand how to open a car rental business and find out if it is worth creating a website that will offer car rental services.

The car rental business is a rather risky undertaking. A small number of companies operate in this market, and on the one hand, this allows entrepreneurs to easily occupy a niche that is still empty. But the problem is that such services in our country are not yet in high demand. The consumer must be accustomed to such an opportunity - to rent a car. As a type of business, this activity is appropriate only in large cities, or in tourist areas where there are a lot of visitors.

In most settlements, such a service began to appear only 2-3 years ago. So the opportunities for businessmen who have decided to master this sector of the market are very tempting. There is no competition, which sometimes greatly interferes with novice entrepreneurs. But this will not reduce the difficulty in finding customers. Conventional advertising methods need to be carefully reviewed, because your company will be contacted mainly by visiting people - city guests, business travelers, tourists. And you need to make sure that they can quickly find out about your services.

Where are we heading?

Judging by the reviews on car rental, car rental, this service is most in demand among visitors. If a business traveler needs to constantly move around a foreign city, it is more profitable for him to rent a car than to spend a lot of money on taxi services. Tourists who want to explore the city on their own and slowly act from the same motives. In this regard, when planning to create a car rental business, you should perform a thorough analysis of the market situation in a particular region. It is necessary to determine whether the services of your company will be in stable demand. Otherwise, there can be no question of any profit.

Opening a car rental business requires a solid fleet of vehicles so that everyone who contacts your company can choose the car model they like. In order to meet the needs of customers, your fleet should have cars from economy to VIP class. If you are planning to open your car rental business in a region where adventure tourism flourishes and people come to your area for jota or fishing, it makes sense to start a snowmobile and ATV rental business. But at the same time, it is necessary to take into account the clear seasonality of such a business, and if necessary, you can combine the ATV rental business with car rental.

Among the locals, such a service as car rental with a buyout is in demand, but such a business is a little more difficult to build from a legal point of view. In addition, there are certain prospects for such a type of business as renting a limousine. The opportunity to drive a luxury car attracts not only brides and grooms, such services are in demand at various festive events. Entrepreneurs who have carefully studied a competent sample of a car rental business plan will be able to make sure that car rental is a profitable business. This document explains in detail all the pros and cons of this type of business, and provides ways to solve potential problems.

Ready-made car rental business plan from scratch with examples of opening calculations

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