Business idea: car rental

Business ideas by directions

Car rental in Russia is a completely undeveloped business segment. There are many reasons for this, ranging from the imperfection of the services of insurance companies to the low level of legal self-awareness of the population.

Therefore, unfortunately, car rental can be classified as a type of business with a high level of risk.

Prospects of a car rental business idea

However, this situation has another side of the coin: the almost complete absence of competition in the market. In addition, the car rental business has huge prospects.

It is not a problem to rent a car abroad. This is very convenient, since the client does not need to take care of the maintenance of the car, the place of its permanent parking. He is not limited in movement and does not have to wait for a taxi if he needs to go somewhere.
Any motorist left without a car for a while knows how inconvenient it becomes to live without freedom of movement.
And I would like to rent a car, but there is no such possibility.

What is needed for a motorist without a car?

This position in the market is due to the fact that in order to organize a business, you need to have not one, but several cars to choose from, of different price classes. Let’s say two or three inexpensive domestic cars for middle-income drivers. Several inexpensive foreign cars that will make up the main fleet of rental cars. And a couple of elite foreign cars for people with high incomes and foreigners. This will allow you to meet the needs of clients with different income levels and have a constant flow of income, rather than waiting for one-time rich clients.

Starting investment in car rental

Naturally, the initial costs of implementing a car business idea are quite substantial. In addition, it is necessary to have a conveniently located parking lot and a certain staff of service personnel.

It is also necessary to have a car repair shop nearby or create your own, as part of a common business.
Car repairs will inevitably have to be done, as the car rental business is rarely accident-free.
After all, customers often have to get used to the dimensions and features of a rental car, and this leads to various accidents.

Before implementing a car rental project, it is better to calculate its payback. In order to calculate the payback of your business idea, you can follow this link:

Do you need car insurance?

This immediately leads to the thought of the other side of the problem — the need for insurance.

1) Firstly, OSAGO policies must apply to any driver who gets behind the wheel. To do this, it is desirable to have an agreement with one insurance company on individual terms.

2) Secondly, it is necessary to resolve the issue of separating the areas of responsibility of the client and the insurance company. From this point of view, CASCO can only make sense for new cars, and this significantly increases the cost of the initial investment.

You can’t do without a business plan!

Thus, the car rental business idea is quite complex to implement and requires careful preliminary calculations and a detailed business plan for the implementation of the project . You can order calculations and a ready-made car rental business plan on our website.

Good luck with your business!