Tips for Starting a Car Rental Project

Last updated 18 June 2020
Tips for Starting a Car Rental Project

Exclusive Ownership Cars

It is done by paying a certain payment and then paying in installments, and reducing the most famous installments so that their price is close to the price of the cache.

Car Rental for Reliable People

The lessee is not obligated to pay and accidents, so it is assumed that hired people are documented from them, so the tenant must be a government or private employee and on the job, and do not hire young people of age because they are the ones who overwhelm them and cause them to ruin them.

Also read: How to Start a Car Maintenance Center Project

Establishing the Project in Small Governorates

This project is in small places, especially small and medium governorates, and it is best to open this project in an area where there is no car rental office.

Don’t Start with Luxury Cars

To invest in regular cars such as Accent, Yaris, Kia, and Elentra and not start with luxury cars at the beginning of the project

Do not Start your Project with Debt

You have a sufficient budget for this project, at least 75% of the cost of the project, and 25% you can borrow from any bank, from your friends, from close, or through monthly installments.

  Children's Electric Car Rental Project

A Plan to Pay off Financial Obligations

You have to stop and draw up a plan to confront and pay off this debt and installments, and then raise a certain portion of the monthly returns to buy more cars, which will increase the monthly income on the project, and so on.

Also read: Feasibility Studies of Industrial Projects

Providing Monthly Services with a Lower Amount

Try to target employees who resort to monthly service instead of daily service and often those employees whose cars are idle, you can target them through offers and discounts.

Find Car Rental Rates from Nearby Offices

Until you are always aware of the prices, and your price is close to these offices.

Cars Insurance

Many group insurance companies, i.e. many cars, and are able to insure cars in a comprehensive way or against others, and it is better to insure them comprehensively.

Place the Store in Google Maps

It is a free ad and its value is very large, so it is best to place the shop on maps.

Small Workshop and Mechanics

It is preferable that a special auto repair shop is opened, but if it is few, it is preferred to contract a workshop monthly, without any additional amount.

Also read: Feasibility Study of Transport Truck Rental Project

Obtaining an Accounting Program

As the owner of the rental car store, you must obtain an accounting program or an administrative program to manage the rental office, as it works to benefit the investor and link it with the Ministry of Interior.

Do not Charge InStore Fixtures

The costs of renting a car rental facility are low and low and do not try to equip you with the equipment of an indoor office.

Providing All Services for the Wedding

Cars are of high quality and this service guarantees you a steady income from the car and sometimes the number of cars rented exceeds 20 cars and requires you to provide complete and not just for rent.

  Children's Electric Car Rental Project

Also read: Development and Design of a Car Maintenance Center

The Cost of the 15 Cars

Establishing a car rental office project with 15 cars of type Accent The cost of one car is estimated at 33,000 riyals, so the cost of the 15 cars is 500,000 riyals.

Return on Investment

The return on the investment head needs a year and four months to fully restore your capital, the daily rental value is 90 riyals, and the number of days per car per month is estimated to be 23 days, and it is best that the rental value does not increase, or in the days, so that the holidays and damage are not done in one of the cars.

Rental Cars Ending in Ownership

Ended in ownership i.e. payment of 10 thousand riyals for each car and the total is 150 thousand riyals for all cars, and you must reduce the number of months in order for the ownership price to be very close to the price of cache for cars.

Monthly Installments

 15 car need 800 riyals or 12000 for 15 cars. For example, if you rent every car that you have 23 days a month, 90 riyals per day, or 2070 riyals a month, as for 15 cars, the total cost is 31050 riyals per month 31050 000 12000 = 19050 monthly income of cars and from a discount All administrative and financial costs and salaries, so the profit becomes 12,000 riyals per month. This is a simplified financial study for a car rental office project.

Also read: Important Conditions to Open a Car Maintenance Center

اقراء المقالة باللغة اخرى : العربية

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