Working/have experience(or fam.memb) in car rental business?
 

I would like to ask you guys about car rental business, those of you who have/work/used to work/have firsthand experiences with it/or have relatives who own such business and can ask. Just an idea i am thinking about atm :)

Just wondering how it works and how good is this business. I mean buying several cars for full price(skoda or golf 8-10000€) and than making money on it its a looooong run business imo. But buying cheap used cars might not be bad at all with cheap price for renting ofcourse.

What are requirements cars have to have to put them on offer for customers?
If customer crash the car or do something to it intentionally or unintentionally who pays for it(better from who's insurance mine as company or from his which he payed when he borrowed it)?
Does insurance cover all the costs if car was crashed?

...and all the other things you might know about it :) dont hesitate to say it. Thanx :P

re u sure about renting old cars ? cos one day renting fabia cost here 600 sk- 15 euro, how lowcan u go to beat that, btw u need then one car, money on marketing and so on, as i know car rentals, few of them re mixed with car dealership ,

Well, i know somebody with a rental business, and most of their cars are on lease. They lease a £60k Range Rover for ~£1000 pcm (for example), then lease this car out.

Insurance for their (10 car fleet worth roughly £600k) is in excess of £40k per year, but this is fully comp insurance for those who work in the company and those who sign a lease agreement.

They needed a massive business loan to start up too

I realise that you may want to do this on a cheaper/smaller scale, but the principles are the same.

As for choosing a rental car, get a Hyundai or Chevrolet with a great 5yr warranty - this means that any thrashing by the people who rent will be able to be fixed under warranty, reducing the servicing cost for your fleet.

I know very little, only being mates with this guy, but i hope this helps :good:

BTW - insurance is whatever you agree with your insurance company - they will tailor-make a package to your requirements

The lower the price the lower the rental rate Bmwpower :)

Thanx for info TNr1. Actually noone will give me no money cause I am not czech and have no realestate and simular as insurance for the banks. So it have to be done from te ground.
But as I said its just a thought sofar as our shop is closing within 3 days and we will be on 0 cashflow :mrgreen: :| :roll:

Anyone else have experiences? Or maybe story of someone who did it "from 0". I had a neighbour who now have a pretty sucsessful rental business and he started with just 1-2 cars. But I am affraid he is not gonna share with me with details :mrgreen:

over here; there are some smaller rental companies that dubble as used car lots... have a contiguous fleet of different class of cars, (e.g. micro economy, economy, buisness, luxury) and as some milage run marker hits; then it goes up for sale... or something like that... always keeping 'fresh' vehicles that have already takent the depreciation hit; and wont be hurt by an extra couple thousand km's

unfortunately, i dont know much about rental companies in general

Thanx Nthfinity, never actually thought some one use that strategy.
Having a carfixing company as a side business is a great help to run rental business imo cause you fix those cars whenever its needed at minimum cost.