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
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