How to start Car Rental Service Business
India is becoming a global tourist destination, due to its rich history and rich culture and heritage in the climate and geographical location of the country. All these features attract foreign tourists, tourism has developed a lot in India due to cheap air travel and easy transportation.
But some foreign tourists do not like to travel in public transport. Private cars are his first choice, which can be with him all the time. Due to this, the demand for rental cars in India has increased. While some people like to hire experienced drivers, some people prefer to drive the car themselves.
If you want to start a lucrative business, then you can also think about providing vehicle rental service.
Car rental Business research
Whatever business you want to start, it is necessary that your base is strong. Nothing is lucrative and profitable trading can be started from a volatile and distracted basis. If you do not know much about vehicles and rental service, then it would be right to seek the advice of an experienced person.
As it is, collecting information is the first step towards building any firm. People related to car rental business, books, articles available on the internet can also be your main source of knowledge. The owner of the car rental business can show you the right direction, and can also explain the risks and common mistakes.
In this way, the research done by moving forward with positive thinking can help you a lot, and can also keep you in front of the opponents in the market.
Ownership of the vehicle
Once you start the rental business, you will need cars. Those who provide vehicles on rent can own some cars, but there is no agency that can buy 100 automobile cars of its own. But the more cars you have, the more you will benefit. But this does not mean that you cannot start a business if you are less than 10 vehicles. So it is just to be noted that you have ownership of the means.
If you have enough money then you can buy one or more resources. This will put pressure on your budget, but having more cars means that there will be more cost for their maintenance. No one would want to rent a car in bad condition.
For this reason, the second option is to reduce the vehicle. You can rent a vehicle from another agency and rent it to your client. You will be benefited financially by hiring cars, so that you can maintain the car
Types of rental service
Once you understand the business, you can start the car rental service. There are 2 types of vehicle rental options in India.
The first is that service providers provide cars to a person or business houses can be used for a long time. This is mainly when the car is given on contract.
The second type of rental service is one in which the agency provides vehicles to a person or company for a short period of time. Most traditional taxis, Ola or Uber service companies fall into this second category. According to the customer’s requirement, the service provider can also provide a driver for a long time. Sometimes customers sign a contract with the service provider and drive the car themselves.
Ownership of the business house
Whether the business of renting your equipment is big or small, you are required to fill the necessary legal documents. If you do not have the required certificate, you will not get its permission in any field. For this, different types of company registrations are done, you have to fill the forms according to the ownership of the agency.
It can be in your sole proprietorship or it can also be a partnership firm, it depends on the number of owners and share holders. In the absence of a partner, you will be responsible for both profit and loss, but in the event of being a partner, there will be a division of profit and loss in the shareholder according to the partnership contract.
Service area selection
Ola and Uber have increased a lot in cities. You will not get enough number of customers in the center of the rental agency. If the choice of place is not right, it will not be good for your business. If you want a taxi or cab service, it is important to choose the location of the city.
Identifying the right area of your operation is very important for your business, so that you can survey enough markets, you can get all the information of the rival agency. According to this, they can prepare their business offers. By opening a car rental agency at the tourist spot, more customers will get more benefits.
Fill out insurance papers
No one can tell when and what kind of accident happens to the car. It does not matter to what extent the car is damaged, you have to spend from your pocket to get it repaired. All service providers can also be taxed, so it is important that you take necessary precautions.
To stay safe, the best way to avoid unwanted expenses is to get the car insured. If something happens in this way, then the insurance company will bear all the expenses.
Added clause for excess
If you open a car rental company that rents a car for a long time to one person, then you can ask the customer to sign the access clause. If you want to avoid the problem then it is very important to do it. If the car is damaged while the car is with the customer, then according to the access clause, the customer will have to pay additional amount so that the vehicle can be corrected back.
This saves the service provider from incurring expenses.
Managing associated operations
The use of technology has increased in daily tasks. All the trips made by the car, money for petrol, how many passengers ride each day should be kept in mind. This will make the job successful and will also backup all the records. In such a situation, even if you give some special paper, you will get all the data available on time.
Earlier all this is done by hand but now software and templates are available for it, which will make the work easier, and will take less time.
Promotion of the services
Car rental agency is required to manage and advertise the channel. Most people will not come to your door and ask you about the rental service. They will check online for the required details. So if you want to increase the number of customers, then you have to tell them about yourself.
Therefore, proper promotion is necessary for this, you can also use traditional methods.
Profitability of vehicle rental services
According to the survey report, the demand for app based cab rental service in India has increased. If you think that large investment is needed to rent the resources then you are wrong. Banks are giving loans for this at a low interest rate. There is such a high demand for the means of rent that you have to benefit from it. So this is the right time to start planning for it from today itself.
Acquire necessary permits
Proper business license – Proper license is required to drive a vehicle in some areas. When it comes to basic registration of the means of rental organization, you have to go to the local trade license office.
State and national permits – These permits are according to the geographical area within which the car is allowed to move. Each state has a state permit which permits the car rental company to drive a car across the state, it is issued by the state authority. National permits are also given by the central government, which gives permission to drive a car in any corner of the country. The service provider has to pay money to get these permits renewed. National permit fees are higher than state permits
ID and address proof documents – Whether to get a car or register a rental service, it is necessary to submit an identity certificate and a residence certificate. Voter card, PAN card, passport and other documents issued by the central and state government should also be on hand for this.
Bank account of the company – Keeping your taxes due is not a good thing. If you have forgotten to pay the regular tax, then there can be many problems due to this. The best way to avoid this is to maintain a proper business account. Money is exchanged mainly through bank accounts. Therefore, it is important to open a bank account in the name of a car rental company and maintain it.
If you are aware of all these things then you will not have any problem in starting a car rental service. By the way, when it comes to running any business, there is no fixed pattern. You have to change the policy of the business according to the time.
The car rental business requires a little flexibility in the business. Small steps taken by hard work will help you in establishing and spreading your business.