How to Start a Car Rental Business

How to Start a Car Rental Business

Cars are one of the vehicles most widely used by people after motorbikes. The advantage of using a car is avoiding the heat and rain.

Unfortunately the comfort provided by the car must be redeemed at a high price. So not everyone can have it.

The Indonesian people’s need for cars is quite high. For example, to attend events out of town with family, holidays, and so on according to tampatowncar

1. Tantalizing Profits

Maybe you are still wondering about how profitable the car rental business is. Let’s assume with this calculation,

The capital required is 1 unit of Toyota Avanza purchased on credit with a tenor of 48 months. Down payment of IDR 38,780,000. Every month you are required to pay installments of IDR 5,010,000.

Coupled with insurance costs of IDR 3,000,000. Purchase of accessories and promotions worth IDR 5,300,000. The initial capital that you have to provide is IDR 52,090,000.

Meanwhile, the monthly fee for installments, services, and others is IDR 6,210,000. If in a month you rent a car for 25 days at a cost of IDR 400,000 per day, then the turnover you get is IDR 10,000,000.

2. Allows Without Capital

In fact, car rental can be said to be a business that does not require large initial capital. If you look at the calculations in the previous point, you only need capital for a down payment.

After that, you can use the income from the rental to finance installments and routine maintenance.

You can also do a car rental business without having to have any capital at all. You can act as an intermediary between car owners and customers.

3. Broad Market Reach

There are so many car rental businesses that the competition is quite fierce. But you don’t need to worry because the reach of this business market is very broad.

To minimize competition, partner with an online taxi company. You can also submit a proposal to the company to rent out operational cars.

With this strategy, you don’t need to compete for consumers from the general public.

The car rental business has a system that is not that complicated. Even those of you who are still laymen can manage it easily.

You only need to provide a small office as a place to transact with customers. Take advantage of your home so you don’t have to rent a new place.

The system in this business is quite simple. Tenants must fill out a rental form. After that, the tenant pays a down payment.

Make sure you ask for guarantees in the form of an identity card and a copy of SIM A. These important documents are used as collateral so that tenants don’t run away.

If you don’t want to bother, you can leave your car with an existing rental service. You can get a commission if your car is successfully rented out.

With this system, you don’t have to worry about management and just receive the net results.

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