Vehicle Rental Business
Discussion
I have recently been seriously thinking of opening a car rental firm, stocking general cars but really specialising in sports cars, ranging from normal hot hatches to 2-seater sports cars, nothing too exotic. Sub £40k cars.
No-one in the market that does these types of cars around here. Seems to be a lot of demand though as quite a few people travel approximately 30miles to another car firm renting out similar cars.
At first I will be leasing the cars, are there any legal issues to this? As far as I know a lot of small hire companies do this but am not sure if they are just under general Business Lease or will I need a special contract with the Lease company to be able to rent the vehicles out.
Also I am struggling to find anything regarding insurance for this type of business, does anyone knowany insurance brokers/companies I could call to get quotes.
I have also looked at a couple of franchises but there only seems to be one franchise that doesn't already have a branch around here, however would like to consider the costs of going it alone before I engage further discussions with them.
No-one in the market that does these types of cars around here. Seems to be a lot of demand though as quite a few people travel approximately 30miles to another car firm renting out similar cars.
At first I will be leasing the cars, are there any legal issues to this? As far as I know a lot of small hire companies do this but am not sure if they are just under general Business Lease or will I need a special contract with the Lease company to be able to rent the vehicles out.
Also I am struggling to find anything regarding insurance for this type of business, does anyone knowany insurance brokers/companies I could call to get quotes.
I have also looked at a couple of franchises but there only seems to be one franchise that doesn't already have a branch around here, however would like to consider the costs of going it alone before I engage further discussions with them.
Eric Mc said:
This "original" idea crops up on PH about once every three months 
Its not the most orignal idea I admit, but there does seem to be a lot of demand close to where I live and no Supply so surely there is an oppurtunity there. I'm just sick of working for someone else, and would realy like to start my own business. I'm not about to jump in the deep end though.john_p said:
obob said:
Also I am struggling to find anything regarding insurance for this type of business
Maybe why.“Seems” to be demand and “Actual” demand are the two critical factors.
Margins will be low. Risk will be high. Demand (if there really is any) will be erratic. Insurance will be huge. You'll also have difficulty in securing anything more than 50% funding.
Chap in our village looked at this a while back and ended up renting vans as there was more money to be made with them.
Margins will be low. Risk will be high. Demand (if there really is any) will be erratic. Insurance will be huge. You'll also have difficulty in securing anything more than 50% funding.
Chap in our village looked at this a while back and ended up renting vans as there was more money to be made with them.
obob said:
Eric Mc said:
This "original" idea crops up on PH about once every three months
Its not the most orignal idea I admit, but there does seem to be a lot of demand close to where I live and no Supply so surely there is an oppurtunity there. I'm just sick of working for someone else, and would realy like to start my own business. I'm not about to jump in the deep end though.john_p said:
obob said:
Also I am struggling to find anything regarding insurance for this type of business
Maybe why.
Buy a skoda superb for £14k, claim 17.5% of that back in your first VAT quarter... fit the car with a meter and have it plated by the local council. Should cost you about £80 a week if you finance the lot. Rent it out to a local driver for £200 a week (most cab drivers have a tough time getting credit) and maintain it for him. Given fair use agreements on tyres, brakes etc.
You could even get a phone number, and a few cards made up and give the cab driver some work too. Then, when the works built up a bit, you can charge him £50 a week to get work from you.
Get 30 cars on the road, and you'll be made
After this, I start charging for my advice
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