Services · 16 November 2019

Car rental – how to set up?

The demand for car rental in our country has increased significantly in recent years. Joining Poland to the European Union, introducing low-cost airlines, as well as the growing network of business relations means that more and more people travel around our country. Cars are useful both for foreign tourists who want to move freely in Polish regions and for businessmen who move around Poland on business. Increasing mobility of young people also increases the demand for larger vehicles for the needs of moving more often. At the same time, the car rental market is still small. All this makes opening a car rental company seems to be a good idea for a profitable business. In the guide below we will present some practical tips on how to set up a car rental company .

Car rental – prerequisites

Car Rental
Car Rental

Car rental does not require specialized education in the field of motorization or trade. It can be run by anyone. Opening such activities does not require any special permits. Car rental can be registered as a business in the form of a sole proprietorship, a civil law partnership, or as one of the commercial law companies: as a general partnership, limited partnership, limited joint-stock partnership, limited liability company or joint-stock company. The only form of business that is not allowed in the case of car rentals is a partner company.

Car rental location

The basic issue when planning a business, which is opening a car rental company , is its location. Car rentals are usually located near larger stations and airports. There, the demand for cars is greatest for groups such as tourists and businessmen who arrive or arrive in the city and are looking for a comfortable means of transport. In this type of car rental companies, the majority of the fleet is passenger cars. Big cities are also a good location for car rental. In them there appears a more diverse demand for cars, including vehicles such as trucks for removals, buses for transporting more people, or non-standard cars for special occasions, such as weddings or other special events. For a larger city, be sure to find a suitable parking space. It is needed not only for storing the vehicle fleet, but should also have space for clients’ vehicles.

Where to get vehicles for car rental?

Car rental vehicles can be obtained in several ways. It is cheaper to buy cars on credit or leasing. However, do not forget to add the costs associated with maintaining the fleet in this case – these are expenses such as technical inspections, servicing, replacement and storage of parts. The second option is long-term vehicle rental from an external company. This solution requires more capital, but we do not have to worry about vehicle maintenance. Their technical condition will be dealt with by an external company. So it is a much more convenient solution. A good solution is to offer the customer the opportunity to insure the vehicle in case of damage during use.

Car rental – what vehicles?

Car rental can provide a wide variety of services depending on the customer profile it wants to reach. Car rental customers are most often tourists as well as companies and businessmen. The offer should include primarily passenger cars and trucks. It is also worth expanding the car rental offer to include various types of representative vehicles, for example limousines or more expensive cars. This involves higher maintenance costs, but in larger cities there is a demand for such vehicles and the costs are recouping. It is also worth considering renting trailers. This is a very good way to transport larger items, for example when moving or buying larger equipment. When supplying the fleet with trailers, do not forget about additional safety equipment, such as special belts and wedges for fastening.

Car rental – is it profitable?

Car rental is an activity that requires a large initial contribution. However, it is worth considering if we have capital or are able to take a loan. Before investing, you need to study the market, demand, competition and trends well. A well thought out car rental company can be a really profitable business. However, it requires a lot of commitment and initial work.

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