Planning To Start Car Rentals in My Native


Thread Starter #1
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Hi all - Iam planning to start a car rentals in my native. As iam very much interested in automotive industry and now iam in IT industry, as the pressure is being build up with my experience iam planning to implement the PLAN B. As there is always uncertainty in the IT field. Iam looking for another alternate source of income.

We have a family business on cloth in my native and that is managed by my brother. I can take up that business as well, but iam more interested in the automotive industry( basically i wanted to have all type of vehicles, as its not possible with my financials) i wanted to start the rentals with few cars and to fulfill my dream:-)

I wanted your suggestions on this how good is it to establish this kind of business. Pros and Cons.
 
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Re: Planning a car rentals in my native

Big dreams, I must say.
Car rentals is an exciting but risky venture. It needs huge money to get it moving. Once gained the momentum, it can take you places for sure. But, to get that momentum you have to analyse your risk appetite else it might push you in dark world of heavy loans to repay without any stable income.
Apart from regular upkeep of vehicles, you need to ensure that your drivers (hired chauffeurs) are not abusing them. In case of any mishap and unfortunate incident of somebody getting killed with your vehicle, you have to be ready to bear the consequences.

To start with, donot be in a hurry to capture the major chunk of market. A gradual approach would be more feasible. Start with a mix of 3-4 cars which people in your area prefer to hire. Like in NCR, people prefer to go for sedans because of the usable boot space which they load to brim. In case they look for cheaper ride, they prefer a hatchback. Bigger SUVs or luxurious sedans are relatively less preferred for obvious higher costs.
 
Thread Starter #3
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Re: Planning a car rentals in my native

Yes that is my plan to start with 2-3 cars. Iam planning for sub 4 meter sedans. I have few options now Dzire, Zest, aspire, xcent. Iam more inclined towards zest as its bit easier to service and little bit stronger when compared others.

What are all other things that i need to consider for this. I have few drivers in my hand and they are loyal. Is there any thing along with this i can start as a subsidary, so that both will be getting benefited.
 
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Re: Planning a car rentals in my native

Buy a mix pack of cars. Relying on any one segment and brand is pure gamble.
Obtain proper Yellow Plate registration for cabs to minimise legal hassles.

If you can tie-up with a local service station, invest in that business and you can see your cars stay healthier and earn extra money from servicing others'vehicles also.

We have a friend in similar model of business where he is owning and maintaining his fleet himself. Both businesses are complimentary to each other and can help other to survive. Polish this idea a bit and you can have 2 businesses under your belt.
 
Thread Starter #5
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Re: Planning a Car Rentals in My Native

Thank you Sachin for your suggestions. I will do check on other alternatives as well.
 
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