Q&A for How to Start a Vehicle Rental Business

You can start a car rental business with cheap used and brand new cars, it doesn't matter.

Yes. This way you can trace the whereabouts of vehicles not returned, stolen, etc.

It depends on the type of rental car business. If it is an exotic vehicle rental service, then one car is good for the time being. If it is a standard rental car business, then at least 5 cars is a good starting point because more cars could be rented out.

Be self-motivating and attentive to numbers. It helps to know a lot about cars and customer service, although you can hire people to fill these roles. There aren't any precise requirements, but having a business plan, a fleet of cars, and proper funding helps. You do need to get the appropriate licensing and registration from your government.

Outside of state-specific regulations, there are no special requirements to run this type of business. Standard rules apply, but insurance is required.

An estimated 30% of businesses fail every year. Car rental businesses are actually growing at the moment. There are a few threats to consider, such as autonomous cars and ride-sharing. However, transportation is practically a necessity, especially for travelers, and there are a wide variety of vehicles you can rent.

Losing money, someone running off with your car, your car getting smashed up, etc.

Start small and grow big--5 cars is a good start. Research your competitors. Balance your circumstances and what you can afford against the standards for vehicle rental businesses in your area. Make sure you have a backup plan, fully research the industry and have a detailed and organized business plan.

You can get your fleet leased by banks or financial institutes that provide business loans.

Not unless your state specifically requires it, and that answer would depend on your individual state. You can look up your state's requirements online. (You must have insurance though.)

You could build your website using Wordpress, which provides good themes that come with a booking system. You might simply need to buy a plugin if one doesn't come with your theme.

$30 a day, but usually there are discounts for weekly or monthly rates.

It depends on a lot of factors. Some of the big ones include your business costs, such as your location, insurance, and the cost of maintenance. Luxury cars naturally cost more to rent, since there's more risk involved. Make sure you research your area and your competitors to figure out the going rate.

Have a standard rental contact available and print that out when you need it. The customer signs it, identifying themselves and making them liable for breaking the contract. It ensures they have a valid license, insurance, and a form of payment. You can offer them a damage waiver and accident coverage as well.

It depends on the insurance policy you have. A good, comprehensive policy will take care of this for you. An inferior policy might not.

The total cost will vary depending on a lot of factors, such as where you set up shop, what cars you need to buy, and so on. Expect to need at least $30,000 to $50,000. Define your business plan carefully so you know what you need.

There are no educational requirements in starting a business. The main part is to build a business plan and show that you can operate a business successfully. It helps to have experience with cars, in management, and in entrepreneurial situations.

It's your business, so you could do both if you have the resources available. Perhaps you could use the buses to get people to your car rental lot. You might need to work a little harder to keep the car rental and bus transportation resources separate, such as the accounts and bookkeeping, to avoid confusion.

Always keep records of your clients, the contracts they sign, and your cars. In addition, keep your business records, such as transactions, purchases, payroll, etc.

It depends on the business, and the market around your business. It is a good idea to have several dozen, so that customers will have options when choosing their rental vehicle.

A license application can take up to 14 days to fully process. You'll get the license in the mail after then. Once you have the license, you don't need to wait at all.

Consult your local government's small business organizations. You can also research or ask other car rental businesses what they needed, but your government should be able to provide you with a list. See if you have a small business association in your country that can help you.

You will generally need to get business insurance indicating that you plan on letting other people drive the car. You can get full coverage for individual cars relatively cheaply. If you have a lot of cars, look for fleet insurance.

You will need to find a partner to work with. Make friends with a hotel manager, for instance, and work with them to promote both businesses. You may not need to register the venture at all, or you can form a separate company for the venture.

It's similar to starting a regular car rental business. You will need to decide on what kind of limos to get, then hire drivers for them. Do things like start a website and advertise to continue growing your business. Careful research is the best way so you choose the right area and reach people who are interested in renting limos.

If you have 1 or 2 cars, you might be able to. Most likely not though, since you need lots of space and would have to deal with customers coming to your home. Also, your local government may not allow you to operate a business in a residential area.

You will need a general business permit to operate and pay taxes. You may also need a vehicle rental license. You may also need a zoning permit so you can operate in the location you choose.

Premiums for luxury vehicles can get a little pricey, so shop around. If you can't find anyone who will include it as part of a fleet insurance deal, you may need to insure the luxury vehicles separately. You can find companies, though. If you have multiple luxury vehicles, it is easier.

Your USP is your "Unique Selling Point". What makes you stand out from the rest?

You always need to sign a contract. Rental companies provide these contracts to protect themselves legally. If the customer does something like damage the car, steal it, get in an accident, or destroy property, they are liable. Insurance covers the damage. Many rental businesses offer optional insurance and have to document whether or not a customer purchases it.