A business license
To start a car rental business, you need a business license from the local authority to operate legally in your chosen locality. As regulations in the U.S. vary from state- to-state, it is important to understand licensing rules in your particular state. Failure to comply has severe consequences that you need to keep at bay. Fortunately, securing a business license is neither expensive nor time-consuming. You can find all required business licensing information on the US small business Administration (SBA)’s website.
Fleet of cars
A fleet of cars is a and you need to be super-careful on how your proceed with your choices and budgeting. Brand new cars are an obvious first choice if your pocket allows, otherwise, go for salvage cars for sale. Wrecked cars for sale make an ideal option, as they give you a head start in the business by allowing you to set up shop without breaking the bank. Once your business is up and running and you have made enough savings, you can supplement your existing fleet with some brand new vehicles. Online auto auctions give you easy access to the best deals and you can check out some of the popular options and what your competition uses.
Parking space
You also need adequate and strategically located parking space to store these cars when not in use. If you don’t have enough space to store a fleet of cars, you can start with one car and buy more as you grow. Make sure that the parking is secure and your vehicles are protected from the elements. Again, it pays to check out other operators and take a leaf from how they are operating.
Insurance cover
Insurance cover is not just the law, but a good business idea as well. Make sure your are compliant and protected in the event of a lawsuit, accident, or any other insured peril. There are many insurers in the market some of whom provide dedicated cover for businesses that run a fleet of vehicles in the transport sector. The internet can also rescue you here as you can get multiple quotes from shortlisted insurers free of charge in the comfort of your home. If you are going for salvage cars, make sure the vehicles can receive cover before you buy.
Website
Your customers should be able to locate your services with ease from anywhere and make the necessary bookings. This gives you a strong presence in the market and allows you to deal with travellers from all over the world. Get the website professionally done and be sure to keep it fresh with relevant information updates, promotions, and so forth. You will also need a payment system to allow you to receive advance payments globally and also process plastic money.
Marketing and Promotional Strategy
To market your business and garner mass attention, you can tie up with several travel agencies who can refer your car rental services to their clients. For effective promotion of your business, make extensive use of social media and reach out to your target audience and come up with various promotional schemes such as a ‘first ride free’, discount coupons for references, and goodies for loyal customers, among other initiatives.
The Bottom Line
Starting a car rental business may seem expensive, but you can play safe by starting out with a few salvage vehicles and buy new additional vehicles as you grow. Visit top online car auction sites today and look at some of the wrecked cars for sale that are on offer. You can take a professional mechanic along to the junkyard to physically inspect the vehicles and make a determination as to whether they are wise buys.