Do you want to start a car rental business but you want to go niche and be unique? If YES, here are 11 best car rental business ideas & opportunities for 2020.
In the United States and of course in most developed countries of the world, car rental business is a competitive business and any entrepreneur who intends to go into this business should ensure that they carry out thorough feasibility studies and market research so that the risks in the business can be greatly minimized.
If you are serious about starting a car rental business, then the first thing to consider before launching this business is the niche you intend to operate. You will have to know the niches available and decide which you want to go on. Contract hire is usually for business customers who hire the vehicles for a set period of time, while daily hire is for individual customers who hire the vehicles usually for a shorter period of time.
Another important thing to consider before launching a car rental business is how to get your fleet of reliable and comfortable cars. The options available are outright purchase or leasing; outright purchase is usually more expensive than leasing.
You will also have to decide how many number of cars you intend to start with, bearing in mind that the higher the number of cars your business owns, the more earnings your business makes. The cars have to be well maintained, so that you can enjoy a high turnover.
You could decide to contract the maintenance out, or hire your own maintenance staff, which can prove more expensive for your start-up business initially. Please note that the major companies in this industry in the united states of America have created strong brand awareness and therefore they enjoy good recognition.
This helps in retaining customers for these businesses, and in creating difficulty for new car rental services to get customers. If you are interested in starting a car rental business, then you might just find these car rental business ideas highly useful.
11 Best Car Rental Business ideas & Opportunities for 2020
- Leisure Car Rental Services
A leisure car rental service is one of the best car rental business ideas that an investor who is interested in owning a business portfolio in the transportation industry should consider. It might interest you that loads of car freaks go out of their ways to rent cars just for the fun of it.
This is applicable if they want to have a feel of a new model of car that is put up for rental purposes. In the United States and in Switzerland, leisure car rental services are known to be highly profitable; they welcome a good number of customers daily.
So, if you are looking towards starting a unique car rental business, then one of your options is to consider starting a leisure car rental services company. In order to do pretty well with this type of business, you must be ready to invest in luxury cars and cars/models that are in vogue.
- Business Car Rental Services Company
Starting a business car rental services company is another good car rental business idea for 2018. Business car rental service is a car rental company that is targeted towards corporate organization cum corporate executives. Please note that if you want to attract top flight business executives to always rent your cars, then you must ensure that you have comfortable and trendy cars in your garage.
- Car Leasing Services
If you are considering starting a car rental related business, and then of your options is to start a company that is into car leasing. Please note that unlike car rental services whose services span 30 days or less, car leasing agreements are for longer periods of time usually 12 months or more.
Most car leasing services usually target expatriates and corporate organizations that hire expatriates or people working out of station for a long period of time let’s say between one year and two years. It is common to find car leasing companies getting the latest cars under their lease offer so as to attract high paying clients.
Starting a car sharing Services Company is yet another good car rental related business idea that a serious minded entrepreneur can make a fortune from. Car sharing services as the name implies is a service that involves car owners enlisting their cars under a company that can pair them with passengers that travels their routes on a daily basis usually working periods (Mondays to Fridays).
The passenger is expected to pay a certain amount; it can be weekly or monthly so as to qualify him to ride with the owner of the car. As a matter of fact, a company known as Uber Taxi has demystified the taxi business. They have proven that you can actually run a world – class Taxi Company or car rental company with loads of drivers and fleet of cars without owning one single car.
So, if you are interested in starting a car rental services business that is not capital intensive, then one of your best options is to settle for a car sharing business. The major thing you need to launch this type of business is the right software app.
- Start a Party Bus Rental Business
Another interesting car rental related business idea that an investor can successfully start is a party bus rental business. A party bus which is also known as a party ride, limo bus, limousine bus, party van, or luxury bus is a large motor vehicle usually derived from a conventional bus or coach but modified and designed to carry 10 or more people for recreational purposes.
If you have ever considered starting an entertainment cum car rental related business in the United States, a business that is not too competitive, then one of your options is to start a party bus rental business.
Starting a limousine and town car rental company is yet another car rental business idea that is worth pursuing. Limousine and town car companies basically provide an array of specialty and luxury passenger transportation services like limousine or other luxury sedans, usually on a reserved basis.
Starting a limousine services company is one sure way to create extra source of income. It is a business that is considered capital intensive, and it may not guarantee you to break even within a short period of time, but it is indeed a business that you can be rest assured will continue to fetch you steady income. Just ensure that proper business structure and publicity for the business is put in place.
- Chauffeur and Personal Driver hiring Company
Another interesting and of course profit driven car rental business idea that an investor who is interested in starting a car rental business should consider starting is a chauffeur and personal driver hiring company.
It is important to note that starting a standard chauffeur and personal driver hiring business with over a handful of professional drivers also needs a significant investment capital, solid planning, and concentration to detail in order to keep your business profitable.
So, if you are looking towards starting a car rental related business and you have the required financial capital, then one of your best options is to launch a chauffeur and personal driver hiring company.
- Wedding Car Rental Company
The wedding industry has continued to grow in leaps and bounds. A wedding car rental service is yet another viable and profitable car rental related business that an interested investor can successfully start in any country of the world and still generate good income. Wedding car rental services is a niche idea in the car rental industry. As the name implies, wedding car rental companies rent out cars preferably luxury cars to couples who are getting married.
The fact that there is hardly any week that passes without wedding ceremonies taking place makes this type of business a good car rental business to start. In order to continue to generate steady revenue from your company, you must be ready to partner with wedding planners. They are in a better position to give your business deals.
- Funeral Car Rental Company
A funeral car rental service is sure listed amongst the best car rental business ideas for 2018 and it is a business that is thriving and profitable in all parts of the world. A funeral car rental company is a company that transports the remains of people from the mortuary to burial site or cemetery.
They also are involved in transporting human remains from the hospital or place of death to a mortuary especially if the burial is not immediate, and if the burial is immediate, then to the place the body is to be buried.
Just like wedding car rental business, in order to continue to generate steady revenue from your funeral car rental company, then you must be ready to partner with funeral homes and mortuary operators. They are in a better position to hire your services.
- Airport Car Leasing
One of the ways to dabble into the car rental business is also to start an airport car rental business. One of the good things about this trade is that it is a profitable business as more and more people are dabbling into this trade. There are people who like to drive cars themselves when they touch down at a city. This is where starting an airport car rental business comes to play.
- Tourism Car Rental Business
The tourism business is one area of business that would not go into oblivion any time soon. This sector has continued to bloom and blossom because of the role it plays even in the international scene. There are a lot of people who may want to go on tourism but have no idea of how to handle logistics.
This is exactly the area where the tourism car rental business takes place. Cars are leased and used to convey people to the various tourism spots. This is one very lucrative business as those who are already in the trade can attest to its profitability.
These are some of the very lucrative car rental businesses that you may want to consider when you are looking to make good returns on your investment. It is however still advisable that you see an expert who will help you make the most of your business ideas and help you look at the best ways to get a proper hand of what you want to start.