You travel into another state in the country, you realize it would have been better if you rented a car, and then you think of an idea “, Hey, why not start a car hire business of my own?” But of course, aside from having a car, there are more things to know before you invest your money into this kind of business.
Car hire business has become of the major commerce, not only in the country, but also internationally speaking. These businesses exist because of two main markets – other businesses needing occasional hire or fleets and the tourist market. The advantages of renting a car instead of buying one is drastically increasing through time. You can probably enjoy the latest BMW model for ¼ of the selling prices.
How does a car hiring business make so much money?
The simplest and most obvious answer is that these businesses collect a lot of cars, of different models and brands. And because of this, the carmakers allocate them huge discounts. They also have to make sure that these cars will not just be put on display just to be covered by dust, but to be actually used all the time. Companies also get good resales when they unload the cars 20, 000 or 25, 000 miles later. If you keep the two main keys of earning money through this kind of business, there is a great possibility that it will endure and expand through time.
How do people start a car hiring business?
Like any other commerce, car rental business has a series of steps to follow to be able to run smoothly in the future and not go bankrupt within the first week of its opening.
1. You’ll have to think of what type of car rental business you want to put your attention to. There are actually different types of this business. Either you rent you cars for special occasions like weddings and proms, for businessmen who are staying in the vicinity for a significant time or for tourists who want to explore the city by themselves.
2. Build a car flock. For starters, include cars that will give you more than 50% chance of getting your first earning. Your type of cars should also coincide with your type of business. For example, if you’re a car rental for businessmen, you’ll want to choose sedans like Audis and Mercedes-Benz.
3. Starting a business, you also have to feature a good maintenance and customer service. You want your customers to be happy so they’ll avail of your cars again and not drive them away. You also have to make sure that your cars are all insured before letting them be used by your customers.
What are the taxes involved in a car hire business?
There are several taxes involved when you invest in a car rental business, whatever country you are in. If you are in UK, you can always get a professional help from HMRC (check out this page to find HMRC contact number). There is a way to deduct these rental car expenses that will lighten your tax burden. One way is by filing for an itemized deduction, which is only eligible for car rental purposes of business, medical, moving or relocating and charity.