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Car Rental Business: Tips From Starting Up With Estimated Profits

Admin BFI
14 October 2022
23627
Car Rental Business: Tips From Starting Up With Estimated Profits

Cars are one of the most widely used forms of transportation in Indonesia. Especially for traveling long distances, both in the city and outside the city. Cars also protect us from the hot sun and hot air.

No doubt, many people prefer cars as transportation for traveling, whatever the purpose. The existence of this fact is certainly in line with the promising car rental business opportunity.

Well, for those of you who are curious about the car rental business, from tips on starting to calculating capital, the following article will really help you. Listen carefully, BFI friends!

 

How to Start a Car Rental Business

In starting a business, of course, there is a way to start that we should follow so that all existing plans can go well. Here's how to start a private car rental business or a beginner.

1. Start by Making a Business Plan

Starting a business must be done with careful planning. This is mandatory because, without planning, we will find it difficult to take initial steps and determine future steps.

Some important things that should be included in planning a car rental business:

1. What will be done

2. How to do it

3. How much money is needed to make it happen

2. Determine the Business Location

It's different with online businesses that we can easily store anywhere. For a car rental business, you need a place to put your car as well as a place for business operations.

So, later on, potential customers or anyone interested in renting your car can easily come to the place.

Choose a car rental business location that is strategic, easy to reach, and located with a major road to make it easier for the four-wheeled vehicle to enter and exit.

3. Prepare the Fleet of Cars

The third way for a car rental business is to prepare a fleet of cars that will be used. If you don't have a car that you want to use, you can work with a trusted authorized car dealer in your city.

As for if you want to use a private car, make sure you don't forget to record all existing operational costs such as gasoline to maintenance. Later you can forward the details of the funds to the customer.

Another thing you need to consider in preparing a car fleet is to adjust the selected car to your target market. Find out what types of cars fit into certain market categories.

Avoid choosing a second or used car so that the capital you have is not cut off a lot to dress up a used car.

4. Insure Your Car

Disasters can happen at any time. Make sure the main assets of your business are insured with a trusted car insurance company. This is done as a preventive measure to protect your assets while keeping the existing cash flow safe.

5. Hire Experienced Employees

If you intend to be really serious about getting into the car rental business, you can recruit several employees to take care of your business such as driver services, administration, finance, to customer service.

Don't forget to recruit skilled or experienced personnel to minimize various errors that may arise. In addition, you can also recruit the closest people you really trust.

6. Make sure you have an official permit (legality)

Legality or business licenses are sometimes still forgotten by many people. In fact, having this official license will really help your business run well.

If you feel confused about taking care of it, you can consult a legal expert related to this matter.

7. Do Promotions

After you have done all the stages above, then do the promotion as much as possible to attract potential customers and introduce your car rental business to the general public.

Some of the ways that you can use are by placing banners around your business location, distributing flyers related to your business accompanied by promos, and promotions through social media, and lastly, using the ads feature on social media.

Not only that, if you have more budget you can take advantage of promotional strategies such as endorsements where you use the help of promotional services from famous or influential people.

8. Don't Forget Bookkeeping

As with business licensing, this one thing is also often overlooked. As a result, personal money with a car rental business can just be mixed up.

To minimize this, you can do bookkeeping related to the incoming and outgoing funds of your car rental business. If you are having trouble doing this, you can use the software that is widely available out there.

9. Prioritize Service

One of the keys to the longevity of a business besides the quality of the products or services offered is the existence of good service.

Try to serve existing customers in a friendly manner and maintain good relations with them. This will help your efforts to survive in the long term.

Advantages of Car Rental Business

Usaha rental mobil memiliki sederet kelebihan yang bisa menguntungkan Anda. Apa saja potensi keuntungan yang bisa Anda dapatkan? Simak uraian di bawah ini.

1. Can Start With Small Capital

The car rental business is a very flexible business. You don't need to buy a lot of cars for this business.

And if you don't have a car, you can apply for a car loan through a finance company. Later, you can channel part of your monthly income to pay for car installments.

2. Have a Diverse and Wide Market

The market share of the car rental business is quite wide. Although it is counted as a business with quite fierce competition, in fact, this business has never disappeared in the market and there are always people who need a rental car for certain needs.

3. Attractive Monthly Turnover

The turnover per month that you can get from this business is quite large. Especially if you provide a fleet of more than 2 vehicles. The more rental cars you have, the greater your chances of getting a big turnover.

4. It Is Not Difficult to Manage the Business

You can easily manage a car rental business. Several ways you can take care by opening this business at home, collaborating with a larger car rental service, or partnering with an online car rental service.

Most importantly, make sure to make regulations and agreements between the two parties so that the existing business cooperation can run well.

For example, if you open a car rental business at home. You can apply regulations in the form of withholding the identity of the borrower such as an ID card, a photocopy of Sim A, and an agreement sheet on stamp duty. This is done so that the main assets of your business are not taken away.

Usaha Rental Mobil

Image Source: Freepik/makistock

Car Rental Business Capital Calculation

How much profit can you pocket each month from a car rental business? Reporting from lifepal.com, the following is the calculation of capital and car rental profits. Check out the details below!

Car Rental Business Initial Capital
Initial Capital 1 Unit Avanza 1.3 E M/T, 48 Months Tenor
No Description Total Unit price Total Price
1. DP Car 1 Rp38.780.000 Rp38.780.000
2. First Month Installment 1 Rp5.010.000 Rp5.010.000
3. Insurance 1 Rp3.000.000 Rp3.000.000
4. Accessories and Other Fees - Rp5.000.000 Rp5.000.000
5. Promotion Fund - Rp300.000 Rp300.000
Total Initial Capital Rp52.090.000
Biaya Operasional Per Bulan
No Description Total Unit price Total Price
1. Installment Per Month 1 Rp5.010.000 Rp5.010.000
2. Car Maintenance and Service - Rp700.000 Rp700.000
3. Miscellaneous expense - Rp500.000 Rp500.000
Total Rp6.210.000

The calculation of the monthly turnover that you have the opportunity to get can be broken down by the following calculations.

For example, the price of renting a car for a day is IDR 450,000 and it has been successfully rented for 25 days. So how to calculate it is:

25 Days X Rp450,000 = Rp11,250,000 (Monthly Turnover)

Meanwhile, to find out the profit per month then:

Turnover - Operational Costs Per Month = Rp11,250,000 - Rp6,210,000 = Rp5,130,000

From this description, we can conclude that the profit per month that you can pocket from 1 car is Rp. 5,130,000. This number can increase even more if the fleet you provide also increases.

How to Get Car Rental Business Capital

The benefits of a car rental business are indeed tempting, especially if the fleet you rent is more than one. For those of you who are interested in starting a car rental business, you can apply for a loan for business capital to BFI Finance.

BFI Finance is a finance company with loan options that can be tailored to your needs. Among them are:

Car BPKB Guarantee

Disbursement of funds up to 85% of the value of the vehicle and a tenor of up to 3 years.

BPKB Motor Guarantee

Loan funds with a fast process and a maximum tenor of up to 18 months.

Home Certificate Guarantee

Low interest starts from 0.9% with a long tenor of up to 48 months.

 

Be sure to stay up to date on finances, loans, lifestyle, and other useful information on the BFI Blog. Updates every Monday-Friday!

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