India is becoming a Global Tourist Destination, due to the diversity in the climatic and geographical location of the country and its glorious history with rich culture and heritage. All these features attract foreign tourists, due to cheap air travel and easy transportation, tourism has developed a lot in India. But some foreign tourists do not like to travel by public transport. Private cars are his first choice, which can be with him all the time. Due to this, the demand for rental cars in India has increased. While some people prefer to hire an experienced driver, some people prefer to drive the car themselves. If you want to start a lucrative business, then you can also think about providing a vehicle rental service.
Business Research
Whatever business you want to start, it is necessary that your base is strong. Nothing lucrative and profitable business can be started from an unstable and deviated base. If you do not know much about vehicles and rental services, then it is better to take the advice of an experienced person. Anyway, collecting information is the first step towards building any firm. People related to the car rental business, books, articles available on the internet can also be your main sources of knowledge. The owner of a car rental business can guide you in the right direction, and also explain to you its risks and common mistakes. In this way, the research done by moving forward with positive thinking can help you a lot, and can also keep you in front of the opponents in the market.
Ownership of the vehicle
Once you start a rental business, you will need cars. The car rental providers can keep some cars, but there is no such agency that can buy their own 100 automobile cars. But the more cards you have, the more you will benefit from. But this does not mean that you cannot start a business if you have less than 10 vehicles. So the only thing to note is that you have ownership of the means. If you have enough money, you can buy one or more instruments. This will put a strain on your budget, but having more cars means that they will also cost more to maintain. No one wants to rent a bad condition car.
Because of this, the second option is also that the vehicle is less. You can take the vehicle on rent from any other agency and give it on rent to your customer. You will get financial benefit by renting a car so that you can maintain the car
Types of Rental Service
Once you understand the business, you can start a car rental service. There are 2 types of vehicle rental options in India.
- First In which service providers provide a car to a person or a business house can be used for a long time. Mainly this happens only when the car is given on contract.
- Other rental services are those in which the agency provides vehicles to the individual or company for a short period of time. Most of the traditional taxis, Ola or Uber service providers fall in this second category. Service providers can also provide drivers for a longer period of time as per the requirement of the customer. Sometimes the customers also sign a contract with the service provider and drive the car themselves.
Business House Ownership
Whether your business of renting out resources is big or small, you are required to fill in the necessary legal documents. If you do not have the necessary certificates, then you will not get permission in any field. There are different types of company registration for this, you have to fill out the form according to the ownership of the agency. It can be in your sole proprietorship or it can also be a partnership firm, it depends on the number of owners and the shareholders. In the absence of a partner, you will be responsible for both profit and loss, but in the case of a partner, profit and loss will be divided among the shareholders as per the partnership contract.
Service area selection
Ola and Uber have grown a lot in cities. The rental agency will not find you a sufficient number of customers in the middle of the city. If the choice of place is not right, it will not be good for your business. If you want a taxi or cab service then it is important to choose the location of the city. Identifying the right area of your operation is very important for your business so that you can survey the adequate market, you can get all the information of the rival agency, it’s Accordingly, you can prepare your business offer. Opening a car rental agency at a tourist spot will give more customers and more benefits.
Fill insurance paper
No one can tell when and what kind of accident will happen with the car. It does not matter to what extent the damage is done to the car, you have to pay out of your pocket to get it repaired. All service providers can also be taxed, so it is important that you take the necessary precautions. The best way to stay safe and avoid unwanted expenses is to get the car insured. If something happens like this, then the insurance company will bear all the expenses.
Additional clause
If you open a car rental company that rents a car to a single person for a long time, you can ask the customer to sign the access clause. This is very important to do if you want to avoid the problem. If the car is damaged while the customer is with the car, then the customer will have to pay extra as per the access clause so that the vehicle can be repaired back. This saves the service provider from taking the cost on himself.
Handling related problems
The use of technology has increased in everyday work. Trips made by car, petrol money, how many passengers travelled per day, all this should be kept in mind. This will make the task successfully and also keep the backup of all the records. In such a situation, even if you lose a particular paper, all the data will be available to you on time. Earlier all this is done by hand but now software and templates are available for this, which will make the work easier, and will take less time.
Promotion of Services
A car rental agency is required to manage and advertise the channel. Most people will not come to your door and ask you about the rental service. They will check the required details online only. So if you want to increase the number of customers, then you have to tell them about yourself. Therefore, proper promotion is necessary, for this, you can also use traditional methods.
Benefits of renting out resources (Profitability of vehicle rental services)
According to the survey report, the demand for app-based cab rental services has increased in India. If you think that renting out resources requires a huge investment, then you are wrong. Banks are giving loans for this at low-interest rates. There is so much demand for rental means that you have to get the benefit of it. So this is the right time to start planning for it from today itself.
Obtaining the necessary permits
- Proper Business License (Proper business license) – In some areas, it is necessary to have a proper license to drive. When it comes to basic registration of means of rental organization, you have to visit the local trade license office.
- State and National Permits (State and national permits) – These permits are according to the geographical area within which the freedom of driving the car is given. Each state has a state permit that allows the car rental company to drive a car across the state, it is issued by the state authority. The national permit is also given by the central government, which gives permission to drive a car in any corner of the country. The service provider has to pay money to get these permits renewed. National permit fees are higher than state permits.
- Identity Card and Residence Certificate (ID and address proof documents) Whether to get a car or to register a rental service, it is necessary to submit identity proof and residence certificate. Voter cards, PAN cards, passports and other documents issued by the central and state government should also be on hand for this.
- Company bank account (Bank account of the company), Keeping your taxes due is not a good thing. If you have forgotten to pay regular tax, then there can be many problems due to this. The best way to avoid this is to maintain a proper business account. Money is mainly exchanged through bank accounts. Therefore, it is necessary that a bank account should be opened and maintained in the name of the car rental company.
If you are aware of all these things, then you will not have any problem starting a car rental service. By the way, when it comes to running any business, there is no fixed pattern for it. You have to keep changing the business policy from time to time. The car rental business requires some flexibility in the business. Small steps taken by hard work will go a long way in establishing your business and spreading it.