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Car Rental as a Primary Business

For those with a passion for cars and an entrepreneurial spirit, starting a car rental business is a fantastic career choice. However, it is necessary to understand that the business requires a lot of effort and there will always be ups and downs. You will encounter challenges such as stiff competition, legal compliance, and developing a successful marketing strategy.

However, it is important to note that with the right approach to the car hire business, there is a good chance of it becoming a thriving and profitable company that provides invaluable services to its customers. Therefore, before venturing into the entrepreneurial sphere, it is recommended to familiarise yourself with the intricacies of the industry and draw up a business plan.


The choice between a primary and ancillary business

Being passionate about automobiles and possessing some experience in the industry is a good start to establishing a car rental business. However, before starting, consider the pros and cons so that you can make an educated decision. On one hand, a car rental business can be flexible, profitable and offer many opportunities for growth. On the other hand, it carries risks such as fierce competition, high operating costs, regulatory requirements and challenges in attracting new customers. Before entering the car rental industry, it is crucial to analyse your capabilities, interests, and capabilities carefully.

This sector caters to a diverse range of customers with varying needs, making it a potentially lucrative market. However, success requires careful execution. Nevertheless, it is worth recognising that success is achieved when a company has a competitive advantage and is able to maintain its position in the market.

Car rental can be a primary or secondary business. If you choose to pursue it as a part-time job, one car may suffice, but creating a full-blown vehicle rental company will require greater expense and effort.

Income generation capacity

In the car rental industry, there are no surefire business solutions. Success often depends on market dynamics and only the fittest outlast the competition. It is difficult to determine whether the industry is profitable because the volume of activity can vary.

Therefore, it is worthwhile to examine the matter of income potential in depth. The expense of renting a vehicle can vary significantly based on the vehicle’s condition, class, and location.

Additionally, the business plan should encompass:

  • Employee salary expenditure. The staff will include a manager, a marketer, an accountant who will help to set up the company’s activities;
  • Utility expenses. Monthly costs will include utilities such as light, water, and heating, which can be a significant expense.
  • Insurance. For the company and each individual vehicle, you will need to arrange a separate insurance policy. It is recommended to opt for a clause in the insurance policy that covers the possibility of different people travelling in the car.
  • Replenishment and maintenance of the car fleet. The vehicles wear out and require timely maintenance, as well as replenishment of the fleet itself if you want to scale your activities.
  • Facility rental. A car rental company typically has an office and a facility for storing vehicles, which they must pay for.
  • Internet. Access to high-speed internet connection is required to consult managers, check the condition and location of the car.
  • Development and support of the company’s website. To attract new clients and familiarise them with your services, it is necessary to develop a website.

Regarding expected revenues, this is difficult to forecast. However, if a prime location is selected, the fleet is diversified with various car models, and competitive prices are established, the investment should yield tangible returns in a short period of time. It is crucial to keep improving the quality of service, replenishing the fleet, and continuing to develop the business to ensure stable earnings of hundreds of thousands of euros. If you are willing to expand your scope of services and reach a higher standard, you can make millions with car rental.

Where to find the first customers

Finding customers is a major concern for business owners. It is important to note that the most favourable locations for opening a car rental company are tourist cities like Paris, London, or business centres. In these places, the primary target audience are tourists and travellers who do not have access to a car. They form the core of your customer base as they seek comfort and mobility during their holiday or business trip.

Larger car hire companies can collaborate with travel agencies, airports, hotels, and hostels on a commission basis to have a constant influx of customers in need of vehicle rental.

Dedicated car rental solutions are also available to enable direct contact with those who want to rent a car. Optimising business operations through software can establish all necessary business processes.

RentSyst is an online software developed for car rental. It enables you to easily optimise the operation of your fleet. RentSyst software has a range of features:

  • Ease of tracking orders. Online software can help you identify available cars and those currently in use.
  • Car reservations. Customers will find it easier to use the mobile app to book a car for the dates they need.
  • Accounting. Now all data will be stored in a single database, enabling faster accountancy and document flow.
  • Future profit forecast. Based on the analysis received from the CRM system, you can predict your profit.
  • Properly allocate your time. Routine tasks will be automated, allowing managers to focus their attention on more pressing matters.

A CRM system can enhance your car rental business by providing an opportunity to improve your service and offer your customers a personalised approach.



When analysing different industries, it is safe to say that car rental is a profitable one. Although the market is highly competitive, it is possible to succeed in developing your own company. To achieve this, you need to study all aspects of the industry, research your competitors, create a business plan and a marketing strategy.

Business owners should constantly innovate their company and implement the latest technologies. A CRM system can optimise the operation of the company, improve communication between employees and help provide the best possible service to customers.

Developing a car hire business requires a significant amount of expenses and certain skills, yet with the right approach it can bring good profits.