How To Start A Car Rental Business?

Today it’s almost impossible to find such a person who would never think about starting his own business. After all, working for yourself promises a high income, if everything is organized correctly. And the car rental business is no exception.

Many enterprising people are inspired by the example of large cities such as Dubai, where anyone can rent a car without any effort and without leaving home. Even a tourist with a slightly above-average income can contact any car rental company and afford to use the Dubai supercar rental service. Car rental companies in the Emirates offer a huge selection of various cars for every taste and budget, and also provide a unique opportunity to enjoy luxury and expensive cars and sportcars. This is the level you should aim for. You can also provide such services of the highest class.

However, it makes sense to start working in this area if you have a decent amount of money in your bank account and are ready to immediately purchase several cars of different brands and classes. In this case, you can count on monthly profit.

And so, let’s briefly look at the main points that you should pay attention to when opening a car rental business.

  1. Car park

Your car rental business can be opened by franchising or independently. The most crucial thing is to decide on which cars the company will specialize in — the initial investment and profit of the company depend on this. It can be houses on wheels, super cars, economy class, etc. The number of cars play a significant role as well.

Demand is constantly growing, along with it, the number of organizations specializing in car rental is increasing. Therefore, it’s impossible to accurately calculate the required number of vahicles but you can start with 10 autos.

  1. Office and staff

A room of 20-30 square meters is enough for your office. It can be a space in some business center, next to which it’s possible to rent a parking lot (8-10 square meters per car). As practice shows, for a fleet of 10 cars, it’s enough to rent a parking lot for five to seven cars.

Moreover, you need to include the cost of finding and hiring staff in your budget, as well as the salary of all your employees. Don’t forget about the cost of maintaining your cars. After all, failure, replacement of some parts, and maintenance haven’t been canceled. The ideal option is to have your own service stations, but it is only beneficial for large companies to have them.

  1. Legal aspects

This point concerns the registration of your company, filling out documents, and paying all taxes. Moreover, initially it’s necessary to correctly draw up a contract and indicate the main terms of the deal, prescribe the rights and obligations of the parties, as well as what consequences may be in the event of an accident.

It’s extremely crucial to do this, so you should also consider the cost of a lawyer who will help in this matter. Since this type of activity (car rental) carries certain risks, in the end you can lose a lot of money. Therefore, it’s obligatory to think over everything in advance.

  1. Target audience

You should carefully study the market and the volume of likely demand for car rental in your city or region. It is necessary to determine in advance the clientele in need of such a service as car rental.

Car rental is used by private clients and organizations. Many people prefer to rent an expensive car rather than own. The same opinion is shared by many companies that consider the maintenance of their vehicle fleet as a very significant expense item and an unprofitable idea.

  1. Promotion

No matter what cool cars you have in your fleet or a well-designed office in the city center, your business may not be known if you don’t have a marketing strategy and an advertising campaign. And you should start from the moment of your company registration.

Be prepared to invest significant amounts on your business promotion from the very beginning. This includes creating and designing a website, administrating social media accounts, content marketing, video marketing, SEO optimization, email marketing, targeting and much more. So don’t spare money on specialists who can attract you real and paying customers.


No matter how simple it may seem to open a car rental business, this area also has its drawbacks and costs. In particular, this applies to sudden failures, accidents involving the client, and constant maintenance of your fleet. Therefore, when starting such a business, be sure to conduct market research and weigh all the pros and cons. We wish the best of luck and prosperity to your company!

About the author

Avatar photo

James Oliver

James Oliver, a freelance article writer and contributor who focus more on technology, mainly Gadgets and all the latest trends which are interesting for readers and tech enthusiasts.