Tips for starting a car rental business with small capital

 The need for transportation, especially in Indonesia, is a staple for Indonesian people. This makes a business related to car rental or car travel services one of the business opportunities that will never die in Indonesia.

Starting from the need for recreation to business needs, the car is one of the vehicles most needed by Indonesians.

In addition, increasingly advanced technological developments generate new jobs, namely as a driver or online taxi driver.

Tips for starting a car rental business with small capital
car rental business

This is a new opportunity for car rental entrepreneurs. For those of you who just want to get into business, car rental seems to be an option to start a business.

Then, how to start? The following are tips for those of you who want to start a car rental business with small business capital.

Tips for starting a car rental business with small capital

Choose the Most Demanded Car for the Car Rental Business

Starting a business or car rental business means that you have to own the car that you are going to rent. Before buying a car, try to choose the type of car that is in great demand by customers in your area.

Usually car rental customers prefer MPV/minibus type cars that can carry many people and also have economical fuel.

The cars that are most in demand are usually like Avanza, Xenia, Innova, Gran Max, and so on.

This type of car is also very suitable for those of you who want to open a business or travel car business.

After choosing the car you want to buy, determine the car rental price based on the type of car and also your needs. 

Avoid Used Cars to Buy

Even though the price is much cheaper, avoid buying a used car to start a car rental business or a travel car business.

By choosing a new car, your business will become more value for customers and make customers safer and more comfortable.

Not only that, choosing a new car also reduces maintenance costs. Can you imagine, how much money do you have to spend to maintain a used car engine? Certainly more expensive than you buy a new car.

Buy a Car on Credit

If buying a new car is considered expensive and you don't have large enough capital, you can buy a car on credit.

For the installment fee, you can take a portion of the car rental income. That way, you won't be burdened with monthly installments.

However, if you have enough capital to buy a new car, there's nothing wrong with buying a car in cash.

Set Your Car Rental Business Regulations

Regulation in the car rental business is very important. risks arising from tenants often occur such as damage and also loss of cars. To avoid this, arrange rental regulations such as,

  • Implement a letter of agreement prior to leasing signed with a stamp duty;
  • Imposes detention of Identity Cards during the rental period;
  • Provide a form to the tenant containing the tenant's personal data information;
  • Attach a GPS tracking device to your car.

If your business has grown, you can also build rental application software to make it easier to carry out regulations for your car rental business.

Register the Car with the Insurance Company

Running any business, including car rental or leasing businesses, must have business risks, one of which is asset risk. The assets in the car rental business are your car as well as the driving force.

Insure your business assets in the event of a traffic accident, damage, loss and also risks that can disrupt the smooth running of your rental business.

If you have small capital, currently some insurers impose small premiums or a system of cooperation with business entities.

So you don't need to worry about large premiums for registering insurance on your car rental business assets

Set a Marketing Strategy to Develop a Car Rental Business

After you have invested your assets in a car, the next step is to set a marketing strategy for your rental business.

Business strategy can include who your rental targets are and also the people who will help your business (People), where you will rent (Place), the price you will give for each rental (Price), and also the promotion tools that will be used in your strategy.

This business strategy can also measure how effective your rental business is. Marketing strategies with small capital usually only use simple promotion tools, such as social media, blogs with free domains, and networking.

When your business starts to grow, you can expand your market coverage by working with other rental businesses or companies that need private transportation.

Currently you can also offer rentals to online taxi partners as a strategic step for your car rental business.

Manage Finances Well

The last thing you should pay attention to in starting a rental business is managing business finances well. Managing finances especially in your rental business is important.

You can control every transaction, including profit and loss so you can make decisions regarding future business strategies.

If you don't really understand how to manage finances well, you can hire a consultant or rely on financial regulatory applications or financial software to make managing your rental business finances easier.

One of the financial software that you can rely on is Journal. Journal is an online accounting software that can be your business financial solution.

By using the Journal, you only need to record all business transactions into the system, and the Journal will automatically provide accurate and real-time data regarding the financial condition of your business.

Journal as an android bookkeeping application also provides financial reports that you can access anytime and anywhere. This certainly makes it easier for you to manage your business. You can see more about the Journal notes application and other features here.


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