The need for vehicles for daily transportation and mobility is particularly high. At the same time, car prices are also not exactly cheap for some people. Not to mention, the odd-even rule makes many people hesitate to own their vehicle.

It can be seen as a car rental or rental business opportunity for people who have a business spirit. An online transportation application allows owned cars to be rented and searched for passengers using this application.

With this potential, there is nothing wrong with exploring a car rental business. To start the business, it can be done with minimal capital because business capital can be obtained by credit or loan.

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For more details, here are some notes for starting a car rental business:

Look for a car that is popular with the community

To start a car rental business, you should choose a car for a million people or the one most popular with the general public. Like a car with a lot of cargo and can carry passenger luggage.

Choosing the right car is very important so that the car as a business asset will be attractive for rent. Usually, customers prefer to rent a car type MPV or minibus because it has a large capacity and is economical in fuel use.

Cars popular with people for rent are Avanza, Xenia, Innova, Gran Max, Ertiga, or other cars of the same type. After choosing the right car, you can calculate the different rental prices. The rental price is based on the type of car and the need for operational costs.

The thing to note is to avoid buying a used car even though the price is much cheaper. The new car’s condition is certainly an added value for customers to rent because it is safer and more comfortable.

Using a new car can minimize maintenance costs because used car maintenance costs are greater.

Buy a car on credit

Starting a rental car business does not always require a large capital. New cars are quite expensive, and it cannot be easy to buy several new cars at once.

Therefore, buying a car to be leased can be done through credit. So there is no need to spend big money to buy cash.

The monthly car installment fee can be taken from the car rental income. So that business actors are not too burdened by the amount of car installment costs per month.

There are many motor vehicle loan products provided by banks or other financing institutions to buy a new car on credit. Each has different pluses and minuses. You can choose the type of motor vehicle loan that suits your needs and abilities.

General description of motor vehicle loans

In general, motor vehicle loans are available in conventional systems. The difference is that in conventional credit, banks usually apply interest rates based on market interest rates that refer to Bank. So that people who apply for credit can choose when is the right time to take credit.

Also, in conventional credit, there are two types of interest rate calculation systems—namely, the floating system with the determination of interest rates according to those on the market regularly.

Then in the fixed interest system (flat) with a fixed interest rate from the beginning of the credit to the credit period’s end. Many people feel that the flat interest system is more profitable because they don’t need to worry about fluctuations in credit interest rates from the Bank.

Include the rental car’s assets under your insurance coverage

Like any other type of business, the rental car business has risks, especially risks to assets in the form of cars or drivers.

Therefore, the assets owned can be included in the insurance coverage so that if at any time a problem occurs such as a traffic accident, damage, or the risk of losing a vehicle, it will not interfere with the smooth running of the business because it is covered by insurance to provide compensation.

That way, the risk that occurs to the assets will not burden the business financial cash too much. If the business capital you have in running this car rental business is limited, insurance is available at a small premium or using a business entity cooperation system. That way, large insurance premiums are no longer an obstacle to registering car rental business assets with the insurance company.

Develop a marketing strategy

In doing the car rental business, it is necessary to arrange a marketing strategy so that assets in the form of existing cars can be rented so that the business’s wheels can run optimally.

A business strategy that needs to be prepared carefully includes who are the potential targets who will rent existing cars and who are the people who can help the smooth running of the business. This strategy in marketing science is usually called People.

Determine the best place to rent a car, or called the Place strategy. Then, determine the price that will be given to the people who will rent the cars using the Price strategy.

Don’t forget to also create promotional tools so that marketing can happen more effectively. This business strategy setting can also measure the extent to which the rental business’s effectiveness can run.

The use of promotional tools or promotion tools also does not need a large budget because you can use simple tools such as social media, blogs with free domains, or word of mouth using your networking.

Furthermore, if the business has developed, the market coverage can be expanded through cooperation with other car rental businesses or companies that require personal transportation services.

Owned cars can also be used or leased to online transportation application partners, which are currently very popular to expand the business.

Make car rental regulations clear and firm

Regulation in the car rental business is very necessary because it has risks from car renters, such as damage to cars’ loss. For the impact of these risks to be calculated, it is necessary to have clear regulations regarding car rental, such as:

• Make a letter of agreement before leasing a car, complete with the signature of the tenant and car owner and a stamp
• The non-resident card or other identities of the tenant also needs to be held as long as the car is still in the hands of the tenant as collateral in the event of something unwanted
• Provide the tenant with a form containing personal information about the tenant
• No less important is installing a tracking device or GPS on every car that is going to be rented

After the business develops, it is also necessary to build a digital rental application system to monitor and implement car rental business regulations.

Look for additional income from cars

Apart from renting, cars can also get additional money through home advertising, as has been happening lately.

There are so many cars on the highway that advertise products on vehicle windows or use additional billboards at the top of the car. This can provide regular monthly income during the advertising partnership period.

This potential is certainly an opportunity to earn additional income for car rental entrepreneurs because there are already several service providers that allow cars to be a means of promotion and running advertising.

Manage finances well

After the car rental business has run smoothly. What needs to be done is good financial management and management to maintain business continuity.

As an entrepreneur, you can regularly check transactions, including profit or loss, to make the right decisions to carry out the next business strategy.

Monitoring financial transactions can also involve third parties, such as consultants or financial software, to help manage business transactions.

With persistence and persistence in doing business accompanied by good business management, the car rental business is a promising business prospect. No need to be afraid to start a business because success can come from anywhere as long as you try.