They may look like bombs, but they are not! Budget conscious people are more likely to rent these apos;golden oldiesapos; rather than new, expensive models from well-known chain operators.
Some agencies specialise hiring out vintage and veteran cars - and not just for weddings. Locals and tourists alike enjoy driving these old timers, they enjoy the looks and waves from pedestrians and other motorists.
By far the largest penetration of secondhand care hire agencies is among younger people and those who cannot afford the higher prices charged by the major franchises.
In targeting your market your job is to play up the convenience, economy and novelty angles of hiring one of your secondhand cars, perhaps offering a discount or other incentive to first-time customers.
Your twin goals are to build on your natural customer base - young people and those travelling on a budget - while penetrating other potential markets using the nostalgia angle - people in their 40s, for example, who might enjoy the novelty of hiring an old Holden just like the one they had when they first started driving.
While this is part of your market research, you will also need to consider a number of other factors when in the start-up phase. One of which is deciding on a business premises and location and acquiring your stock.
For a secondhand car hire agency, location is not as important as it is to a retail store, but still deserves careful planning and research. Ideally, you will want a location that is near a major transportation hub, such as an airport, train station, bus depot, etc., or near a major highway.
Because your customers have good reason to travel a longer distance to reach you, they will do so even if you are not in the community where they normally shop. An auto dealership, for example, will often locate on the outskirts of town, and yet draw customers from many different communities.
When it comes to your stock, you will need a substantial amount of capital to set yourself up in this business. Most owners we spoke to invested upwards of $100,000 (up to about $200,000 for a bigger fleet) for fleet purchases.
All this and much more is outlined in this guide. It investigates market potential, what to consider when choosing a business premises and location, what equipment you will need, what to consider when it comes to costs and stock, how to effectively operate your business and the tax and legal issues you should be aware of.
Remember, not only is starting a business a major life-changing decision, it is also a major financial investment. As a result, you will need to make sure you are fully aware of the commitment you are about to make and what is involved.
This guide will help you to arm yourself with the appropriate information. Information that is accurate, up-to-date and applicable to your individual circumstances.
It also provides information concerning how to
- Source reliable vehicles.
- How to compete with the giants successfully.
- How to keep your vehicles in top operating condition.
- Insurance considerations.
- How to make the most of your advertising dollar.
- Day-to-day operations, along with many other apos;tricks of the tradeapos;.
|Average net profit before tax||$43,500.00|
|Average startup investment||$220,000.00|
|Minimum startup investment||$160,000.00|