However, if you work through a car-hire franchise the bulk-buying ability of the parent will substan

BusinessesForSale website uses cookies. To understand more about cookies and their benefits please see our Cookie Policy . By continuing to use this site you consent to our use of cookies on this device in accordance with our cookie policy.
Car-hire firms used to rely on two core markets real estate united kingdom businesses needing occasional hire or fleets (the bulk of the turnover in cities) and the tourist market. The latter used to only be significant in resorts, but the increasing real estate united kingdom popularity of city breaks means that more urban car hire firms are receiving the bulk of their trade from tourists.
Many people, particularly in London and other large cities, forego the expensive option of owning a car as public transport is a cheaper and more convenient day-to-day way to get around. But they still occasionally need their own wheels, and will often rely on the services of a car-hire company.
The result of this market expansion is that car hire is no longer dominated by a number of multinational brands. A number of niche brands have emerged, with USPs including eco-friendly vehicles, a gap in the market spotted by Climate Cars founder Nicko Williamson , and innovative ideas like Whipcar , which has pioneered peer-to-peer car hire.
Local independent businesses have, of course, always been strong in this sector but increasingly the prospective owner has the option of entering real estate united kingdom into franchise agreements with the likes of Eurodrive or Budget.
Unfortunately, this means that buying a car hire firm can be quite expensive remember that in our lives, cars are often second only to houses in terms of cost. And a business will need to own several.
However, if you work through a car-hire franchise the bulk-buying ability of the parent will substantially lower this cost. But it is still not to be sniffed at; Eurodrive, for example, asks for an initial franchise fee of 19,500 and for proof that you have working capital of between 35k and 55k.
The main source of income is the hire charge, which needs to reflect the depreciation of the car during the time it is hired out. This will not just depend on the ageing of the vehicle during that period, it will also vary according to the miles driven.
Therefore, some car hire firms have lower per day charges and make a levy on the miles driven; others factor the average cost in and offer unlimited miles . Obviously firms charge over and above the actual value in order to make a profit.
Any vehicle hired will need to be insured not just for third-party incidents but also against any losses you incur as a firm as a result of accidents real estate united kingdom or damage. Hirers will need to pay an excess on any damage to the insurers, normally between 150 and 500.
Companies can also make a profit by selling additional excess waiver insurance to hirers that reduces this figure to a more manageable level. Of course, real estate united kingdom much of this goes to the insurer, but a cut will stay with the broker.
However, car hire firms also make money through selling petrol. This statement might raise a few eyebrows, but if hirers bring back vehicles with less fuel than at the time of hiring, then the firm will charge them for the difference at a premium.
Making all this add up and produce profit can be a challenging task. Franchises tend to produce menus of alternatives or enforce their own system which can make the process easier although which in turn means you will have less autonomy.
real estate united kingdom However, local, smaller operators can have an extremely loyal base a quick flick through the company s books (a must before real estate united kingdom considering buying any business) will reveal quite how profitable the car hire firm is.
Cars are complicated and potentially dangerous machines and it can be stressful ensuring that well-maintained, clean and safe cars are delivered to sometimes anxious customers at the right time. It s also hard to ensure customers are happy with the service they receive.
As owning a car becomes more expensive and weekend breaks and holidays become more frequent, real estate united kingdom car hire firms are looking to a rosy future. Whether it s a franchise or an independent firm, the profits in this growing market are certainly there to be made.
BusinessesForSale website uses cookies. To understand more about cookies and their benefits please see our Cookie Policy . By continuing to use this site you consent to our use of cookies on this device in accordance with our cookie policy.