How to Start a Car Rental Business?

Is your location a tourist destination, near the airport, a busy commercial center or terminal where people need a vehicle to get them to places for leisure or business purposes? A car rental business is an ideal venture you can start.

Learn the basics about starting this business from our guide.

rental car

Do you live in an area that is a tourist destination, near the airport, a busy commercial center or terminal? People who go to these places have one thing in common: they need a vehicle to get them to where they intend to go for leisure or business purposes. If you are planning to open a business in this section, a car rental business is one enterprise you can start. You’d need:

  • A car or fleet of cars for rental. You can buy your own fleet (which is might be expensive) or enter into a contract with car agencies or companies that can rent their vehicle to you. You can also franchise a car rental business or buy an existing business.
  • Garage where the cars will be parked when not in use.
  • Insurance. There are several types you can get and those that you can offer to customers for their own protection – third-party insurance, car theft insurance, fire insurance, among others.
  • System for tracking the location of the car, limiting maximum speeds or distance: global positioning satellite (GPS) navigation systems
  • System for receiving payments. You must be able to accept credit and debit card payments, which is the usual method of paying for this business. It makes for easier verification of the integrity of customer, tracking of his whereabouts, and the charging of extra fees, in case there is a need.
  • Marketing strategy. You can tie up with travel agencies who can refer clients to your car rental service.

Starting a Small Car Rental Service

Starting a car rental business may sound expensive. But you can also start with a few vehicles and build the business from there. The most challenging part in starting out this way is getting insurance because of a startup business’ lack of loss experience, from which insurers can base the rates they can charge you.

Another challenging aspect of this kind of startup is getting your service known. You have to be ingenious in devising a marketing strategy. As a small operator, you’d have to find your niche market and advertise heavily about the uniqueness of your service. If you can compete on cost, capitalize on this. You have to do aggressive marketing in a way that doesn’t cost much since you’d most likely operate at a tight budget in the beginning. You can keep your cost as low as possible by minimizing expenses and doing repairs and maintenance on your own.

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696 Comments

  • bharat maheshwari said on June 27, 2010
    Hello Sir, I am a GPS provider(channel partner) in Guwahati assam(india) and would like to start a new business in taxi.... I dont have that much of capital with me to start a private firm. Sir, can u please help me out with this matter. Thanking you bharat maheshwari +91-9678312300
  • cecelia said on June 28, 2010
    I have needed a regular truck to move some things I have bought and no one to rent one from. I think this might be a good business. Any thoughts out there? midwestlatina@yahoo.com
  • Rajeev Sharma said on September 12, 2010
    Until and unless u dont have enough money to invest no one can help u out. Loan is one of the best option but make ur home work of the profit margin and other expenses u are likely to incur in the business. Otherwise u will land at the wrong side by paying the interest to the bank.
  • suresh said on April 23, 2011
    I'm suresh from chennai /TAMILNADU i want to start a CAR RENTAL BUSINESS i need details to start this business including for financial support to whom i want meet
  • Prasad Solapurkar said on September 28, 2011
    I have a small car rental business in Kalyan/Thane need expert advice on going further...as of now business is not so good..pl help my no is 9820221702
  • SYED said on October 9, 2011
    hi my name is syed wasim and my business is located in bangalore and i am looking for a employes of good mnc for pick up and drop facilities please help me currently my carz are running in new devanahalli air port
  • Mark Ondieki said on December 16, 2011
    I'm from Nairobi Kenya.Want to start a car rental for antiques.used in wedding hires.ideas of how to build it. already have cars
  • PBU said on February 9, 2012
    Sir,I am from chennai,and I want to start a car rental service with one car(tata indica ev2),I want to know the minimum down payment and the procedure to start my rental service. please reply quickly.
  • Satheesh said on February 25, 2012
    Hi, I am from Bangalore and I have indica ev2 car. I wanted to start a car rent service @ IT industry or Traveling. What is the procedure to do and how can I change my white board to yellow board. Total procedure i wanted to know. Kindly reply ASAP. Thanks in advance.
  • Charan Shanbhag said on April 4, 2012
    dear sir ,i own a Indigo which i have equipped with CNG but its white plated ,i wanna rent out my car and start a small business ,can u suggest me some companies that would like to rent my car ,I reside in mumbai .
  • kumaran said on May 10, 2012
    I had started a small car rental business, i am in a need of a good partner plz contact : 09004266996
  • wangmo dechhen said on May 17, 2012
    dear sir , I am from Bhutan. I want to start up car rental business service.So is the procedure to do. I reside in Thimphu, So kindly help me please. Thanking you
  • mustafa said on June 10, 2012
    hi., sir i am mustafa i have no experience in other field so i know driving so i like to start my own rental car business by one car myself in chennai can u help me pls what to do & how to do. thanking you i wait for your reply. 009171553847205
  • Siva said on August 1, 2012
    Hi.. I am siva from chennai.. i would like to start a car rental business in chennai. I would like to know what are all the drawbacks available in this business and how can we overcome that. Who know very well about this business please reach me out 9884287170
  • Ajay Sharma said on August 25, 2012
    Dear all, I am running a car rental agency in new Delhi and want partners like u who are willing to start car rental business. Pls cal on 91-8860185600
  • mustafa said on August 29, 2012
    Hi., I am mustafa i have experience in driving. so i like to buy car start my own business like rental can you u help me how to do thanks. mustafa +919176156672
  • Manish said on September 4, 2012
    Sir i am Manish and i have to start travel company because i give cars to companies for testing purpose so they need bill so for that i have to register one company regarding this .so plzz help me out how to register a company
  • avinash said on September 8, 2012
    hi i want to give my new vehicle innova 2012 model on contract with good mnc pls suggest
  • Sumant Jadhav said on September 11, 2012
    Welldone Tours & Travels. Thane, maharashtra India. We are interested in taking cars on monthly contract basis if anyone interested . Kindly contact. 9773157157 or 9967793669
  • dhirendar singh said on September 11, 2012
    please help me, i want to start car rent company in india sasaram bihar
  • srinivasan said on October 15, 2012
    hi i want to give my vehicle Etios 2012 model on contract with good mnc in Bangalore . pls suggest
  • Alok Raj said on October 19, 2012
    Sir i want to request to you i am start small business. i buy a new Mahindra Scorpio for business if any company need for this than please call me 09910962689
  • ravi said on October 25, 2012
    Hi i own a indi cab 2005 model kindly suggest me a MNC company or travel agencies that would rent my cab i reside in Bangalore.
  • rajesh said on October 27, 2012
    sir i have one indica how to start car rental bussiness company contract and mnc contract, i am in chennai nanganallur
  • sachin said on October 28, 2012
    dear sir, i am sachin from aurangabad (M.S) and i would like to start car rental business. now i have sufficient capital rs 10,00,000/-. and i will think purchase a new innova, and start the business, my contact also huge in our city is historical place near aurangabad such like ajanta & ellora caves, shridi sai baba mandir, in aurangabad 5 star MIDC with lot of manufacturing companies here.... now i am also working with big electronic company in aurangabad but i will think dont appoint driver, i self drive the car, please suggest me
  • Abdul Rehman said on November 7, 2012
    hi this is Abdul Rehman i have 2indica and want to start a car rent agency pls suggest me
  • ashok said on November 10, 2012
    hi, sir i want to start for car rental business, from chennai what kind of procedure, how to do government movement all of details i need.
  • SUMEET said on November 15, 2012
    HI THIS IS SUMEET HERE , WHICH ENGENCIES SHOULD I SELECT FOR CAR RENT BUSINESS. AND HOW MUCH THEY OFFER ME???
  • shem william otieno said on November 21, 2012
    hi sachin, i do that business plz contact me, or you can be my partner we do that my no +254 729482045 or my Email shmwilliam@yahoo.com
  • sikandar singh said on November 26, 2012
    sir i'm from delhi and i want to give my new maruti suzuki omni on rent for taxi or cab use. if there is anyone to take my van plz email me or contact me. singh_sikandra@rediffmail.com
  • jayashree said on December 1, 2012
    Hai, I am jaishri from bangalore whitefield area. Have taken couple of vehicles for contract. But I find it difficult in providing, duties pl..help
  • pavan said on December 3, 2012
    hi, this is pavan am started new trawel agency company can any body help me how to get the customers plz contact; 09916524253
  • Narayan said on December 5, 2012
    Hi, I want to give my new vehicle innova 2012 on contract to a good mnc or agency. Me @Mumbai, pls suggest
  • jignesh joshi said on December 6, 2012
    Hi, i want to give my new T-permit indica vista tdi sep 2012 model on contract basis to a good mnc companies in mumbai pls suggest
  • SURESH SRINIVASAN said on December 10, 2012
    Dear sir /madam, my Name is suresh Srinivasan, I have one New Tavera own cum driver how to pick a Regular Month contract, MNC,or same companies or college, pl. help. I am in Tharamani Chennai. Near, IRT, Titel park, asandas. My Cell, No-09940033426/09381341314.thanks.
  • senthil kumar said on December 11, 2012
    Dear sir, I would like to start a car rental business in chennai. so i need some of travels to come guide me and take my vehicle as a contract basis.
  • Manimaran said on December 16, 2012
    I want to give my chevrolet travera car for rent to IT companies, BPO.Interested parties pls contact 9965999222. Manimaran, madurai, tamilnadu.
  • Puspa said on December 19, 2012
    Hi, I am from Bangalore and I have ford figo(diesel variant) car. I wanted to start a car rent service @ IT industry or Traveling. What is the procedure to do ? And also wanted to know apart from IT industry where can i give my car for rent service with high security ,Kindly reply ASAP. Thanks in advance.
  • Madhusudan said on December 20, 2012
    DEAR SIR, I WANT TO GIVE MY CAR ON RENTAL. IN AURANGABAD MAHARASHTRA 9403125780 PLS HELP
  • ms smitha said on December 21, 2012
    hi, I want to attach my car(swift desire ) for Mnc company , pls let me know if anyone is interested in attaching my car to their company. Smitha- 9663396537
  • Sunil Reddy said on December 27, 2012
    Hi sir, i want to attach my car(Innova G) for MNC companies, What is the procedure to do?
  • solomon said on December 31, 2012
    Hi sir, i want to attach my car(Tata Indica Lx 2012 6 months old) for MNC companies, What is the procedure to do? And what is the profit can I get? I am the Driver of my car. Thank you. Wish You a Happy New Year 2013! Solomon S P
  • senthil said on January 1, 2013
    Hi sir, i want to attach my car( quails T Board) for mnc companies, what is the procedure to do? k.senthilkumar, Madurai, Tamilnadu,
  • Rama said on January 1, 2013
    Dear sir/mam, I want to give vehicle (sumo victa, scorpio, or bolero) on monthly rent in patna like telecom, companies, government sector on the contract basis, please suggest--7654782412
  • purushotham said on January 8, 2013
    Dear Sir, I am looking for car rental business in chennai please help me in this regard...
  • Sarfaraz Alam said on January 12, 2013
    Hi i have one new tata manza car which i want to give for monthly rent basis kindly call if needed to someone. either so much excited to partner in this mob-8976341088
  • Rohidas said on January 12, 2013
    dear sir, i would like to start a cab for my carrier develop am newly for this business so please help me starting how can i move. Rohidas 9738646344 Bangalore
  • hareesh said on January 13, 2013
    Hi, i want to attach my car(new xylo d4 2012 sep model)for mnc company, pls let me know if anyone is interested in attaching my car to their company,(car andhra registration) cont num:08015812690, 08019931208
  • sk jha said on January 13, 2013
    please let us know how to start car rental business. how to get registered for travel agency. we are situated in patna. your details reply will be highly appreciated. thanking you, skjha, patna
  • Narender Kumar said on January 14, 2013
    Hi this is Narender Kumar, I am a cab operator, and we need cabs on urgent basis for mnc purpose, our rate is Rs 8 per km for 24*7 purpose, only delhi ncr 8467046797 .
  • RCP SINGH said on January 15, 2013
    I wish to start car cabs in Bangalore to development my carrier but I am not having experience in this line. Please help by suitable guidance. My mob No is 8050534837
  • RCP SINGH said on January 15, 2013
    I am an ex-Army. Having 28 Years experience in Indian Army. Presently I am staying at Bangalore in Karnataka State in India.
  • Rohini said on January 16, 2013
    We stay in Bangalore. We have sweet Desire and would like to rent to any good HOTELS or to any BPO companies for pick and drop facilities. Please suggest whom to contact and how to go about it....
  • Kumar Chandra Prakash said on January 18, 2013
    Hi, I have bought a new car: Indigo ( Just 3 months old) and wanted to put on rent on monthly/ weekly or daily basis. I am based out in Patna- Bihar. Please help me, if any one interested. My mobile # +918092364834. Regards, Kumar.
  • Narender Mohan Sharma said on January 22, 2013
    I want to start cab service business in delhi ncr. so plz suggest me how can start this business. i am so confuse how can give service in call center. my name is Narender Mohan Sharma , and mob- 9211393550.
  • hari said on January 23, 2013
    i am from mumbai and planning to start a pick up and drop facility for a company. the employees are working night shift. but i dont have any experience in this field. please suggest how to register a company or whom to contact and how to proceed. my mobile no is 9892245048
  • Wasim Ahamed said on January 25, 2013
    I would like to stat Rental Business of Cars, Two-Wheelers. Could you please advise steps & governmental obligations if any? BR, Wasim
  • Sangeeta said on January 28, 2013
    Hi i an from mumbai and i want to buy a car by paying down payment and start a business of pick up and drop
  • vipin Sharma said on January 29, 2013
    Hi, I am vipin from delhi, I have a indica2007 in okay condition, i want to rent it for daily and monthly basis, i can't find the way to buildup my business, so plz help me out. Thanks
  • prakasht said on January 29, 2013
    hai my name is prakash from gubbi , i have a scorpio 2005 in good condition. i want to rent for daily, monthly basis, pls help me
  • amit shukla said on January 29, 2013
    hello sir! i want to give my new eco cng car on rent in NCR....plz cal me my no z...9555136801
  • sandeep janardhan said on January 30, 2013
    hi sir i am planing to start a travel agency like package trip and car renting please give me a suggestion how to come up with that i am staying in Bangalore in heart of the city.
  • narendra p said on February 7, 2013
    I have a small car rental business in Worli/Sion need expert advice on going further. as of now business is not so good. pls help my no is 8080908871. Mumbai, Maharashtra, India.
  • SAGAR DHENDE said on February 9, 2013
    dear all, i have 2 cars etios want to give on rent so please contact me 9987842733
  • Sridhar kumar katkam said on February 22, 2013
    Hi, This is Sridhar. i have an Cheverlet tavera B3 10seater A/C vehicle with me. I am planning to attach my vehicle with any one of cab agency. Will u pls suggest me a good agency from which i can earn money in contract basis.
  • manjunath said on February 22, 2013
    dear all, i have 1 new innova car , want to give on rent so please contact me 9535135625
  • gladson dhond said on February 25, 2013
    hi, i want to rent my car HONDA CIVIC fully automatic white. for hotel, airport please contact me :9823609001 Neptune socity kalyani nagar pune
  • karthik singh said on February 26, 2013
    sir i am from bangalore want to start a car rental business to mnc . as of now not so familiar about the company policies and payouts. is there any company who can give me details, and also i dont have much capital i will go for a car loan, and before going further i am checking for pros and cons , it would be of great help if you could provide me the details. Regards Karthik 09343917922
  • Amit Gurjar said on March 1, 2013
    sir, i am from thane. i am having maruti eeco 5 seater with ac. i want to start a business of car rental. my contact no. 9820675611. please help.
  • bhushan said on March 1, 2013
    Hi I am having a fleet of cars in sedan and SUV's and giving it to vendors on retail basis. now i want to start my own car rental with same fleet. please assist. MO: 9225508166
  • D.R.AGRAWAL said on March 3, 2013
    I am working in a renowned Pvt Ltd Travel Company & I want to grow company's car rental business with mnc's in HYDERABAD in a high level, I can provide a huge number of cars of all sizes for daily, monthly & yearly based. Plz provide me some tips/suggestions.
  • AMit Manchanda said on March 5, 2013
    I have a Santro car to be given on rent to MNC on contract basis in delhi-NCR. I can be contacted on 9871410277. Pls provide me with some tips and suggestions
  • Pallavi said on March 6, 2013
    Hi, This is Pallavi Shet. Actually i want to start giving my car on rental basis for some MNC companies which would pay me on monthly basis what is the procedure for the same.
  • SHIRISH said on March 8, 2013
    Hi I am from pune .I have new brand MarutiSuzuki Ertiga2012(Disel Model). I want to give to any MNC / fIVE STAR HOTELS along with my driver on monthly rental basis. My contact no 8956064555.
  • rahul said on March 8, 2013
    hi, i own a Tavera would like to give on rentals kindly mail me rahultr123@gmail.com
  • NITESH MISHRA said on March 10, 2013
    SIR, M nitesh mishra lived in delhi. planning to stats a business of cars putting of rent. i dont have much capital so my planning to buy indica vista n want to give it to cal centre on rent. so plz give some ideas about this business. plz contact me..ma contact no is 95555544466 thanks
  • Rahul said on March 11, 2013
    Hello Sir, Myself Rahul and we provides cars on hire basis. We provide Airport pick up-drop, local and out station facility. and i am interested to provide my car to multi national companies, hotels. so if you are interested you can reply me on rj26@rediffmail.com I am hoping that ill get business thought your site.
  • nohe said on March 12, 2013
    dear sir my name is nohe, i'm BA in tourism management, live in bahir dar ethiopia, planning to start a car rent. i dont have much capital, but i have a potential to do that. so pls give some ideas about this business. pls contact me my contact no is o0934536494
  • v. saxena said on March 13, 2013
    sir, i want to attach my hundai santro car (white colour, petrol) to any MNC / Hotel / Travel agency in pune, if required please contact on 9225829083. Near B.T.Kawade Road, Ghorpadi, Pune
  • praveen kumar singh said on March 13, 2013
    sir, i want to start a car rent. i dont have much capital, but i am interested. so give ideas about this business.
  • Venkatesan said on March 13, 2013
    Sir, i am venkat from vellore tamilnadu i have interest to start rental car business for MNC company staff's pick up and drop pls give some tips for business and financial support
  • rahmathunnisa said on March 13, 2013
    Sir. i want to give my omni van for rent to near my offices or travels. which is new and white board. please suggest me any one who takes vehicle for and can pay good rent ... near by ulsoor .. banglore
  • sanjay said on March 15, 2013
    Myself, sanjay i would like to give my new Maruti Suzuki, Ertiga VXI with (AIR CONDITION)rental basis only for MNC route will be only panvel to mumbai, if any travel agency required please contact me on my above email id or call me on my cell no. 9969339518
  • evelyn ibigin said on March 18, 2013
    Hi, I'm from the Philippines. I just started a car rental with only 1 Toyota van. so far so good. I want to expand this business to make it bigger. interested pls email me @ englishonlinesystem@gmail.com
  • John Jefferson said on March 21, 2013
    hi am jefferson i would like to give my new inova car for rental basis only for star hotel and the rout will be chennai city only if anybody required please contact my email id or my mob no:07598055874
  • rathi said on March 23, 2013
    Sir, i want to attach my tata indigo ecs lx t-board car (white colour, diesel) to any MNC /star Hotel /colleges in coimbatore, if required please contact on 9787625457. Near kovai pudur,coimbatore,tamil nadu,india
  • rajkumar said on March 24, 2013
    can u help or suggest me some corporate companies, pharmacy, hotels, offices etc. that would like to rent my car , I reside in Pune. please help thanking you.
  • laxman singh chauhan said on March 24, 2013
    for month, ahmedabad, any company, 4 wheeler scorpio hawk, if there is any company taking scorpio car on rent contact me, my own car having all the documents, 1st trying for 1 month then after think more. my cell no.9904748562,9327227747.
  • RKR said on March 27, 2013
    I am in Delhi and have two sedan cars viz Honda City & Suzuki SX4. I want to start car rental business especially to hotels. Pl guide/ advise.
  • Atish said on March 27, 2013
    Kindly let me know how good this business will be in Hyderabad and Mumbai. Regards, Atish
  • umadevi said on March 28, 2013
    i have a TATA SUMO ( T- Board )i want to rent my car in madurai
  • jagan kamble said on March 30, 2013
    hi my name is jagan kamble i am from thane i have one maruti swift and mahindra verito so those who want hire please contact 8108201200.. and i would like monthly and contract basic in mnc and call centre .....
  • shyam prakash said on April 1, 2013
    sir, am ready to invest any car like contract base. pls help. where i can invest..
  • sujatha said on April 2, 2013
    i am sujatha i have new indigo ecs car at annanagerwest in chennai. i want to attach my car at monthly rental at mnc company travels are individuals rent or lease. contact no 9941227543.
  • sk azeez basha said on April 2, 2013
    Hi sir i am azeez from hyderabad andhrapradesh. i want to purchase a new care and wants to give it for lease to cab services company. could you please suggest me which cab company is better and please suggest any other ideas other than lease go get more profits.
  • swapnil said on April 5, 2013
    I wanna rent my indica car in mumbai plz suggest me any company, hotel or airport
  • Radhika said on April 5, 2013
    Hello, I'm going to order a new Tata Ace and i would like to give it for motor companies in monthly rental basis.. but i dont know the procedure exactly... can u plz guide me????
  • Radhika said on April 5, 2013
    I'm in Hosur, Tamil Nadu, India.. plz tel me which company is good for my plan...
  • somashekhar said on April 5, 2013
    Hi, I am from Bangaluru, I recently got my new Innova 2013 model, I need to attach to MNC(IT) company for rent. Please help.
  • Sunny said on April 5, 2013
    Sir I am into service but now I want to start my own business in car rentals. I am even ready to drive my own vehicle in order to get experience. I am planning to get myself associated to some big hotels and make myself available as Tourist guide + driver. What do you think is the prospect for such kind of job? I am a writer by profession and I have a gift of gab. Conversing with foreign national is a cake walk for me.

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