Thinking about Starting a Car Rental Business

[Mace22]

Recently, I went on vacation to Hawaii. After about six hours of flights and waiting in airports, we arrived at our destination. We got on a shuttle to go and get a rental car. We arrived (company shall remain unnamed), and got in line.
Either we choose the worst car rental on the planet, or there is a massive problem here. We waited a total of 4 hours in the hot sun, watching perfectly fine cars sit there while we waited for our car. It had to be cleaned, which took way longer than it should have.
And when we finally got the car, it was still dirty! There was still dust everywhere, and some sticky stuff in the backseat. There were also scratches on the car, which we had to take pictures of or else we would be fined for damage we didn't cause.
As I recollected this experience, I thought, wow, this could be so much better.
So that got the ball rolling in my head.
However, there are two main things getting in my way.
A) Overhead costs (Multiple Cars are expensive)
B) Car Rental apps like Turo
I suppose I could get started renting cars I own. Any feedback would be appreciated.

 

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[wanttogofaster]

we choose the worst car rental on the planet

There could be a thousand reasons why this happened to you, including that you went with the worst company available.

I've never had any issues renting from Avis or any of the major car rental companies at the airport, and this includes Hawaii and other countries. One time I used Sixt in Mexico, and while the car was older, had scratches, rock chips on the windshield and other cosmetic imperfections, it worked well for us and we were in and out of there in no time.

I tried Turo on a trip to CA last month and the host canceled our rental the day before we got there. I could not even leave a bad review. Relying on some individual may be a bit tricky and definitely not for everyone (I went back to Avis after he canceled).

I think it is a very competitve industry. Someone I know started a car rental company in Miami a few years ago and it didn't last long.

Anyway, with thousands of airports in the US (not even counting city locations) I think it would be pretty steep. Unless you just want to compete at whatever Island in Hawaii you were at. And even then, I think you would have to have a very good offer, I don't know, Jeep Wranglers for way less than what others are renting them for for people to consider going with an unknown company instead of the ones at the airport.

 

[journeyman]

I've had similar thoughts in disorganized places, for example renting a bike in Mexico. Just being moderately professional and having a working website would make you stand out. But is that one location going to be enough to make a large profit, or will you end up offering yourself just a day job?

Leaving the bad experience you had aside, are you confident that you can create a high-quality service like Sixt or Avis, and be competitive with their prices? You don't have to dominate the market, even a small percentage will be plenty of money, but can you actually get there?

Real money would only come from franchising, and how much time and capital would it take to reach this point?

 

[AppMan]

Recently, I went on vacation to Hawaii. After about six hours of flights and waiting in airports, we arrived at our destination. We got on a shuttle to go and get a rental car. We arrived (company shall remain unnamed), and got in line.
Either we choose the worst car rental on the planet, or there is a massive problem here. We waited a total of 4 hours in the hot sun, watching perfectly fine cars sit there while we waited for our car. It had to be cleaned, which took way longer than it should have.
And when we finally got the car, it was still dirty! There was still dust everywhere, and some sticky stuff in the backseat. There were also scratches on the car, which we had to take pictures of or else we would be fined for damage we didn't cause.
As I recollected this experience, I thought, wow, this could be so much better.
So that got the ball rolling in my head.
However, there are two main things getting in my way.
A) Overhead costs (Multiple Cars are expensive)
B) Car Rental apps like Turo
I suppose I could get started renting cars I own. Any feedback would be appreciated.

You need to maintain the cars if you want to rent cars, other wise your maintenance bill will bankrupt you, that is why most car rentals have mechanic clinic attached to them. Car rental from far look like a money maker, but remember you are renting very expensive and over priced machines on this planet and handing them to people who think they can drive rented car like crazy and cause a lot of wear to the car.

 

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[biophase]

Recently, I went on vacation to Hawaii. After about six hours of flights and waiting in airports, we arrived at our destination. We got on a shuttle to go and get a rental car. We arrived (company shall remain unnamed), and got in line.
Either we choose the worst car rental on the planet, or there is a massive problem here. We waited a total of 4 hours in the hot sun, watching perfectly fine cars sit there while we waited for our car. It had to be cleaned, which took way longer than it should have.
And when we finally got the car, it was still dirty! There was still dust everywhere, and some sticky stuff in the backseat. There were also scratches on the car, which we had to take pictures of or else we would be fined for damage we didn't cause.
As I recollected this experience, I thought, wow, this could be so much better.
So that got the ball rolling in my head.
However, there are two main things getting in my way.
A) Overhead costs (Multiple Cars are expensive)
B) Car Rental apps like Turo
I suppose I could get started renting cars I own. Any feedback would be appreciated.

Probably the easiest way to start is to buy a few cars and list them on Turo.