Establishing a car rental company in Turkey
The field of car trade in Turkey has achieved great prosperity in the last five years. The reason for this clear increase is due to the increase in the number of airline passengers, so we can say that car rental is directly linked to the movement of airline passengers.
Interesting statistics about car rentals:
The number of visitors to Turkey, whether residents or tourists, is increasing, as it is one of the countries most visited by tourists around the world. There is no doubt that this will contribute to a clear boom in the field of car rental, which is expected to achieve record results until the year 2021. The major car companies are more beneficial and successful. Among the small companies, due to their ability to conclude agreements with airlines, hotels, and tourism companies, they achieve significant financial gains through these agreements.
Large companies are very interested in creating brand awareness among customers, and this leads to many difficulties for small companies in maintaining permanent customers.
The objectives of renting cars are divided into two main parts for business or tourism purposes. In fact, renting cars for commercial purposes is witnessing greater demand. However, it is expected that renting cars for the purpose of tourism will witness greater demand, especially during the vacation period. The types of cars vary to large, medium and luxury cars. ….etc.
Currently, cars are rented in Turkey through phone applications, as it was noted that the number of companies using applications to serve car reservations increased significantly during 2019-2023, in addition to the increase in international travel, the growing population and widespread use of the Internet led to the development of a market Car rental, as car rental companies began to achieve more financial revenues by providing Internet service.
Customers in the market:
Looking at the demographic and personal distributions of people who rent cars, we see that most people who rent cars are business owners, company managers, foreign tourists, and tourists who travel extensively within the country.
Distinction in the field of car rental:
All services are generally similar, as the main purpose of the car rental business is to provide the customer with a car to move from one point to a certain point. However, some areas that you can specialize in the car rental business are as follows:
* transport services .
* Tourism and travel services.
* Corporate services.
* Individual services.
Level of competition in the car rental sector:
Opening a car rental company is, of course, successful, but it is not easy in the beginning. A person needs a huge source of capital to purchase the necessary cars. Before making such a large investment, it will be in your interest to study the level of competition in the market.
Although small car rental companies can do business with other regional and local companies, they may not compete as easily with larger car rental companies.
But there are some advantages that small businesses can enjoy. As owners of a small car rental company, you can build good relationships with your local customers. In large companies, the procedures are long and more complicated. If you greatly simplify the procedures, customers will prefer to deal with you more. This is because customers, by nature, look for ease.
Economic analysis and its importance in this field:
Before you start investing in this field, you must definitely conduct a feasibility study, and there are many factors that you need to take into consideration so that you do not fail in your project once you start it. It is very important to think about how to move away from the fierce competition with major companies, and create some Strategies such as finding a site through which customers can continuously learn about your company. These factors make the growth of your company continuous and even exponential.
There is another issue related to the location and location of the company. If you want to establish a medium or large company, you must ensure that the space of your company is large enough for your vehicle fleet and that it can be reached smoothly by your employees and customers.
Possible difficulties you may encounter when renting commercial cars:
Every business has its own challenges, and one of the biggest difficulties that you may face while renting a car will be from the general economic situation of the community if the economic situation is bad. If the economic situation of the public is not very good, the per capita income will also decrease, and thus the number of people wishing to benefit from it will decrease. Car rental services. This matter will be directly related to the number of tourists in Turkey. The more tourists there are, the more customers will increase.
How to open a car rental hall:
1- Consider the available options:
The car rental field is a highly competitive sector, and it is very important that you conduct research at the beginning stage, and therefore this article will be a good starting point for you. With proper research, your company will then become in demand and you can earn good profits.
2- Determine the sales mechanism that your company carries out:
There are usually two ways in the case of car rental:
* If your clients are companies: in this case, the rental period will be long.
* If your clients are individuals: the car is rented for a short period (several days and some customers rent on a daily basis).
3- Providing a fleet of vehicles commensurate with customers’ needs:
The most important thing that your company must understand is the type of customers that it will serve. If the majority of customers are individuals, your company must provide a fleet of different cars, especially in the case of tourists (where it is preferable to rely on economic cars), and the larger the fleet, the greater the profits. The fleet of cars must also be well taken care of, as this will reduce the burden of maintenance imports.
4- Providing a suitable location for your company:
This is the most important main factor. Research the market around you and understand the competition as much as possible. As an independent company, you need to avoid falling into competition with companies.
Some companies provide their services at cheap and competitive prices, and creating a customer base for your company will be the best option in this case.
The location of your company’s headquarters near airports and hotels will also benefit it.
5- Obtaining insurance:
Obtaining insurance for your company’s fleet of cars is one of the most important priorities that must be provided, as it is illegal to engage in car rental activities without obtaining insurance for them.
6- Managing your company’s operations through an electronic system:
In previous periods, car rental operations were recorded and archived through paper records and books. This method can be useful in the short term, but its disadvantages outweigh its advantages. Paper records often waste time. It will be difficult to determine the division of cars between those present in the company building and those For customers, using an electronic system to manage your car fleet will make all these hidden difficulties easier for you.
7- Providing a website for your company:
If you want your company’s services to run smoothly, you must provide a website for it, because many customers at the present time prefer to obtain services through the Internet, especially through search engines (Google) and social media (Facebook – Instagram, etc. ).
This method will enable your customers to obtain complete information about your company’s services 24 hours a day, 7 days a week.
The website must also be provided with a payment system to facilitate car rental operations through it.
Conditions required to open a car rental company:
1- The area of your company must be no less than 80 square meters.
2- Do not park cars outside the company headquarters (including motorcycles if available).
3- There are no flammable or explosive materials in your company’s headquarters.
4- Providing a detailed plan for your company’s departments, and this is done through a planning specialist.
5- Do not change the company’s departments (as they are within the plan) without permission from the municipality.
6- It is prohibited to have liquefied gas vehicles and petroleum derivatives in your company.
Documents required to open a car rental company:
1- A certified copy of the passport translated by a notary public.
2- Two personal photos.
3- A copy of the title deed for the company’s headquarters building (if you own the company’s building).
4- A certified copy of the lease contract or the original contract (if the company building is rented).
5- A license from the municipality to use the building.
6- A copy of the tax plate.
7- A copy of the commercial register from the Chamber of Commerce.
8- Fire prevention report from the Fire Department.
9- A photo of an identity card verified by reviewing the Security Department.
10- A copy of the approved signature, and a copy of the newspaper announcement.
11- A copy of the criminal record.
The cost of opening a car rental company:
First of all, it is necessary to know the number of cars that you want to provide in your company’s fleet, and the mechanism and manner of obtaining these cars can make the cost vary. Follow up on this matter. The space and location of your company has a major impact on the issue of the opening cost. All of these must be known. Details then If you contact us regarding this topic, we can provide you with more detailed information.
The company in this example works with a vehicle fleet of a total of 4 different vehicles,
The vehicle fleet consists of different categories. The total value of the vehicle fleet is on average 3,000,000 TL.
We can estimate a cost of between 80,000-100,000 TL for the license and workplace costs. Together with the location and other establishment costs, the total cost is around 3,100,000 TL.
If all the vehicles in our example are rented monthly, they will generate an income of 82,100 TL with VAT. Of course, if the vehicles are given at daily rentals, the monthly profit rate will increase even more.
It is not a good idea to operate the vehicles that will be purchased for your company for a long time (using the same cars for long periods). It would be correct to keep your fleet updated continuously by selling the vehicles at the end of certain periods.
You must also choose suitable and practical vehicles for your company.
If the correct cars are chosen, these cars can be sold at a higher price than their purchase price, which generates greater income for the company. For this reason, using used cars that have not driven a large number of kilometers and selling them before reaching a critical kilometer limit is considered one of the ways The best options available.
Choosing a suitable location for the car company:
You must know that the location of your business plays a major role in the success and growth of your company. There are many things that must be taken into consideration when choosing a place that suits your car rental business. While it is not enough to find a place at a reasonable price only, as ease of access to the location plays a major role in attracting… Customer because your customers should be able to reach you easily.
Preparing a business plan for your company:
Having a business plan for companies is very important. Well, we cannot say that all companies have a business plan, but successful companies are the companies that develop business plans and make accurate calculations for all their operations. It must be noted that the business plan should be drawn up on realistic foundations and through prior research and not By writing it in imaginary numbers with the sole aim of gaining a feeling of comfort, the business plan that will be prepared for the car rental business must include the following:
– The number of vehicles you wish to obtain in proportion to the capital.
– Your sales and marketing strategy.
– Marketing objectives for your advertising campaigns.
– How to reach your target audience, and explain the differences that distinguish your company from competitors.
Your company’s business plan must include the size of the market and your share in it, in addition to the growth rate of your company in this market.
– The number of employees you will need in your company to complete operations perfectly.
If you find difficulties in developing a business plan for your company, you can get help from consultants in the field of establishing car rental companies. We can develop a business plan for you in addition to creating a budget study for your company. You can reach us to solve all these issues by clicking on the link.
Marketing ideas and strategies for car rental companies:
Every company that wants to earn profits must make sure that its marketing strategies are sound. Thanks to the many and many marketing methods, you will advertise your products and services, and every marketing strategy must be able to save money through the use of traditional and non-traditional resources.
If the car rental business carried out by your company is medium or large, you can make financial offers whenever possible. However, if you have a large business, you can reach a wider audience and increase awareness of your brand by partnering with small companies. Here are some marketing ideas and strategies that You can implement it:
– Submitting partnership proposals with airlines and government agencies.
– Sending informational brochures to your regular customers.
– Advertising in magazines and newspapers related to this type of business.
. Open a website and provide online services to customers –
– Make sure that there are correct addresses for cars when they are with customers.
– Use social media such as Facebook and others and establish accounts for your company on them.
– Advertising your company’s activities on Internet pages and forums.
– Hang banners in places close to your target audience.
– Developing direct and oral marketing skills among your employees.
Maintaining customers:
Customers do not abandon companies that meet their needs and provide services that suit their desires. Therefore, if you want to retain your customers, you must be able to predict their desires and needs. This is done by mixing understanding the customer’s desires and providing distinguished services. In that case, your customers will not want In going and dealing with competing companies, customers often go to competing companies when they feel uninterested.
One of the successful ways to retain customers is to apply discounts on certain days depending on the type of car. Discounts can be made for long-term deals. It is possible to provide your services through packages and packages that provide financial proportionality with customers of all classes.
Insurance required from car rental companies:
Insurance is undoubtedly one of the most important requirements for all car rental companies, because insurance companies protect you from possible and unexpected accidents. There is no need to rush when it comes to obtaining insurance, as it is preferable for you to obtain it after consulting with specialists in insurance matters. The main insurance documents that must be taken into consideration when establishing a business Your car rental is as follows:
– Financial liability insurance.
– Waiver of accident damages.
-Personal accident insurance.
-Personal property insurance.
– Commercial vehicle insurance.
– Work accident insurance.
-General insurance.
Opening a car is an important business idea for entrepreneurs who want to start a business in the automotive industry. We will continue to share the most attractive business ideas for everyone and in accordance with everyone’s budget.
In our company, we are able to find the car rental companies that you want to buy (companies ready with their equipment), and we can also carry out all the legal procedures that you want and need to do. If you want to obtain more information and to answer your inquiries, you can contact us now.
