Car rental project
The car rental project is a service provided by Car Owners. The latter manifests itself in renting the car to the customer for an agreed upon financial cost. That is, you rent it for a specific period, whether long or short-term, from and to the car rental agency.
So what are the steps to creating an automobile project? What are the conditions for undertaking this project?
In this article, we conduct a study on our website through which we answer these questions. We will also conduct a financial study to clarify the vision of the project costs.
How to establish a car rental project.
Carrying out a car rental project is possible and easy, but it requires a good study of the market because the competition in this field is intense. So you have to make a solid business plan, and then provide services that the competition cannot know in order for the project to succeed.
Steps required to open a car rental project.
Market study: The market study consists of studying potential customers, market size, competition, as well as marketing methods for the car rental project in the area in which you want to establish the project.
Location: The agency must be located in a location that has a good flow of potential clients. We mention, as examples, airports, train stations, hotels…
Commercial space: The space represents the agency in which the rental activity is to be carried out, and it is usually an office whose area does not exceed 25 square meters to begin with. In addition, there must be a garage that can accommodate 5 rentable cars at the beginning of the project.
Investment: The project requires an investment at a financial cost starting from 500 thousand dirhams as a start to acquire five cars of different models.
Legal procedures for the car rental project.
Create a company
Collect the necessary documents to obtain a license from the Ministry of Land Transport, which are:
Request to obtain a license to open a car rental establishment without a driver.
The commercial register that specifies the name and activity of the company.
Professional tax registration certificate, which specifies its activity exclusively in renting cars without a driver.
A certificate of registration for the value added tax (TVA), which specifies its activity exclusively in renting cars without a driver.
Certificate of enrollment in the National Social Security Fund.
Shop ownership certificate or commercial lease contract.
The original design of the shop prepared to exploit the driverless car rental activity showing the name and address of the company, signed by the competent authorities, indicating the capacity of the signatories and the approval of the collective authorities.
A document proving that the company has at least five new cars (WW).
Documents proving the registration of the driver and mechanic in the National Social Security Fund.
A copy of a valid national electronic identification card for the mechanic.
A copy of the mechanic’s diploma, which must have a “CAP” certificate in automobile mechanics.
Signed declaration of the manager’s commitment to operate the mechanic.
For more information, please visit the website here!
As for the application payment costs, they are free and the document is delivered within 30 days.
Read also: How to start a car wash project.
Financial study of the car rental project.
Car rental project costs.
Shop: The cost of renting a shop varies depending on the location and city, and its starting cost is estimated at about 3,000 dirhams.
Rent: Including renting the garage and office in a good area, about 10,000 dirhams per month.
Insurance: Cars must be fully insured and insurance costs are approximately
Workers: The project needs workers, including a worker who takes care of documents and administration, and another who takes care of cars and a garage. The cost of 4,000 dirhams can be allocated to the driver and 3,000 dirhams to the car worker. The salary can also be increased depending on the volume of rental sales.
Car rental project profits.
Number of cars: 5 cars.
Profit per day for the car: 300 dirhams
Rent: 10,000 dirhams per month.
Monthly workers’ costs: 4,000 dirhams for the manager and 3,000 dirhams for the garage worker.
Other costs: 3000 dirhams per month.
Monthly profit calculation:
Calculating the project’s daily profit: Daily profit = One day’s profit x Number of cars = 300 dirhams x 5 cars = 1500 dirhams
Calculating the number of working days per month: The number of working days per month can be detailed based on the type of work and the work policy of the project. For example, if the project operates every day during the week (including weekends) and assumes it operates 30 days per month, we can calculate the number of working days per month as follows:
Number of working days per month = 30 days
Monthly profit calculation: Monthly profit = daily profit x number of working days per month = 1,500 dirhams x 30 days = 45,000 dirhams
Calculating the net monthly profit after deducting workers’ costs: Net monthly profit = monthly profit – workers’ costs = 45,000 dirhams – (10,000 dirhams + 4,000 dirhams + 3,000 dirhams + 3,000 dirhams) = 25,000 dirhams
Thus, the expected net monthly profit after deducting workers’ costs is 25,000 dirhams, which is a fair profit for starting a car rental project.
Marketing for the car rental project.
Print and distribute flyers that contain your agency’s phone number and email.
Create a company website.
Advertisement in a newspaper, whether electronic or paper.
Advertising on social media sites.
Thus, we have shed light on the car rental project. We invite you to share your comments on the site and share the article with your interested friends.