Car rental franchise is a medium complexity business but needs a high end investment.
Cars are not perishable products but they do dramatically depreciate in the value.
The car rental franchisee has to have a flair for investment.
Constantly selling old fleet and upgrading to the new one is as important as renting the vehicles.
Generally, Australians prefer to rent trucks, utes and mini vans. These are the vehicles which are needed to transport larger items. The car rental franchises for ordinary vehicles also have a strong market. However, this is mainly confined within metropolitan and city boundaries.
There are number of players in the car rental franchise category. These are mainly overseas operators with a large financial backup. The companies of interests are:
Europcar provides passenger and commercial vehicles.
The prices are not low but the fleet is constantly updated.
The good thing about this franchise are the variety of products and the exceptional networking.
The franchisor is picky on the new franchisees, though.
One of the requirements is the prior ownership of the established business. The other is the substantial initial investment. The franchisor does not reveal the cost for the business. However, it is estimated that a good location may set you back at about $1 million or more.
This is a 50 year old company.
It has a similar model to Europcar with the abundance of passenger and commercial vehicles.
This car rental franchise has an exceptional business networking with some of the franchisees serving as consultants.
The business training is also of a very high standard.
Again, the cost of the franchise will depend on the location and the number of vehicles.
There is about 11000 vehicles nationwide to be rented by Thrifty in 210 locations. However, the large number of outlets and vehicles does not mean that the franchise is easily available. Although, there are no demands to own business prior the franchisee-application, the selection is thorough. You need to come up with the budget in the vicinity of $1 million (plus money for the running costs) to be considered for the selection.
Hertz follows the same business model as Europcar and Thrifty.
This car rental franchise offers passenger and commercial vehicles in many classes.
For the past 10 years Hertz has been improving its prestige collection of passenger cars.
The move has paid off for many metropolitan outlets.
For the outskirts of big cities and the countryside locations, the investment towards commercial fleet remains strong.
The initial cost of the business is not disclosed by the company but it will strongly depend on the location and the fleet. The city outlets with their prestigious Jaguar, Land Rover, Licoln, Audi, Hammer and Cadillac vehicles will be the most expensive. However, there is no guarantee that luxurious cars will provide the best returns.
Last, but not least is the Budget car rental franchise.
Again, the same business model as other car rental franchises.
There is no disclosure of the initial cost of the business.
However, it is obvious that Budget will sell their outlets based on the location and the available fleet.
The thing which attracts customers to this car rental franchise are the benefits for loyal customers. Those, who previously rented a car have access to discounts and quick processing schemes. This may not sound much but it became a successful attraction to new and old customers alike.