Car Hire Start up help

superpup

Hi

A friend is looking at starting up a car hire business, primarily Mazda MX-5 (the nice older ones). I have a little time on my hands at the moment (well, more than him, lol) so I said I'd do a bit of research for him but to be honest, I'm struggling.

Can anyone point me in the direction of websites that can help or give me advice on paperwork needed please? I have found an insurer but I'm wondering what he needs to do with regard to agreements for customers to sign etc.

Thank you in advance

motorguy

How does he hope to make money the 9 months of the year they are out of season?

superpup

pgilc1 wrote: »

How does he hope to make money the 9 months of the year they are out of season?

He currently sells them and although it does get quieter for a few months of the year, they still sell. The hire part is just an extra for him.

GoodNewmover

superpup wrote: »

Hi

A friend is looking at starting up a car hire business, primarily Mazda MX-5 (the nice older ones). I have a little time on my hands at the moment (well, more than him, lol) so I said I'd do a bit of research for him but to be honest, I'm struggling.

Can anyone point me in the direction of websites that can help or give me advice on paperwork needed please? I have found an insurer but I'm wondering what he needs to do with regard to agreements for customers to sign etc.

Thank you in advance

Try BusinessLink.gov.uk > ''car hire business'' in the search box. Lots of references to the need of VAT and license and the like.

Once you have the info you need to decide on the legal structure you need to pay tax (sole trader/limited company/partnership etc) then how you're going to get clients (advertising/marketing).

dacouch

There are Insurance schemes for Motor Traders who want to hire out some of their stock, they are computer based and he will only pay each time a car is hired out with appropriate hire contracts issued along with covernotes etc, they also run the back office.

If he has no experience, they will be relatively expensive for the first year or two

superpup

GoodNewmover wrote: »

Try BusinessLink.gov.uk > ''car hire business'' in the search box. Lots of references to the need of VAT and license and the like.

Once you have the info you need to decide on the legal structure you need to pay tax (sole trader/limited company/partnership etc) then how you're going to get clients (advertising/marketing).

Blimey, lots of things to think about then.

I've knocked up a website for him which google has started to find. It's not ideal but it didn't take very long and it'll do for now. I need to show him all of the legal stuff so he can get a move on organising all that!

Thank you for taking the time to reply, I really appreciate it.

dacouch

There are Insurance schemes for Motor Traders who want to hire out some of their stock, they are computer based and he will only pay each time a car is hired out with appropriate hire contracts issued along with covernotes etc, they also run the back office.

If he has no experience, they will be relatively expensive for the first year or two

superpup

dacouch wrote: »

There are Insurance schemes for Motor Traders who want to hire out some of their stock, they are computer based and he will only pay each time a car is hired out with appropriate hire contracts issued along with covernotes etc, they also run the back office.

If he has no experience, they will be relatively expensive for the first year or two

I have found one that you pay an annual fee for then a fixed amount per day where you just go online and complete a form and the driver is insured immediately. Is this what you mean?

I'm not sure what you mean by the last sentence (just me being thick probably).

easyhost

superpup wrote: »

Hi

A friend is looking at starting up a car hire business, primarily Mazda MX-5 (the nice older ones). I have a little time on my hands at the moment (well, more than him, lol) so I said I'd do a bit of research for him but to be honest, I'm struggling.

Can anyone point me in the direction of websites that can help or give me advice on paperwork needed please? I have found an insurer but I'm wondering what he needs to do with regard to agreements for customers to sign etc.

Thank you in advance

British Vehicle Rental and Leasing Association.

http://www.bvrla.co.uk/

The Association of Car Rental Industry Systems Standards


http://www.acriss.org/

superpup

easyhost wrote: »

British Vehicle Rental and Leasing Association.

http://www.bvrla.co.uk/

The Association of Car Rental Industry Systems Standards


http://www.acriss.org/

Brilliant, thank you.

dacouch

superpup wrote: »

I have found one that you pay an annual fee for then a fixed amount per day where you just go online and complete a form and the driver is insured immediately. Is this what you mean?

I'm not sure what you mean by the last sentence (just me being thick probably).

Hire Insurance is based on claims history (Your past years claims experience) it's similar to private car no claims bonus but takes into account the value of total claims against premiums paid.

As he has no previous hire business experience he will in effect be starting with no no claims bonus

This is the one I place my clients with, not necessarily the cheapest but the staff are great and the product is good. http://www.compuquote-insurance.co.uk/

Practical Van Hire offer a simialar scheme, it's normally cheaper but there were a few things in theirs I personally did not like

The annual fee you refer to is the licencing fee you pay for their software and technical advice.

These schemes are good for motortraders as he can hire any car he wants to (Providing it's acceptable with the Insurers) from his forecourt and only pays for the time the cars are hired out.

Get your friend to work out the costs including the licensing costs etc so he understands the figures.