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RENT A CAR BUSINESS SETUP

The motive of an investor is how to gather complete information regarding car rental business like what are the risk factors and how to run it successfully. One can keep the fleet of economical cars like Kia, Picanto, Nissan- Micra, Nissan-Sunny and Mitsubishi Lancer etc that may suit the low budget business plan. This plan can keep the things simple and economical to make hiring afford to the customers, so they may rent a car without nay stress or difficulty.

To start this business there should be a business plan abiding to the UAE rules and regulation, one more important point to start this business is to know what is target market, the target could be economical, mid range or luxury car customers. This may give a chance to serve big companies on lease. Number of employees are required depending upon the strength of the fleet. The proportion of the profit totally depends upon how many cash cars and bank cars you have. Selection of the location is very important and advertisement is also required for the business.

Business News

The UAE is a dynamic market for car rentals, with both residents and tourists renting cars a great deal. The industry is growing at a compound annual growth rate of 11 per cent. One of the best things about renting a car is how convenient it is. All you need is a valid driving license and a valid ID (passport / ID / GCC ID) to be eligible to rent any car. Tourists, visitors as well as the UAE residents are eligible to rent a car in the UAE. The legal age limit is 21 years and above in the UAE to rent a car. You can also request doorstep delivery for the car at your preferred time.

If you're visiting the UAE on short-term visa or are here for a project, a rental car is no doubt the best way to be independent on the road. Besides, renting a car of your choice in the UAE provides a range of advantages over buying one. It's economical and hassle-free. Most car rental companies even provide free delivery and pick-up service. They come inclusive of standard mileage: 4,000km or above, which is enough for most users. Salik (toll) usage is billed at the end of the month. Maintenance and registration is taken care of by the company. In case of a breakdown or accident, you're provided a replacement vehicle till the time your car is fixed.

Benefits to the customers of rental cars over cash cars

  • Much cheaper and faster than using public transport for travelling across the emirates
  • Cost efficient as you're not liable to pay for rising car insurance and registration costs
  • As good as your own car without the hassle of maintaining it
  • Choice of multiple suppliers offering competitive rates and package deals
  • No long-term commitment required
  • Option to upgrade or downgrade every month
  • Free vehicle replacement during car servicing with free pick-up and drop-off
  • Monthly rates are heavily discounted and clubbed with offers

How to start?

  • This business will be registered in DED after completing necessary formalities
  • Necessary documentation, licensing and activities coordination in the RTA (Road Traffic Authority)
  • For mainland company formation local partner is required
  • Market segment can be like Economy, Comfort, Business, Luxury, Premium Sport
  • Scope of services can be airports, business centers, hotels, popular places.
  • Choosing the specific location of the office
  • Workforce required is
  • Project Coordinator (administration- Quality & control )
    Fleet Drivers
    Legal Advisor
    Accountant

For the UAE resident to avail rent a car services, followings documents’ copies are necessary;

  • Passport
  • Residential Visa
  • Valid UAE Driving License
  • Emirates ID

For the tourists visiting Dubai on a tourist visa need to submit copy of;

  • Passport
  • Visit Visa / Visa Stamp
  • Valid International/UAE Driving License

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