Project description
An entrepreneur from Frankfurt, Germany, has founded a car rental company and specialises in high-quality sports cars.
The target group is sports car enthusiasts (“afficionados”) who are happy to pay a high rental price for their passion for sleek sports cars. The typical customer is male, over 30, successful in his job and status-oriented.
We supported the founder in defining his business model. In particular, we analysed the competition, worked out the pricing system, helped to select suitable insurances and designed the marketing.
For the financial planning, it was important to forecast not only the revenues and costs, but also the timing and amount of the vehicle purchases, as these have a significant influence on the cash flow. The capital requirement for the first four years was EUR 350,000.
What banks look at in a car rental business plan
Car rental is a capital-intensive business, so lenders first ask how the fleet is financed and how quickly it earns its cost back. The plan should show the purchase or leasing cost per vehicle, the expected daily and monthly rates, and the utilisation rate you can realistically achieve, split by season.
Operating costs matter just as much: insurance, vehicle tax, maintenance, cleaning, tyres, damage and excess handling, plus the cost of a booking system and a location. Resale values at the end of a vehicle’s life affect profitability and should be calculated conservatively.
A clear customer focus, for example business travellers, tourists or local replacement-vehicle demand, and a liquidity plan covering the first two years complete the picture and show the bank that the loan can be repaid.
