Investing in cars - how to get 6,000% per annum

Yeah, we're not wrong. Many people will have a big question immediately with the title of the topic. How can women get into the car rental business? Very simple. Women, unlike men, are very patient and are willing to wait longer for results. In addition, women have more flexibility and intuition. And over the years, more life experience and wisdom. So, dear ladies, do not be timid, and boldly compete with men.

The car rental business is only gaining momentum in Russia. Whereas previously cars were rented mainly by foreigners, now our compatriots want to order a car more often, especially if they are in another city and there is no possibility of arriving in their own. The niche is not yet fully occupied, especially in provincial cities. Skillfully organized car rental business can pay off investments in the near future, and will also give you the opportunity to receive a stable income and develop your own business further.

Perspective of car rental for ladies - business in Russia

You can start your business with the purchase of one foreign car, the cost of a two-year-old foreign car is equal to 500,000 to 600,000 rubles. The fact that the business starts immediately after the purchase of the car is very important. The main thing is to conduct an advertising campaign in advance, or to have an agreement on renting out cars.

A good tip for you is to first find sources of demand for leases before purchasing a car. By purchasing an auto you:

• you can turn him in right away for rentYou don't have to wait for renovations or construction to be completed, as you would with a mortgage;
• you're buying a real asset, not a piece of paper with a view of a construction site;
• bear minimal risks, unlike investments in foreign currency, where the exchange rate is unstable;
• you get a predictable income, which is much higher than in other types of investments;
• Guarantee to refund 50% the residual value of the auto after 3 years of use.

Step-by-step plan for starting a business

Before you start a business, you need to address the basic question of where you will get potential tenants. Therefore, you need to conduct an extensive advertising campaign.

Make a detailed business plan, which will definitely have items of expenses and income.

Register the business as IP or an LLC.

Research the car market and find the right investment property.

How much money you need to start a business and how much you can earn

Let's look at a few examples.

A 2 x year old Hyundai Solaris cost 520,000 rubles. A vehicle with mileage, but still quite new and presentable. All income will depend on the quality of the car. The owner of the car rented it out for 1,700 rubles per day. The monthly income is 46,000 rubles, and the net profit for three years amounted to 1,540,300 rubles (from here the fixed costs of maintaining the car, the original cost of the car, but added its residual value), the yield is 98%years.

Settlements are made in rubles.

In the above example, it is necessary to have available cash. What if you don't have enough of it? Then there are 2 options available to you:

• take a car on credit (you can take a used car) and earn income by renting it out daily;
• rent a car and sublet it daily.

In this case, the initial investment will be no more than 10,000 rubles, and the yield may be 6,000% per annum.

How to get 6,000% per annum from leasing a car

Let's analyze this type of income in more detail. The same Hyundai Solaris, 3 years old, is taken on credit. The expenses you will incur will amount to 7,100 rubles. Daily income from renting out the car will be 1,700 rubles. The monthly payment on the loan is 20,700 rubles. Income per month is 25,300 rubles. Net profit for 3 years is 912,000 rubles from 1 car. The yield is 6,174% per annum.

Settlements are made in rubles

You'll agree, it's impressive. But you need to know how to arrange loans, including for used cars.

The next step of making a profit is to take the car on a long-term lease and then rent it out daily. The best business option for a lady is to hire drivers who will work in shifts and bring in a good income.

A Renault Logan car is leased. The monthly rent is 31,000 rubles. There will be 3 drivers working on the car, shift 12 hours. They will work 60 shifts per month. The income for one shift will be 1,200 rubles, for a month 72,000 rubles. Monthly profit is 41,000 rubles.

What OKVED to specify when registering a business

OKVED 71.11 - rental and leasing of cars and light motor vehicles

OKVED 49.32 - provision of cab services (if the business provides driver services)

What documents are needed to start a business

Even if you decide to start by renting out only one car, we advise you to register your business. In this case, it is possible to register an individual entrepreneurial enterprise (IE). Documents are submitted to the tax service at the place of residence. You need: a passport, an identification code and an application, as well as a receipt for the payment of state duty.

Which taxation system to choose when registering a business

We advise you to choose the simplified taxation system (STS). But you should decide whether you would rather pay 6% on income or 15% on profit.

Whether a permit is needed to register a business

Permits and licenses for this type of business are not required. The main thing is that the documents for the car should be in order. Since we are talking about renting cars, it is necessary to have insurance policies, a document confirming that the car has undergone maintenance and is in good working order, and a rental agreement. It is better to prepare this contract together with a lawyer, as unforeseen situations may arise.

Business technology: finding drivers and organizing work

There are several options for hiring drivers:

• Invite a cab driver you know, someone you use frequently. Offer him a higher salary. Since the driver - the main link in this business, quite often the car is bought specifically for him. But you should know that he is a professional and will be able to bring you a good profit;
• you can find a driver through employment websites;
• If the fairer sex do not want to search for drivers, then you can contact a management company that will rent out your cars. Or go to any taxi park and rent them out. There are a lot of such taxi parks in big cities. But in these options, the income will be much less, as you have to pay for the services.