Starting your own car hire business in Australia requires careful planning and a comprehensive evaluation of the current market. You can start and run a successful car hire business in Australia with due diligence. Here are some things you should keep in mind to ensure that your business plan succeeds no matter where you are in Australia.
1. Consider the Vehicles You’ll Offer
One of the biggest investments any car hire business will make is purchasing the vehicles that will be used in the business. It is essential that you choose vehicles that are currently in high demand. You will need to do some market research to learn more about which vehicles will meet consumer demand. For example, about 40% of the revenue earned by car hire businesses that offer limousines comes from high school events (like prom), parties, or wedding events.
Evaluating the popularity of each style of vehicle can be helpful in deciding which vehicles are right for your car hire business. Keep in mind that vehicle popularity is often a regional factor. For example, according to Statista, about 45% of vehicle sales in the United States went to crossover vehicles. However, Australian drivers prefer SUVs and Utes, according to VFACTS new-car sales data for 2023. Use all available data to your advantage.
2. Who Will You Cater To?
As part of your market research, it is essential that you identify your target audience. Will you cater to tourists, business groups, local people, or a combination of all three? It is essential that you identify your audience because that will inform your marketing campaign. Knowing who your audience will be in advance is important.
Targeted marketing campaigns work the best. Reaching your target audience requires that you narrow down your audience. For example, if you plan on relying mostly on corporate accounts, you would focus your marketing on a B2B (business-to-business) model. A general audience (reaching as many people as possible) would take a different approach. Decide which group you would like to serve.
3. Research Legal Requirements
You must become an expert in the legal requirements your business needs to meet. For example, learn about vehicle insurance, driver licensing, and other legal requirements that you are expected to adhere to. You will need to obtain all necessary permits and licenses before you can start offering cars for hire.
It is up to you to ensure that all your vehicles meet all emission requirements. You will need to register your business. There are a lot of working parts that must be considered when you are setting up and operating your company. Professional legal support can help.
4. Pricing and Location Options
To find success with this type of business, it is essential that you choose a strategic location that offers easy access. A strategic location is a location that is easy to find and that gets plenty of “foot traffic.” The further you are off the beaten path, the less convenient and cost-effective the service will be. Fuel is expensive. If drivers must drive excessive miles to pick up passengers, you may price yourself out of the market.
Do market research to discover what other car hire businesses charge for services. This information will help you to set competitive pricing. It is essential that you set your pricing to a level that will ensure that you are not overpricing or underpricing your services if you want to find success.
Anyone can run a successful car hire business anywhere in Australia by doing the research and following these tips. According to United Tires, vehicles are highly recyclable, which is good news for any company that relies on a fleet. Get started with your planning today and learn more about how to run a successful car hire business.
