While deciding to open a car rental business, ideally to be in the role of a renter and understand how business works in Faro. Car rental in Portugal has specific features and differences in comparison with the same business in other European countries. Therefore, it is necessary to think through all the nuances: which car rental companies are a priority, which of them are unscrupulous and how to avoid their mistakes better, what documents and programs are needed. All of this should be taken into account for your own car rental business.
Car hiring business
There are many cars for hiring companies in Faro and the country. There are small family companies, large corporations, and network businesses offering the best car hire Faro airport service for tourists. Each firm takes into account the wishes and financial capabilities of its clients. Each company attracts customers with constant car hire discounts, lotteries, and free hours, which you can also use for your own business success.
Also, you need to decide which car hiring at Faro airport you are ready to rent: business or economy class. Car rental services can provide vehicles of the category from economy to business class. And it can be delivered to the client directly at the airport.
Website and advertising
To launch and scale your business, you need to create a car rental website and invest in advertising. This way can help customers make car reservations online.
What you need to rent your cars
- Passport.
- Driver’s license. The DL must be with the owner’s name, in Latin letters. The driving experience must be more than a year.
- A VISA or MASTERCARD credit card in the driver’s name to block the deposit (car deposit).
- Minimum age of the driver must be 19-21 years old (different rental agencies may vary), ideally from 25 y.o.
Pricing features
The main feature of car rental prices in Portugal is a pronounced seasonality. There is a low season (from November to April), a high season (May, June, September, and October), and a hot season (July – August). Prices in July and August are high, several times higher than at other times. Therefore this time is the most productive for the automobile business. The reason is a huge inflow of tourists from all over Europe at this time.
Therefore, creating your own car rental business, you should be aware that in a few months, your profitability will be reduced, and in a few more months – extremely high.
During this period, you can either rest or come up with related services to keep the business working.
How unscrupulous companies behave
When ordering a car on the website, the car’s name is usually written, and the class and the prefix “or similar.” If you rent cars, ensure that the renter likes the car and that the car is as clean. Dishonest companies put a mid-range car in different price segments on their website. Then they take a deposit and present it as a luxury car, both externally and internally. They charge the card for the reservation and rental period in advance and block the deposit. People have nothing to do with that but take what they have.
The attitude of employees of such a company to customers is awful. In addition, most employees of car rental companies behave arrogantly, which is also unpleasant.
Car insurance, deposit, and deductible
Use standard insurance in your business: liability, theft, and damage insurance (with the franchise), which should be included in the price.
- The deposit. It is a deposit for the car. When you check out the car at the office, the money is blocked on a credit card. The deposit is the franchise + fuel deposit + VAT.
- The renter is responsible for damage to the vehicle. It is not blocked on the card. Only the deposit is blocked. The deposit and the franchise may be different. Often one amount of money is blocked on the card.
- When the car is returned without any damage, you need to unblock the deposit on the card within 2-30 days. In most cases in 2-3 days. It depends on your own business rules and the card issuing bank.
- A bank card acceptance. You must accept only embossed cards from customers (with the cardholder’s name and surname on the front of the card).
