How to Set Up a Car Leasing Business

Posted by Shrikant Sharma on November 15th, 2019

In recent years, the business of car leasing has shown a very effective way to start a good business because the cost of buying a new car is steadily going higher and for that reason, people are hiring or taking cars on lease. But starting a business car leasing is not an easy task. There are already a lot of corporate car leasing companies in India and it's a very competitive market to set up a business. People rent or lease vehicles for some reasons and you'll have to carefully research those reasons to start this business. The business also depends on the geographic location because the customers who will rent vehicles can be corporate executives or tourists. You will have to examine how all the other companies are operating to compete with them.

The first you will need to understand to start this business is to know the difference between leasing and renting a vehicle. So, you will be able to decide which models you will have to offer to the customers.

The difference between leasing and renting is- when you hire a car for at least one year then its called leasing and you can use that car for your personal use as per your agreement. On the other hand, when you rent a vehicle for a short period of time like for a business trip, a holiday or an event that is called renting a car.

You will be able to lease vehicles from car dealerships and if you want to take a car on rent then you will have to contact a car rental agency. There are some business car leasing companies or companies which give corporate car lease can sell cars but car rental agencies can not.

Once you are sure about what type of business you want to start then you will have to decide some things like, for what purpose you want to provide vehicles, what type of cars you want to provide etc.

You will have to do a lot of market research to understand how to compete with the others to set up your business and take the lead on the market.

You will have to do other things like knowing about the legal procedure, giving a suitable name to your company, making a list of the vehicles you will have to buy for the business and many other things.