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How Elin Tours Rose to a Leading Car Rental Business 

Vincent Nyoike
Vincent Nyoike Experience

Elin Tours Africa is a transport and logistics service business operating in Nairobi. It was started in 2016 and has grown to own a fleet of cars. Some of the services they offer include self-drive, rental cars for weddings, airport transfers, tours and travel. To hire a car, contact Elin Tours.

The Idea Behind Elin Tours

Elin Tours was started to address the market gap and also to offer transport services. When Elin Tours was starting, there was a problem in the transport sector. It was challenging to find self-drive vehicles for events like weddings. The founders saw an opportunity and decided to venture into the business.

What You Need to Know about Car Rental Business

Elin Tours' founder says that the car rental business is a profitable venture since many people prefer hiring cars other than buying. People want to hire cars only when the need arises. The car rental business is increasingly becoming in demand with the increase in events like weddings. If you have a personal vehicle, you can still use it to bring you income. You only need to lease it out and at the end of the day, you will have made some income.

December is the peak season for the car rental business. It is because the month is full of events and festivities, raising the demand for cars. Bus fares hike since many people are usually traveling, making many people opt for self-drive. 

Read also: How to start rental building business from iron sheet stalls. 

Rental Cars Pricing

To make good revenues in the car rental business, you need to set fair prices to earn profits. Prices are fixed depending on the number of days a  client will be using the car and its passenger capacity. For a 5 seater car, the price is Ksh 3,000, while for a 7 seater passenger vehicle, the price is Ksh 5,000 per day.

Precautions to Take Before Starting Car Hire Business

Before starting a car rental business, you need to take precautions to avoid liabilities and losing your car. Some of the precautions you need to take include getting comprehensive car insurance. This way, you will avoid third party liabilities, while the insurance company will also compensate you.

The other precaution is that you need to have security personnel contacts to help you in case of an incident like car theft or car hijacking. This is a common problem in the car rental business where thieves disguise as clients to steal cars.

Install car trackers and monitor the movement of your car. Make sure that the car tracker is placed in a secret position. In case of anything, you can use the tracker to locate the vehicle quickly. Always make sure you are in the company of the police when tracking a lost car.

Also, make sure to have a lawyer for your business. Write an agreement with your clients before giving them your car. Inform the clients about your car rental business's terms and conditions before you sign a contract with them. This will ensure they are aware of the consequences in case of a breach of the agreement. It also makes it easy to follow up if an accident and your car are at fault.

Finally, make sure that your car is cleaned and serviced regularly. It helps to ensure that your car lasts long, while it is also a safety precaution to your clients. Clean vehicles that are in good condition tend to attract more clients.  

Read also: How to start a furniture business. 

Challenges in Car Rental Business

There are many challenges that you are likely to face while in the car rental business. You need to take precautionary measures to avoid such challenges.  Among the challenges you can expect include clients staying with the car longer than they had committed to. This can inconvenience other clients who may have booked your car.

The other challenge is when a car breaks down while at the hands of a client. It is challenging to request a client to repair the vehicle in case of a breakdown, yet you want to retain him. In such cases, you need to inform the clients about the terms and conditions before renting them a car.