Look at how the car rental company I invested in Shanghai makes money.

I invested in a car rental company five years ago through a friend’s introduction. The business of rental car companies in Shanghai is slightly different from that in other places. The main service project is to rent or sell cars to outsiders and then let them come to Shanghai to drive online car-hailing services. As for how this business is done, let me tell you today and open your eyes.

Shanghai Meituan License

The first step to open a car rental company is to raise funds, purchase operating licenses and operating vehicles. The Municipal Vehicle Management Office will issue some operating licenses every year to enrich the market. , as long as you obtain the operating qualification, you can purchase an operating license and vehicle.

Shanghai is still relatively relaxed in this regard. Newly registered companies with a registered capital of about 5 million can apply for leasing business and are also eligible to purchase operating licenses issued by the Municipal Vehicle Management Office.

Previous operating license

In the past operating license, the third digit was always Y, taking the first letter of the pinyin of "operating". There is no such requirement now, it mainly depends on driving Don't underestimate whether the license has an operating mark. This is the core of the entire transaction. It is easy to buy a car, but renting or reselling the car is entirely because of the operating license. .

Although Shanghai’s online car-hailing policy is indeed decoupled from the regulations on the driver’s side, everyone does not dare to be vague about vehicles. All platforms do not accept vehicles without operating licenses. All are rejected. In other words, the online ride-hailing vehicles on the road must at least have legal and compliant vehicles.

The operating licenses

With the car, you can place it. The advertisement was recruiting people to drive. I remember that the main models at that time were the Roewe 550 and the BYD Qin. The total price of the two cars was 7,000 per month, including tax and insurance. At about 200,000 yuan, at a level of 7,000 yuan/month, it will take about 35 months to recover the cost. This cycle is still very long. So how can the leasing company guarantee income?

The main model of the year

First of all, there is a back-and-forth subsidy between our rental company and the online car-hailing platform. We find drivers for them, and they provide us with corresponding fees. This subsidy should seem reasonable at first. At that time, it was as high as 15% of the total fee paid by the driver, but now it is between 3 and 5%. In other words, as long as the car is rented and the driver is running, we can get the subsidy even if we fall asleep.

Second Second, we will install a GPS on each car. The annual fee is about 800, which is also paid by the driver.

Third, all regular maintenance of the vehicle must go to our designated auto repair shop. It is also a fixed income. In addition, maintenance is also a big part of it. Let me introduce the leasing situation first, both in form and content. : The driver pays a deposit first, and then the calculation starts from the day when the car is picked up. For example, if the pick-up time is the 10th, then the 10th of each month is the rent payment day. The contract signed at that time is for at least half a year to pay the rent on time. This is the bottom line for drivers and leasing companies. If payment is not made on time, the vehicle will be taken back directly, the contract will be revoked, and the deposit will be withheld.

Readers may want to ask this. How can the car be retrieved immediately? It turns out that the GPS installed on the car is not only a mandatory requirement for the online car-hailing platform, but also a magic weapon for our rental company. With this device, the car can be found even if it is parked in the underground garage.

gps

What I will introduce next is the process of renting instead of buying. This process is relatively complicated and requires a detailed explanation for laypeople to understand.

I will give you an example first. For example, the cost of buying a brand new Sylphy at a 4S store is about 145,000, but it does not have a license and cannot be operated legally in Shanghai.

Sylphy

How about buying it from me? The price of the whole vehicle is about 150,000, including two years of insurance and two years of license plate leasing fees.

What does this mean? That is, if you buy a car from me, the price is 150,000, it can be operated legally for two years, and there are no other expenses related to the vehicle. What about two years from now? After two years, if you still want to drive, you will have to pay 2,500 yuan per month, of which 1,000 yuan is the insurance fee and 1,500 yuan is the license rental fee.

If you don’t want to drive it, the car is yours and you can take it away. The license plate is still mine and I just need to go through the transfer procedures.

Transfer

But in actual operation, the car rental driver does not have a lot of cash in hand, so how to do this transaction. First, I will ask him to pay a down payment, and then the rest will be formed into a contract in the form of borrowing and repayment, and will be paid monthly.

For example, for that Sylphy, I priced it at 150,000, and the driver made a down payment of 50,000. The remaining money will help you calculate interest based on the annual interest rate of 10, and then return it monthly. Generally, for such a contract, the agreed time is from One to two years. During this period, the following situations will occur:

Online car-hailing

1. The driver pays off all the money as agreed, I take the money and he takes the car. Of course, he has been driving for my company for two years, and I have earned him platform subsidies and other expenses for two years.

2. The driver settles the account in advance. Take the car and leave.

3. If the driver cannot repay the loan on time, I will take the car away. His car, down payment and previous repayments will all belong to me.

Be cautious

It is not difficult for readers to find that I play three roles of car dealer, bank and leasing company in the whole process, so I can earn the maximum benefit. My family earns the dealer’s rebates and service fees, the bank’s interest, and the leasing rent, and even the later maintenance and repairs. It’s really a one-stop business

But for a person who is willing to drive with peace of mind For drivers, these are actually not problems. I once met a driver from Shangqiu, Henan. He bought the first car in two years, and then transferred it to us to rent it out. He then worked on the second car by himself, and then got the second car in the third year. Then he transferred it to us to be responsible for renting it, and he went to work on the third car. Not many people can drive with peace of mind like this, and most people can only persist for about a year.

Online ride-hailing

I stopped working two years ago. My friend bought my original shares at a price of 120. I feel that this thing is still a bit unreliable. Some people really do. It is difficult to pay the fare, but you have to use coercion. There is no other way. If you don't force it, you will lose money. But it was forced, and I felt a little bit uncomfortable.

Leasing companies are a unique business model of online car-hailing services in Shanghai. I have written about it before, but I won’t talk about it today. The main purpose is to give those drivers who are planning to drive in Shanghai a mental expectation. This food is not very delicious, so they should be more cautious. Those who can sit still for two years can give it a try. Those who want to be more comfortable can take the early transfer. Get into the business!

Driver

The illustrations in this article come from the Internet, and the copyright belongs to the original author!