Does the car rental company make money?

Car rental refers to the mode of operation in which the leasing operator delivers the leased cars (including trucks and buses) to the lessee for use without providing driving services within the agreed time. The essence of car rental is a kind of business behavior to obtain income through the right to use a taxi on the basis of the separation of property rights and use rights of cars. In addition to the physical car, the rental target also includes all procedures and related values to ensure the normal and legal driving of the car. Different from the general car rental business, during the lease period, the lessee bears the driving responsibility by himself. The core concept of car rental industry is to enjoy resources and serve the society. [ 1]

Classification?

According to different classification standards, car rental has different classification methods, such as the length of the lease period, business purpose and so on. Car rental has the characteristics of short lease period, convenient lease and maintenance provided by the lessor. Due to the short operation time and limited scale and strength, most car rental enterprises in China adopt decentralized and independent operation mode. However, with the development of China's economy and the expansion of the leasing market, this model is difficult to provide convenient and fast services for customers, which limits the development of the market and the expansion of the business scale of enterprises, and it is difficult to provide sustainable and healthy development space for enterprises. After the initial market cultivation, car rental enterprises will surely embark on the road of chain operation and cooperation with manufacturers.

Depending on the length of the lease term

1997 promulgated and implemented the Interim Measures for the Administration of Car Rental Pilot Work, which divided car rental into long-term lease and short-term lease according to the length of the lease term. In practice, it is generally considered that short-term lease is less than 15 days, medium-term lease is less than 15 ~ 90 days, and long-term lease is more than 90 days.

Long-term lease refers to the lease form in which the leasing enterprise signs a long-term (usually calculated in years) lease contract with the user, and the expenses incurred during the long-term lease period (usually including vehicle price, maintenance fee, various taxes and fees, insurance premium and interest, etc.) are deducted from the estimated residual value. ), the rental fee is charged on average according to the contract months, providing comprehensive services such as automobile functions, taxes, insurance, maintenance and accessories.

Short-term leasing refers to the leasing form in which the leasing company signs a contract according to users' requirements, provides users with short-term car service (generally calculated by hours, days and months), and collects short-term leasing fees to meet users' various service needs during the leasing period. [2]

According to the business purpose

Car rental is divided into financing lease and operating lease according to business purposes. Financial leasing refers to the lessee's purpose of obtaining the ownership of automobile products, and the operator realizes the transfer of the ownership of the subject matter in the form of leasing. Its essence is a long-term leasing business, with the nature of sales and the characteristics of financial services to some extent. Operating lease means that the lessee aims at obtaining the right to use automobile products, and the operator realizes investment income by providing services such as vehicle functions, taxes, insurance, maintenance and accessories.