Freddy’s Fine Car Rentals is a new, independently-owned car rental service in Omaha, Nebraska. It will be solely-owned by local entrepreneur Freddy Montgomery. Freddy will provide car rentals to residents of Omaha and visitors to the city who need a vehicle for a few days. Freddy’s initial fleet of vehicles will include two sedans, 1 truck, 2 large SUVs, and 2 luxury vehicles. Through his market research, Freddy found that visitors to the city need a sedan to get them around for a few days so that they don’t have to rely on public transportation. There are also residents who sometimes need to rent a truck for a day or two while they move something large. There is also a demand for people to want to rent a luxury vehicle for a few days so they can use it for a special occasion without having to put a large investment to purchase one of their own.
Freddy’s Fine Car Rentals will be located near the airport in the central part of town. For now, he will run the business himself and will handle all client communication and management of his fleet. Freddy’s will partner with a local car wash that is located next to his location to provide all the wash and detailing needs for returned vehicles. He will also partner with a local automotive shop to provide mechanical service that may be required to do maintenance or repair.
Freddy’s Fine Car Rentals will offer car rental service to its clients by offering the following vehicles:
- 2 four-door sedans
- 1 truck
- 2 large SUVs
- 2 luxury cars
Freddy’s Fine Car Rentals will target visitors to Omaha who may need reliable transportation without having to utilize public transportation or third-party companies such as Uber or Lyft. Freddy’s will also target residents of Omaha who need a temporary car for whatever the situation is. There will be a truck for those needing to move large items, SUVs for those who need to transport a large amount of people, and luxury cars for those wanting to drive one for a special occasion.
Freddy’s Fine Car Rentals will be solely owned and operated by Freddy Montgomery. Freddy will manage all aspects of the business as it is a small startup. He will handle all administrative tasks, scheduling, client communication and satisfaction, as well as social media. Freddy will hire an outside accounting firm to handle all tax and financial obligations and an advertising and software company to develop the website and maintain it. They will also take professional photographs of the vehicles to use for the website and social media.
Freddy’s will partner with a local car wash to provide all wash and detailing of the returned vehicles. He will also utilize a local automotive repair shop to provide any maintenance required of the vehicles and repairs.
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Freddy’s Fine Car Rentals will be able to offer the following advantages over the competition:
- Professional and courteous car rental service that is fast and friendly.
- PIck-up service. Freddy will be able to come to the customer if they are unable to come to the business location.
- Cheapest car rental rates in town. Freddy’s Fine Cars will be able to undercut any of the competition.
- 24-hour service. Freddy will always be available as he understands that people arrive in town at all hours of the night and can’t wait to rent a vehicle.
- A nice variety of vehicles. Whatever the need may be, Freddy’s Fine Cars has a vehicle for all needs.
Freddy’s Fine Car Rentals is seeking $500,000 in debt financing to open the car rental business. The funding will be dedicated to the purchase of the seven vehicles, commercial liability auto insurance of the fleet, website development, billboard design, photography, and working capital. The breakout of the funding is below:
- Office space with small parking lot (secure the space): $10,000
- Purchase of two economical sedans: $40,000
- Purchase of truck: $60,000
- Purchase of two large SUVs: $120,000
- Purchase of two luxury cars: $160,000
- Insurance and bonding: $100,000
- Website & Advertising development: $25,000
- Working capital: $35,000
The following graph below outlines the pro forma financial projections for Freddy’s Fine Car Rentals.