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Green Hybrid Car Rental Business - A Business For The Experienced Entrepreneur

Cindy Sha of Carpet Steam Cleaners

Hybrid cars are one of the newest trends in the automobile market which was started out of the need for "green transport." It is no secret that gas or diesel vehicles are largely responsible for the huge levels of pollution and fuel consumption. On average, each car produces 77.1 pounds of hydrocarbons, 575 pounds of carbon monoxide, 11,450 pounds of carbon dioxide, 38.2 pounds of nitrogen oxides and 581 gallons of gas per year.

When this is multiplied by the millions of cars being used daily around the world, it becomes obvious that something has to be done. As a result, the hybrid car was born.

Opportunity

Since there is already a huge marketing push towards green businesses and practices around the world, another gap of opportunity has opened to the wise entrepreneur. This is especially true within the transport industry which leads me to the purpose of this article.

Rental car businesses have been around for decades; however, hybrid car rentals are now forging a breakthrough market.

Practicality

To be completely honest, opening a hybrid car rental isn't cheap... at least initially. Of course, you already knew this. Most hybrid cars cost about $3,000 to $8,000 more than regular gas powered vehicles. Therefore, this business is suited to an entrepreneur that has a good bit of start up capital or is able to attract investors.

However, this expense is only limited to the initial purchase cost of your fleet. After purchase, hybrid cars are less expensive to maintain, use less fuel and of course, are green.

Hybrid Cars From A Business Perspective

Despite the initial cost, these cars have lower upkeep costs than regular cars. This means more money stays in your pocket. The specifics include:

1. They use less gas and average between 33-60 miles per gallon of gas during in-city driving and 27-68 miles per gallon on the highway. This represents an average of both sedan and SUV type hybrid cars so sedans or smaller vehicles would offer more mileage per gallon. With rising gas prices, hybrids are definitely a great solution, especially for rentals.

2. When compared to gas powered cars, hybrids cost less when it comes to servicing and general maintenance. In some cases they were both on par, but never more expensive. The reason for this is the inherent technology of hybrids. These vehicles have less engine problems because the engine can shut itself down during idling. This reduces the wear and tear on it which increases its life span.

Also, fewer issues are encountered with a hybrid's braking system because the electric motor actually slows the car when you apply the brake. Unlike ordinary cars, not much strain is put on the braking system which results in less wear and tear. From your business perspective, a car that doesn't require much maintenance is a huge plus, especially in the rental world.

3. Because hybrids are environmentally friendly and reduce carbon emissions, governments offer businesses that use them tax breaks. This is a huge benefit for any business, especially a business that revolves around these vehicles. In addition to the lower overhead costs, there are other factors that sway fortune in your favor.

Today, consumers are more conscious of their choices and the power they have to change the marketplace. They are becoming aware of the effect their purchases have on the environment and are growing a preference for green companies.

A Hybrid car rental service is right up this alley and can offer consumers a green service and even a cheaper one. Since your overall overhead costs will be lower than those of a traditional rental car company, you can offer lower rates or run more promotional discounts.

Summary

This is a new business model and as a result the market is not (yet) inundated with this new business. This means that you have just enough time to start your hybrid rental company, establish a strong reputation and dominate your local market.