Is it risky to run a car rental company?

Risks faced by car rental companies;

1, illegal vehicle mortgage (it is widespread in China at present, with the greatest risk). Because the lessee uses real identity information to rent a car, and then mortgages the car due to factors such as turnover, a car cannot be filed in the public security economic investigation system in most cases, and it will basically become a civil dispute or a contract dispute. If the vehicle is mortgaged to underground banks, casinos and other areas, it needs to be redeemed by ransom, and the installed on-board GPS positioning can be easily unloaded in the repair shop.

2, rent arrears, this problem is also common.

3. Traffic violations will not be dealt with.

4. Hit-and-run traffic accidents, especially if the lessee who originally had a legal driver's license lent the car to an unlicensed person, and the leasing company that caused the traffic accident will be listed as the third defendant to a certain extent (the first is the direct party, and the second is the owner).

6. Auto insurance cannot be settled normally. Because most of the vehicles used for renting a car are private cars (the rate of buying commercial insurance is about 2.2 times that of private cars), once the car is in danger, the insurance company knows that the car is used for renting (business nature). According to Article 16 of the new Insurance Law, insurance companies can refuse to pay compensation.

7. The state has no clear laws and policies on industry management, the functions of industry associations are unclear, the market price is chaotic, and the industry entry threshold is low (as long as you have a car, you can rent it, and you need to pay taxes to run a company).