Investment Opportunity: Private Car Rental Business in the South Suburbs of Chicago
I am seeking investment to restart and expand my private car rental company in the South Suburbs of Chicago. Since December 2021, I have successfully operated on Turo, completing over 200 trips. Now, I aim to transition into an independent rental business to increase profitability, control, and scalability.
Investment Plan & Fleet Expansion
With this investment, I will acquire three vehicles, each priced at approximately $20,000 (out-the-door), with under 55,000 miles, ranging from model years 2017 to 2021 (newer vehicles will have lower mileage). As the business generates revenue, profits will be reinvested to expand the fleet, including financing additional fuel-efficient vehicles to optimize returns.
Market Demand & Business Potential
The demand for rental vehicles in this area is high due to the proximity of dealerships and repair shops, where loaner cars are often in short supply. Additionally, there is a strong market for individuals needing short-term rentals for local travel, vacations, or temporary vehicle replacements. This business will provide a convenient and reliable solution to these needs.
Streamlined & Secure Rental Process
To ensure a seamless and secure rental experience, all customers must undergo identity verification, including a valid driver’s license check. Upon vehicle pickup, renters must provide live photo verification. The entire rental process—from agreement signing and insurance verification to vehicle access—is conducted remotely and electronically via software provided by a commercial rental insurance company.
Insurance & Risk Management
I have identified an insurance provider highly recommended by experienced Turo hosts. This company offers:
• Coverage for both Turo and private rentals
• State-specific rental agreements
• Reservation management tools
• Driver’s license and car insurance verification
• Integrated payment processing
• Damage protection waivers through a third-party partner
Additionally, renters must provide personal auto insurance information to ensure coverage in case of accidents or damages.
Revenue Projections & Financial Viability
Projected rental income per vehicle (Compact Sedan) :
• $1,275 per month
• $335 per week
• $52.50 per day
Projected rental income per vehicle (Midsize Sedan):
• $1350 per month
• $350 per week
• $50 per day
Projected rental income per vehicle (Midsize SUV):
• $1,500 per month
• $385 per week
• $60 per day
Each rental requires a security deposit, refundable within 2-3 days after the rental period ends, provided all terms in the rental agreement are met. Flexible rental extensions, and reasonable discounts will be available to maintain high customer satisfaction and steady cash flow. (Rate are subject to month to month, season to season).
Repossession & Loss Prevention Strategy
If a renter fails to return a vehicle within two days of the rental period ending and has not arranged an extension (Involuntary Extension), the vehicle will be repossessed by a towing company. If repossession is unsuccessful, the vehicle will be reported stolen.
Additional loss prevention measures include:
• Personal belongings left in the vehicle may be exchanged for the car keys. If no exchange occurs, the security deposit will be used to replace the key, with additional costs billed to the renter.
• Renters who fail to return vehicles will be placed on a Do Not Rent list and charged for the extra days used.
• Any damages will first be processed through the renter’s insurance. If insurance coverage is denied, the renter will be held financially responsible for repairs.
Conclusion
This investment will establish a strong foundation for a scalable, profitable rental business that meets a growing demand in the local market. With a structured operation plan, great security measures, and a clear path to expansion, this business is positioned for long-term success.