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Car Rental Business in Morocco
hanae belsakri
Writing By Hanane Belaskri

10.01.2023 | Bh Adviser | Morocco

Opening a Car Rental Business in Morocco – Tips and Advice

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Are you passionate about cars? Do you want to start an automotive business in Morocco? Then you should consider opening a car rental company in Morocco. To help you stay competitive when setting up your car rental business, we explain how in detail later in this article.

Car Rental Business in Morocco

Having good reasons to start a car rental business in morocco

Having a business in the automotive sector such as a car rental agency allows you to be a little more stable. Indeed, no matter how bad the times are, cars are still generally rented. Thus, it is very rare that the company goes bankrupt, especially if it rents out different types of cars such as small cars for everyday use, luxury cars or large vehicles. In this way, the agency is sure to reach a wider customer base and can continue to operate even in times of crisis.

Starting a business in morocco as an independent or franchisee Before embarking on the practical process of setting up a car rental agency, you need to know whether you want to set up as an independent or a franchisee. If you set up as an independent, you will have to advertise yourself and create a client portfolio, which is not at all easy in a sector as competitive as car rental in Morocco.

On the other hand, if you want to set up as a franchisee, you will get the benefit of an already established reputation as well as customers who can already benefit from your car rental services. However, as a franchisee, you will not have the freedom to set your rates and you will be obliged to pay royalties. You will also be obliged to offer only the brands of cars that the franchise requires.

Understanding the market to be exploited in Morocco

When you start a rental agency in Morocco, you need to know who the cars will be aimed at luxury cars, youth cars, goods vehicles, passenger cars, etc. It is important to ask the right questions to assess the market in terms of demand and competition in Morocco, whether you want to set up a franchise or be independent.

On the demand side: is the population in need? Is there a flow of tourists requiring cars? Is there a clientele attracted by luxury? Are there young people in need? At what price can potential customers rent the cars? How often is there a demand for rental cars?

In terms of competition: what services do other rental agencies offer? How many cars are rented on average? At what price? What are the industry giants in your city?

These are all questions that will allow you to establish your business plan and adapt your services to potential customers. The answers to these questions will also help you to find the right ideas to differentiate yourself from your competitors.

Business premises and legal form in morocco

Once the business plan has been drawn up, the next step is to choose the form of the company under which the business will be formed. In Morocco, it is possible to set up a car rental agency as a joint stock company, partnership or another form. However, depending on the legal form chosen, the company manager will be responsible for the company’s debts, either partially or fully. He or she will also be subject to income tax or corporation tax and will have to pay taxes within the time limits set for this. We recommend that you seek the assistance of a company law specialist to choose the ideal form for your future rental agency.
As far as the business premises are concerned, we recommend that they are located in an easily accessible area with a good flow of potential customers if possible. It is best to position the premises near train stations and airports or in high-standard areas if you offer luxury cars, for example. It is also important to avoid the agency being hidden inside a house unless it has a large parking space for cars. Ideally, we recommend that the office and the commercial premises are together so that customers do not get lost during their visit. However, it is also possible to have the administration area separate from the vehicle display area, provided they are not too far apart.

Provide computer facilities and staff with a variety of skills
Setting up a car rental agency also means setting up car security systems. It would be important, for example, to hire experts to install a device that would enable the location of each car to be tracked in real-time. Also, most customers will not always want to come to your premises to choose a car and book it. So you need to have an online showcase with nice pictures. Similarly, your website should offer the possibility to make reservations and orders online.

It is important to have staff who are knowledgeable about cars and who can both welcome customers and give them the right information at the branch or by phone. And, whether you are a franchisee or an independent, you will need to make the new agency known. You need to have a good marketing plan and people who will carry the whole strategy to get your brand known and talked about. Note that the marketing strategy must be done primarily via the Internet since it is on the web that the greatest competition takes place.

Financing and partnerships in morocco

For your agency to see the light of day, you should not hesitate to seek financial aid, subsidies, tax credits, or even a reduction in your various expenses over a given period from banks and government authorities. However, you should always plan to start with your funds at the very beginning of your activities.

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