Investment
NextCar and Priceless Car Rental seek savvy entrepreneurs who wish to capitalize on Americans continual need for short-term car rental and for sales of late-model pre-owned cars.Investment starts at $63,000 plus fleet financing
| Type of Expenditure | Low Amount | High Amount | Method of Payment | When Due | To Whom Payment is Made |
|---|---|---|---|---|---|
| Initial Franchise Fee (1) (4) | $20,000 | $100,000 | Cash | When Franchise Agreement signed | NP Franchise Group |
| Initial Reservation Deposit (2) | $2,500 | $25,000 | Cash | When Reservation Services Enrolment signed | NP Auto Group |
| Real Estate (3) | $6,000 | $24,000 | As agreed | As agreed | Suppliers |
| Leasehold Improvements (4) | $2,000 | $12,000 | As agreed | As ordered | Suppliers |
| Equipment, Fixtures, Furniture and Signs (5) | $2,000 | $20,000 | As agreed | As ordered | Suppliers |
| Rental Vehicles: 20 vehicles is the minimum fleet requirement (6) | $800,000 | $3,000,000 | As agreed | As ordered | Auctions, Dealers, Wholesalers, Fleet Lessor, NP Auto Group |
| Training and Travel Expenses (7) | $1,000 | $2,000 | Cash | As incurred | Suppliers |
| Computer Hardware (8) | $1,550 | $14,130 | Cash | As incurred | Suppliers |
| Computer Software (9) | $375 | $6,407 | Cash | When Franchise Agreement signed | NP Auto Group, Suppliers |
| Additional On-Site Computer Software Training (10) | $0 | $3,500 | Cash | As incurred | NP Franchise Group |
| Opening Advertising, Deposits and Miscellaneous Costs (11) | $2,500 | $5,000 | As agreed | As incurred | Suppliers |
| Vehicle Insurance (12) | $10,000 | $20,000 | As agreed | As ordered | Broker |
| Additional Funds - three months operating capital (13) | $15,000 | $45,000 | As agreed | As incurred | Suppliers and Employees |
| Total Estimated Initial Investment | $860,925 | $3,277,037 |
The startup cost for NextCar and Priceless Car Rental is materially the same. The primary variable is the fleet that each franchisee chooses at first, which will depend on what each local market prefers and the types of vehicles that are available.
Franchisees will typically start with as few as 6 vehicles during ramp up and will add vehicles as revenues grow and fleet becomes utilized.
See Fleet Leasing.
Fleet Acquisition and Financing
Start small and finish big: NP Franchise Group offers franchisees both fleet acquisition assistance and assistance in fleet financing. NP Franchise Group has established third party fleet leasing relationships franchisees benefit from. Fleet financing operates like a line of credit. Franchisees only pay for funds they tap.The average NextCar and Priceless Car Rental franchisee may start with a small fleet of about 6 cars ranging from economy and compact cars through full size luxury vehicles and SUVs, and add fleet as revenues grow by using lines of credit that NP Franchising helps franchisees establish.
Franchisees acquire fleets through closed factory sales events, program cars through the franchisor, local auto auctions, dealers, and through private sellers