It is often hard to be completely objective and determine the price for your rental car in Uganda. We tend to think about how expensive the repairs are, how much time and effort we have invested in it, how much it costs us, how much we spend on insurance, road tax, maintenance among others. Very simple advice would be – please set a lower price for the first rentals and then you can increase it when you have your first rentals, feedback, 5 star ratings and good response time. If you want to explore the topic in more detail, please continue reading.
- The Age of the car
Yes the older the car, the lower the price. Time can fly, sometimes we forget that our car has just turned 10 or 15 years old. Every 5 years the price of the car decreases significantly in car rentals. Cars that are less than 5 years old have a higher price, and it won’t differ so much because their age won’t be the decisive aspect. 5 to 10 years old cars have a lower price, and, in case they cost the same or even more than a 5 year old car, they won’t be rented out because renters can get a newer car for the same price.
When cars are older than 10 years, the price are even lower, yet the fuel efficiency, engine and car type become more important. If the vehicle is older than 30 years and has reached retro status, the price starts to increase again, especially during the summer when there is a demand for such cars for safaris, weddings and other events.
- Fuel consumption and engine type
Another important thing is the fuel consumption. But if the renters can save on fuel by renting a slightly more expensive car, they will usually choose the car with a lower fuel consumption, so a lower fuel consumption might allow you to increase the price. Also, the engine type is important. But then, diesel engines are favored more than petrol engines, and cars running on LPG are even more complicated because some people avoid these cars, although they can reduce fuel expenses even more.
- Car type
Minivans, spacious cars, SUVs, vans, trucks, convertibles and similar cars can have a higher price than regular cars.
- Car brand and model
The car brand and the model are also very important. Although most cars are not affected by it, the opinions about some brands can influence the car price. Renters tend to be willing to pay more for German, Toyota cars since they are believed to be more reliable, while Russian cars, as well as sometimes French, and Korean cars are not always seen as trustworthy, so they might require a lower price. However, opinions differ, and each brand has its loyal users and also those who won’t drive it no matter what.
- Time of the year
The time of the car differs. Car rental is a seasonal business, since the demand for rental cars surges in June, July, August, and September and shrinks in April, May and November. If you increased the price during the dry season in Uganda, don’t forget to lower it once wet season comes.
- Car photos
Many things are determined by marketing in Uganda. So if you want your car to be rented out, the car must look great in the photos.
- Location
Location can also influence the price of the car. The competition in a certain area might also influence the price of the car. Since there are more cars available, the prices might be slightly lower because the renters will be able to choose from a wider variety of cars and to find cheaper options. But also you can keep in mind that the income level is higher, so even if the competition in your city is much lower, you need to set a reasonable price that the renters will be able to afford.
- Insurance and other extras
For insurance and other extras, you can set a higher price. If the car has any extras, list them in the car description. Extras usually don’t affect the price of the car, but they might help the renter to decide that your car is the right one for him.
