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Car Rental Scams in Ukraine: How does it happen?

The growth in demand for car rental is gradually increasing and so is the attention of respectable citizens to this sector. There are instances when rented cars are listed as stolen or rented using forged documents.

Starting June this year, demand for temporary-use cars has grown by almost a quarter. There are Ukrainian citizens among customers as well as citizens from other countries.

Along with the growing number of scammers, large companies specializing in car rental have thought about the security of their business. Forming security services is a standard procedure for the self-defense of entrepreneurs. The list of their duties includes a thorough check of customers for criminal records, assessment of the risks when a car is rented by unknown people or foreigners.

The simplest scheme of auto theft by a renter is as follows:

  1. Criminals give money for rental and deposit amount to their accomplice.
  2. The accomplice drives a car away from the vehicle fleet and delivers it to a third party.
  3.  Customer’s contact information becomes invalid. The car is transported abroad.

There is another way – the resale of vehicles using forged documents. It is a more complex plan because it requires a notary being involved. But some indecent lawyers agree to be involved in a deal like that for $500-$1000.

That is why rental companies toughen up the process of doing all the rental paperwork and make their policy on using vehicles stricter.

Currently, the most popular types of vehicles are:

  • Minibuses and small trucks (10-20% of the total number)
  • Cars for  business trips (70-80% respectively)

Prices for modern cars are as follows:

  • Economy class – starting $15 per day
  • Business class – starting $80-90 per day

The average rental period is 3 days.

Private Car Rental: advantages and peculiarities

Apart from large companies, private individuals also offer rental services. This trend came to us from America where collectors and owners of rare and popular cars by doing so have an additional source of income. Depending on the model and technical condition, such autos can cost customers starting $5 per day (economy class models) up to several hundred dollars for rare pieces of the classic Soviet and current foreign car industry. Rental purposes are business trips, holiday trips, excursions and sometimes work-related trips. By getting a car for 150 UAH per day, a customer as a taxi driver can earn up to 500 UAH. However, this is forbidden by almost every car rental company.

The main advantages of private individuals are their low prices and minimum requirements for renters. It often happens that cars are rented for more than 30 days which provides the owner a stable income of 3000 UAH per month.

Citizens who have entrepreneur skills managed to do a small business on that. Renting 2-4 business or economy class cars for taxi services (Lanos, Lada, Zhiguli, cheap foreign cars) provides a stable income of 2000 UAH per day. However, there are pitfalls, for instance, there are no guarantees and the chances of the car getting damaged are big which can affect the total profit. Therefore, mass-produced vehicles are the best for these purposes because it is easy to find parts and spare parts to repair them which would not be too expensive and would be done within a short time at auto repair shops.

Motorcycle Rental – A New Trend In Car Rental Business

A motorcycle is a more convenient vehicle for the city. It consumes less fuel and provides excellent mobility compared to a car. That is why rental of two-wheeled vehicles is getting more popular in Ukraine. Prices for it are much higher but this is due to stricter requirements and a greater number of road accidents compared to cars.