How to build a long-term car rental business using inGain's software
Traditional car dealerships often face challenges like unsold inventory, lack of customer engagement, and operational inefficiencies. In this article, we share key takeaways from our interview with Gediminas Velicka, Co-Founder of Current Auto, on how his company used inGain's loan management platform to successfully implement long-term car rentals, streamline operations, manage risks and scale effectively. Watch the full interview in the video below the article for more insights from Gediminas.
Why long-term car rentals are a growing market
Long-term rentals address a shift in customer preferences toward flexibility over ownership. Younger generations (25-35) increasingly prefer subscriptions and rentals over buying, making long-term rentals an attractive and affordable option.
Key challenges in setting up a long-term car rental business
Starting a long-term car rental business comes with unique challenges:
- Evaluating customer risk: Assessing customer creditworthiness and income to minimize default risks can be complex and time-consuming without automation.
- Managing vehicle maintenance and depreciation: Cars sitting idle on lots lose value, adding to operational costs.
- Scaling operations: Managing a large fleet manually leads to inefficiencies and missed opportunities.
Current Auto's success with inGain
With inGain’s loan management system, Current Auto were able to expand their operations and successfully introduce long-term rental services as a profitable new business line.
The problem
- Unsold inventory: Cars sitting idle on the lot lost value and drained resources.
- Operational inefficiencies: Manual processes for managing sales, rentals and customer risk were time-consuming and prone to errors.
- Limited customer insights: Without automated tools, it was difficult to evaluate customer creditworthiness and income accurately.
The solution
To address these challenges, Current Auto partnered with inGain. Our system enabled them to:
- Automate risk assessment: By integrating with credit bureaus and income verification tools, inGain streamlined customer evaluations, minimizing the risk of unreliable renters.
- Optimize inventory utilization: The platform helped Current Auto manage inventory more effectively, ensuring that cars were put to work either as rentals or sold quickly to avoid depreciation.
- Expand into rentals: inGain’s system allowed for the seamless introduction of long-term rentals, turning idle assets into recurring revenue streams.
- Enhance operational efficiency: Automating customer onboarding, cost tracking and debt collection reduced administrative overhead and improved overall efficiency.
The results
- Fleet growth: Current Auto expanded its fleet to over 1,500 cars, serving customers across Latvia and Lithuania.
- Diversified revenue streams: By adding long-term rentals to their existing services, they reduced dependency on traditional sales while boosting profitability.
- Increased efficiency: Automating key processes allowed for faster service delivery and fewer errors, enabling them to focus on scaling their business.
- Market responsiveness: With inGain’s scalable platform, they were able to launch rental services 30% faster than traditional methods, capturing market opportunities effectively.
Watch the full interview with Gediminas Velicka in the video below!
About InGain
For over 10 years InGain has been supporting the consumer finance industry, fintech companies and banks with an out-of-the box, yet fully customizable loan management system. On top of the core system, the company also delivers system integration services and custom feature development. InGain has executed hundreds of projects with more than 50 global clients across a variety of sectors.
The loan management system caters to both secured and unsecured business and retail loans, including instalment loans, auto leasing, mortgages, line of credit, buy-now-pay-later, payday loans, invoice factoring and long-term rentals.