Challenge your business model. Take the time to look
at your vehicles, customers, market, rates, technology, the people operating
your business, and think about all the possibilities.
Ask yourself some questions: Does my business model
work today? Has it become stagnant? Has my market position eroded? Do I want to
build the asset value of the company, then get out? Have a plan and constantly
challenge it.
Be obsessed
with numbers. “Those companies that are obsessed with numbers have the best
shot at success.
Take the time to look at every possible benchmark,
including, but certainly not limited to, revenue per user, utilization, average
length of rental, reservation build and earnings.
Scrutinize your
P & Ls. Know what you did this time last month, this time last year, this
time three years ago.
Know your fleet and your customers. Don’t let the
deals drive your decision. Instead, let your customers dictate your fleet. car.
What will customers pay? Test a rate class and see.
Keep your fleet costs in check or the business will
fail. It’s your greatest opportunity to make money and your greatest risk.
Also, have a 12-month fleet plan that is constantly
moving out 12 months. Change it to meet the demands of the constantly evolving
rental market, travel industry, economic climate and the aftermarket.
When acquiring a vehicle, know when, where and how
you’re going to dispose of it. If the aftermarket wants bells and whistles and
a pretty color, get them.
Whatever it is, have a disposal plan.
Manage risk. Dedicated people in the risk area will
pay for themselves many, many times over.
How much time
do you spend on subrogation? Do you let your insurance company worry about it?
Do you follow up on it? “In theory, good money can be made buying and selling
vehicles.
Don’t neglect sales and marketing. Without sales and
marketing, you’re just another rental company. Define what makes your business
unique. That’s what you’re merchandising, and you’ve got to make your customers
aware of that distinction. Your business’ unique characteristics provide
opportunities to draw the customer to you and pay more.
Look for marketing alliances. If you’ve got a large
hotel next door, propose a deal. Refer customers to the hotel, and have them
refer business to you.
Put a brochure together that talks about your alliance
with the hotel, or put a phone in the hotel that dials your location. Be the
rental car agency for the local convention center.see.
Fight for the lowest fleet finance interest rate.
Every 1% you save has an enormous impact on your bottom line. Use your sources,
friends and colleagues to find it. Meet as many lenders as possible. Once you
get that 1%, start looking for the next one.
Provide full disclosure to your customers. The
customer should acknowledge anything special or unique about your rental
agreement. Penalties must be clear to the customer. At the end of the day, it’s
your word against the customer’s.
Above all continue to challenge yourself and challenge
your business model. Business is fluid — your operations must be as well.
I came across this website travelauto.com, and found
to be interesting review portal, which was listing all ranges of companies and
allowing me to get in touch with the car rental service provider. Good thing is
I was able to get better deal and good service. Probably I think it's when you
deal directly with the company you will get better prices.
Covering Your
Assets
Exotic car rental operators must go above and beyond the usual safeguards to ensure they’re renting to reputable clients.
Exotic car rental operators must go above and beyond the usual safeguards to ensure they’re renting to reputable clients.
Gotham Dream
Cars does a criminal background check, a driving record check and a credit check.
The company also takes a $10,000 security deposit on top.
Specialty
Rental Cars does not do a criminal background check. The company makes sure the
actual credit card is swiped, and takes a deposit of $1,500 to $5,000.
Rent-A-Vette
takes a thumbprint and a scanned copy of the driver’s license. The deposit is
equal to a day’s rental.
All three
operators have GPS tracking systems installed in their vehicles. All operators
require renters to provide proof of insurance for the value of the exotic
vehicle, and stipulate that the renter’s insurance is primary.
The Insurance Catch-22
Operators say insurance considerations are the one of the biggest hindrances to entering the exotic car rental business.
Operators say insurance considerations are the one of the biggest hindrances to entering the exotic car rental business.
Many exotic
car rental operators finance their cars, necessitating a third-party insurance
policy, as opposed to—gulp—self-insuring. Yet very few carriers insure the
ultra-exotics such as Lamborghinis and Ferraris. (Petherbridge says only two
companies in the country cover the very high-end exotics.) Rates are high.
Third-party collision damage waivers simply aren’t available on the
ultra-exotics, meaning operators must put their own policies at risk.
That leaves
rental companies in a Catch-22: though they must pay high insurance rates, two
or three claims can cancel the policy.
However,
like Lehmann-Haupt’s nightmare after Christmas in 2004, extended battles with
the renter’s insurance carrier are all too common.
“We work
closely with several of the well-known damage collection companies,”
Lehmann-Haupt says. “We have to go after our clients. With our insurance rates
as exorbitant as they are; if we file claims [our rates] are just going to go
through the roof.”
Buying and Selling – The Challenge of Depreciation
Part of being a successful exotic rental car operator is knowing how and when to purchase and remarket vehicles.
Part of being a successful exotic rental car operator is knowing how and when to purchase and remarket vehicles.
Lehmann-Haupt
adds to the fleet with sufficient customer demand. He recently got a call from
a guy who wanted to go to Atlantic
City
“Every car
fits a profile,” he says. “I don’t get two cars that compete with each other.
The guy renting the Aston Martin is not the guy renting the Ferrari F430;
they’re different customers.”
“We have
good relationships with dealerships that offer us new cars for wholesale
prices,” says Lehmann-Haupt. “They know we’re repeat customers, and that the
cars we purchase from them are rolling advertisements.”
Lehmann-Haupt
says he generally purchases new vehicles, though buying a new exotic comes with
a warning tag: it can depreciate by $100,000 in one year. He replaces vehicles
on a car-by-car basis through private channels and selling to customers “who
fell in love with the vehicle they rented.”
Petherbridge
typically buys year-old cars and keeps them while they are still under
warranty. He remarkets many vehicles through the company’s dealership.
At
Rent-A-Vette, Kiland buys both new and low-mileage used vehicles, and sells
them at around 30,000 miles while they are still under warranty. To get them to
market, he works with brokers, goes to auctions and also sells them himself.
Tags: luxury vehicle, GPS
Comments
1.
Frank Rawlings [ September 8, 2013 @ 12:27PM ]
I just
started a limosine service out in Washington
DC
2.
Boomer [ November 19, 2013 @ 09:45AM ]
I was in
google last month trying to find exotic car rentals, and the same company kept
coming up. I decided to avoid there over advertising, and went with a more
local company. UltimateExotics.ca, which is right off of the service road near Hamilton
3.
Ricky [ December 21, 2013 @ 11:23AM ]
Seeking
partner or investor for my startup luxury car rental business in Palm Springs , CA
4.
Steve [ December 30, 2013 @ 07:54PM ]
I was in
Miami
5.
Ricky W [ January 11, 2014 @ 10:15PM ]
Seeking
partner/investor to purchase a Lamborghini and Ferrari for Celebrity Car Rental
in Southern California . I need someone who
understands risk and high rewards in this industry. Contact info: ricowill007@gmail.com or info@celebritycarrental.com
6.
Chris [ January 26, 2014 @ 02:04PM ]
The
right glove treatment, unbeatable rates on exotic car rentals Miami
7.
Victor [ February 18, 2014 @ 07:33PM ]
Most of
those comments are just advertising. Good article though.
8.
Dan [ July 9, 2014 @ 11:54AM ]
Can
someone suggest an insurance company that does cover Luxury exotic cars
9.
Parker [ October 1, 2014 @ 06:40AM ]
When I bought mine Cadillac
I went to http://www.fortlauderdalecollection.com/
they were friendly and they hooked me up with all the answers to every question I had lol
they were friendly and they hooked me up with all the answers to every question I had lol
10.
Anthony [ October 2, 2014 @ 05:16PM ]
I rented
a car from MVP Exotics last time i vacationed in Miami
11.
Teffick [
December 12, 2014 @ 05:20PM ]
I always
wanted to know how to start an exotic car rental business. I have the capital
and perfect credit and all . But never knew the proper channels and steps on
how to start one til now. But i know there is more to it then just words. It
takes a lot of dedication , commitment , knowledge and time. But i guess i have
to start from somewhere. So thank you and if there is any more advice you can
spread to me and everyone who's looking to do the same. It will be very
appreciated. Thank you again.
12.
lamont brooks [ December 20, 2014 @ 11:08AM ]
Teffick,
get in touch with me please. We're on the same path.I'm in Atlanta Ga.
13.
Vijay Singh [ January 18, 2015 @ 10:02PM ]
I can
relate to this article in many ways, I wish to start an exotic car rental
busines myself. My location is perfect as I live in a growing city that
currently has no big rental car businesses. Its not just an idea for me; its a
dream that im putting a lot of thought into at the moment. If anyone has any
advice about ANYTHING please contact me at:vijay_singh4@hotmail.com
14.
Ricky W [ February 28, 2015 @ 06:15PM ]
Vijay
Singh I contacted you last year about investment you are not serious just talk.
15.
Mike C [ March 11, 2015 @ 01:52AM ]
I really
enjoyed reading this article, it educated me about the risks it takes to start
an exotic rental company. I live in a none tourist area but a lot of wealthy
people from overseas who own businesses. I think production sport cars (eg: BMW
M cars, Mercedes AMG cars, and Audi RS Cars), and sport winter trucks (eg:
range rovers, Audi, Porsche, etc..) might be a successful rental car business
but I would like an experienced person to contact me about this idea. My email: wa3ad123@yahoo.com
Thanks,
Thanks,
16.
Mike C [ March 11, 2015 @ 01:52AM ]
Sjjzkzj
17.
Tasha [ March 30, 2015 @ 12:04PM ]
Mom...looking
for Shoffar rental of a celebrity car dont want to go through all of the huge
deposits Insurance claims etc just really want him to go out in style take son
an date to prom afterwards make few stops etc. Downtown Chicago or him an date
to dinner drop date off at home an son home...please email me asap...Thank You
18.
Miami
visit our webside: www.miamiluxurycarrental.com
19.
Chenille P [ April 20, 2015 @ 12:50PM ]
For the
most luxurious exotic rentals in the Carolina South Carolina
20.
VÃctor J [ May 10, 2015 @ 12:32PM ]
Owning a
Ferrari is the dream of many car enthusiasts the world over, since the iconic
Italian brand is forever linked with performance and handling. According to a
new United Kingdom
Ferrari drivers, surprisingly enough, scored below the average for driving enjoyment. Only 57-percent of those surveyed found driving to be an entertaining task, likely due to factors such as cost of ownership, ever-tightening regulations and traffic congestion on public roads.
Anyway, from my point of view if you want to rent a Ferrari and enjoy it for a few days, it´s totally different, becouse i did it and i can assure it, I found a company for ferrari rental ibiza and i rent a Ferrari F430 for 3 days. in www.ibizaferrari.com and I enjoyed a lot the experience. I love Ferrari car, for me is the best brand in the world.
Ferrari drivers, surprisingly enough, scored below the average for driving enjoyment. Only 57-percent of those surveyed found driving to be an entertaining task, likely due to factors such as cost of ownership, ever-tightening regulations and traffic congestion on public roads.
Anyway, from my point of view if you want to rent a Ferrari and enjoy it for a few days, it´s totally different, becouse i did it and i can assure it, I found a company for ferrari rental ibiza and i rent a Ferrari F430 for 3 days. in www.ibizaferrari.com and I enjoyed a lot the experience. I love Ferrari car, for me is the best brand in the world.
21.
MUNEER [ May 25, 2015 @ 11:02AM ]
These are just a few of the exclusive late-model dream cars we have in our fleet just waiting for you to take them for a spin. Want to impress your business contacts with your exquisite taste in cars? Or, perhaps you have a wedding, or other formal event you would like to make a statement when you arrive. Arrive with prestige. These are also fun to give a spouse who has everything an unforgettable anniversary or birthday present. Whatever your wish, we have the car and the experience.
If you are looking for a luxury car rental in hollywood, Newport Beach, San Francisco, or even Las Vegas? We have locations there as well where you can rent an exotic sports car or luxury vehicle.
Please contact us at 310-670-2020 or Malshari@bhrac.com
22.
Pao [ May 26, 2015 @ 01:38PM ]
Great
advice! for anyone looking to lease a Mercedes- Benz or BMW, lmgbrokers.com has
awesome deals. I just got a Benz CLA at an awesome, awesome price! They've got
zero down and same warranties as dealers not to mention they deliver cars to
your home with contract on hand. Call 954-862-1474
23.
Scott [ June 21, 2015 @ 07:59AM ]
Does
anyone know what two insurance companies offer the policies for rental fleet insurance
for exotic car rentals. It doesn't mention the names of the companies in the
article. "Yet very few carriers insure the ultra-exotics such as
Lamborghinis and Ferraris. (Petherbridge says only two companies in the country
cover the very high-end exotics.)"
24.
NABEEL MALIK [ June 21, 2015 @ 09:07PM ]
I am
looking to start an exotic rental car business in the DC area. I have the funds
and credit ready. I would greatly appreciate any advice on the challenges I
will face. Also if there is network, I would love to be part of it. Thank you
for your time and I look forward to speaking with anyone.
25.
Sean T [ July 5, 2015 @ 06:01PM ]
Nobel
Malin
I was praying someone in the DMV area left a recent comment. Thank God I found you.
I am extremely good with Internet marketing and already put up a site that I'm about to rank. I'd like to get with you and discuss possibility.
Email me seanbizcm@gmail.com
I was praying someone in the DMV area left a recent comment. Thank God I found you.
I am extremely good with Internet marketing and already put up a site that I'm about to rank. I'd like to get with you and discuss possibility.
Email me seanbizcm@gmail.com
26.
Sean T [ July 6, 2015 @ 06:55AM ]
Nabeel
Malik...sorry about that, my phone had changed it by autocorrect.
27.
Kyle E [ July 8, 2015 @ 05:52PM ]
Is
leasing cars to start a fleet possible, or only purchasing, due to sublease
issues in a lease contract?
28.
Joe [ July 13, 2015 @ 08:19PM ]
Looking
to start a company of exotic car and yachts Nationwide. I'm in the Midwest area looking for to partner up with the right
people. I'm looking to cater to celebrity and your average Joe.
29.
Willie scott [ July 20, 2015 @ 10:29AM ]
Nabeel
Malik and Sean T. I'm on board and would love to team up with you guys, being
this is also my passion
30.
Willie scott [ July 20, 2015 @ 10:31AM ]
Contact
me scottwillie11@yahoo.com
31.
Willie scott [ July 20, 2015 @ 11:02AM ]
Joe!
Let's work together man. scottwillie11@yahoo.com
32.
Kaizen Life Automotive [ July 25, 2015 @ 11:39AM ]
Sean T.
contact me at semcobiz@gmail.com.
I will be in the market for a internet marketing/ site developer in the next
few months.
33.
Rob G. [ July 27, 2015 @ 09:52AM ]
I am
also interested in teaming up with like minded individuals/team to get our
collective passions and dreams rolling into a reality. I am on the East coast.
Anyone interested in making this happen please email overachiever1@hotmail.com anytime.
Looking forward to working an thriving with you all. Speak soon
Regards,
-TOA
Regards,
-TOA
34.
luxury cars rental Miami
Redline
Luxury objective is to provide a wide variety of car hire in Miami Miami Miami
http://redlineluxury.com/
http://redlineluxury.com/
35.
james cleary [ August 11, 2015 @ 09:16AM ]
I live
in the largest city in the country that does not have an exotic car rental company
and I am looking to start one. I have everything done, business plan, location,
terms and all. I am seeking an investor to join me so i can get started. If
anyone is interested in this untapped market contact me at mechanicaltanker@gmail.com
36.
Jay [ November 13, 2015 @ 11:38AM ]
Let me
know if anyone is looking to partner up. Ive been doing research for quite some
time and have been looking to get into it. jay.witt23@gmail.com
