Starting an exotic car rental business isn’t as simple as you might think. However, this doesn’t mean it’s impossible. There are some market variables that you need to understand before putting your cash into this type of business.
Here is an insightful guide that will take you through the various factors and pointers to consider before setting up shop.
Setting Up Shop
There is no set procedure on how to start an exotic car rental business. In most instances, owners of notable rental yards attribute their business to demand and an opportunity within a given location.
Additionally, you can look into what the available car rental owners are offering and try to figure out what’s missing. For instance, if there are only Mercedes and SUVs available why not start to, and rent out, say, a Lamborghini and Ferraris?
The Kind of Clients You Should Expect
Owning a Lamborghini Gallardo is a luxury only very few people can afford. A massive chunk of people who will be visiting your exotic car yard will be those who cannot afford to own or purchase one.
Young entrepreneurs, musicians, and videographers shooting videos will also form a considerable percentage of the clients coming in to rent your exotic cars. Additionally, tourists from abroad with a taste of top-of-the-range rides may also be regular customers.
Market Your Company
Having an advertisement alone isn’t enough. Creating a website complete with your contact details, and a booking form will most likely bring you more clients. Additionally, attend car shows, and place ads around tourist hotels and in car magazines.
Aggressive marketing is the secret behind making it big in the exotic car rental business. For example,milanirentals.com is an exotic car company that owns a marketing/booking website.
This is the tricky part, and you need to get your calculations right to generate substantial amounts of profit that help keep your business running. According to experienced car rental owners, the daily rental rate should be at least 1% of the car’s value.
After that, you can tweak the prices based on demand and other additional offers that may come with it. However, the 1% rule won’t apply to all car models. Models such as the Ferraris and Lamborghinis will probably fetch more than a Porsche or Mercedes.
Also, regarding mileage, you will likely want to offer your clients 100-120 kilometers free and then start charging for any extra miles covered.
Know Your Customers
Remember that when you’re renting a car to someone, you’re expecting them to take care of it and return it in good condition. Before leasing out your cars ensure you carry out an extensive background check on your clients. Besides that, a security fee is also essential.
Secure your Cars
Having insurance cover alone isn’t enough. Ensure your cars are fitted with tracking devices so that you can monitor their location at any given time. Trackers will also help in tracing your vehicle in case the customer violates the set term and conditions.