If you weren’t already aware, there is a huge demand for luxury car rentals at the moment. If you position yourself correctly and have a solid collection, you could make a lot of money with this business model. It is somewhat risky, but there are plenty of ways that you can shield yourself from these risks. You need to take your time before starting out, however, as this is a business that demands a pretty significant investment. Let’s take a look at how you can start a luxury car rental business.
Start with Market Research
The first thing you have to do is look at your local landscape and competition. This will give you a good idea of what services and vehicles are in demand right now. When looking at the competition, check which vehicles you routinely see coming up. You should also look at the average size of their fleets and what they’re charging.
Choose the Right Model
There are multiple approaches you can take to build your inventory and you don’t necessarily have to own all the vehicles in your fleet. You can own one or two and partner up with a local exotic car business or partner up with someone you know who owns luxury cars.
Look at Maintenance Costs
You also have to think about all the costs associated with running this kind of business. Besides your inventory, storage, advertising, and insurance, you will need to think about maintenance, especially if your cars are out of warranty. Now would also be a good time to start building relationships with exotic car service centers in your area. If you’re in Tampa and you’re thinking of adding one or two Ferraris to your collection, you could check out a Ferrari service Tampa like the European Exotic Center. They offer some of the best deals in the business and will be able to fix virtually any issue fast at competitive prices.
Hire an Advisor
You shouldn’t get into this business without at least speaking to a consultant. They will be able to look at your business plan and see if there are any gaps. They can also give you advice on how you can market your business, some of the obstacles you can expect along the way and give you some pointers on financing.
Set Up a Strict Verification System
One of the most important things when renting out luxury cars is knowing who you are renting these cars out to. This is why you will need to have a rigorous system in place that will include formal background checks, references, and setting up collateral in case of damage.
Choose a Location and Start Advertising
You should know that you don’t need a location to start a rental business. You could take pictures of the cars in your inventory and deliver the cars to the person you rent them to. But it’s usually better to have a storefront to attract business, so start looking at areas with lots of traffic where you could set up shop. Consider areas that have a lot of car dealerships.
From then on, you’ll need to advertise your business. Word of mouth is one of the most efficient ways to advertise an exotic car rental business, but you could also try online advertising and other traditional options like billboards, radio/tv, and print. Sponsoring or attending events like exotic car expos could also get you lots of business.
The exotic car rental business is booming right now, and if you love cars and think this is a business you could see yourself thriving in, you should definitely look into it. It’s not a business with the lowest barrier to entry, however, so move cautiously.