Luxury Car Rentals are a great way for people to experience the thrill of driving exotic cars. These cars can be very expensive and often come with features that aren’t available on regular vehicles.
Starting a luxury car rental business can be very profitable if done properly. However, it can also be a difficult task.
Start with a small fleet
You don’t need to start with a huge fleet to run a luxury car rental business. In fact, some businesses start with as few as three or five cars, enough to offer a variety of options and make money on short-term rentals.
People who rent exotic cars do so for a number of reasons. They may want to add a sense of adventure to their vacation or road trip, or they could be on the fence about purchasing a particular car model and want to see what it’s like for real.
As you build your fleet, remember that you’ll also need to budget for auto insurance, rent, and other small business expenses. You should work with an agent or company that specializes in specialty car insurance to get the best coverage for your luxury vehicle rental business.
Work closely with automakers
Many people are passionate about exotic and luxury cars, but it’s often expensive to buy one. Renting a car can provide an opportunity to experience the thrill of a new vehicle without committing to ownership.
Consider offering a subscription service that allows customers to access a fleet of cars for a monthly fee. This model reduces the risk for the business and can help it grow.
Work with an insurance provider specializing in exotic car rentals to get the best possible coverage for your luxury fleet. This will prevent a financial disaster if one of your vehicles is damaged or stolen. This is especially important if you plan to offer discounts to lure in potential customers. These companies also offer a variety of other benefits, including roadside assistance and maintenance.
Offer additional services
Car rental businesses that are looking to boost their profit margin should consider offering additional services to their customers. These might include home delivery of the cars or providing a gift, such as a travel mug, with each rental. Moreover, they should offer special deals to people who are renting their vehicles for long-term.
Another option is to offer a subscription service for customers who want to drive luxury cars for a short period of time. This option saves the customer money by avoiding registration charges, maintenance costs and insurance fees.
However, it is important to make sure that the customer’s credit or debit card has enough money in it before he or she picks up the vehicle. Otherwise, the company will place a hold on the account, which is refundable following completion of the rental.
Don’t make the mistake of renting out to the wrong kind of people
If you love to drive and want to experience an adrenaline rush, renting a luxury car may be the perfect option for you. However, before you rent a luxury car, there are some things you should keep in mind.
For example, you should always be on time for your return appointment. This will help you avoid costly late fees. Also, make sure to take your time and thoroughly inspect the car before you drive it off the lot.
Houston Crosta, owner of Royalty Exotic Cars in Las Vegas, says the luxury rental business is becoming increasingly popular. But it’s also getting muddy as illegal companies perpetrate insurance fraud and other crimes, leaving insurers, legitimate rentals, and owners of personal cars holding the bag. As such, it’s critical for exotic car rental businesses to vet and monitor their renters six ways to Sunday.
Go the extra mile
Many people rent cars as a convenience, or because their regular car needs repair. But for those with a passion for exotic vehicles, renting them can be an exciting treat. Exotic cars offer a sense of panache that you just don’t get in a Toyota Camry.
Houston Crosta, owner of Royalty Exotic Cars in Denver, says his fleet has grown from a single Lamborghini to an extensive collection of cars that would make any car enthusiast salivate. He even buys new models of these cars to add to his inventory, and some of them are so hot that they’re rented out not just 15 or 30 days per month, but 45 times a day!
To help him keep track of these cars, Houston uses a free app called OkCredit to verify his customers’ identities, addresses and the validity of their debit or credit cards. It’s an extra layer of safety that ensures his cars are only in the hands of responsible drivers.