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- How profitable is it to run an exotic car rental business? Though a lot of businesses have been affected by Covid, surging demand and a shrunken supply of cars are boosting the luxury car rental market. Earlier the options to drive a luxury car like an Audi, Mercedes, or Mustang, was limited-buy to a new vehicle that was prohibitively expensive, purchase a second-hand car, or, borrow one from a friend. But for many people, buying a luxury car is not a feasible option due to the costs involved. And, the issue of trust factor comes in the way of borrowing cars. - Source: Internet
- To minimise the start-up costs, you can buy an existing business. In this way, you can tap into an existing customer base. You can raise funds from carmakers or venture capitalists to finance the purchase of new luxury vehicles. - Source: Internet
- This is where an exotic car rental or leasing business comes into the picture. For the reasons given above, many people are preferring the leasing or subscription model, rather than buying new cars. A luxury car rental business rents out cars for business or leisure. - Source: Internet
- Opening a luxury car rental service requires plenty of working capital. The biggest expenses will be for making the payments for cars. What are the other expenses that you will encounter every month? A part of the budget will go into rent, salaries, insurance, and advertising. The amount of insurance will depend on the number of cars in your fleet. - Source: Internet
- Ans. First, is the high cost of luxury cars, which can run into crores of rupees. You need to maintain a fleet, to run a sustainable business. The second is the cost of insurance. - Source: Internet
- To add cars to your fleet you have to work closely with automakers. If you don’t have an inventory of luxury cars, you can find the people who have. You can partner with people who are not utilising their cars or want to make some money off their cars. You can give them the option to rent their cars to your clients. It will be a win-win situation for both. - Source: Internet
- Don’t make the mistake of renting out to the wrong kind of people. Verify the customer before renting out a car. Check his address, and also the validity of his debit/credit card, if any. The profile of the customer is also important. The luxury cars are very expensive; you should not rent one to an immature 21-year-old, even though you may have insurance. - Source: Internet
- According to an industry report by Mordor Intelligence, the global car rental market is poised for a 7.5% CAGR during the 2020-2025 period. In India, the luxury and vintage car renting business is worth Rs 800 crore and growing at 30 per cent every year. - Source: Internet
- You can rent your fleet of classic and exotic cars for weddings, corporate events, parades, music videos, and movies. Though the exotic car rental business is small, the profit margin is quite high. If you get the right clientele, your income can reach sky-high. - Source: Internet
- You should be prepared to go the extra mile. People usually rent luxury cars for a memorable occasion. If a customer wants a car to be placed at a certain location at say, 3 a.m., decorated with flowers, you must be prepared to fulfil that request. - Source: Internet
- Since the travel and leisure market has started to restart, now is the right time to go for a car rental franchise. You can take the franchise of a successful luxury car rental company. Try to find out about all the details on their website. - Source: Internet
- Where available, if permitted by law, if you drive less than 75 miles, you acknowledge that we will add a flat fee to the rental, the amount of which will be disclosed on the Rental Contract and at the counter prior to rental. You may avoid this charge at time of return by providing a receipt for fuel purchased at which time the flat fee will be reversed from your total rental charges. If this subparagraph (a) does not apply, there are three refueling options: - Source: Internet
- A high-quality business plan is essential to boost lender confidence, and layout your course of action. The most important part of your high-end car rental business plan will be the section on finances. This is where the attention of your investors will veer towards, to access the viability of your plan. - Source: Internet
- If you do not accept the fuel service option, where available, at the beginning of your rental, and you return the car with less fuel than was in it when you received it, as we determine in our sole discretion, we will charge you a fuel service charge at the applicable rate per-mile or rate per-gallon specified on the Rental Contract or disclosed at the location. The per-mile rate is used if you do not buy fuel during the rental. To calculate this amount, we multiply the number of miles driven, as shown on the car’s odometer (or provided by the vehicle’s telematics device), times the per-mile rate shown on the Rental Contract. The per gallon rate is used if you buy fuel during the rental and provide us with a receipt on our request, but the tank is not as full when you return the car as when you received the car (by using the factory installed gauge, rounded down to the nearest 1/8 tank), times the per-gallon rate shown on the Rental Contract. - Source: Internet
- Demand for luxury cars is strong near locations like airports and hotels. Many five-star hotels have rich customers who ask for luxury cars while going shopping or sightseeing. It would be an advantage to have your business located near these places. - Source: Internet
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