If driving an exotic vehicle is on your bucket list, renting one might be a more affordable way to check it off. But operating a Luxury Car Rentals business can be risky.
To mitigate risks, entrepreneurs should prepare a thorough business plan to boost lender confidence and layout their course of action. Here are some tips for doing so.
High-End Vehicles
Luxury car rental companies offer a variety of exotic and luxury vehicles to choose from. These cars feature plenty of power and modern technology, as well as creature comforts that make driving enjoyable.
Many luxury car rental services also provide a personal driver. This is especially helpful for those who want to experience a luxury car but aren’t comfortable driving one on their own. In addition, some companies allow you to rent a vehicle for only a day, which is useful for business travelers who don’t have time to buy or lease their own vehicle.
Some luxury car rental businesses work on a subscription basis, which allows customers to access a certain number of vehicles for a monthly fee. This model is attractive to consumers because it eliminates the need for them to pay registration fees, taxes and maintenance costs. Typically, the only thing they need to pay for is fuel. In addition, some credit cards include roadside assistance and insurance on the vehicle, making it even more cost-effective for the consumer.
Subscription Model
As drivers who prefer to avoid a pricey auto loan or car lease look for alternatives, subscription services have begun popping up that promise to be cheaper and more flexible than renting or leasing. Hertz, for example, offers a program called My Car that provides access to its fleet of luxury vehicles for an all-inclusive monthly fee.
Even some car manufacturers have entered the subscription business. Volvo’s Care By Volvo is more of a hybrid lease than a rental, though customers can cancel the program and swap cars after 24 months.
If you start a luxury car rental company, your website is your best tool for marketing. Display photos of your fleet and feature a monthly newsletter that informs prospective clients about your offerings. A strong social media presence also helps draw attention to your company. You might also consider advertising your exotic car rentals at events like weddings, parades and movie shoots. They’re a great way to generate publicity and increase revenue.
Working With Automakers
A few luxury car rental companies work with automakers to provide exclusive, limited-time offers. For example, Audi on Demand lets customers experience a variety of cars—from the plug-in hybrid A3 to the V10-powered R8—without having to buy one.
If you’re considering launching a high-end rental business, it’s important to secure the proper insurance coverage. Work with a broker or agency that specializes in these types of policies to ensure you have the right coverage for your fleet.
Typically, people rent cars out of necessity—if their vehicle is in the shop or they’re traveling for business. But, what if you could make renting a car an enjoyable, even exciting experience? That’s the idea behind Choice Signature. Its fleet includes exotic vehicles that you can rent by the day, week or month. You can also use them for special events, such as weddings, parades or movies. The company uses telematics to connect vehicles and analyze data. This helps improve safety, efficiency and customer satisfaction.
Getting Started
The luxury car rental market is one of the most lucrative business ideas, but it requires serious capital to get started. Fortunately, there are several ways to finance the purchase of your luxury fleet. Consider getting a loan from the Small Business Administration or working with venture capital firms that specialize in providing funds to new automotive companies.
Once you’ve got your fleet together, start marketing the service in a variety of ways. A website with pictures of your premium cars will attract customers, and social media is another effective tool for generating interest. You can also try offering discounts or coupons to attract customers to your luxury vehicle rental company.
Remember to verify your clients’ identities and only rent your cars to people who will treat them with care. This will help you avoid the expensive repair bills that can come with leasing or renting high-end cars to unreliable customers. Be sure to obtain a business insurance policy that covers these expenses, as well.