If you like exotic cars, such as Brabus, or even have one, you might have thought about starting an exotic car business. Wouldn’t that be dreamy? However, there are many risks involved, and starting such a business is not always easy. Read on to learn more about whether you should start an exotic car rental business and what to consider.
How much can you earn?
It is an important question for many. Of course, it largely depends on the cars.
Let’s take a Ferrari. Some say that you could rent out a new Ferrari for $2,500 to $3,500 a day. A used Ferrari would be worth much less: for example, on Turo, Ferrari rentals for a day in California range from $225 to $599. Most companies offer prices from $1,000 to $2,000 per day, depending on the model.
Want to rent out Brabus cars? Check out our article for how much you can rent a Brabus and how much does it cost to maintain a Brabus. That could give you an idea of how much you could earn too. In short, Brabus cars are rented out at least for $500 a day. And this price usually applies if they are rented out for a longer time, such as a week. If it is just for just a day, they might cost $900 per day.
Ultimately, the profitability depends on the demand and supply in your area. Popular areas might already have several exotic car rental companies. Other areas might have too few prospective clients. To find out whether an exotic car rental business would be profitable, you must have a solid plan and research thoroughly.
What do you need to start an exotic car rental business?
To put it briefly, you only need four things: cars, insurance, marketing, and legal protection. And a good plan. Be sure to research the market, your prospective clients, and your competition. Read more tips about starting a rental business here.
Let’s start with cars. You don’t need a huge fleet. 3-5 vehicles would be great to offer your clients some variety. The problem is that before, you could buy cars much easier with financing. Banks would assume you are shopping around. Now, if they know that you are planning to rent them out, there is a much smaller chance they will finance it.
However, you must not own cars. You could find people who have exotic cars and want to rent them out and partner with them. We recommend not letting the vehicles get too old. The maintenance of old exotic cars is super high, and you are not likely to make much money with them. It’s better to sell them and get newer ones.
Another super important thing to consider is insurance. It can be hard to get insurance for your exotic cars, or it can be highly expensive. If you do find it, you will likely pay at least $1,000 a month. At least another $1,000 for car maintenance. Regarding maintenance, rental cars will experience enormous wear and tear, and exotic vehicles depreciate really quickly. Also, the maintenance becomes double for a 4-year-old exotic vehicle compared to a new one. Keep that in mind.
Finally, have legal protection for your company. Also, create good rental agreements. To be safe, verify your customers before renting out the car to them. Unfortunately, some people might try to steal your exotic car, so be cautious and prepared.
Tips for successful exotic car business
One of the best advertisements in this kind of business is repeat customers and word of mouth. So, how do you ensure that customers love your services, come back for more, and tell others about them?
Create a good website. Nowadays, when people spend so much time on the internet and love doing everything from the comfort of their homes, a good website is a must. Invest in it: it does not cost too much. We also recommend having a car reservation system on your website. Check out this great car reservation plugin for WordPress sites.
Give customers something extra. Try to make sure the car looks even better in real life than it does in the photo. Also, consider their requests. If they want the car at a certain place and time with flowers, do that. It will make them want to come back.
In conclusion, it is not easy to start an exotic car rental business. You need to research the market and have a good business plan. You also need finances for your cars, insurance, maintenance, etc. The supply and competition are quite high. But if you make it, you can combine work and play in an enjoyable business and earn decent money!
Just be prepared for some possible hardships. If you want some extra money on the side, why don’t you partner with a company? Contact us if you wish to rent out your car! Our motto is allow partners make money so we will not rip you off in commissions.