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Discussion Starter · #1 ·
Hello all I have had an idea in my head for almost a year now and I want to throw it out there to see what you guys think. My idea is obviously what the title of this thread states; a small exotic car rental. as looking at other threads, a lot of other people have a similar idea, but mine has a catch. I was thinking about getting cheap(er) exotic cars and renting them for a lower price than most other luxury rental places. What I refer to when I say cheaper exotics is higher mileage than other cars.
I am a young aspiring entrepreneur and this is my latest idea! I have always wondered why more people not have tried this idea. From all the people I have asked and talked too, when they think about an exotic car, they don't care about mileage or anything, they just want the ultimate driving experience! Just from my knowledge too, I understand that a Lamborghini if taken care of, can last a very long time. I am starting to blab now, but I thought I would throw out a rough sketch of my idea. I know there are many successful and educated people on the forum, so let me know if you have any feedback!!!!

Thanks so much!
 

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I don't want to shoot you down, but I'm not sure that is really enough to provide a seriously lower price point than existing companies. There are a lot of costs associated with running an exotic rental company. There's a thread by 4wheels talking about this in some detail if you're interested.
 

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Discussion Starter · #3 ·
Yes I understand that. I actually did read through 4wheels thread and as much as things are relatable between our ideas, I wasn't looking to start out big like that. I was thinking maybe two exotics to start with. I want it to be quick and easy for customers to enjoy the car they rent. If/when my business grows, I would definitely be open for more cars. I just have the idea of finding a cheaper priced exotic like a Gallardo, and renting it out to people for a little bit of a cheaper price then what other companies are charging for their cars. My whole idea is quick and simple. Find a nice garage with an office and keep the cars there. The customer can come in, sit in the office to fill out needed paperwork, then walk five feet to the car they picked and drive off. Obviously that is a figure of speech, but hopefully you can see where I am coming from!
 

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Not saying this is the case, but with higher mileage cars, also expect higher maintenance costs. You might cancel out the savings. Let me break down your "business model", and genearlize it to "easier said than done".

I want it to be quick and easy for customers to enjoy the car they rent. - And what makes it long and unenjoyable at another place? They all strive for this. This is definitely something that will "hit" you when you start and you realize "I need to keep the same processes as my competitor". There's a reason why ALL your 'competitors' do it a certain way.

I just have the idea of finding a cheaper priced exotic like a Gallardo, and renting it out to people for a little bit of a cheaper price then what other companies are charging for their cars. - So a Gallardo is a cheaper priced exotic? Find me a rental agency with significantly more expensive exotics. I think the CHEAPER exotics you may want to consider with this business model are Masserati's or Aston Martins.

My whole idea is quick and simple. - You throw out this phrase as if by saying it, it will happen. In both your scenerio and your competitors, a customer will need to book an appointment, either come pick up the car, or have it dropped off, and drive it. Afterwards they need to fill it up with gas and return it. A full inspection is done, a deposit is returned and everyone had an enjoyable time. What exact aspect is it going to be quick and simple where it isn't already at most competitors? If you think you want to dodge the inspection or not take a deposit - that is more risk on your end.

Find a nice garage with an office and keep the cars there. - Nice = cost. Most rental agencies already just tuck themselves away in a small area. Nothing flashy. This is counter productive to your business model and what other competitors are commonly doing.

The customer can come in, sit in the office to fill out needed paperwork, then walk five feet to the car they picked and drive off. - So with this concept, you're thinking of storing the vehicle INSIDE the office, or near the entrance? If near the entrance, what about the security and safety of the vehicle overnight? This is why many of those rental places keep it locked up in a garage that could be across the lot somewhere.

Obviously that is a figure of speech, but hopefully you can see where I am coming from! - I definitely see where you're coming from. You have a goal, plan and dream to implement a concept you think is better than the competitors. When you get down to it... it is not. The competitors are doing specific things for a reason.
 

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Not saying this is the case, but with higher mileage cars, also expect higher maintenance costs. You might cancel out the savings. Let me break down your "business model", and genearlize it to "easier said than done".

I want it to be quick and easy for customers to enjoy the car they rent. - And what makes it long and unenjoyable at another place? They all strive for this. This is definitely something that will "hit" you when you start and you realize "I need to keep the same processes as my competitor". There's a reason why ALL your 'competitors' do it a certain way.

I just have the idea of finding a cheaper priced exotic like a Gallardo, and renting it out to people for a little bit of a cheaper price then what other companies are charging for their cars. - So a Gallardo is a cheaper priced exotic? Find me a rental agency with significantly more expensive exotics. I think the CHEAPER exotics you may want to consider with this business model are Masserati's or Aston Martins.

My whole idea is quick and simple. - You throw out this phrase as if by saying it, it will happen. In both your scenerio and your competitors, a customer will need to book an appointment, either come pick up the car, or have it dropped off, and drive it. Afterwards they need to fill it up with gas and return it. A full inspection is done, a deposit is returned and everyone had an enjoyable time. What exact aspect is it going to be quick and simple where it isn't already at most competitors? If you think you want to dodge the inspection or not take a deposit - that is more risk on your end.

Find a nice garage with an office and keep the cars there. - Nice = cost. Most rental agencies already just tuck themselves away in a small area. Nothing flashy. This is counter productive to your business model and what other competitors are commonly doing.

The customer can come in, sit in the office to fill out needed paperwork, then walk five feet to the car they picked and drive off. - So with this concept, you're thinking of storing the vehicle INSIDE the office, or near the entrance? If near the entrance, what about the security and safety of the vehicle overnight? This is why many of those rental places keep it locked up in a garage that could be across the lot somewhere.

Obviously that is a figure of speech, but hopefully you can see where I am coming from! - I definitely see where you're coming from. You have a goal, plan and dream to implement a concept you think is better than the competitors. When you get down to it... it is not. The competitors are doing specific things for a reason.
Sach, I just gotta say, nice job. That was a very thoughtful post that I'm sure will be appreciated by the OP..
 

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Discussion Starter · #6 · (Edited)
Sachit64 you have very good points. I agree with some of the things you have said, as they do make sense. you are right about competitors doing it a certain way for a reason. But I think to myself, "Why not try a different method of sales? It is always worth a try. No pain no gain." I want to sort of re-invent the way the business can strive without the big flashing lights and such. Now let me touch base on the bolded quotes you have written out on your post starting from number one.
#1: The "quick and easy for customers" will apply just like they do to other rental companies. That is the main focus for most if not all rental places. I understand that, but I too, will have that as a main focus for business. I am not saying I will be any easier or faster then others; but will definitely try!
#2: I do not mean a gallardo is a "cheaper" exotic by any means. What I meant is cheaper to maintain then lets say a murcielago. I have thought about getting a masserati or aston as a second car too, because they are cheaper to maintain then any Ferrari or Lamborghini. But I WANT a lamborghini in my starting line-up.
#3: Yes you are correct on the inspection and such. If something were to come out of my idea, and I did become that much closer to achieving this idea, then I will figure out things that have to do with inspections, deposits, etc. then. Right now this is just an idea I had, nothing to deep yet.
#4: Again, I agree with you on the garage quote. It doesn't matter really to me what it looks like. That isn't at all my main focus of this idea. As long as it LOOKS nice to any customers who might come in, and of course my cars are secured and not out collecting dust. That is all I am concerned about.
#5: This sort of ties with #4, but when I stated that in my last post, I meant it would be easy and quick. Yes that ties with what I have already discussed in this post so I won't go into detail about that part. Depending on what my garage looks like and the location, I vision something where I have my office and the cars in a back lot in a obviously locked garage. I want somewhere that has a nice lot so I can detail the cars right there after use and back them back into the garage.

Thanks for your input Sachit64. I like upfront people like you.
 

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Discussion Starter · #7 ·
One more thing I forgot to add to #2.

The cars may have a little higher mileage, but I don't mean high mileage as in 100,000 miles or something. For example; I know a gallardo can be a very dependable car if taken care of. Prior to getting a gallardo with lets say, 40,000 miles on it, I would have it checked out thoroughly and if purchased, serviced like new before driven by any customers. As long as the car is maintained and serviced on time, I don't see there being any issues with that. I don't write this stating a lambo is a cheaper exotic, I write this stating any exotic car with just a little higher mileage then a exotic with lower mileage is cheaper to buy/lease etc. The value of the cars we are talking about drop little by little after every mile driven it seems. Just wanted to clear that up.
 

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Hey Guys,

Lowen your idea is interesting but there are a lot of factors that you must take into consideration like Sachit said. I have a friend that has a luxury/sport cars rental agency. Like Sachit said there is a reason why your competitors do things a certain way. You have to think of a way to appeal to new clients and attract your competitors clients while keeping cost at a minimum. EX: being courteous and respectful, promotions etc... A forum member here has 92,000ml on his gallardo and is still going strong, so yes these cars are tough but can be costly when problems occur. I would suggest you start learning how to DIY to keep costs low and learn from other forum members. My friend leases the cars and returns them when the lease is over. That way he dosent have to worry about putting 200k to by the cars and he dosent have to worry about selling them. I would suggest that you make a S.W.O.T analysis. They are simple to make and really give you a broader understanding of what your facing. I think you get the picture, anyways there are many great people on this forum that would be willing to help and if you need more advice dont hesitate to ask.

Thank you and good luck!

Kind Regards,
MRajeh
 

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Discussion Starter · #9 ·
Thanks Mrajeh I appreciate your input greatly! It is definitely something I need to learn more about if I want to proceed into this plan. I said in the earlier post that this is just an idea I had in my head and had not yet thought about the physical aspect of the business plan/model. If I do continue this idea, I will definitely be leasing the cars! Is your friend doing alright with his business? Any negatives at the moment that are hurting him or his business? I am curious to learn more from somebody who is actually in the rental criteria!

Thanks so much
 

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Hey Guys,

Lowen, Im in Switzerland, and my friend is in Germany. He is doing Great! The best thing is that he now has great discounts and great lease quotes when leasing a new car. Also a great service he provides is delivery and pick up in all of Europe. He always has the newest car available. You can rent from 3days all the way to a few months and obviously the longer the better for him (more income) and the client (longer period means greater discount).

Thank you

Kind Regards,
MRajeh
 

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Discussion Starter · #11 ·
Mrajeh that sounds awesome! That is exactly what I envision doing one day. I am into business greatly and exotic cars have excited me since I was a little kid, so I figured "why not put two of my passions into a business!?" Glad to hear your friend is doing well with his business! I definitely need to sit down with someone in that field of work and learn hands on. I really want to persue my dream and not wait around till the end of time to make something happen with my idea. Thanks
 

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#2: I do not mean a gallardo is a "cheaper" exotic by any means. What I meant is cheaper to maintain then lets say a murcielago. I have thought about getting a masserati or aston as a second car too, because they are cheaper to maintain then any Ferrari or Lamborghini. But I WANT a lamborghini in my starting line-up.
The cars may have a little higher mileage, but I don't mean high mileage as in 100,000 miles or something ... lets say, 40,000 miles on it, I would have it checked out thoroughly and if purchased, serviced like new before driven by any customers.
Just this one thing really stuck out at me... Maserati's with 40K miles or more...

If you do a search online for these cars you'll find you can buy a Maserati with 40K miles on it for less than $30K. Why is the depreciation this bad on these cars you ask? Because they apparently start falling to pieces at 40K miles! You might get a great deal starting out, but upkeep will eat you alive! There is a reason why rental companies buy their exotics with low mileage. Maybe not all of them are as horribly unreliable as Maserati's, but if you don't do your research, little details like this will ruin you.

Maserati's on eBay
 

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Hey Guys,

Lowen, I would advise you to take a part time job at a rental agency and see how its done. It experience and you can figure out if you would really like to pursue this goal. Anyways best of lucK!

Thank you

Kind Regards,
MRajeh
 

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Discussion Starter · #15 ·
Sorry about that :/ thanks so much! hopefully you find a sweet one to drive and enjoy!
 

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Don't know if you're still looking into this, but i think you're on the right track with going smaller and cheaper than the competition. I started a rental company out of my condo with a 360 when I was in college, and it actually did pretty well until a client crashed it. His insurance paid me more than I paid for the car, so it worked out, but it was gut wrenching. I was finishing school and joining the Navy to be a pilot, so I didn't pursue another car, but I would have.

That brings me to now. I am stationed in Hawaii, and I think Honolulu would benefit from a quality lower cost exotic rental operation. I don't think fancy websites and showrooms are needed. 9 times out of 10 when I rented my car I delivered it to the client after they found my ad on Craigslist. That's exactly what I plan on doing in Hawaii. Sure, owning a fleet and a fancy showroom would be awesome, but that's a ways down the road. Just my $.02. Hope you figure something out, I think the business as a whole has a lot of potential.

The biggest hurdle for me is figuring out how to rent to the Japanese tourists. With typical clients, I confirm their insurance and their insurance is what covers the car while they're driving. With the Japanese I need to find a way to sell a them a short term insurance contract in the US. The largest rental companies have big insurance policies and could do that, but most smaller operations do it how I did with a personal policy for when I drive it, then clients policy for when they rent it. Just thinking out loud, thanks for listening.
 

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Discussion Starter · #17 ·
Dewilmoth,

Funny, it seems we have the same idea and concept! Yes I am still actively looking to get moving with my idea but its hard to find the right person/people to help. I think having a business partner would be great with my idea, but its just finding the right person that is the troubling part. Right now i'm just working my butt off to save some money to start it up. You seem like you have a clear idea about what you are wanting to do, and I am very interested to hear more from you. The Japanese tourists one seems a bit tricky, but recently moving out of San Francisco, I can say the same idea would be great there too. There are lots of tourists of every ethnicity wanting to get around town. What was your rates when you rented out the 360 when you were in college? You can private message me if you want, again I am very interested in hearing your story! Thanks for your two cents!
 

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I rented it for $999 a day in 2007. At the time it was about $500 less than everybody else in So Cal. I won't do a ferrari again though. My friend did Gallardos, and he rented the wheels off of them. Plus they seem to hold up better, especially the interior. I'm leaning towards an 08 Superleggera this time around, but am also considering a Spyder. The convertibles rent better, but I'm worried about somebody leaving the top down in a Hawaiian afternoon rain shower and the car being toast. If I were in CA I would definitely buy a Spyder. I'm still very early in deciding whether I want to do this again, but I thought I should post in your thread. Take care.
 

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Discussion Starter · #19 ·
Seems like a great idea. If you do decide to do it again post it up on here! I would love to hear what your plans are. Thanks so much for putting your idea and experience up.
 

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As someone starting an exotic car rental company myself, to try and start with lower prices will come at great disadvantage considering the amount of over head you need to keep the business florishing. This may be an avenue you want to take to trade shows or other events, and let people drive the cars in a controlled environment, many people out there would love to drive an exotic car but the cost, insurance issues,etc. prevent them. My company - mph club
 
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