Self Hire Car Rental Business

Self Hire Car Rental Business

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Discussion

davidsmithbond

Original Poster:

3 posts

113 months

Saturday 4th October 2014
quotequote all
Hey, new to the forum but have been lingering around for well over half a decade..

Probably been discussed or posted a million times, but here goes another one.

Thinking of starting a Self Car Hire Rental business offering a mix of sports cars from the 90's through to early 10's.

Cars ranging in the 10-25k price bracket (for minters) M3 E46's, e60 M5's, Audi S3's that kind of thing.

I'm a pretty good online marketer, so I've done my research before hand, even posted a few ads here and there and know there's a demand.

My problem is I just wanted to know if there's anything else I should take into consideration.

I know insurance costs will cost a fortunate, but I've done the maths.

Is there anything else I'm missing, or should consider, or is simply a case of buying cars, renting them out, and praying you get them back ... rofl

Thanks..

anonymous-user

53 months

Saturday 4th October 2014
quotequote all
Will you advertise as comeandragmycar.com?

FiF

43,960 posts

250 months

Saturday 4th October 2014
quotequote all
This ^^^

Numerous threads on here where idiots brag about basically taking hire cars and ragging them silly.

Any posters who point out that this really isn't cricket and not very mature behaviour get shouted down by the numerous morons.

Even Top Gear have made regular gags about the fastest car on the road is a hire car.

j80jpw

824 posts

161 months

Saturday 4th October 2014
quotequote all
The thought of hiring an older car doesn't appeal too much to me personally, the appeal would be to drive something which you wouldn't normally be able to afford?

The cost of maintenance on car of this age which will be getting ragged to within one inch of its life every time its hired is also pretty scary!

It may appeal to younger drivers who cant get insurance to hire the sort of cars ludo super car hire of Churchill supercars offer but I wouldn't expect you could get insurance cover for under 25's for a sensible price anyway?






ADJimbo

434 posts

185 months

Saturday 4th October 2014
quotequote all
I own and run a self drive hire company.

You say that insurance costs will be a fortune buy you've done the maths.

Have you actually sourced insurance for this venture as yet? e.g. Gained an agreement in principle from an insurer to cover those cars, on and off risk?

Edited by ADJimbo on Saturday 4th October 15:27

davidsmithbond

Original Poster:

3 posts

113 months

Saturday 4th October 2014
quotequote all
Thanks for all the comments most helpful.

ADJimbo - Thanks for commenting. I've gotten a few quick quotations over the phone, so nothing agreed in principle as you could probably tell.

I'm in the preliminary stages and feeling everything out cost wise, sales wise before I commit to anything. So I'll take on board the fact that insurance costs are likely to be far higher than anticipated, which is what I think your alluding to.

Is there anything else I've missed?
Insurance
Maintenance
Repair
Storage
Purchase cost/ finance cost
Marketing


davidsmithbond

Original Poster:

3 posts

113 months

Saturday 4th October 2014
quotequote all
j80jpw - Thanks, but I believe there's a demand for it. Like I said I'm pretty skilled in online marketing, done a lot of preliminary marketing and I've gotten a fair few responses. Whether that's enough to make a decent return, I guess I won't know till I try.

smokeey

1,541 posts

171 months

Saturday 4th October 2014
quotequote all
Who are you aiming to hire the cars out to? I doubt the cars you've mentioned will attract a desirable customer.

People "into cars" will hire a Something that's not just a fast 5 series or a fast A3. People not into cars won't want to pay the premium over renting a normal 5 series / A3 (and they wouldn't be renting a car just for the pleasure of it anyway, like somebody would with a Caterham etc)

I can see it only appealing to little scrotes, tbh.

ADJimbo

434 posts

185 months

Saturday 4th October 2014
quotequote all
davidsmithbond said:
Thanks for all the comments most helpful.

ADJimbo - Thanks for commenting. I've gotten a few quick quotations over the phone, so nothing agreed in principle as you could probably tell.

I'm in the preliminary stages and feeling everything out cost wise, sales wise before I commit to anything. So I'll take on board the fact that insurance costs are likely to be far higher than anticipated, which is what I think your alluding to.

Is there anything else I've missed?
Insurance
Maintenance
Repair
Storage
Purchase cost/ finance cost
Marketing
I would get an agreement in principle before you go any further. Many insurers are not touching new starts as a rule.

Don't forget you'll need SDH road risk, off hire risk, fleet risk (for when you're delivering, collecting or moving the vehicle for whatever reason) along with conversion and theft by hirer risk.

You'll need one hell of a contingency fund. Say you hire me a BMW for the weekend and I don't return it to you as planned. The Police will not be interested - civil matter - and neither will your insurers until you've exhausted all other routes. You'll end up having to sue the world and his wife.

What when someone hires your vehicle and returns it with a swapped and knackered engine from their own vehicle after doing a weekend engine swap?

Remember, the first rule of hire - make sure you get it back and in one piece.

I'm not trying to pour water on your flames - far from it.

In addition to your list;

Legal costs (agreements, T&C's)
SDH Breakdown Cover
Credit Card / Debit Card terminals
Combined liability
Chase Vehicle(s) if D&C
BVLRA membership

This are just off the top of my head.

PM me of you want any specific advice.

jammy_basturd

29,775 posts

211 months

Saturday 4th October 2014
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davidsmithbond said:
j80jpw - Thanks, but I believe there's a demand for it. Like I said I'm pretty skilled in online marketing, done a lot of preliminary marketing and I've gotten a fair few responses. Whether that's enough to make a decent return, I guess I won't know till I try.
You can know before you try - look at Lean Startup for ways to validate a business idea before ploughing thousands into an unknown.

Nothing to stop you setting up a basic website and advertising your proposed offerings, even with a payment page, without actually taking payment.

People saying they'd hire your cars does not make your business viable. People paying (or thinking they're paying) to hire your cars does.

MitchT

15,788 posts

208 months

Monday 6th October 2014
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My main gripe with these companies are the damage excesses. I'm not someone who would 'rag' a hired 'interesting' car - I'd just like to drive around in one for a day, but the excesses completely put me off. If I get into an accident that's not my fault, but I can't prove it, I end up thousands of out pocket. If thousands of pounds were so inconsequential that I could brush it off as a mere insurance excess I'd be long past the point of affording my own supercar and therefore not interested in hiring one. Offer a 100% damage excess waiver and you'll have at least one honest and careful customer for many years.

Gibson70

464 posts

204 months

Tuesday 21st October 2014
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Where will you get the cars from ???

Do you have car rental experience ???

northwest monkey

6,370 posts

188 months

Wednesday 22nd October 2014
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davidsmithbond said:
a mix of sports cars from the 90's through to early 10's
Are the sort of cars I wouldn't mind trying out on a track day, but I don't see the point in hiring a 2003 E46 M3 or a 1992 Toyota Celica just to drive around in.

Maybe somthing like a "Relive your Youth" trackday would be an idea?

I'm 41, and I'd love the chance to spend a day driving an XR3, XR2, Golf GTI, Escort Cosworth, Toyota Supra etc - the sort of cars I wanted to drive when I was younger but couldn't afford.

You could also move the cars around the country fairly easily to spread your audience a bit wider / give people the option of driving different tracks etc.

mattdaniels

7,353 posts

281 months

Wednesday 22nd October 2014
quotequote all
Another PHer has done something similar - hiring sports cars in the south west of the UK. Do a website search for Drive Southwest. And search on here because he started a very similar thread to this which should have lots of useful tips and advice for you.

As above, I don't think the demand is going to be as high as you think, for the kind of cars you are proposing.