Hire out sportscars, profit handsomely?
Discussion
This is probably the millionth thread on the subject but here goes...
I'm hiring a C63 AMG this weekend (always wanted to drive one, that exhaust note
)
The chap owns a few cars, i'm guessing 6/7 in total. Seems to be run from a unit on outskirts of Manchester.
Not mega expensive stuff, but desirable cars. They have a C63 AMG, M4 among a few others.
So, my question is this.
It seems possible to lease / PCP an M4 for £600-700 per month. They can be hired out for £250 a day.
I understand there will be costs like unit rent, insurance, valeting etc.
But as a petrolhead, i can't imagine many things more fun than having a unit full of performance cars. Is there some glaringly obvious reason this could not work with say 5-10 cars on leases...
I know insurance will be ridiculous, and also many leases will have a clause about not hiring out the cars - but would PCP or other specialist ballon type finance work?
Is there anyone on PH in this industry?
(If i have missed any good threads on starting a hire company can anyone give me a steer?)
I'm hiring a C63 AMG this weekend (always wanted to drive one, that exhaust note
)The chap owns a few cars, i'm guessing 6/7 in total. Seems to be run from a unit on outskirts of Manchester.
Not mega expensive stuff, but desirable cars. They have a C63 AMG, M4 among a few others.
So, my question is this.
It seems possible to lease / PCP an M4 for £600-700 per month. They can be hired out for £250 a day.
I understand there will be costs like unit rent, insurance, valeting etc.
But as a petrolhead, i can't imagine many things more fun than having a unit full of performance cars. Is there some glaringly obvious reason this could not work with say 5-10 cars on leases...
I know insurance will be ridiculous, and also many leases will have a clause about not hiring out the cars - but would PCP or other specialist ballon type finance work?
Is there anyone on PH in this industry?
(If i have missed any good threads on starting a hire company can anyone give me a steer?)
Ok so still seriously considering this... Seems like a few hire companies started off with just the one car and built from there.
As for the first car, i'm thinking:
Porsche Boxster - £15k
Porsche 997 - £25k
Aston V8V - £35k
Audi R8 - £40k+
Jag F-Type - £50k+
BMW M4 - £50k+
I imagine the 997 / Boxster would offer best value for money / return on capital... V8V close behind as costs a bit more - but more special imo.
As for the first car, i'm thinking:
Porsche Boxster - £15k
Porsche 997 - £25k
Aston V8V - £35k
Audi R8 - £40k+
Jag F-Type - £50k+
BMW M4 - £50k+
I imagine the 997 / Boxster would offer best value for money / return on capital... V8V close behind as costs a bit more - but more special imo.
trowelhead said:
As for the first car, i'm thinking:
Porsche Boxster - £15k
Porsche 997 - £25k
Aston V8V - £35k
Audi R8 - £40k+
Jag F-Type - £50k+
BMW M4 - £50k+
Do many people actively seek out hire of BMW M4s and Audi R8s, and are willing to pay £250 a day?Porsche Boxster - £15k
Porsche 997 - £25k
Aston V8V - £35k
Audi R8 - £40k+
Jag F-Type - £50k+
BMW M4 - £50k+
I'd agree personally on the Aston, especially around the release schedule of a Bond film.
Alternatively, what about a Tesla? Two of my friends have got a weekend hire lined up in the next few weeks. (New, fast, shiny and no driver petrol costs all are selling points)
Definitely a few hire car companies on the PH forums. I'm in the finance industry and have helped a few companies with finance for cars that they hire out. The main lenders don't like it but there are a couple of specialists who are pretty good. Expect hire purchase only without balloon payments - but terms of up to 60 months generally available.
Insurance is of course the big issue - can be very expensive if you need to cover any party to drive (not my field).
Insurance is of course the big issue - can be very expensive if you need to cover any party to drive (not my field).
Hi trowelhead
I started the thread linked above just over 5 years ago as I was embarking on starting out myself - hope you found it a good read!
It's nowhere near as simple as it seems to start something like this, especially with the insurance. It has been, and still is, my biggest headache! And probably always will be. Starting out it's likely you'll have to have at least 3, if not more cars to insure in one go. There are of course many other things you need to have in place to do this securely and properly, and it's taken me some time to evolve into what we are now, and will take longer to get where i want to be.
Finance is available for hire cars, but comes at a premium normally. Despite what these cars are, it's not always plain sailing getting them hired either. Not trying to put you off, just trying to add some of my experiences in!
I started the thread linked above just over 5 years ago as I was embarking on starting out myself - hope you found it a good read!
It's nowhere near as simple as it seems to start something like this, especially with the insurance. It has been, and still is, my biggest headache! And probably always will be. Starting out it's likely you'll have to have at least 3, if not more cars to insure in one go. There are of course many other things you need to have in place to do this securely and properly, and it's taken me some time to evolve into what we are now, and will take longer to get where i want to be.
Finance is available for hire cars, but comes at a premium normally. Despite what these cars are, it's not always plain sailing getting them hired either. Not trying to put you off, just trying to add some of my experiences in!
rfoster said:
Definitely a few hire car companies on the PH forums. I'm in the finance industry and have helped a few companies with finance for cars that they hire out. The main lenders don't like it but there are a couple of specialists who are pretty good. Expect hire purchase only without balloon payments - but terms of up to 60 months generally available.
Insurance is of course the big issue - can be very expensive if you need to cover any party to drive (not my field).
Thanks for the input - interesting to hear this. Insurance is of course the big issue - can be very expensive if you need to cover any party to drive (not my field).
MrH said:
Hi trowelhead
I started the thread linked above just over 5 years ago as I was embarking on starting out myself - hope you found it a good read!
It's nowhere near as simple as it seems to start something like this, especially with the insurance. It has been, and still is, my biggest headache! And probably always will be. Starting out it's likely you'll have to have at least 3, if not more cars to insure in one go. There are of course many other things you need to have in place to do this securely and properly, and it's taken me some time to evolve into what we are now, and will take longer to get where i want to be.
Finance is available for hire cars, but comes at a premium normally. Despite what these cars are, it's not always plain sailing getting them hired either. Not trying to put you off, just trying to add some of my experiences in!
Yes it is a great read I started the thread linked above just over 5 years ago as I was embarking on starting out myself - hope you found it a good read!
It's nowhere near as simple as it seems to start something like this, especially with the insurance. It has been, and still is, my biggest headache! And probably always will be. Starting out it's likely you'll have to have at least 3, if not more cars to insure in one go. There are of course many other things you need to have in place to do this securely and properly, and it's taken me some time to evolve into what we are now, and will take longer to get where i want to be.
Finance is available for hire cars, but comes at a premium normally. Despite what these cars are, it's not always plain sailing getting them hired either. Not trying to put you off, just trying to add some of my experiences in!
Thanks for your advice, and congrats on your success to date!
Interesting to see you still have the Boxster, is it still proving popular?
The hire company i have used this weekend is still in it's infancy. The owner has given me some quite candid feedback about how he is running his business, the types of clients he has, the issues that come up etc etc.
Would you mind if i sent you a couple of questions via email?
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