Anyone have experience of starting a classic hire business?
Discussion
As per title really, anyone looked into this or currently operating a classic car hire business?
Coming to a bit of a crossroads with my current business (car sales / salvage) and will be looking to wind it down / sell off stock over the next 6 - 12 months with a view to doing something different or maybe even getting a proper job, have briefly looked into the idea of hiring out classic cars before, didn't get too far with it but thinking of giving it a proper look this time
Mainly need advice on the legalities / insurance side of things, as I think this is where I came unstuck last time, I couldn't actually find an insurance company that would cover this sort of activity, the ones that would required you to already have been operating as a car hire business, which I can't do because no one will cover me to start with, any ideas of companies that would look at me as a first time hire business? any other legalities to consider? public liability is a pretty obvious one, impeccable vehicle maintenance records too I guess in case something happened?
To clarify this would be self drive hire, not wedding chauffer work etc as I believe that requires similar licencing to a taxi?
Anything else I'm missing?
Coming to a bit of a crossroads with my current business (car sales / salvage) and will be looking to wind it down / sell off stock over the next 6 - 12 months with a view to doing something different or maybe even getting a proper job, have briefly looked into the idea of hiring out classic cars before, didn't get too far with it but thinking of giving it a proper look this time
Mainly need advice on the legalities / insurance side of things, as I think this is where I came unstuck last time, I couldn't actually find an insurance company that would cover this sort of activity, the ones that would required you to already have been operating as a car hire business, which I can't do because no one will cover me to start with, any ideas of companies that would look at me as a first time hire business? any other legalities to consider? public liability is a pretty obvious one, impeccable vehicle maintenance records too I guess in case something happened?
To clarify this would be self drive hire, not wedding chauffer work etc as I believe that requires similar licencing to a taxi?
Anything else I'm missing?
TownIdiot said:
It will be very difficult to get insurance for a start up. It's a major barrier to entry and even if you do find cover it will be expensive.
If you have a motor trade policy you could ask if your current insurer does SDH.
How many vehicles are you looking at having on your fleet?
yeah this was what I was coming up against when I looked last time, frustrating to say the least, current trade policy provider doesn't do sdh I know that muchIf you have a motor trade policy you could ask if your current insurer does SDH.
How many vehicles are you looking at having on your fleet?
I reckon probably 5 - 6 cars to begin with see how we go from there
There was a guy on here who started a sports car hire business and I think it went well, I can't remember his name or how to find the thread so that's not much help.
ETA, there are quite a few but I couldn't find the thread I was thinking of, but there's also this thread that might help: https://www.pistonheads.com/gassing/topic.asp?h=0&...
ETA, there are quite a few but I couldn't find the thread I was thinking of, but there's also this thread that might help: https://www.pistonheads.com/gassing/topic.asp?h=0&...
Edited by droopsnoot on Friday 11th April 13:33
Droopsnoot - Thanks for that, could be useful reading although wouldn't be looking at supercars due to costs and the clientele they would attract round here
Panamax - Thanks for the vote of confidence! under no illusion that it won't be anything other than a seasonal business, idea will be to make enough during the summer to see through the winter or take some restoration or other work on during the winter if needs be. I don't think you can say that "every customer will want the same car on the same weekend" sure, there might be more people looking to take a convertible out for a weekend blast than there are looking for say a classic mini for a wedding etc and if it does turn out I keep getting demand for the same car that I cannot fill then that's great, I'll just buy another one, Damage - well you can never plan for a major accident that will take a car off the road for an extended period of time, that's just life, smaller incidents I can deal with quickly in house
Panamax - Thanks for the vote of confidence! under no illusion that it won't be anything other than a seasonal business, idea will be to make enough during the summer to see through the winter or take some restoration or other work on during the winter if needs be. I don't think you can say that "every customer will want the same car on the same weekend" sure, there might be more people looking to take a convertible out for a weekend blast than there are looking for say a classic mini for a wedding etc and if it does turn out I keep getting demand for the same car that I cannot fill then that's great, I'll just buy another one, Damage - well you can never plan for a major accident that will take a car off the road for an extended period of time, that's just life, smaller incidents I can deal with quickly in house
Panamax said:
All your customers will want the same car(s) on the same weekends in summer. The rest of the year you'll have no customers.
When someone damages a car in a peak period it will be unavailable for renting out to anyone else.
If it was easy, everybody would be doing it.
The trick is having the right cars, rather than trying to have a portfolio that appeals across the spectrum.When someone damages a car in a peak period it will be unavailable for renting out to anyone else.
If it was easy, everybody would be doing it.
I would start by looking at the most popular cars rented out by other companies and stick with those: I suspect a handful of types / models probably account for the majority of demand.
Discombobulate said:
The trick is having the right cars, rather than trying to have a portfolio that appeals across the spectrum.
I would start by looking at the most popular cars rented out by other companies and stick with those: I suspect a handful of types / models probably account for the majority of demand.
Now this is where I may possibly going out on a bit of a limb, everyone seems to have the same thing for hire, E types, Mgb's healeys etc, the trick is going to be finding out if that's because most of the guy's in the game are older and that's what they like (and no doubt cars like that are a lovely thing to turn up to your wedding etc in) or if those really are the sorts of cars that are most in demandI would start by looking at the most popular cars rented out by other companies and stick with those: I suspect a handful of types / models probably account for the majority of demand.
Now I'm Not *That* old, I have no desire to hire an e type or healey and I dont know many my age that would (apart from the aforementioned wedding car scenario etc) I like minis, 70's cars, 80's hot hatches, 80's and 90's sporty stuff, elises, cosworths, caterhams etc and Im wondering if there is a market for cars like that
Mr_Ixolite said:
Panamax - Thanks for the vote of confidence! under no illusion that it won't be anything other than a seasonal business, idea will be to make enough during the summer to see through the winter
Yes, sorry about that. We've seen a number of people try this business model and it doesn't seem to survive very well.Mr_Ixolite said:
I don't think you can say that "every customer will want the same car on the same weekend"
I'm not convinced. The "summer season" is perilously short in UK and bank holiday weekends will inevitably be a bottle-neck. Wedding hire similarly tends to cluster around particular days.Mr_Ixolite said:
if it does turn out I keep getting demand for the same car that I cannot fill then that's great, I'll just buy another one.
I suspect you'll find the issue is "utilisation". In other words, having more capital tied up in cars, needing more space to store them and still finding demand is limited to quite a small number of days in the year.Anyway, good luck with the venture. I'm sure PH will watch with interest because the idea of renting a nice car for a few days at reasonable cost is always attractive.
Fancy a move to Melksham? We hired a Stag from these guys a few years ago, but I heard recently they've retired and the business is for sale:
https://www.vintage-classics.co.uk
https://www.vintage-classics.co.uk
Mr_Ixolite said:
Now I'm Not *That* old, I have no desire to hire an e type or healey and I dont know many my age that would (apart from the aforementioned wedding car scenario etc) I like minis, 70's cars, 80's hot hatches, 80's and 90's sporty stuff, elises, cosworths, caterhams etc and Im wondering if there is a market for cars like that
That would be a bit different and as someone else said later cars are fetching the best prices now. Good luck if you do go ahead. 
I might even be a future customer!
I was a joint member with my FIL of the P1 club for a while. If you think a particular car might be especially desirable and in high demand, it might pay you to consider having 2 of the same model. If you can, focus on a target market, research the demand for, let's say a specific age group, and concentrate on supplying models that will appeal to that market.
I'm no longer in a position to consider something that requires so much surplus income, but things like a Lexus IS-F, V10 R8, RS4, Boxster 981, hot hatches such as 205 GTIs, R5 Turbo, an RS2000, late 90s to early 2000s rally reps, I imagine would hold appeal to a fairly broad market, and not cost an extortionate amount to purchase in the great scheme of things. Nostalgia has it's place and people will pay to revisit it.
I'm no longer in a position to consider something that requires so much surplus income, but things like a Lexus IS-F, V10 R8, RS4, Boxster 981, hot hatches such as 205 GTIs, R5 Turbo, an RS2000, late 90s to early 2000s rally reps, I imagine would hold appeal to a fairly broad market, and not cost an extortionate amount to purchase in the great scheme of things. Nostalgia has it's place and people will pay to revisit it.
Heaveho said:
I was a joint member with my FIL of the P1 club for a while. If you think a particular car might be especially desirable and in high demand, it might pay you to consider having 2 of the same model. If you can, focus on a target market, research the demand for, let's say a specific age group, and concentrate on supplying models that will appeal to that market.
I'm no longer in a position to consider something that requires so much surplus income, but things like a Lexus IS-F, V10 R8, RS4, Boxster 981, hot hatches such as 205 GTIs, R5 Turbo, an RS2000, late 90s to early 2000s rally reps, I imagine would hold appeal to a fairly broad market, and not cost an extortionate amount to purchase in the great scheme of things. Nostalgia has it's place and people will pay to revisit it.
Rally reps is a good shout that I hadn't thought of, something fairly universal like a 555 liveried Impreza could be popular and not break the bank, I wonder how much of a heart attack I could give the insurance company if I asked them about covering a self built rear engined metro 6r4 rep as well 😂I'm no longer in a position to consider something that requires so much surplus income, but things like a Lexus IS-F, V10 R8, RS4, Boxster 981, hot hatches such as 205 GTIs, R5 Turbo, an RS2000, late 90s to early 2000s rally reps, I imagine would hold appeal to a fairly broad market, and not cost an extortionate amount to purchase in the great scheme of things. Nostalgia has it's place and people will pay to revisit it.
The classic car club ran for a long time. I looked at the website many times, but never more
https://en.wikipedia.org/wiki/Classic_Car_Club
Looks like its gone now?
I suspect it's a rough business to keep viable.
I think you either need to be near a decent population, or somewhere great for driving.
I can't see me heading into the South East of England on a Friday afternoon to collect a car and return....
https://en.wikipedia.org/wiki/Classic_Car_Club
Looks like its gone now?
I suspect it's a rough business to keep viable.
I think you either need to be near a decent population, or somewhere great for driving.
I can't see me heading into the South East of England on a Friday afternoon to collect a car and return....
OverSteery said:
I think you either need to be near a decent population, or somewhere great for driving.
I think I'm in a pretty decent location in that regard being in the midlands (but far enough out of Birmingham!) and my unit is in a really nice location on a farm, in the sticks but not far from the motorway. Loads of nice lanes even round the local area, enough to satisfy a half day hire anyway, You've got easy access from here to the peaks, cotswolds, north Wales etc plus I'm close enough to Birmingham and east Midlands airport to pick up any members of international crime syndicates who might fancy taking a ropey 80's hot hatch for a blast to Bourton on the waterEdited by Mr_Ixolite on Sunday 13th April 11:32
I've contemplated the ownership of that type of business from time to time. Some of the things that crossed my mind:
- Most hirers aren't going to be especially mechanically sympathetic, so you need to either have a mechanic on hand or be good at spannering yourself. I imagine the number of items that get broken and worn out is quite high.
- Getting the cars up to a decent level of usability and reliability is important. It's no good someone hiring an E-Type only to find that it's not available on the day. I had an E-Type booked from a hire company a few years back and on the day both the intended car and their other E-Type were unavailable due to faults.
- I've no idea what the "occupation" rate is for classic cars - whether they're out on hire for 20 days a year or a hundred or more, but I'd expect external events, the economy and so on to have a disproportionate effect on sales.
- Camper vans might be a more reliable, albeit very seasonal, alternative to cars.
Good luck if you decide to run with it.
- Most hirers aren't going to be especially mechanically sympathetic, so you need to either have a mechanic on hand or be good at spannering yourself. I imagine the number of items that get broken and worn out is quite high.
- Getting the cars up to a decent level of usability and reliability is important. It's no good someone hiring an E-Type only to find that it's not available on the day. I had an E-Type booked from a hire company a few years back and on the day both the intended car and their other E-Type were unavailable due to faults.
- I've no idea what the "occupation" rate is for classic cars - whether they're out on hire for 20 days a year or a hundred or more, but I'd expect external events, the economy and so on to have a disproportionate effect on sales.
- Camper vans might be a more reliable, albeit very seasonal, alternative to cars.
Good luck if you decide to run with it.
9xxNick said:
I've contemplated the ownership of that type of business from time to time. Some of the things that crossed my mind:
- Most hirers aren't going to be especially mechanically sympathetic, so you need to either have a mechanic on hand or be good at spannering yourself. I imagine the number of items that get broken and worn out is quite high.
I'm operating my current salvage business from a fully equipped workshop, including spraybooth so luckily not much I can't tackle myself in house with a quick turnaround - Most hirers aren't going to be especially mechanically sympathetic, so you need to either have a mechanic on hand or be good at spannering yourself. I imagine the number of items that get broken and worn out is quite high.
9xxNick said:
- Getting the cars up to a decent level of usability and reliability is important. It's no good someone hiring an E-Type only to find that it's not available on the day. I had an E-Type booked from a hire company a few years back and on the day both the intended car and their other E-Type were unavailable due to faults.
again, keeping everything in house I can hopefully keep on top of any reliability issues, plus I'll be looking at upgrading anything that needs it with electronic ignitions etc
9xxNick said:
- I've no idea what the "occupation" rate is for classic cars - whether they're out on hire for 20 days a year or a hundred or more, but I'd expect external events, the economy and so on to have a disproportionate effect on sales.
Me neither! will be a learning curve for sure, certainly expecting it to be seasonal at least, I do have other aspects of the business I can lean on if and when required, will probably take on some restoration work again for the quiter months as it would go hand in hand quite nicely
9xxNick said:
- Camper vans might be a more reliable, albeit very seasonal, alternative to cars.
LOTS of competition though, not to say i wouldn't look at possibly adding a couple but cars is a far less saturated market as far as I can see, the ones I have found seem to be in the extremes of the country
If it were me (and I'd love it if it was), I'd be looking at two types of customer:
1. Those looking to hire something "special" that they couldn't realistically afford to own for themselves, for a specific occasion (think big birthday, wedding, anniversary etc). These people might want something a bit exotic and expensive: Jaguar E-Types, Porsche 911s, Ford Mustangs, Ferrari 308s.
2. Those looking to "try before they buy", perhaps new to classic car ownership and wanting to see if it suits them These people might want something much less exotic and more affordable: Morris Minors, MGBs, FIAT 500s, Citroen 2CVs.
Notice both lists of examples are relatively common and enjoy both great specialist support and easy parts availability.
I'd also seriously consider location, specifically if you go for more mundane cars: nobody will want to drive a Morris Minor 50 miles up the M6 to get to some "nice" roods.
Good luck if you go ahead, OP.
1. Those looking to hire something "special" that they couldn't realistically afford to own for themselves, for a specific occasion (think big birthday, wedding, anniversary etc). These people might want something a bit exotic and expensive: Jaguar E-Types, Porsche 911s, Ford Mustangs, Ferrari 308s.
2. Those looking to "try before they buy", perhaps new to classic car ownership and wanting to see if it suits them These people might want something much less exotic and more affordable: Morris Minors, MGBs, FIAT 500s, Citroen 2CVs.
Notice both lists of examples are relatively common and enjoy both great specialist support and easy parts availability.
I'd also seriously consider location, specifically if you go for more mundane cars: nobody will want to drive a Morris Minor 50 miles up the M6 to get to some "nice" roods.
Good luck if you go ahead, OP.
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