Anyone here hired track cars out as a business?
Discussion
We've been renting Caterhams at track days for a decade now and during that time have seen quite a few one-man-band style car hire businesses come and go. Ultimately it's a business model that just doesn't stack up. There are lots of factors to consider, including (but not limited to):-
1) Logistics. The biggest killer. Sounds like you're relying on the client coming to you to collect the car. Straight away your market is a fraction of the total arrive & drive market, which is dominated by people for whom the logistics are the biggest single reason they don't the car themselves in the first place. Does the client need a tow car? trailer? insurance? breakdown cover? how far do you think is reasonable for them to travel to collect?
2) Road Insurance. Even assuming you're going to be giving the client a tow-car & trailer for the car, you're then into a world of insurance issues which are not easily overcome without throwing a lot of money at it.
3) Risk. Handing your car over to someone and hoping they bring it back in one peice? The issue here is not the total loss scenario as that's quite easy to document/insure. No, instead the issue is when the client does something to the car that isn't immediately picked up (grinding gears, over-revving, bouncing off kerbs etc etc).
4) Cost. If you want the client to do any of the messing around towing/trailering etc, then it needs to be cheap (no profit margin). If you're talking about taking the car to the track yourself you need to charge for the mileage and labour costs (no profit margin for 1-off jobs).
5) Motivation. Are you doing this to try and make money? If so, forget it unless you're throwing serious money at it and will be doing a proper job on a big scale (ala BookaTrack, Track-Club). If it's just to try and subsidise your own track costs again you can forget it - the costs and risks associated with doing this on a small scale make it impossible.
6) Public Liability Insurance. In my experience, any decent insurer is going to want to see that you've got commercial premises and are doing it full-time before they'll consider insuring you. The risk to them of a man-in-his-shed setup is far too great.
Not meant to sound quite as dismissive as it does, just trying to save you a load of hassle/expense.
/2p
Jonny
BaT
1) Logistics. The biggest killer. Sounds like you're relying on the client coming to you to collect the car. Straight away your market is a fraction of the total arrive & drive market, which is dominated by people for whom the logistics are the biggest single reason they don't the car themselves in the first place. Does the client need a tow car? trailer? insurance? breakdown cover? how far do you think is reasonable for them to travel to collect?
2) Road Insurance. Even assuming you're going to be giving the client a tow-car & trailer for the car, you're then into a world of insurance issues which are not easily overcome without throwing a lot of money at it.
3) Risk. Handing your car over to someone and hoping they bring it back in one peice? The issue here is not the total loss scenario as that's quite easy to document/insure. No, instead the issue is when the client does something to the car that isn't immediately picked up (grinding gears, over-revving, bouncing off kerbs etc etc).
4) Cost. If you want the client to do any of the messing around towing/trailering etc, then it needs to be cheap (no profit margin). If you're talking about taking the car to the track yourself you need to charge for the mileage and labour costs (no profit margin for 1-off jobs).
5) Motivation. Are you doing this to try and make money? If so, forget it unless you're throwing serious money at it and will be doing a proper job on a big scale (ala BookaTrack, Track-Club). If it's just to try and subsidise your own track costs again you can forget it - the costs and risks associated with doing this on a small scale make it impossible.
6) Public Liability Insurance. In my experience, any decent insurer is going to want to see that you've got commercial premises and are doing it full-time before they'll consider insuring you. The risk to them of a man-in-his-shed setup is far too great.
Not meant to sound quite as dismissive as it does, just trying to save you a load of hassle/expense.
/2p
Jonny
BaT
Link also noted. The only thing I think I would add to what Jonny has said is that the return versus risk is appalling unless you are geared up to self insure against crash damage etc and have the capability to do your own repairs when the ratio is just really bad. In my opinion it's just not worth doing it unless there is an overiding business reason for offering it as a service.
David
BHP
David
BHP
jonnyleroux said:
Just looked at your link - didn't realise your background so most of what i just typed isn't applicable!
Jonny
BaT
It sort of is because if Mr H is used to dealing with middle aged businessmen taking their mistresses away for the weekend it'll be a bit of a shock if he starts hiring to petrolheaded adrenaline junkies.Jonny
BaT
My advice? Stick to the shaggers Mr H. A lot less hassle.
gtdc said:
It sort of is because if Mr H is used to dealing with middle aged businessmen taking their mistresses away for the weekend it'll be a bit of a shock if he starts hiring to petrolheaded adrenaline junkies.
My advice? Stick to the shaggers Mr H. A lot less hassle.
Probably right there!My advice? Stick to the shaggers Mr H. A lot less hassle.
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