Affordable Performance Car Hire
Discussion
Hi all,
I posted a topic a few years back (which I can't find) in which I basically floated the idea of purchasing some 4-5 year old 911s/Boxsters and renting them out as 'affordable' performance hire. The cheap purchase price can be passed on to the customer in their rental so instead of paying £800 per day with a major hire company they would pay £200 (plucked out of the air) with me.
In the current economic climate would this idea be dead before it gets off the ground or would it have appeal as people want to save a little yet (according to recent research) retain their highlife.
I did write a business case/research but can't put my hand on any of it so any pointers would be great. what should I be thinking/worrying most about?
liability insurance?
Finance?
blah?
blah?
Thanks guys
D1
I posted a topic a few years back (which I can't find) in which I basically floated the idea of purchasing some 4-5 year old 911s/Boxsters and renting them out as 'affordable' performance hire. The cheap purchase price can be passed on to the customer in their rental so instead of paying £800 per day with a major hire company they would pay £200 (plucked out of the air) with me.
In the current economic climate would this idea be dead before it gets off the ground or would it have appeal as people want to save a little yet (according to recent research) retain their highlife.
I did write a business case/research but can't put my hand on any of it so any pointers would be great. what should I be thinking/worrying most about?
liability insurance?
Finance?
blah?
blah?
Thanks guys
D1
You're brave
You could try to make a cashflow, being HONEST with the figures, and see how that goes. (I can send you a template if you PM me, although there are plenty around) You will soon see whether its viable or not. Obviously running even one car is an expensive business, so you would need a watertight plan to see some profit when running aging supercars....
I'm sure there would be a market for it, I for one could see myself as being a customer. You could maybe have a look at giving good rates for week long hire, with european insurance, there must be something to explore along that route?
You could try to make a cashflow, being HONEST with the figures, and see how that goes. (I can send you a template if you PM me, although there are plenty around) You will soon see whether its viable or not. Obviously running even one car is an expensive business, so you would need a watertight plan to see some profit when running aging supercars....
I'm sure there would be a market for it, I for one could see myself as being a customer. You could maybe have a look at giving good rates for week long hire, with european insurance, there must be something to explore along that route?
I would be interested in this (or at least something similar), your big problem I would imagine will be with the wider spread of people being able to afford to rent your cars the kind of person who does not respect another mans property will be attracted to hire them and your running costs will increase exponetially compared to someone charging double your rates.
The main thing that has put me off hiring sports cars in the past has been location of hire centres. I live near some of the best and most traffic free roads in the UK but hate the idea of travelling 200 miles + to pick up a fun car and then have to travel to get back to the great roads I know/love and could benchmark the difference between my car and the one I hire.
The main thing that has put me off hiring sports cars in the past has been location of hire centres. I live near some of the best and most traffic free roads in the UK but hate the idea of travelling 200 miles + to pick up a fun car and then have to travel to get back to the great roads I know/love and could benchmark the difference between my car and the one I hire.
"drivers" would hate it, but buy switchtronic/SMG cars. Users cannot mis-shift or overrev them (well, 99.9% of the time anyway).
Your running costs would be a lot lower due to this I Think.
Personally, I'd also disable the Traction control defeat buttons, so you know they aren't doing burnouts/drag races on your dolla'
Should both help your reliability massively
Your running costs would be a lot lower due to this I Think.
Personally, I'd also disable the Traction control defeat buttons, so you know they aren't doing burnouts/drag races on your dolla'
Should both help your reliability massively
Thanks for the input guys.
I'll do some short business case/financials over the next few days. If things looks promising I'll then complete a full set and see what curve balls that throws in!
I'm keen to avoid the massive business start up costs, this is where I got the older car idea, prob start with just one popular coloured 4/5 year boxster and see what the take up is like. If good then there is always the option to get another. If things are bad I can simply flog the car without getting into trouble with the banks.
Or....
Lease new boxster off porsche and sub hire it, new car, desirable to public with less to go wrong.....
I'll do some short business case/financials over the next few days. If things looks promising I'll then complete a full set and see what curve balls that throws in!
I'm keen to avoid the massive business start up costs, this is where I got the older car idea, prob start with just one popular coloured 4/5 year boxster and see what the take up is like. If good then there is always the option to get another. If things are bad I can simply flog the car without getting into trouble with the banks.
Or....
Lease new boxster off porsche and sub hire it, new car, desirable to public with less to go wrong.....
Starting out with one would be a good idea, its easier to do the maths as well!
Choosing the car(s) would be very important for the first couple at least, ones with lower running costs, but high desirability - i think the porsche is a good start (better than an evo or something - high costs, not as desirable etc)
If you only had one car to begin with, you could run it fairly casually to start with, sort of as a hobby and see how it picks up
Choosing the car(s) would be very important for the first couple at least, ones with lower running costs, but high desirability - i think the porsche is a good start (better than an evo or something - high costs, not as desirable etc)
If you only had one car to begin with, you could run it fairly casually to start with, sort of as a hobby and see how it picks up
I want a 7 type car and was considering casual hire as a potential way to part fund. A few business cards, word of mouth and some non-advertising posting (ahem) on here could give 5 or 6 rentals a year which would be ok.
I think the used sports car idea could work. It would be more affordable and i guess have a bigger market or, are people looking to live the dream for a weekend and does an 'old' car fit that?
I think the used sports car idea could work. It would be more affordable and i guess have a bigger market or, are people looking to live the dream for a weekend and does an 'old' car fit that?
disco1 said:
Or....
Lease new boxster off porsche and sub hire it, new car, desirable to public with less to go wrong.....
I'm liking this idea. Would sub-hiring not be against their finance rules or would they not give a damn as long as you pay them their £££??Lease new boxster off porsche and sub hire it, new car, desirable to public with less to go wrong.....
What % of the month would you expect to be up-time?? What are the costs involved per day of hire?? What are the time implications (for yourself) for a hire?? etc??
Would be interesting to know how much you would have to charge to cover this side of things.
Surely though it can't be this easy...???
Oh, and what happens when the Boxster breaks down and the client is demanding another comparible car to what he paid for 6 months ago for his daughters wedding NOW??
Something to think of...
Cheers
The Moose
I think the idea would be a roaring success.
Put me down for two!!!
My question would be are the running costs of a 5 year old car any cheaper than a new one? How would these cars put up with a sucession of ham-fisted drivers all determined to thrash the car to within an inch of its life?
Put me down for two!!!
My question would be are the running costs of a 5 year old car any cheaper than a new one? How would these cars put up with a sucession of ham-fisted drivers all determined to thrash the car to within an inch of its life?
You should probably consider the potential major service costs as well, given you are planning on using older cars. Not being from the UK, I don't know too much about the market for this sort of thing there, but I have seen a couple of ads in magazines for companies hiring out similar cars. There is a company not too far from where I live that rents out 944s, 993/996s and is a Porsche workshop as well. Good luck with your idea, and hopefully you manage to attract a client base of proper enthusiasts who will respect the car(s) properly.
gamefreaks said:
I think the idea would be a roaring success.
How would these cars put up with a sucession of ham-fisted drivers all determined to thrash the car to within an inch of its life?
I had a little think about this, you could (as someone mentioned previosuly) buy SMG/tiptronic cars that can't be spinned up and set speed/rev limiters. I wouldn't be robbing anyone of their 'experience' and would be safeguarding my investments.How would these cars put up with a sucession of ham-fisted drivers all determined to thrash the car to within an inch of its life?
Question guys:
Q: What cars/colours combo do you think would be well?
entry level 2.7 boxsters in silver/grey or black?
Lotus Elises in blues/red/yellows?
Another factor to consider, you are going to need some sort of garage to keep said cars in when not on hire, and a bloke there to do spannering.
So you will need some sort of hoist.
Long run its going to be much cheaper to do your own fluids and brake changes as well as basic repairs (new exhausts, tweaking linkages, tracking etc).
Also regular fluid changes will certainly help with the cars longevity.
Would have thought that for cars of around the 5 year old mark you should be looking at BMW M3's and Audi RS4's too perhaps?
So you will need some sort of hoist.
Long run its going to be much cheaper to do your own fluids and brake changes as well as basic repairs (new exhausts, tweaking linkages, tracking etc).
Also regular fluid changes will certainly help with the cars longevity.
Would have thought that for cars of around the 5 year old mark you should be looking at BMW M3's and Audi RS4's too perhaps?
PetrolTed said:
£200 a hire...
Say a punter can do 200+ miles in that time.
< £1 a mile to run an old performance car...
Maybe, maybe not.
Good point Ted, I'd need to factor all costs in to my business plan and work out the cost to me and then add some $ for profits/maintainance. This in turn would drive my rental costs & limits imposed. Unless the total hire cost is affordable to joe blogs it blows out my business case of 'performance cars for everyone', we'll see....Say a punter can do 200+ miles in that time.
< £1 a mile to run an old performance car...
Maybe, maybe not.XJSJohn said:
Would have thought that for cars of around the 5 year old mark you should be looking at BMW M3's and Audi RS4's too perhaps?
These cars did cross my mind but thought better of it, they're simply not desireable to everyone. I need cars for people stepping off the plane on holiday, grooms arrival cars, mountain road fun. Another thing is costs, the E46 M3 is eye watering to run at the best of times. I'm going to stick with my idea of small/fun (cheaper to buy/run and rent out)roadsters. Thanks for ideas input though
Interesting thread. I've been toying with a similar idea for a little while, but with a different class of car. Fast hatches - Golfs, Focus STs, etc, TTs, up to maybe 350Zs or Boxsters and the like. Sort of budget performance cars (wouldn't be marketed like that though!).
Not sure I'd want to go down the 2nd hand route as it seems riskier in terms of breakdowns/warranties and that sort of stuff, although it may be the better/only option for starting up. (Of course I understand your proposal is based around 2nd hand cars).
Garaging and securing the cars is another consideration. Lots of high value metal in one place would leave me a little nervous. A unit in a secured compound would be my preference. Delivery and pickup of the vehicles would mean you don't have to worry about the appearence of the place too.
Maybe you'd want to track the cars while on hire? Maybe not necessary depending on the type of customers you'd be amiing for. Something to think about anyway, insurers would like it I'm sure...
Like I say, interesting Lots to think about!
Not sure I'd want to go down the 2nd hand route as it seems riskier in terms of breakdowns/warranties and that sort of stuff, although it may be the better/only option for starting up. (Of course I understand your proposal is based around 2nd hand cars).
Garaging and securing the cars is another consideration. Lots of high value metal in one place would leave me a little nervous. A unit in a secured compound would be my preference. Delivery and pickup of the vehicles would mean you don't have to worry about the appearence of the place too.
Maybe you'd want to track the cars while on hire? Maybe not necessary depending on the type of customers you'd be amiing for. Something to think about anyway, insurers would like it I'm sure...
Like I say, interesting
Lots to think about!disco1 said:
PetrolTed said:
£200 a hire...
Say a punter can do 200+ miles in that time.
< £1 a mile to run an old performance car... Maybe, maybe not.
Good point Ted, I'd need to factor all costs in to my business plan and work out the cost to me and then add some $ for profits/maintainance. This in turn would drive my rental costs & limits imposed. Unless the total hire cost is affordable to joe blogs it blows out my business case of 'performance cars for everyone', we'll see....Say a punter can do 200+ miles in that time.
< £1 a mile to run an old performance car...
Maybe, maybe not.I would be trying to identify your market first.
£200 is a lot of money per day (as an aside, my local enterprise hires new boxters for less than that per day) in my mind for an old car.
Who is going to want to hire it? Who can afford £200 per day but cannot afford an old Boxster themselves? Will those that can afford it want to hire an old car? And an auto old car at that.....is an auto boxster really special enough a drive?
Don't forget, you need to find these customers as well. Does your target market (whatever it is) actually browse for expensive hire cars? If they do, how will you get your 1 car to the front of their mind?
You will need a website, pay per click most likely, a credit card machine. 24/7 insurance, which will not be cheap. Also, you will need somewhere to meet, greet & complete the sale with your customers. I for one would be dubious about going to someone's house to rent a car tbh.
I doubt you can get this off the ground without risking at least a few K.
Also, you need to think of the worst case scenario: if someone lets their mate drive the car uninsured and he writes it off, do you have the resources to handle the problem without it taking you down too?
Clearly, it is not impossible; there are just a lot of factors to consider. Remember, the worst case scenario usually happens to those who haven't foreseen it.
Personally, I think you will struggle actually finding sensible mature customers willing to pay a lot of cash for an old Boxster; well enough of them to make all the hassle worthwhile.
Good luck though; keep us posted on your musings!
£200 is a lot of money per day (as an aside, my local enterprise hires new boxters for less than that per day) in my mind for an old car.
Who is going to want to hire it? Who can afford £200 per day but cannot afford an old Boxster themselves? Will those that can afford it want to hire an old car? And an auto old car at that.....is an auto boxster really special enough a drive?
Don't forget, you need to find these customers as well. Does your target market (whatever it is) actually browse for expensive hire cars? If they do, how will you get your 1 car to the front of their mind?
You will need a website, pay per click most likely, a credit card machine. 24/7 insurance, which will not be cheap. Also, you will need somewhere to meet, greet & complete the sale with your customers. I for one would be dubious about going to someone's house to rent a car tbh.
I doubt you can get this off the ground without risking at least a few K.
Also, you need to think of the worst case scenario: if someone lets their mate drive the car uninsured and he writes it off, do you have the resources to handle the problem without it taking you down too?
Clearly, it is not impossible; there are just a lot of factors to consider. Remember, the worst case scenario usually happens to those who haven't foreseen it.
Personally, I think you will struggle actually finding sensible mature customers willing to pay a lot of cash for an old Boxster; well enough of them to make all the hassle worthwhile.
Good luck though; keep us posted on your musings!
Martial Arts Man said:
I would be trying to identify your market first.
£200 is a lot of money per day (as an aside, my local enterprise hires new boxters for less than that per day) in my mind for an old car.
Who is going to want to hire it? Who can afford £200 per day but cannot afford an old Boxster themselves? Will those that can afford it want to hire an old car? And an auto old car at that.....is an auto boxster really special enough a drive?
Don't forget, you need to find these customers as well. Does your target market (whatever it is) actually browse for expensive hire cars? If they do, how will you get your 1 car to the front of their mind?
You will need a website, pay per click most likely, a credit card machine. 24/7 insurance, which will not be cheap. Also, you will need somewhere to meet, greet & complete the sale with your customers. I for one would be dubious about going to someone's house to rent a car tbh.
I doubt you can get this off the ground without risking at least a few K.
Also, you need to think of the worst case scenario: if someone lets their mate drive the car uninsured and he writes it off, do you have the resources to handle the problem without it taking you down too?
Clearly, it is not impossible; there are just a lot of factors to consider. Remember, the worst case scenario usually happens to those who haven't foreseen it.
Personally, I think you will struggle actually finding sensible mature customers willing to pay a lot of cash for an old Boxster; well enough of them to make all the hassle worthwhile.
Good luck though; keep us posted on your musings!
Excellent input, 10/10!!£200 is a lot of money per day (as an aside, my local enterprise hires new boxters for less than that per day) in my mind for an old car.
Who is going to want to hire it? Who can afford £200 per day but cannot afford an old Boxster themselves? Will those that can afford it want to hire an old car? And an auto old car at that.....is an auto boxster really special enough a drive?
Don't forget, you need to find these customers as well. Does your target market (whatever it is) actually browse for expensive hire cars? If they do, how will you get your 1 car to the front of their mind?
You will need a website, pay per click most likely, a credit card machine. 24/7 insurance, which will not be cheap. Also, you will need somewhere to meet, greet & complete the sale with your customers. I for one would be dubious about going to someone's house to rent a car tbh.
I doubt you can get this off the ground without risking at least a few K.
Also, you need to think of the worst case scenario: if someone lets their mate drive the car uninsured and he writes it off, do you have the resources to handle the problem without it taking you down too?
Clearly, it is not impossible; there are just a lot of factors to consider. Remember, the worst case scenario usually happens to those who haven't foreseen it.
Personally, I think you will struggle actually finding sensible mature customers willing to pay a lot of cash for an old Boxster; well enough of them to make all the hassle worthwhile.
Good luck though; keep us posted on your musings!
I hope to charge around £100-£150 per day Mon - Thurs
£250ish for weekend
Being affordable is key! Bear in mind no one operates any performance car hire in my area
Who would hire? Tourists (live next to busy airport), weddings, arrive in style wannabies, businesses as sales incentives, motor enthusiasts (live near some of best driivng roads in the UK)
Cars would be dropped/collected to/from door whether that be home/hotel/holiday let
Website is a must with online availability check/booking/payment facility
disco1 said:
Excellent input, 10/10!!
I hope to charge around £100-£150 per day Mon - Thurs
£250ish for weekend
Being affordable is key! Bear in mind no one operates any performance car hire in my area
Who would hire? Tourists (live next to busy airport), weddings, arrive in style wannabies, businesses as sales incentives, motor enthusiasts (live near some of best driivng roads in the UK)
Cars would be dropped/collected to/from door whether that be home/hotel/holiday let
Website is a must with online availability check/booking/payment facility
I hope to charge around £100-£150 per day Mon - Thurs
£250ish for weekend
Being affordable is key! Bear in mind no one operates any performance car hire in my area
Who would hire? Tourists (live next to busy airport), weddings, arrive in style wannabies, businesses as sales incentives, motor enthusiasts (live near some of best driivng roads in the UK)
Cars would be dropped/collected to/from door whether that be home/hotel/holiday let
Website is a must with online availability check/booking/payment facility
I think realistically, tourists aren't an option. Imagine if my worst case scenario comes true and they just f-off back to wherever they come from? Also, how can you compete with the big boys here? Will a tourist really think to google Cheap performance hire cars in xyz? If not, you will have to slug it out with the PPC minefield that includes the multi-nationals.
Weddings; well my only concern would be that I have no idea if people booking wedding cars would deal with two companies when one could provide all their vehicle needs. A boxster aint gonna cut it for the bride
Maybe you could do a tie in with a local limo man or something that doesn't have a "honeymoon" car on their fleet?Arrive in style wannabies; they scare me. reckless driving, mechanical abuse.....hmmm. Same goes for businesses.
The driving roads though; that sounds like a good idea! I'd market yourself in that area. Sort out some driving routes, things to see etc. you could even tie it in with a local hotel or B&B in some sort of package (where are you from btw?).
I like the last one; heck I'd even do it myself. Older folks are your target here; people to whom a sports car is a luxury they cannot justify/afford yet who would actually look after your machine.
If you go down the driving route, get in touch with all the car mags; I'm sure that something driver-centric would go down well with their readers in these budget conscious times.
Do you have a local free sheet paper? They are mainly read by oldies and have very low ad rates.
HTH.
Gassing Station | Business | Top of Page | What's New | My Stuff