Porsche Hire Service
Discussion
Hi guys,
Have been thinking of this for some time and wanted to guage peoples thoughts and opinions. Obviously I am not the first to come up with this but in the city/area I live no one else does this sort of thing and think I have found a market.
Idea is to start small and continue my current paid job. My thoughts are the smaller cheaper cars are the 'bread & butter' which bring in the money, things like boxters. From what I can see on the Porsche website and from what others have said Contract Hire would be the best option but does this mean hire to companies who in turn hire out?
Does anyone know any good links or companies who deal with this sort of leasing?
Another consideration is insurance, any links/tips on this subject would be very handy.
Cheers guys
Have been thinking of this for some time and wanted to guage peoples thoughts and opinions. Obviously I am not the first to come up with this but in the city/area I live no one else does this sort of thing and think I have found a market.
Idea is to start small and continue my current paid job. My thoughts are the smaller cheaper cars are the 'bread & butter' which bring in the money, things like boxters. From what I can see on the Porsche website and from what others have said Contract Hire would be the best option but does this mean hire to companies who in turn hire out?
Does anyone know any good links or companies who deal with this sort of leasing?
Another consideration is insurance, any links/tips on this subject would be very handy.
Cheers guys
www.quotelinedirect.co.uk/?INRT - ask for Paula Jemehia
www.universalig.co.uk - ask for Barrie Simpson
https://www.compucar.org.uk/
These ad-hoc policies will cover your hirers whilst the car is under hire, a typical rate of which might be £30 per day for an over 30 year old, rising to £45 for an under 30 (all clean risks). You will need a fleet policy covering the vehicles whilst the cars are in your possession, which for performance/sportscars without any previous trading history will be expensive, say £4K pa approx for a Boxster. You can buy one of these through any number of commercial insurance brokers of which you can get a list through yell.com however Tradex are arguably the biggest player.
www.universalig.co.uk - ask for Barrie Simpson
https://www.compucar.org.uk/
These ad-hoc policies will cover your hirers whilst the car is under hire, a typical rate of which might be £30 per day for an over 30 year old, rising to £45 for an under 30 (all clean risks). You will need a fleet policy covering the vehicles whilst the cars are in your possession, which for performance/sportscars without any previous trading history will be expensive, say £4K pa approx for a Boxster. You can buy one of these through any number of commercial insurance brokers of which you can get a list through yell.com however Tradex are arguably the biggest player.
disco1 said:
There must be an easier way in to the prestige car hire market.
A more unlawful way, might be to steal the cars.
Are you just looking to contract hire them then, say for 24 months ie. 3 + 23 and then hire them out on a self-drive hire basis? If so, I would suggest www.contracthireandleasing.com and go from there. Surely the question as to whether you can sub-hire them has to be put to the vehicle owner but I've never experienced any problems on this score before.
Would you restrict your target market in any way?
Could you not put a business plan together and approach the bank about a business loan. i mean the boxsters wouldnt have to be brand new would they? I would have thought you could get a trio of boxster S's for £18+k a piece and if you were hiring them out i think joe public would be just as happy in a 2.5/2.7 and these can be had for circa £12+k.
Just a thought.
Just a thought.
I would assume that the big hire firms buy their cars at a discount say 30%, buying bulk so get a good deal, then run the cars until an equivalent new car has depreciated by 30%, at which point they sell their cars onto the market.
The car hasn't lost any money although they might have paid finance on it, and they have earned through rentals, there for nice profit on a product that hasn't cost them. Becuase the car is likely to a year old, possibly no real servicing cost etc and bob's your uncle.
If you pop along to any acution, you would see loads of 9 month old motors all ex rental. Even possible 6 month old cars from Jersey that have done a single season, and then flogged on before loosing any cash.
Without wanting to be rude, surely if you have no idea how the market works, I would suggest that you haven't done enough research to risk you hard earned folding on.
Mark.
The car hasn't lost any money although they might have paid finance on it, and they have earned through rentals, there for nice profit on a product that hasn't cost them. Becuase the car is likely to a year old, possibly no real servicing cost etc and bob's your uncle.
If you pop along to any acution, you would see loads of 9 month old motors all ex rental. Even possible 6 month old cars from Jersey that have done a single season, and then flogged on before loosing any cash.
Without wanting to be rude, surely if you have no idea how the market works, I would suggest that you haven't done enough research to risk you hard earned folding on.
Mark.
_topcat said:
Could you not put a business plan together and approach the bank about a business loan. i mean the boxsters wouldnt have to be brand new would they? I would have thought you could get a trio of boxster S's for £18+k a piece and if you were hiring them out i think joe public would be just as happy in a 2.5/2.7 and these can be had for circa £12+k.
Just a thought.
It depends on the rate to be charged to the customer. Hirers expect a new car to be provided, unless they are told otherwise prior to the rental that's it's a 4-5-6-7 year old car. At which point they would expect to pay less for the rental than others that will do a new Boxster for £150 a day. The other thing to consider is that sadly, these cars will not be looked after by some of the clients, especially if they are a little leggy.
very true. i was just trying to think outside of the top end Ferrari/porsche hire companies and charges/limitations. with an older ar one could hire it for Lemans weekend and have a nice run down through france and not worry too much about the miles creeping up as would a brand new car be more noticable.
quite right on the charges front. i dont know what the overheads would be so dont know the margin on a daily charge.
Very interesting though.
quite right on the charges front. i dont know what the overheads would be so dont know the margin on a daily charge.
Very interesting though.
Your insurance will be astronomical. 1 tiny flaw. What happens when the car gets smashed up. The excess will be a biggy, you can`t hire the car out to people who have booked and I suspect you`ll be on first name terms with the local body shop.
What`s the first thing people will do when they get in the car - see what it`ll do - max it out. Everyone knows the best handling car in the world is a hire car. There is no incentive not to thrash the balls out of your hire fleet. I would even suggest that half the hire days would be for track day use !
A magical idea, don`t think I haven`t thought of it. I`ve currently got 43 Porsches sitting in the yard & at £200 per day (that doesn`t include the expensive gear) I`d see a smidgen under £10k per day. Less damages, wear and tear, stolen cars, swapped engines and gearboxes, (I know of someone who hired a car, chopped the roof off for a photo shoot then put it back together and returned to the hire company. The car did 20 miles over the 2 week rental !!).
I worry about test drives with someone sat next to the person !
Henry
What`s the first thing people will do when they get in the car - see what it`ll do - max it out. Everyone knows the best handling car in the world is a hire car. There is no incentive not to thrash the balls out of your hire fleet. I would even suggest that half the hire days would be for track day use !
A magical idea, don`t think I haven`t thought of it. I`ve currently got 43 Porsches sitting in the yard & at £200 per day (that doesn`t include the expensive gear) I`d see a smidgen under £10k per day. Less damages, wear and tear, stolen cars, swapped engines and gearboxes, (I know of someone who hired a car, chopped the roof off for a photo shoot then put it back together and returned to the hire company. The car did 20 miles over the 2 week rental !!).
I worry about test drives with someone sat next to the person !
Henry
supersport said:
I would assume that the big hire firms buy their cars at a discount say 30%, buying bulk so get a good deal, then run the cars until an equivalent new car has depreciated by 30%, at which point they sell their cars onto the market.
Even wondered why there's a little sticker on the odometer which says the mileage shouldn't be exceeded? Usually it's 15-20k miles. It's because Avis is owned by GM and Hertz by Ford (or it may be the other way round).
The cars are bought at huge discount and sold on within 6 months - keeps the factories turning over and the money they lose on depreciation is less than a third than that which they make for the hire of the cars.
>> Edited by sleep envy on Wednesday 5th April 22:11
I've looked at doing something similar in a slightly different market. I've set-up up numerous businesses, but just couldn't get the figures to work.
As said before the major stumbling block is insurance.
Another thing to consider. Someone writes off a Boxster, it takes weeks for it to be repaired, the insurance company takes even longer to pay out. So you've got nothing to rent, bookings that can't be fulfilled, and finance payments to meet.
If you're not put off by any of this then good luck.
I've got a massive folder of figures and contacts that might be of use. E-mail me if you're interested.
As said before the major stumbling block is insurance.
Another thing to consider. Someone writes off a Boxster, it takes weeks for it to be repaired, the insurance company takes even longer to pay out. So you've got nothing to rent, bookings that can't be fulfilled, and finance payments to meet.
If you're not put off by any of this then good luck.
I've got a massive folder of figures and contacts that might be of use. E-mail me if you're interested.
My plan was to hire out entry level boxters. Cheapish to buy/service and have a larger target market for hire than a 911.
Cars would be over 3 years old, max number of 2/3 to start. You can get good condition boxters ten a penny. £30k should get you 2 cars.
I thought it might just work
Cars would be over 3 years old, max number of 2/3 to start. You can get good condition boxters ten a penny. £30k should get you 2 cars.
I thought it might just work
disco1 said:
My plan was to hire out entry level boxters. Cheapish to buy/service and have a larger target market for hire than a 911.
Cars would be over 3 years old, max number of 2/3 to start. You can get good condition boxters ten a penny. £30k should get you 2 cars.
I thought it might just work
Cool. But then as suggested, the insurance is extraordinarily expensive. If you get good utilisation on your cars ie. 80-85%, firstly you would probably die a very happy man, but the insurance on an ad-hoc basis would cost you £11K pa, as an average.
Then there are possible warranty issues, servicing and repairs to factor in.
p.s. If you do, do it and start marketing, please ensure you offer them as "Boxsters".
>> Edited by anniesdad on Thursday 6th April 15:36
anniesdad said:
Cool. But then as suggested, the insurance is extraordinarily expensive. If you get good utilisation on your cars ie. 80-85%, firstly you would probably die a very happy man, but the insurance on an ad-hoc basis would cost you £11K pa, as an average.
Then there are possible warranty issues, servicing and repairs to factor in.
p.s. If you do, do it and start marketing, please ensure you offer them as "Boxsters".
>> Edited by anniesdad on Thursday 6th April 15:36
£11k pa!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!
A mate of mine tried to launch a prestige car rental business as a way to finance his exotica car ownership.
It was the insurance that killed off the plan in the end.
He had a Ferrari (355 I think) and a 911 turbo, but the insurers ran a mile at the prospect of unknown drivers taking them off for a blast over a weekend.
He could only get insurance if the drivers were over 45 or something, and the excess would still be huge, and even then the insurance charges meant that the rental fee would be unacceptable to anyone unless they had more money than sense. And those type of people usually buy their own exotic car.
And this guy wasn't a novice when it comes to vehicle rental experience, as he runs the biggest motorhome rental business in the UK.
>> Edited by a993lad on Friday 7th April 09:15
It was the insurance that killed off the plan in the end.
He had a Ferrari (355 I think) and a 911 turbo, but the insurers ran a mile at the prospect of unknown drivers taking them off for a blast over a weekend.
He could only get insurance if the drivers were over 45 or something, and the excess would still be huge, and even then the insurance charges meant that the rental fee would be unacceptable to anyone unless they had more money than sense. And those type of people usually buy their own exotic car.
And this guy wasn't a novice when it comes to vehicle rental experience, as he runs the biggest motorhome rental business in the UK.
>> Edited by a993lad on Friday 7th April 09:15
Gassing Station | Porsche General | Top of Page | What's New | My Stuff