Some advice please
Discussion
Hello All,
My questions may be laughed at but i'm not concerned as this is purely the
reason I'm asking them for advice.
Anyhow, I'm considering purchasing a Lamborghini in view to hire it out.
I've noticed they range from £600-1000 to rent per day or special deals on
weekly and monthly. Do clients expect the car to be brand new or would one
of a 2005 reg or newer be sufficient?
Also how easy would it be to get a regular customer? The reason I ask is
more than likely that I will not be able to pay for the car out right. In
which case I would have to use some financial monthly payment. It would be
handly if I could tie somebody down to a 6 monthly or yearly contract
therefore guarenteeing the income payments. Or at least the guarentee of
regular payments.
Anyway, any advice is much appreciated and at the moment this is nothing
more than an idea that I thought of when deciding to rent one myself.
Cheers!
My questions may be laughed at but i'm not concerned as this is purely the
reason I'm asking them for advice.
Anyhow, I'm considering purchasing a Lamborghini in view to hire it out.
I've noticed they range from £600-1000 to rent per day or special deals on
weekly and monthly. Do clients expect the car to be brand new or would one
of a 2005 reg or newer be sufficient?
Also how easy would it be to get a regular customer? The reason I ask is
more than likely that I will not be able to pay for the car out right. In
which case I would have to use some financial monthly payment. It would be
handly if I could tie somebody down to a 6 monthly or yearly contract
therefore guarenteeing the income payments. Or at least the guarentee of
regular payments.
Anyway, any advice is much appreciated and at the moment this is nothing
more than an idea that I thought of when deciding to rent one myself.
Cheers!
The problem with renting out is that the car WILL get abused, leading to some hefty servicing/repair costs. I imagine insurance for a vehicle that is to be rented out will also be quite high.
Weighing up the costs against the possible income makes it more hassle than it's worth in my book. You also have to consider how you are going to cover the costs if you can't rent it out on a regular basis. Bear in mind that there are a few supercar hire clubs out there that you will be competing against, and some of those are struggling in the current climate.
Weighing up the costs against the possible income makes it more hassle than it's worth in my book. You also have to consider how you are going to cover the costs if you can't rent it out on a regular basis. Bear in mind that there are a few supercar hire clubs out there that you will be competing against, and some of those are struggling in the current climate.
Firstly thanks to all for the replies, its all part of a learning curve and although it does seem like a lot of hassle I'm
determined to give myself an answer rather than let it pass by.
I note your comment on the car WILL become abused, but how often would that warrant a service?
You see thats where my thought on a fixed 6 month or 12 month contract would come into play, therefore guarenteeing regular
payments in order to pay the running costs, insurance for hire and repayments on the car. So say for instance I charged
£500 a day, for a 6 month contract that would be 84k. However with the offer of discounts say £1000 off every week
(basically 2 days out of 7 free) comes to 60k. The 2 questions are would that be enough to pay all the costs? And would
somebody be prepared to do that bearing in mind they could go and get one for themselves. Although they wouldn't worry
about insurance costs or servicing.
determined to give myself an answer rather than let it pass by.
I note your comment on the car WILL become abused, but how often would that warrant a service?
You see thats where my thought on a fixed 6 month or 12 month contract would come into play, therefore guarenteeing regular
payments in order to pay the running costs, insurance for hire and repayments on the car. So say for instance I charged
£500 a day, for a 6 month contract that would be 84k. However with the offer of discounts say £1000 off every week
(basically 2 days out of 7 free) comes to 60k. The 2 questions are would that be enough to pay all the costs? And would
somebody be prepared to do that bearing in mind they could go and get one for themselves. Although they wouldn't worry
about insurance costs or servicing.
Yes your correct, when doing research on prices i've noted a vast majority were 30 as the min age. I did find one at 28, 25 and 21 however they were 95% at min age 30. I've always thought though, anybody of that age are either going to have it bought by rich parents or some other obscure way. In which case they would have the money to cover costs, in which I would stipulate in the contract. That mixed with possibly a lower price may sway them into my favour.
Yes true, although there are a lot of people out there with vast amounts of money who become lazy. Save messing around with all the things that come with a car, just one payment and the only costs you have is petrol. But yes i've often thought of targetting nightclub owners possibly, there is one round my way who has one advertising their club. And it certainly gets attention.
Yes true, although there are a lot of people out there with vast amounts of money who become lazy. Save messing around with all the things that come with a car, just one payment and the only costs you have is petrol. But yes i've often thought of targetting nightclub owners possibly, there is one round my way who has one advertising their club. And it certainly gets attention.
Are you saying you want to rent a lambo to someone for six months at a cost of £60k? Surely it'd be cheaper for the hirer to buy a car, run it for six months and then sell it on? If someone has got £60k to spend on a rental then they're likely to have more to spend on a purchase.
If you want to rent out a supercar to fund the purchase then perhaps look at offering the car to these experiance companies or offer rides to weddings and the such.
If you want to rent out a supercar to fund the purchase then perhaps look at offering the car to these experiance companies or offer rides to weddings and the such.
Yes that thought had crossed my mind, however if I added the incentive of discounts per week and the fact that somebody under the age of 30 could hire it may sway them into spending the money. Yeah thats true, could always offer it to a company but only if its beneficial to me as well.
In reply to the other commment this is something that has concerned me in getting the finance. Although before I asked for it I would get some feelers out to see if anybody was interested. Then do some checks to see if its legit and present this to the finance company. Rather than charge in and hope they give the finance to me
In reply to the other commment this is something that has concerned me in getting the finance. Although before I asked for it I would get some feelers out to see if anybody was interested. Then do some checks to see if its legit and present this to the finance company. Rather than charge in and hope they give the finance to me
I only have one word to add to this discussion at the momeent as it is a point which has not yet been raised:
Depreciation.
How much will this be an issue to you and it's going to take an extra caning on its value being ex-rental!
There are SO few such cars in the UK that even ONE hiring out and the car becomes referred to as 'a rental' and that will deter the wary customer.
Depreciation.
How much will this be an issue to you and it's going to take an extra caning on its value being ex-rental!
There are SO few such cars in the UK that even ONE hiring out and the car becomes referred to as 'a rental' and that will deter the wary customer.
I think after taking all the comments into consideration that the only way this is possible is that once the figures are drawn up and I find somebody who agreeable to the deal then all the other payments (even if the insurance is in excess of 4 figures) can be covered and even make small profit.
In terms of depreciation I had thought of this but it didn't concern me too much as the main objective it to be able to make enough money to pay off the car so I can call it 'my own' and if it worked out well possibly to the same to make profit. Sounds all far fetched but in theory it is possible with some risk added. And once I start with an idea I never end it until I realise that it really is just a 'dream'
In terms of depreciation I had thought of this but it didn't concern me too much as the main objective it to be able to make enough money to pay off the car so I can call it 'my own' and if it worked out well possibly to the same to make profit. Sounds all far fetched but in theory it is possible with some risk added. And once I start with an idea I never end it until I realise that it really is just a 'dream'
I only mentioned the finance issue, as I am going through this at the moment.
It seems that finance companies dont want to finance Lambo type cars at the moment, I have a decent deposit, and can very 'Easily' afford the repayments, but am having serious problems trying to get the finance. Seems these cars pose too high a risk!
It seems that finance companies dont want to finance Lambo type cars at the moment, I have a decent deposit, and can very 'Easily' afford the repayments, but am having serious problems trying to get the finance. Seems these cars pose too high a risk!
I might be your target market... I used to rent nice cars whenever I was home (911, 430, Gallardo, GranTurismo etc) but reached the conclusion that is was going to be cheaper to buy with the amount I was hiring, and I wasn't fussed about the variety a club would offer.
So even though I might rent for 4-6 weeks a year, total, it was still better for me to buy than rent. Even with the hassle factor of living 10,000 miles from my car.
Now that's depreciation only as in exchange for leaving the keys with him, my father is covering servicing and has got the car on his trade policy.
So, no, I think you're mad and it would never work. People who have 60k to rent a car for six months rather than buy are either, i) too smart to p1ss it away like that, ii) too rich to need to rent or iii) crooks who only want to rent as they don't want to put anything in their own name.
I wouldn't facny lending to categroy iii!
So even though I might rent for 4-6 weeks a year, total, it was still better for me to buy than rent. Even with the hassle factor of living 10,000 miles from my car.
Now that's depreciation only as in exchange for leaving the keys with him, my father is covering servicing and has got the car on his trade policy.
So, no, I think you're mad and it would never work. People who have 60k to rent a car for six months rather than buy are either, i) too smart to p1ss it away like that, ii) too rich to need to rent or iii) crooks who only want to rent as they don't want to put anything in their own name.
I wouldn't facny lending to categroy iii!
willcrookz said:
I've been told by others that there aren't many rental places which allow younger drivers (under 25) to rent, maybe you could tap into that market and pray!
I know a couple of guys who do this in C London and more often than not they keep the deposits after the cars are returned
If I wanted the use of a Lamborghini for 6 months and it was going to cost me £60k to hire one, I'd seriously be looking to buy one to sell at the end of the period to take a much smaller hit by way of depreciation.
I think you need to look at your figures again, as it is now possible to buy a Gallardo for somewhere in the region of £50k, and at that price it wouldn't make sense to hire for £60k, especially as there would be no return on the outlay.
I think you need to look at your figures again, as it is now possible to buy a Gallardo for somewhere in the region of £50k, and at that price it wouldn't make sense to hire for £60k, especially as there would be no return on the outlay.
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