| Author | Message | ||
| Dave Wapinski (Davewapinski)
Member Username: Davewapinski Post Number: 535 Registered: 8-2001 |
I know a person who is interested in buying a T-Rex - the 3 wheeled motorcycle. So one nice Saturday, we took a drive to upstate NJ to take a look at them. On the drive, he asked me if I wanted to go into a Ferrari renting business with him. His idea was slightly different. He wanted to form a club and give people so many days for a fixed fee up front. Then they could use it for a vacation, special weekend, etc. Try to get them to schedule a long time in advance. He wanted to keep the rential fees down to about $100 a day - so this mean something like 308s. Then try for a large volumn. He wanted to start in a place like Philly (his home town) rather than a place like Princeton, Long Island, CT, etc. If successful, then expand to other cities and move the cars around to meet demand. His interest was getting a Ferrari rather than making a profit plus getting a Ferrari. I did not think he would make a good businessman and I am extremely busy so the idea went nowhere. Is something like this a good approach? | ||
| Frank K Lipinski (Kaz)
Junior Member Username: Kaz Post Number: 179 Registered: 11-2002 |
There's a place right next two the Ft Lauderdale airport that use to rent F-Cars, Bentley, Porsche. Been around for about 5 or 6 years, but then went down the tubes. Still around but only top end cars are vetts, hummer and 911. I spoke the owner when I was looking into Fcars to see who does the service (Tim Stanford) and the owner told me that, yes, service was a killer on the cars. Also said people beat the sh*t out of them. I think they leased the cars, then subsequently rented them out. | ||
| Peter Sedlak (Peters)
Junior Member Username: Peters Post Number: 137 Registered: 1-2003 |
John S: The good thing is that only two people can puke in a sports car Vs ten in a limo! | ||
| Markus Lex (Playersmarkus)
Junior Member Username: Playersmarkus Post Number: 51 Registered: 10-2002 |
You better have 20 mechanics on staff...the customers will DESTROY the cars..they have no clue how to drive an exotic. I would change the cars a little bit, some nice rims, some pimp style...gives you an edge.. The give me a nice price and I rent your whole fleet for the next Playersrun  ) Markus | ||
| Jay P. Ross (Eilig)
Junior Member Username: Eilig Post Number: 112 Registered: 8-2001 |
Mr. Ausbrooks -- Julia Meissner, who is an assistant there, speaks fluent English. I'll bet she translated this for him. Unfortunately she wasn't around the day I met him, because the rental season was pretty much already wrapped up, so I was on my own with my marginal German! | ||
| John Striegel (John328)
New member Username: John328 Post Number: 10 Registered: 1-2003 |
I think you have to be crazy to get into this type of business, I was in the Limo business for a while. It attracts the biggist flakes and want-a-bes. I can see why its works in Mami and So. Cal, as they belive you are only as good as the car you drive/rent. As with the limo business, if the car does not move, its not making you any money. And you have to pay the very. very expensive insurance 24 hours day weather car is rented or not. John | ||
| L. Wayne Ausbrooks (Lwausbrooks)
Intermediate Member Username: Lwausbrooks Post Number: 1362 Registered: 8-2002 |
Jay, "He doesn't speak any English..." Funny thing, his English was pretty good when he posted this: http://www.ferrarichat.com/discus/messages/21/123863.html | ||
| Phil (Lambo)
New member Username: Lambo Post Number: 8 Registered: 4-2003 |
Jay... Thank you very much for the story, that is quite interesting. Your story makes the saying "Its all who you know, not what you know" more true. That saying got me where I am today. Arthur... I had the same idea, since I have friends in FL that I would trust to do that for me. I even asked the guy I know who does this on his own in FL. I actually asked him about some kind of branch off his company or franchise or something. Thing is with his insurance, the car isnt allowed to leave the state. So I guess I would have to find out from the insurance company about that. Which leads me to the question, anyone know any nsurance companies? | ||
| arthur chambers (Art355)
Intermediate Member Username: Art355 Post Number: 1249 Registered: 6-2001 |
Phil: When I was reading the posts, I had a thought: since you would only get 8 months out of the year's rentals in NY, why not ship them to Miami during the winter for rental there? That would give you a full 12 months, and perhaps a need for a home in Florida? Art | ||
| Jay P. Ross (Eilig)
Junior Member Username: Eilig Post Number: 111 Registered: 8-2001 |
It is interesting that you ask... Last year when I rented a second time from Scuderia von Ruschenberg in Germany, I had the opportunity to meet the fellow who runs the show, Berthold Klotz. He doesn't speak any English, and my German is only so-so, but I was curious to learn more about the business end of things, especially how he manages risk and keeps it profitable. Here is what I was able to learn. He is in his eleventh year of operation, only last year beginning limited promotions in the US for rentals to Americans in Europe. As of October last year, he had something like 45 cars in his fleet. Initially, the most significant obstacle to Klotz�s business model was the exorbitant cost of insurance. The cost to insure such vehicles was already incredibly high, but when the insurance companies were told that the cars would be driven by short-term lessees, they ran � not walked � away from the proposed operation. Not one who seems to be easily dissuaded, Klotz forged a partnership with a local insurance company and spent several months hammering out a carefully detailed risk model to be used by the insurance provider. According to Klotz, there is one reason, and one reason alone, that this insurance company allowed him to write his own risk model -- his BROTHER owns the insurance company! It was initially risky, because in order to convince the board to approve the policy, his brother had to include a clause that would have provided the insurer with the right to liquidate the collection, or any portion thereof, and take the remaining equity as necessary to satisfy any catastrophic losses. Klotz has always played a very active role in operating the business on a day to day basis. This, he feels, allows him to keep close tabs on risks, and keep expenses under control. After several years of proving his risk model works, the business was able to qualify for a more �standard� type of insurance policy. There are certain cars he absolutely won't rent unless he has a past relationship with a customer, and has come to know their driving capabilities. This includes the GTO, F40, and F50. I think he has only rented the GTO 2 or 3 times since 1992. He also has a full-shop in-house for maintenance and repairs. He said if he had to pay outside shops to perform work, it would never be profitable. So he has a few highly-qualified mechanics who have been with him almost all eleven years. One of them is near retirement and spent earlier years with a race team in Germany. And he also indicated that he's able to purchase parts directly from Maranello, saving additional money. All in all it was fascinating to learn about this business of his. It was even more breathtaking to see nearly the entire collection. All of the cars are red except for one 360 Spider and a Maserati Spider (both yellow). | ||
| DES (Sickspeed)
Advanced Member Username: Sickspeed Post Number: 3266 Registered: 8-2002 |
Yeah... If you do it and people want it dropped off, i'd like a part-time job working as the drop off guy...  | ||
| Phil (Lambo)
New member Username: Lambo Post Number: 7 Registered: 4-2003 |
Really appreciate all the responses. This would be done out on Long Island. Not sure anyone who would want to go into the city since you wont be able to play. Do expect people to push the car, some worse than others. There is risk in any business, no matter what you try to do. Right now I am part owner in a couple of companies, all Internet related in someway. I was thinking of a way to get the company to pay for the car (cause like most I have always wanted one) and my partner wants one too, so we both said lets do it then we thought well.... how could we make money out of this as well. To tell you the truth all we really care about is making the money back to pay the bills on the car (essentially we get a Ferrari for free). Then I thought if that is the way we could enter this business, who knows where it could go eventually. Whats the worse that could happen, it doesnt work out and we sell the car. I always take big risks and that is how I got to the point where I am part of 8 companies, never know unless you try. I know everything there is to know in what I do now, and I am itching to do something else basically. Have the money to buy the car but why not take a risk and see where it goes and try and make something more out of it. I am told this business is word of mouth, which someone mentioned here and that most want the car dropped off to them. So a showroom isnt really needed right now, since we can keep the car at our current location. So anyone have anything else to say? Again I really do appreciate it. | ||
| TomD (Tifosi)
Advanced Member Username: Tifosi Post Number: 3186 Registered: 9-2001 |
I would say this is a bad idea - look at Des - he doesn't need to rent he gets free rides all over the place | ||
| DES (Sickspeed)
Advanced Member Username: Sickspeed Post Number: 3254 Registered: 8-2002 |
Phil, where in NY do you want to do it...? If you were on Long Island, i'm sure i would show up to check out the rental prices... If i could wing it, i'd certainly rent an exotic... (...but i'd have to rent under an assumed name, 'cause if your insurance company ever found out i was there, you'd go bankrupt. ) | ||
| djmonk (Davem)
Junior Member Username: Davem Post Number: 217 Registered: 1-2002 |
I talked to the manager at Rent-A- Vette in Vegas (they rent mostly exotics). 5 minutes listening to the horror stories would convince most sane people to stay away. Example cars not returned cant be reported stolen for something like a week because the cops take is that the renter just wants to rent longer an they cant waste thier time. Told me about how they had to comb Vegas for days looking for a 355 some guy stole. Sounds fun. | ||
| Martin - Cavallino Motors (Miami348ts)
Advanced Member Username: Miami348ts Post Number: 4256 Registered: 5-2001 |
In NY your market is 8 months maybe. I know William is coming from CT in October down to FL and leaves back up for the season in April/May. Since you had snow there two days ago I can nto see where the market supposed to be in Winter. Meaning you have a Million Dollar inventory idelling in 4-6 months. This means you have to rent 2times more or for 2x more than the rental in Florida or Vegas or LA. Further, giving the pot holes you have around the City I would be worried about the car geting eaten up by these pot holes. Hell driving over the GWB a year ago in a truck I thought I was crossing the Grand Canyon. I would not want to subject my car to these road conditions. To me the idea sounds insane. Further I think someone would have done that already if it was such a strong market and demand for it. just my 2c. but then I would rent one for a day or two and go to Lime Rock or Watkins Glen | ||
| Ralph Koslin (Ralfabco)
Junior Member Username: Ralfabco Post Number: 86 Registered: 3-2002 |
You might want to try working for someone in this business for at least six months. This way you can learn the ins and outs. Who can fix things, sell parts, find cars etc ... at wholesale. Fixing up salvage cars will be far less expensive. I agree that most people would be satisfied to rent a car that is not the latest version from the factory. You must have a good lawyer draw up a very detailed contract. You can probably also do quite well renting the latest demo Corvettes with automatics. Ralph | ||
| Peter Sedlak (Peters)
Junior Member Username: Peters Post Number: 132 Registered: 1-2003 |
I agree with Phil. Get $10K up front. Maintenance will be very high on these cars. One should also be a mechanic before entering this business. Renters will beat the hell out of such cars. | ||
| J. Grande (Jay)
Intermediate Member Username: Jay Post Number: 1190 Registered: 10-2001 |
Phil, the established guy in Toronto does the bridal show circuit in the winter when everyone is planning for their spring and summer weddings. He also has limos and has contacts with all the film productions going on in Toronto. He is busy year round. My friend on the other hand is just starting up, I can foresee a problem in the winter if you strictly have exotics. Still, he has had calls for video shoots ect. Bottom line is set an age limit for rentals, this will eliminate 90% of the yahoo's who will beat the crap out of the car. The large deposit should take care of the rest. | ||
| David W Burnett Jr (Dbdreams)
New member Username: Dbdreams Post Number: 47 Registered: 3-2003 |
I have never rented an Exotic car but I have done some research on the subject. From what I have found Las Vegas seems to be the cheapest place to rent such a thing. As for the deposit, I comletely understand the reason for it but I also believe that if you called them from the side of the road with car trouble they would have a hard time making the charge to you credit card stick. Outside of an eye witness, some type of police report or some kind of computer monitoring system there is no way they could prove that you were the one to tear up the car. A tranny could limp back to the rental car dealership and not explode until the next unsuspecting customer not abusingly but passionately accelerates to enjoy what I feel the experience of renting an exotic should be. Most red blooded American males would not have the self control to casualy cruise around unless their self control was aided by a governor. If these cars had govenors then I do not think that they would be able to charge the amounts they do now. This would be its own demise. People rent exotics for the same reasons people own them. These cars tend to excite people and bring about emotions. People renting these cars and paying a premium for such a service expect to get the enjoyment and experience as if they owned the car even if it is just for a day or two. Granted rental cars will not be treated with quite as much respect as cars that one owns but I think that is just part of doing business. There is always an a**hole in the crowd that doesn't have respect for anybody or anything but I believe in the exotic rental business you just have to take the good with the bad and hope there is more good then bad. I am sure a great deal of their business is word of mouth and forcing a customer to pay for a blown tranny and other such things would be bad for business unless there is pretty much rock solid proof that the customer was at fault. Also nobody wants to hear a story about the time their buddy went to Vegas and rented a "Ferrari, it was cool but it kinda sucked because it had a governor and would only do 75" | ||
| jeff ryerson (Atheyg)
Junior Member Username: Atheyg Post Number: 214 Registered: 8-2002 |
Here in Vegas their are afew exoic rental places, I would only start one up in a vacation area where people are in the mood to spend money A local shop here was repairing a TR that the customer of a exotic rental co had failed to notice one of the cooling fans stopped working and kept driving it all day, the result warped head and 25k in repair bills Many cos use a recorder/tracker black box that keeps track of overrevs, wheelspin, spped, gs etc, if the customer violates the parameters big fines | ||
| Phil (Lambo)
New member Username: Lambo Post Number: 6 Registered: 4-2003 |
When it comes to someone breaking something I am told from a company in FL that they take a $10,000 down payment and if anything happens to the car (blown tranny) they pay for it. Also told that with the Ferrari's 30 yr old age limit and the down payment people are a little more cautious with how they treat the car. But you still have to pay the bills for tune ups and such | ||
| Omar (Auraraptor)
Member Username: Auraraptor Post Number: 428 Registered: 9-2002 |
The question is maintaince as well. Many would most likely 'beat' the sh!t out of the cars. How often would one have to do change clutches? That alone would be big $$ | ||
| Phil (Lambo)
New member Username: Lambo Post Number: 5 Registered: 4-2003 |
J. Grande How does the company in Toronto do in winter months with the exotics? Anyone know what the insurance rates are? | ||
| Phil (Lambo)
New member Username: Lambo Post Number: 4 Registered: 4-2003 |
Thanks for the response.... Yes insurance is the key, I know some people that have this business in FL and they can point me in the right direction when it comes to insurance and make sure I do everything right. Obviously there are a bunch of companies out there that do this so it can be done. Big question is can it be done in NY. I thought the same thing, no one cares about the car itself as long as it looks good and is a nice model, who cares if it has a lot of miles on it. Would anyone rent one if it was available in NY? | ||
| L. Wayne Ausbrooks (Lwausbrooks)
Intermediate Member Username: Lwausbrooks Post Number: 1354 Registered: 8-2002 |
Phil, there are a couple of exotic car rental agencies here in SoCal, where there is a year-round market and plenty of folks who like to flaunt their stuff. Don't know what business will be like in NY, though, especially in the winter months. | ||
| J. Grande (Jay)
Intermediate Member Username: Jay Post Number: 1188 Registered: 10-2001 |
Phil, here in Toronto there is one major exotic rental place that has 355's, and Diablo's but he started out with a Mondial. He's become very successful with probably 20-25 limo's and buses. A friend of mine has just opened up as his competition for the exotics using 308's, 328's,348 and vette's, porsche ect. There is great potential, but as mentioned you must have a lawyer write up your contracts and take huge deposits. The insurance per year is through the roof also! | ||
| Lucas Taratus (Karmavore)
Junior Member Username: Karmavore Post Number: 113 Registered: 12-2002 |
At $1500+ a day for a 360 it seems like you could make some serious dough if you rented it only a few days a month | ||
| arthur chambers (Art355)
Intermediate Member Username: Art355 Post Number: 1245 Registered: 6-2001 |
Phil: Over the years, I've represented a few leasing companies. Only one or two car rental agencies. If I were you, I'd worry about demand. You'll have to get several hundred dollars per day for the cars, and how do you make sure that the renter doesn't decide to use your car for a track day? The agreement would have to be tight, and you'd have to do credit checks on the potential lessees, and then you'd have to have some sort of system to make sure that the 30 year old, who just totalled your 1 year old 360 spyder, and the insurance carrier is denying coverage because he did it on the racetrack, pays you full value for the car? This is a good way to start with a lot of money, and end up with just a little. Perhaps you could start with older, high mileage cars, and a good insurance policy. The average person renting them wouldn't know the difference, if they are cosmetically correct, and maybe, just maybe you might be able to make a little money on this. I doubt it, but maybe. Good luck, I like the idea, and I'm super glad its your money, not mine. Art | ||
| Phil (Lambo)
New member Username: Lambo Post Number: 1 Registered: 4-2003 |
Just curious if anyone had any info on starting up an exotic car rental company or does it already... If you can pass along any info that would be great or know of a way to branch off another company... basically any info would be great... have the money but not enough knowledge for this industry just yet. Looking to do this in NY. Just trying to find the right way to start something like this up. |