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Discussion in 'Ferrari Discussion (not model specific)' started by GrigioGuy, Jan 4, 2004.
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In which city are you thinking of doing this?
Cool. Check your PM.
Couple of answers for you:
1. Damage deposits are very touchy with rental businesses. All of the major credit card companies have agreements in place with their banks that SPECIFICALLY restrict the ability for rental company merchants to charge damages to cardholders' cards. So in other words, as a rental business, you're not tehnically allowed to do that. And if a customer reverses the charges, there's no questions asked by the card company -- the rental company is stuck with the bill.
2. The best way to verify that people can drive stick is to have language in your rental contract that says "we reserve the right to deny rentals to persons who cannot properly operate the vehicle", then go on a quick ride-along with your renter to make sure he can actually drive. If he can't, then apologize and explain you can't rent him the car.
3. GPS locators are standard, and rev limiters are generally a good idea. Speed governors, however, are not, since unless you set it at 55 (or 65), you're setting yourself up for major liability.
The really risky part for rental companies is a high-end car that is way beyond the means of a renter. Suppose a guy rents a 360 Spider, leaves a 5 grand deposit or whatever, has his insurance company verify his policy, then take it out on the track and ball it up. The insurance company won't pay (some might, mine won't) because it happened on a race track. They can go after the guy for their 200 grand, but if he doesn't have it, he doesn't have it.
what was the original post of this thread?
Tillman, are you going to start an exotic rental car company?
If so, what city?
I own an Exotic Car Rental company in Orlando, FL.
As for Damage deposits, it is taken as an "Auth Only" on your credit card. I have customers try to reverse charges all the time for damage they caused to the car. The way my contract is written and my agreement with my credit card processor keeps the money in my hands 90% of the time. If for some reason the charges do get reversed I file a lawsuit against them and they or their attorney has to appear in court in Orange County, FL. I have never lost a case. and If it gets this far the amount goes up greatly for my court cost, attorney fees, intrest and deminished value. My advice is to treat the car as if its your own.
GPS is pretty standard, govenors are some what ( I dont use them )
Good advice, because the renters certainly won't treat it that way, and someone has to!
What sort of arrangement do you have with the credit card processor that lets you keep the money? Every processor I've spoken to so far claims that rental companies can't charge customers for damage on the credit cards, not becuase of their agreement, but because of a specific national blanket agreement between Visa/MC and the processors. How do you get around that?
Well Ive went through 3 different merchant processors before I found one that would go to bat with me.
Also one thing I require is that the renter signs a letter of credit card auth. this is the same as a signed credit card slip. If the damage goes beyond the damage deposit I charge the renters card and contact them to see if they would like to pay by other means or file a claim on their insurance. most people admit to their actions and the ones that dont soon realise that I will become a major pain in the A$$ to them and will not let up or go away until Im happy