Looking for the Best?
Getting into a luxury car rental business is easy but succeeding from the medium and long term perspective is not an easy job. Though the market for luxury cars is growing at a rapid pace, the number of players who are into this business is also increasing quite fast. Therefore there is intense competitions and some time the competition is also unfair and below the belt. In such situations as an entrepreneur you must know ways and means by which you will be able to ensure that you make the best out of your business in spite of tough situations surrounding you. Though buying a fleet of car, or even taking them on lease or refinance would not be a problem, you will have other problems to handle. Without having an answer for these it may not be ideal to get started because you could end up on the losing side.
Insurance Aspect Must Be Tackled
The biggest problem which many exotic car rental companies face is with regard to insurance. Most of them do not insure all their exotic and luxury cars at one go. Unless this is done you are as good as being out of business. You cannot have a stingy approach to this business if you wish to succeed. However, insurance costs are too high and always passing it on to the customers may not work in your favor because of intense competition. Hence you must know to bite only what you can chew. In other words it would not be a bad idea to get started with a few cars but each of them should be insured. When you rent your exotic car to a customer you can pretty well be sure that it will go through lot of wear and tear and therefore your insurance policy should be able to absorb the same.
The best way forward could perhaps be buy used cars though the insurance could be higher. The higher insurance cost will be adjusted with the finance cost. The finance cost of used luxury and exotics will be much lower when compared to the new ones. Additionally, you must find out ways and means by which the down time of cars is reduced to the minimum. Though it would be ideal to have it reduced to zero this may not be possible. The main benefit of having zero down time is that you will not be burdened with blocked inventories which are not offering you any revenue.
You must also find out ways and means by which you can reach out to more number of prospective customers. You must have a quality website and also be sure that it attracts the right kind of traffic. Employing the best of digital marketing techniques is also something which must be kept in mind. You also must not lose sight of the need to have a quality website and should ensure that it attracts traffic and must also find out ways to convert the traffic into meaningful business propositions.