Lamborghini Rental

[cressida_pimpin]

I'm considering a Gallardo purchase and then renting it out.

What would you be willing to pay for a full day rental?

Based on what I've seen this is typical:

All day
$850: 100km included, $3.5 per km extra

Quick Cruise (1 hour)
$300: 40km included (can't purchase more)

What are your thoughts?

[cressida_pimpin]

$850 seems to be on low end

http://www.affinitycarrentals.com/showroom-single.html?car_id=89

[Mitsu3000gt]

Interesting idea. I like the 1hr option as well, but it's going to get thrashed like nobody's business.

My concern would be maintenance/repairs. We all know how people treat rental cars (or rental anything, for that matter). Add to that Calgary's abysmal roads, and the #1 thing all the inexperienced renters are going to do with this is take it out to some back roads to drive it as hard as possible for every second they have the rental, smoking pot holes, abusing the tranny, etc. Couple of buddies who have never driven anything nearly this powerful pitch $150 each, and go drive the piss off of this car for an hour, over and over and over again. Just trying to be realistic, since I think 95% of your clientele will be young males looking to experience an exotic car with limited liability.

Personally I wouldn't go down that road, I think maintenance will be the killer, and proving fault when people inevitably break stuff due to misuse and negligence will be a nightmare. No idea how insurance works on that sort of thing either, but huge deductibles scare people away. Seems like more of a headache than anything, but I do like the idea for my own selfish reasons.

I think the cost required to keep something like this profitable, and generally out of the hands of the irresponsible masses, makes it too much of a niche market.

[cressida_pimpin]

Thanks for the feedback. I already have measures in place to manage those risks. What are your thoughts on pricing?

[CanmoreOrLess]

You couldn't keep a RENTAL Lambo in tires for a grand a day. Let's start with you renting out your M3, what would you charge for a stranger to rent the car for a day?

In this forum a guy MrEdS4 owns (owned... DOA) a Lambo rental and he places his costs at:

We have experienced a cost of $6.46 per mile in this car.

http://www.6speedonline.com/forums/lamborghini/192817-22k-miles-ownership-experience-gallardo-buyers-guide-2.html

http://www.secretentourage.com/lifestyle/autos/cost-of-ownership-of-an-exotic-car/

Here is the phrase you'll vomit at hearing... "It looks like the Lambo needs a new clutch...".

[cressida_pimpin]

I'm not asking whether you think this is a good idea. I'm asking what you as a customer would pay?

[Mitsu3000gt]

Originally posted by cressida_pimpin
Thanks for the feedback. I already have measures in place to manage those risks. What are your thoughts on pricing?

Prices seem fair to me. Most exotics are $1000+/day plus Km. I would personally pay $300 for the hour, but you would have to have some sort of penalty for KM overages if you're strict on the 40KM as you can't enforce that.

Lets say the guy before me does a bunch of launches, abusive driving, etc. and the tranny brakes on my rental. How would something like that be handled? Or what if I hit a pothole and bent the rim, something that is more the city's fault than the driver's? What if I burn up a set of tires? Or what if someone returned it with something broken, and said it was like that before going out or that they didn't cause it?

[pheoxs]

I'm just going to throw this here...

http://forums.beyond.ca/st2/new-business-start-up-in-calgary/showthread.php?threadid=337214&perpage=20&highlight=&pagenumber=1

[roopi]

Originally posted by Mitsu3000gt


Lets say the guy before me does a bunch of launches, abusive driving, etc. and the tranny brakes on my rental. How would something like that be handled? Or what if I hit a pothole and bent the rim, something that is more the city's fault than the driver's? What if I burn up a set of tires? Or what if someone returned it with something broken, and said it was like that before going out or that they didn't cause it?

Have you never rented a car before? Doesn't matter what type of car it is this can happen with any rental.

[Mitsu3000gt]

Originally posted by roopi


Have you never rented a car before? Doesn't matter what type of car it is this can happen with any rental.

I agree, but a gallardo tranny is worth a little more than the one on a Chevy Cruise. Each rim is probably worth $5-10K when someone bends it. It's a little different. "Acceptable" damage/wear on a POS rental Malibu is a little different than an exotic niche rental.

I'm just trying to help by providing some examples that would make me scared as both a renter and rentee.

[CanmoreOrLess]

Originally posted by cressida_pimpin
I'm not asking whether you think this is a good idea. I'm asking what you as a customer would pay?

Per day I'll pay 1/25th the cost of tires, a clutch and rock (Deerfoot) damaged windshield. The tires are studded right? I'm not driving a Lambo in February without the right tires, people will think I'm an idiot.

[ercchry]

get quotes on commercial insurance and any other expense... base your year on 5 months, running at 50% capacity... give yourself a 12-25% profit margin... whats your day rate? on par with the states? if so, good deal.... since everything is cheaper down there, the tourist market is higher in the cities you will be looking at and chances are they can run year round.... everything in canada is more, should be able to get away with a 25% premium (the way the dollar is will help too)

[95EG6P]

i would rent it for a hour for sure :clap:

[cressida_pimpin]

Agreed with some of the comments. There are risks. Any idiot can buy an exotic and rent it out. It's the execution on the business and risk management sides that allow it to become profitable.

[CanmoreOrLess]

Become the Canadian arm of this company: http://milehighdrives.com

You'd only be renting from May to October anyway much like their Denver location, come the frosty month ship all the vehicles to AZ. Migrate your stock like many industries do.

[beyond_ban]

I'm in for an hour or so.

I'd also wrap the car, it'd look good and protect the paint.

[M.alex]

What ever happened to that guy on here who was starting that exotic rental company that used points and different subscriber levels. Think his user name began with an S.

Don't think he made it very far :rofl:

[Skyline_Addict]

Originally posted by M.alex
What ever happened to that guy on here who was starting that exotic rental company that used points and different subscriber levels. Think his user name began with an S.

Don't think he made it very far :rofl:

Singulari.

http://www.singulari.ca/

Site no longer registered... I think the logical conclusion is...

[bjstare]

Don't know why you guys are trying to talk him out of it. He seems set on it, so be it. It's not like you're footing his insurance or maintenance bills.


I'll pay what you're asking for an hour in an exotic, GL with the business.:poosie:

[ercchry]

one thing thats been over looked though.... the gallardo is now a generation old, its been replaced... rentals should always be the new hotness, or a classic IMO

[Modelexis]

I think a front and rear facing gopro logging footage during the rental period would reduce a lot of needless abuse done to the car.

[ercchry]

Originally posted by Modelexis
I think a front and rear facing gopro logging footage during the rental period would reduce a lot of needless abuse done to the car.

pretty sure plugging in one of those "safe driver discount" insurance things would be a lot better route

[adidas]

Originally posted by ercchry
one thing thats been over looked though.... the gallardo is now a generation old, its been replaced... rentals should always be the new hotness, or a classic IMO

Even with that said, 99% of beyond still cant afford to purchase one.

[sidewaysD]

That’s a great idea you have. With GREAT Risk.

Lets step down on the price for customer and see the business model. (which than you can price out after all factors considered)

Here is how I see your Business proposal (possibly how the bank might see it)

I just can't see a market for your idea. Because you just have one car. (An older car as well.... not very "Exclusive to the market")

The competition on the other hand will be fierce for you. They have more options, packages, updated cars, clients, etc as they are an established business. Marketing your idea will be a tough sell with just one car, and one guy, who operates in his home. The overall risk is having too many expenses with not enough revenue. Your current operating capital will not sustain your business on a rainy day. (Unless of course you are very established with millions set aside, have the car already paid off etc etc than please forgive me)
Your potential income generation will be in our shortest summer/peroid. You will be out of income once the temperture drops. It will be difficult to live off of this business if you have no other source of income coming in.

Your overheads are going to be VERY steep. A big buy in for an asset, repairs, sundry items, If you think of renting out a facility to house your business, advertisement, insurance, licensing, etc

The best question…What will make your business stand out to the competition?

I can't really see anything unique.

Thus.. I don't think your rates apply appropriately with all factors considered.

[Strider]

Originally posted by Modelexis
I think a front and rear facing gopro logging footage during the rental period would reduce a lot of needless abuse done to the car.


Originally posted by ercchry
pretty sure plugging in one of those "safe driver discount" insurance things would be a lot better route

Would definitely pay less to rent it if there's nannies monitoring my driving.

[Mitsu3000gt]

Originally posted by Modelexis
I think a front and rear facing gopro logging footage during the rental period would reduce a lot of needless abuse done to the car.

I don't think many people would rent a Lambo knowing they would be on camera the entire time. Nobody is going to rent it so they can putt around at 50km/h, and nobody wants footage of them breaking the law, which is what 99.99% of renters want to do for their $300/hr.

[ercchry]

Originally posted by Strider




Would definitely pay less to rent it if there's nannies monitoring my driving.

with the OBDII tracker its not going to limit you... but lets say driver A has the car first, drives the piss out of it and drive B gets it an hour later and the clutch pops... without tracking you cant prove driver A abused the car so driver B is out a $10k deductible... fair? no...

[cressida_pimpin]

Thanks for the feedback. The bank will not be involved. Not too sure what you mean by competition as I'm not aware of any Lambo rentals in Calgary. If there are other options, I'm quite happy to take my small piece of the market. Also, other companies do full day and weekend rentals only, which are expensive. Hourly rentals allows broader market appeal.

This is a side hobby/job that, not my full time job. Not too worried about the seasonality.





Originally posted by sidewaysD
That’s a great idea you have. With GREAT Risk.

Lets step down on the price for customer and see the business model. (which than you can price out after all factors considered)

Here is how I see your Business proposal (possibly how the bank might see it)

I just can't see a market for your idea. Because you just have one car. (An older car as well.... not very "Exclusive to the market")

The competition on the other hand will be fierce for you. They have more options, packages, updated cars, clients, etc as they are an established business. Marketing your idea will be a tough sell with just one car, and one guy, who operates in his home. The overall risk is having too many expenses with not enough revenue. Your current operating capital will not sustain your business on a rainy day. (Unless of course you are very established with millions set aside, have the car already paid off etc etc than please forgive me)
Your potential income generation will be in our shortest summer/peroid. You will be out of income once the temperture drops.

Your overheads are going to be VERY steep. A big buy in for an asset, repairs, sundry items, If you think of renting out a facility to house your business, advertisement, insurance, licensing, etc

The best question…What will make your business stand out to the competition?

I can't really see anything unique.

[A790]

Try looking at this from a different perspective.

Buy 3-5 of these cars and offer exotic car tours, where a guide leads people through the mountains/foothills/etc. for a nice half or full day experience. Charge $2,000/pp and enjoy your profit.

You GAIN a shitload of control over how the cars are driven, circumstances they're driven under, etc.

Your costs go UP significantly: you now need 5 cars instead of 1, and 1 of those cars will be the leader/guide and thus non-revenue generating. You will also need to pay the guide to do his/her thing, and you'll need to insure all five vehicles.

But I think the rewards are also higher:

A full day rockie excursion. Meet at 9 am, 45 minute lesson on the cars/how to drive them/controlling the power/etc.

Leave at 10 and drive for a couple of hours, stop for lunch, then a nice 4 hour long-loop home through varied terrain.

Each driver gets a good 4-6 hours of drive time, you get to monitor a lot more, and you could charge like $300/hr per car or something like that.

4 cars at $300/hr for 6 hours = $7,200 revenue per day. Less staff costs (let's say you pay your guide $30/hr, so $240 (8 hour work day, make guide responsible for giving cars a quick clean at end of shift/basic maintenance/etc.).

Let's say each car is $180,000, resulting in a $3,500/mo car payment (over 5 years at 5% interest), so you've now got $17,500/mo in car payments. Add another $1,400/mo for insurance (guessing here). You've got fixed costs of $19,400. You'll need a bay to store them, so plan for another $3k/mo there. Fixed costs now $22,400.

Cost to fuel each car is $110/400km, so add $550 per day in fuel costs.

Daily revenue = $7,200 - $240 (guide) - $550 (fuel) = $6,410 gross profit per day. You'll need 4 booked days per month to break even.

ALL NUMBERS ARE APPROXIMATE. DON'T ACTUALLY DO THIS BECAUSE IT'S A WAY BETTER IDEA THAN RENTING OUT ONE CAR AT A TIME AND FUCK IT I'LL DO IT.

EDIT: Thought about it more.

$300/hr to be driver, $50/hr to be passenger. Most people doing this will be groups, meaning likely two people per car. Charge out for 6 driving hours at $350/hr = $2,100 revenue per car per day.

Four cars = $8,400 revenue per car per day.

Less fuel costs (say $650/day to be somewhat generous).

Less food costs (if you want to provide lunch) of $100/day.

Less staff costs of $240/day.

Gross profit per day = $7,410.

Assuming book Sat/Sun during summer months (June - Sept) you are looking at revenues of $268,800/yr, gross profit of $237,120/yr.

Remove overhead (storage bay/insruance) of $50,400 = net profit of $186,720. Approximately.

ALL NUMBERS ARE APPROXIMATE. DON'T ACTUALLY DO THIS BECAUSE IT'S A WAY BETTER IDEA THAN RENTING OUT ONE CAR AT A TIME AND FUCK IT I'LL DO IT.

[Twin_Cam_Turbo]

Wow you guys would actually spend $1000 a day for 200km in a Lamborghini or other super car? Bunch of ballers in here haha.

[cressida_pimpin]

You're forgetting that your fixed costs remain for non revenue generating months. Also you have five payments because one for the guide

Don't forget about maintenance costs :-)

You're numbers are a bit off. $25k per month for fixed costs is more accurate. Multiply by twelves months and that's $300k...you just went bankrupt

[A790]

Originally posted by cressida_pimpin
You're forgetting that your fixed costs remain for non revenue generating months. Also you have five payments because one for the guide
Already factored in.

It's much safer than what you're proposing.

[sidewaysD]

Oh wow.

ZR Auto stopped renting lambos, ferraris, bentlys etc (no longer on their website).

Infact from what use to be a handfull of exotic rentals, there are only 2 in calgary (quick google search) that have websites.


Perhaps not a big market for this type of business?

[ercchry]

guide can have a Z06 :rofl:

[A790]

Originally posted by ercchry
guide can have a Z06 :rofl:
Pfft, more like Focus ST lololol

[Strider]

Originally posted by ercchry
with the OBDII tracker its not going to limit you... but lets say driver A has the car first, drives the piss out of it and drive B gets it an hour later and the clutch pops... without tracking you cant prove driver A abused the car so driver B is out a $10k deductible... fair? no...

Certainly wouldn't be fair to driver B in that scenario.

My point is that I wouldn't pay $300 to rent a lambo for an hour and not be able to drive the piss out of it like driver A.

[beyond_ban]

I think you would want to buy brand new, that way all that needs to be done outside general maintanence will be covered under warranty.

That's how exotics racing does it down in Vegas.

[darthVWader]

:bigpimp:

http://i28.photobucket.com/albums/c245/bigbowtrout/car2go_zps53967596.jpg (http://s28.photobucket.com/user/bigbowtrout/media/car2go_zps53967596.jpg.html)

[Mitsu3000gt]

I don't think Alberta and BC's 90km/h mountain highways would be that enjoyable in an exotic with a nanny leading the pack. The vast majority of people who rent these cars is doing it for one reason - that is why Exotics Racing in Vegas is so successful with their insanely high prices (over $90/minute in some cases), and people still think it's worth it (myself included).

Reasonable or not, people want:

- To drive the piss out of the car for their allocated time without anyone looking over their shoulder. Obviously any speeding tickets and whatnot would be their responsibility.

- Zero damage liability, save for extreme negligence. I assume insurance costs would be worked into the price.

You'd get the odd rental for a wedding or some D-bag wanting to cruise down 17th ave in it, but 99% of people will want to go out and have their fun.

Nobody wants to rent an exotic and be terrified the entire time of doing something to it that could cost them a ton of money.

[G]

Originally posted by A790
Try looking at this from a different perspective.

Buy 3-5 of these cars and offer exotic car tours, where a guide leads people through the mountains/foothills/etc. for a nice half or full day experience. Charge $2,000/pp and enjoy your profit.

You GAIN a shitload of control over how the cars are driven, circumstances they're driven under, etc.

Your costs go UP significantly: you now need 5 cars instead of 1, and 1 of those cars will be the leader/guide and thus non-revenue generating. You will also need to pay the guide to do his/her thing, and you'll need to insure all five vehicles.

But I think the rewards are also higher:

A full day rockie excursion. Meet at 9 am, 45 minute lesson on the cars/how to drive them/controlling the power/etc.

Leave at 10 and drive for a couple of hours, stop for lunch, then a nice 4 hour long-loop home through varied terrain.

Each driver gets a good 4-6 hours of drive time, you get to monitor a lot more, and you could charge like $300/hr per car or something like that.

4 cars at $300/hr for 6 hours = $7,200 revenue per day. Less staff costs (let's say you pay your guide $30/hr, so $240 (8 hour work day, make guide responsible for giving cars a quick clean at end of shift/basic maintenance/etc.).

Let's say each car is $180,000, resulting in a $3,500/mo car payment (over 5 years at 5% interest), so you've now got $17,500/mo in car payments. Add another $1,400/mo for insurance (guessing here). You've got fixed costs of $19,400. You'll need a bay to store them, so plan for another $3k/mo there. Fixed costs now $22,400.

Cost to fuel each car is $110/400km, so add $550 per day in fuel costs.

Daily revenue = $7,200 - $240 (guide) - $550 (fuel) = $6,410 gross profit per day. You'll need 4 booked days per month to break even.

ALL NUMBERS ARE APPROXIMATE. DON'T ACTUALLY DO THIS BECAUSE IT'S A WAY BETTER IDEA THAN RENTING OUT ONE CAR AT A TIME AND FUCK IT I'LL DO IT.

EDIT: Thought about it more.

$300/hr to be driver, $50/hr to be passenger. Most people doing this will be groups, meaning likely two people per car. Charge out for 6 driving hours at $350/hr = $2,100 revenue per car per day.

Four cars = $8,400 revenue per car per day.

Less fuel costs (say $650/day to be somewhat generous).

Less food costs (if you want to provide lunch) of $100/day.

Less staff costs of $240/day.

Gross profit per day = $7,410.

Assuming book Sat/Sun during summer months (June - Sept) you are looking at revenues of $268,800/yr, gross profit of $237,120/yr.

Remove overhead (storage bay/insruance) of $50,400 = net profit of $186,720. Approximately.

ALL NUMBERS ARE APPROXIMATE. DON'T ACTUALLY DO THIS BECAUSE IT'S A WAY BETTER IDEA THAN RENTING OUT ONE CAR AT A TIME AND FUCK IT I'LL DO IT.

You will still need to pay the leases, storage, maintenance and insurance even when the cars are sitting for the 8 months of winter/spring/fall. Let's assume $20k per month x 8 months per year is $160k also, I know maintenance on the cars would be a huge expense.

[MGCM]

IMO there is 3 cars you simply MUST HAVE for something like this, A new Corvette C7 Z06, an Audi R8-V10 vert, and a Nissan R35 GTR, add a Lambo and a 458 Speciale and you've got a dynamite lineup. Based on what you've said so far that wouldnt be too far of a stretch. Add in also that 2 tracks are in process of being designed/developed/built, if you get your business going good before they open then you might even be able to offer track rentals at that time too.

[pheoxs]

The only way I see this working is rather than street rental, you do it at one of the tracks once they open up. Like the Exotics racing in Vegas. Hell you could even do a cruise + track time with an instructor or something depending on location.

The problem is, everyone in this thread is right about abuse.

The only way around that is having fees if you beat on the car, and GPS/OBD recorder that tracks all the cars diagnostics and you fine people if they are being excessive (Repeated R35 launches, burnout in the Z06, etc).

Fortunately data logging is simple nowadays so that wouldn't be hard to set up in every rental. Same thing that most work trucks now have, maybe with a few more things to watch out for.

[cressida_pimpin]

In vehicle monitoring system is a must. It's plug and play right into the port. $400 and then $35 per month. Transmits live data right to my phone. I'm happy to not have rentals from anyone who doesn't want a car with an IVMS. Not saying it can't be driven aggressively...it will just be clear who is going overboard

[Strider]

Originally posted by cressida_pimpin
In vehicle monitoring system is a must. It's plug and play right into the port. $400 and then $35 per month. Transmits live data right to my phone. I'm happy to not have rentals from anyone who doesn't want a car with an IVMS. Not saying it can't be driven aggressively...it will just be clear who is going overboard

How would you draw the line between driving aggressively and overboard though?

It'll be even more difficult putting it into legal language in a rental contract where the terms are favorable for both parties.

[Xtrema]

Originally posted by sidewaysD
Perhaps not a big market for this type of business?

It's call 8 months of winter.

Just because you have to sideline your car due to weather, doesn't mean your car payment will stop.

If someone from Miami can get by renting a California for $800 a day, we have to charge $2400 a day in Calgary since we only have 1/3 of days available.

That's why exotic car rental and time share all failed in Calgary. For $2400, that will give me a ticket to Hawaii and 2 days in a Porsche or California.

[Mitsu3000gt]

Originally posted by cressida_pimpin
In vehicle monitoring system is a must. It's plug and play right into the port. $400 and then $35 per month. Transmits live data right to my phone. I'm happy to not have rentals from anyone who doesn't want a car with an IVMS. Not saying it can't be driven aggressively...it will just be clear who is going overboard

Where would you draw the line and how would you prove anything though? How could you say with 100% certainty there wasn't a malfunction with the technology? Every single person is going to deny, deny, deny, if you try slap them with charges for driving a bit too hard. Nobody wants to rent knowing there is a nanny on board, which I think you would have to disclose. If people are scared about driving the car hard, which is the sole purpose of 99% of the renters, they won't want to rent.

Just being the devil's advocate here. If you're happy to not have rentals from people not wanting to be monitored and possibly punished, you are going to cut your already tiny customer base by a huge amount. People will argue "it's an exotic, it's meant to be driven hard", etc.

What if people refuse to pay for damages they don't believe they caused, yet the monitoring tool suggests they did? How will you collect?

This is why the track model makes the most sense. People get to drive the car to it's limits AND they get a supervisor in the car with them, making sure they have the most fun while protecting the interests of the company. Win-win. You can also charge exponentially more money.

I've worked in a rental shop for many years, and there is just so much shit to deal with. People are going to absolutely destroy the bottom of the front end, as well.

[JordanLotoski]

As a Lamborghini owner I would say this isn't a great idea.

If your not a "car rental company" most clients might think its odd coming to your house to rent a 100k+ sports car. I know I would

It will get beaten up pretty bad as it does take some getting used to.

I think your insurance and maintenance/repairs will far exceed your return. based on an assumption that you will be financing a portion of it and have a monthly car loan.

What do I know though I am just a realtor:nut:

[94boosted]

Originally posted by cressida_pimpin
Not saying it can't be driven aggressively...it will just be clear who is going overboard

OP I truly hope you succeed with this, but unfortunately as others have said I just can't see it being profitable. And also curious as to how do you draw the line between aggressive vs. overboard, how many launches can someone do, how much time at WOT, how much time at or near red line...?

[beyond_ban]

Originally posted by JordanLotoski
As a Lamborghini owner I would say this isn't a great idea.

If your not a "car rental company" most clients might think its odd coming to your house to rent a 100k+ sports car. I know I would

It will get beaten up pretty bad as it does take some getting used to.

I think your insurance and maintenance/repairs will far exceed your return. based on an assumption that you will be financing a portion of it and have a monthly car loan.

What do I know though I am just a realtor:nut:

The side bolsters on the Superleggeras at exotics racing were all chewed up from inexperienced and larger people getting in and out.

Another thing to think about is how many people will actually fit in the car. Gallardo's are a tight squeeze for anyone overweight or taller then 6'2. A Ferrari 458 on the other hand is quite spacious by comparison.

[Tik-Tok]

Surprised no one posted this yet, lol. This is the kind of thing to expect when having a rental exotic.

http://forums.beyond.ca/st/379568/what-kind-of-idiot-/