Car leasing is an interesting business sector that continues to grow. Along with internal combustion engine vehicles, electric vehicles have made a name for themselves to meet the requirements of several cities.
How to open a luxury car rental agency
And then comes the rental of luxury cars, a branch that hardly knows the crisis, because it is aimed at a specific category of people.
In fact, it turns to the richest companies, but also to those who want to mark the occasion for a professional or social occasion. So, if you decide to set up such an agency, know that it remains a good business idea.
Project LOC: What do you need to know?
Before starting to create a luxury car rental agency, you first need to know the scale of what you want to set up.
The demand for luxury cars is growing
First, you must have a clear and precise idea of what your agency will be used for. In fact, be aware that luxury cars are rented for medium and short term. You can be asked for rentals of a few days, or even a few hours, for the duration of an event, a ceremony or to promote the image of a company. People can also go and rent a luxury car for their self image. This includes entrepreneurs who want to make a good first impression and mark the occasion, during an interview, with collaborators or investors. Go to the loc development project review, to know more.
So, your luxury car rental service can be in demand for many reasons. This seems like a good deal, because you allow many people to have access to a property that is difficult to own. In fact, you offer them the possibility of having high-end cars in their possession without having to use a car loan.
This is also why it remains very interesting to set up your luxury car rental company near airports. In fact, your services will be requested by individuals, business leaders as well as for business trips. Your turnover at the end of each year can be highly dependent on the location of your agency and the extent of your geographical coverage. Your goal should be to set up a competitive, luxury car rental business like MNGT.
Which car to choose?
As part of creating a luxury car rental agency, you must pay attention to the choice of car. Agencies like MNGT offer a wide variety of prestige cars. In fact, you have to choose between brands like Rolls Royce, BMW, Mercedes, Audi, Maserati, Porsche and others. It is almost unthinkable to buy these vehicles in new condition to start your business.
However, the market for used luxury cars is a very developed market that offers some interesting opportunities. In fact, you can use luxury cars at a relatively low price. The most interesting markets are those in Eastern Europe, especially in countries like Poland. Bet on the occasion and always look for a good deal, but stay vigilant and go with a specialist experienced in luxury cars if necessary.
If you’re a handyman or have a mechanic friend who does a great job, you can buy high-mileage used luxury vehicles at low prices. Then you can handle the repairs yourself, this is a great way to save money.
Where to store luxury cars and what are the legal requirements?
Once you have the luxury cars, you now need to think about how to store them safely. In this context, it is best to buy or rent a garage in which to store them. As with companies like MNGT, you should pay attention to the condition of your luxury cars. With different cars, you have to pay for gas, insurance, maintenance and all the other costs that arise.
It is up to you to set up a legal structure to comply with the law. You must also obtain a VAT number and have all the necessary permits for carrying out your activity. Note that according to the Highway Code, nine-seater vehicles can be rented without a driver. But if you need to rent a van or mini bus type vehicle with more space, you will be forced to bring a driver. But this usually doesn’t apply to luxury cars that usually only have a few seats in the back. Additionally, take the time to contact your insurance company and see if it covers you for performing this type of activity.
What revenue can you expect as a luxury car rental company?
As mentioned above, the income for this luxury car rental activity can be very interesting. However, they can be perceived in different ways. First, you can rent without a driver, with all the conditions, including the responsibility and obligation of the renter in case of breakdown or accident. The rental company must also provide insurance coverage. For some, pricing can be done based on the time it takes to clean a vehicle. These hourly rates can vary between 100 and 350 € depending on the model rented.
Another way is to hire your rental car with a chauffeur service which may be needed on many occasions. In fact, this service can be requested during city excursions or in the context of renting limousines for parties. However, this is a separate activity similar to a ride-hailing service. An additional test may be required to pass.
Creating a luxury car rental agency is a very good business idea, as the sector is booming. But to set up your business on the rules of the art, you must know the different levels to cross. There are many details that go into it and that will determine the success of your business.