Getting To Know Exotic Car Rental Business
There is no doubt that the luxury car rental market is growing much faster than one would have expected. Overall the revenues generated from this segment alone could be close to around $12 bio annually in this country alone and it is posting a healthy double digit growth every year. However, at the same time, there are many new entrants who are not able to make it big in this business because of a number of reasons. As a rule of the thumb, it would be pertinent to mention here that out of ten only two new exotic car rental and luxury car rental businesses make it beyond the first two years while the rest are forced to close shop. It would therefore be not a bad idea to find out more about the reasons why the two succeed instead of focusing on the eight who fail. Over the next few lines we will try and find out the various tips to be kept in mind when it comes to starting a rental business engaged in luxury and exotic car leasing and renting.
Having A Good Business Plan Is A Must
Before even going ahead with such a business, you must spend some time in the drawing board and come out with a workable and reasonably foolproof business plan. To make this happen it is important that you do a thorough homework and find out more about the business potential in the area where you want to set up shop. Even if you operate with an ecommerce module it is important that you have a brick and mortar site and it should be located in the right area. Unless you have a decent volume of customers who will opt for luxury cars on hire, it might not be easily possible to scale the business to the next higher level.
Things To Be Concerned About When You Start The Business
The next important thing is be aware of the various due diligence processes to be carried out before a customer is handed over the keys to the luxury cars and exotic cars. This is important because you will be parting with a car worth a few hundred thousand dollars and would like to ensure that you will get back the car in shape. You must not forget to collect the copy of the driving license of the customer, his social security details, and residential details. It would also be advisable to receive the first payment through credit card or debit card to understand more about the credit worthiness and credit history of the customer. Further as a service provider you must be sure about the insurance formalities to be completed failing which you could end up in big trouble should the car meet with some accident or other mishaps.
You also must know how to balance the inventory of luxury cars ensuring that no customer walks out without a car. At the same time it is also important to avoid inventory build up because it could cost heavily in terms of interest and other costs.