Hey everyone!
I haven't posted here in a while, I have been very busy with school and work. But lately I have been really considering a venture that really takes what I love and allows me to create a solid business from it.
I have always LOVED cars from as young as I can remember. I still do my best to talk my father into buying a Ferrari/Lamborghini etc; but try as I may he refuses to invest that much money into a depreciating asset. Which I understand, why would you pay for something that loses value at such a high rate, whereas you could buy a house for the same money, and (until recently) appreciate in value.
So on to my idea, but first a little background, I live in Monterey, CA, where many celebrities and incredibly wealthy people live. Every year there are many events that draw large amounts of tourists to the area including Concorso Italiano, an exotic car show/auction, AT&T PRO AM golf tournament, Laguna Seca is a famous race track that holds many events throughout the year, and Cannery Row is a major tourist attraction. The central coast also has some of the most beautiful drives in the world, Highway 1 goes all the way down the coast of California and is absolutely amazing to see. 17 mile drive through Pebble Beach is so scenic, they can get away with charging $10 just to drive on their roads. There are plenty of golf courses and fine dining nearby as well.
My idea is to start a small exotic car rental company.
Here is the scenario.
2009 Lamborghini Gallardo $250,000
Average Daily Rental Value $ 2,000
Maximum Monthly Income $ 60,000
Maximum Yearly Income $730,000
Expenses
100% financing @ 60months $4700
Insurance per month (approx) $300
Maintenance per month (approx) $1000
Repairs $0 (Under Warranty)
Total per month $6000
Summary: I would only have to rent the car three times per month to break even, I am sure with all of my promotions I have thought of I can easily rent the car out at least six times per month. This would net me about $12,000 a month, or $144,000 per year, and after my expenses, about $72,000 profit.
Eventually if succeed and aquire enough vehicles, I would love to set up a tour. For my birthday my girlfriend got me a day behind the wheel of 5 exotic cars all around the coast. She had to put in a reservation 6 months prior because they were completely booked. She paid almost $2500 for the full day. They do it Saturdays and Sundays every weekend in a new location. They have 5 people each tour.
With the tours they have the potential to make $25,000 per weekend, provided they sell 5 seats each day.
The companies I checked with are also very particular about who they rent the vehicles to. They run background checks on all drivers to make sure that they do not have any unfavorable incidents on their record, (excessive accidents, tickets, etc), they call the client's personal insurance company to ensure that they will cover the rental car for them. Finally, they require a $5000 deposit which is returned provided there is no damage to the car, excessive mileage, etc.
I know this was a long post, but I tried to generalize it so you guys could get the jist of this idea and hopefully get some constructive feedback.
Thanks Guys!
I haven't posted here in a while, I have been very busy with school and work. But lately I have been really considering a venture that really takes what I love and allows me to create a solid business from it.
I have always LOVED cars from as young as I can remember. I still do my best to talk my father into buying a Ferrari/Lamborghini etc; but try as I may he refuses to invest that much money into a depreciating asset. Which I understand, why would you pay for something that loses value at such a high rate, whereas you could buy a house for the same money, and (until recently) appreciate in value.
So on to my idea, but first a little background, I live in Monterey, CA, where many celebrities and incredibly wealthy people live. Every year there are many events that draw large amounts of tourists to the area including Concorso Italiano, an exotic car show/auction, AT&T PRO AM golf tournament, Laguna Seca is a famous race track that holds many events throughout the year, and Cannery Row is a major tourist attraction. The central coast also has some of the most beautiful drives in the world, Highway 1 goes all the way down the coast of California and is absolutely amazing to see. 17 mile drive through Pebble Beach is so scenic, they can get away with charging $10 just to drive on their roads. There are plenty of golf courses and fine dining nearby as well.
My idea is to start a small exotic car rental company.
Here is the scenario.
2009 Lamborghini Gallardo $250,000
Average Daily Rental Value $ 2,000
Maximum Monthly Income $ 60,000
Maximum Yearly Income $730,000
Expenses
100% financing @ 60months $4700
Insurance per month (approx) $300
Maintenance per month (approx) $1000
Repairs $0 (Under Warranty)
Total per month $6000
Summary: I would only have to rent the car three times per month to break even, I am sure with all of my promotions I have thought of I can easily rent the car out at least six times per month. This would net me about $12,000 a month, or $144,000 per year, and after my expenses, about $72,000 profit.
Eventually if succeed and aquire enough vehicles, I would love to set up a tour. For my birthday my girlfriend got me a day behind the wheel of 5 exotic cars all around the coast. She had to put in a reservation 6 months prior because they were completely booked. She paid almost $2500 for the full day. They do it Saturdays and Sundays every weekend in a new location. They have 5 people each tour.
With the tours they have the potential to make $25,000 per weekend, provided they sell 5 seats each day.
The companies I checked with are also very particular about who they rent the vehicles to. They run background checks on all drivers to make sure that they do not have any unfavorable incidents on their record, (excessive accidents, tickets, etc), they call the client's personal insurance company to ensure that they will cover the rental car for them. Finally, they require a $5000 deposit which is returned provided there is no damage to the car, excessive mileage, etc.
I know this was a long post, but I tried to generalize it so you guys could get the jist of this idea and hopefully get some constructive feedback.
Thanks Guys!
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