Exotic Car Rental Service Business Plan, Marketing Plan, How To Guide, and Funding Directory
The Exotic Car Rental Service Business Plan and Business Development toolkit features 18 different documents that you can use for capital raising or general business planning purposes. Our product line also features comprehensive information regarding to how to start an Exotic Car Rental Service business. All business planning packages come with easy-to-use instructions so that you can reduce the time needed to create a professional business plan and presentation.
Your Business Planning Package will be immediately emailed to you after you make your purchase.
Product Specifications (please see images below):
- Bank/Investor Ready
- Complete Industry Research for the Industry
- 3 Year Excel Financial Model
- Business Plan (26 to 30 pages)
- Marketing Plan (24 to 28 pages)
- 425+ Page Funding Directory
- PowerPoint Presentation
- Loan Amortization and ROI Tools
- Three SWOT Analysis Templates
- How to Start a Business Guide
- Easy to Use Instructions
- All Documents Delivered in Word, Excel, and PowerPoint Format
- Meets SBA Requirements
Many people have a dream of owning an exotic car or high-end sports car. For many people, the price tag of spending $100,000 all the way to $1 million on a vehicle is simply out of reach. These car prices can only be afforded by the very rich, and as such the ownership of these vehicles remains a dream to most people. However, there are a number of companies that are able to provide fractional ownership and rental of exotic cars to the general public. These programs allow an individual who could not otherwise afford an exotic car or high-end sports car with the ability to use one on a regular basis. Many exotic car rental companies charge daily fees ranging anywhere from $500 to $1,500 depending on the car that the driver wants to use for a specific period of time. It should be noted that many of these companies do have fractional ownership programs where a person is able to buy into a number of different exotic cars so that they could drive vehicles such as Porsches, Ferraris, Lamborghinis, and related high-end sports cars without having to deal with the very high expense of owning and operating one car. One of the nice things of developing a exotic car rental business or fractional ownership business is that the customer has access to a number of sports cars that they would never be able to afford in their entirety.
The startup costs associated with the new exotic car rental service business typically ranges anywhere from $500,000 all the way up to $5 million depending on how the high-end vehicles are going to be acquired. Given the rapid appreciation of these cars, many of these services will actually lease these vehicles instead of outright ownership. However, given the very high depreciation expense – some entrepreneurs do find to be financially advantageous to actually acquire the vehicles rather than leasing them for me third-party company. When developing a business plan specific for an exotic car rental service, special attention should be paid to the amount of depreciation and with owning and operating this type of business.
One of the better points of owning these vehicles is that the financial risks are somewhat ameliorated given that the leasing company does require that monthly payments are made on each vehicle. During times of economic recession, individuals who are part of these programs may substantially curtail their rental of exotic vehicles. The gross margins generated from this rental of exotic cars typically is around 90% to 95% depending on the forms of payment accepted by people.
Given the highly tangible inventory of exotic cars they’re going to be purchased, most entrepreneurs are able to easily source capital from banks as well as third-party funding sources. As always, an exotic car rental service business plan is going to be required in order to obtain any type of funding including lease financing. This business plan should have a three year to five year financial projection that includes a profit and loss statement, cash flow analysis, balance sheet, breakeven analysis, and business ratios page. The business plan should also include industry research specific to the car rental agency market with a specific sub focus on exotic vehicles. Within the United States, there are currently approximately 500 companies that are actively involved with the rental or fractional ownership of high-end sports cars or luxury vehicles. The revenues generated by this industry is about $750 million per year and provides jobs to about 4000 people excluding mechanics that argues specific for maintaining the fleet of cars. Within the business plan a full demographic analysis should also be included with a specific focus on the high net worth and high income people within the target market. An examination of annual household income, median net worth, median home value, population density, and population size should be thoroughly discussed throughout the business planning documents. A competitive analysis should also be included, but you will be hard-pressed to find a tremendous number of the services operating with any given market. Usually, the larger competitors are located in major metropolitan areas.
In exotic car rental service SWOT analysis is usually produced in conjunction with both the business plan and the marketing plan. As it relates to strengths, exotic car rental service companies as well as fractional ownership businesses are able to generate extremely high gross margins from their daily rental or monthly rental fees. Additionally, as especially with fractional ownership businesses – these businesses are able to produce highly recurring streams of revenue given that most of these programs work in a membership capacity. The ability to source capital for these businesses is also relatively easy given that a majority of the capital used is for the acquisition of tangible vehicles.
For weaknesses, these businesses are highly subject to economic fluctuations. During times of economic recession, luxuries like renting an exotic vehicle will very quickly be cut out from most people’s budgets. However, given the high cost of these rentals as well as fractional ownership – most of the people that engage in this type of activity are high income professionals or business owners. As such, these people are less swayed by negative changes in the economy and will only cut off these types of expenses during the course of a very deep and prolonged recession. There are also very high operating costs associated with these businesses especially as it relates to potential underlying leases for the vehicles as well as the very expensive maintenance that is needed for a high-end car.
As it relates to opportunities, these businesses can rapidly expand by increasing their fleet of cars to include only sports cars but also luxury sedans and coops as well. Additionally, many entrepreneurs had operate within this market space will frequently develop second locations in other metropolitan areas that have a sizable population that once you drive a high-end vehicle. Given the large tangible asset base – again – most financial institutions are willing to provide the necessary capital for large-scale exotic car fleet acquisitions.
For threats, outside of a major economic recession there’s really nothing that impacts the way of these companies do business. Competitive competition is always an issue for these companies but again this is somewhat muted given the unique and exclusive nature of how exotic car rental companies operate.
For the exotic car rental service marketing plan, a substantial focus is usually placed on developing referral relationships with automotive dealers as well as car rental agencies. Many of these businesses quickly become successful by partnering with third-party car rental agencies when a customer makes an inquiry regarding types of high-end vehicles they can rent on a short-term basis. As such, referral and commission-based programs can often be developed in conjunction with car-rental services so that referrals can be made quickly and profitably. As always, a an expansive presence on the Internet is required for these businesses given that many people will use search engines to find exotic car rental services. Most importantly, the proprietary website developed by the exotic car rental service should focus substantially on showcasing the current inventory of cars for rent, costs associated with renting a sports car, and the requirements for people that want to use the company’s vehicles. Functionality regarding reserving a car for use as well as contacting the company directly should be included on the website. Many of these businesses will often maintain a presence on social media as well to showcase the fleet of cars that are available for rent at any given time. While some businesses do have issues as relates to marketing on platforms such as FaceBook, Twitter, and Instagram – exotic car rental services have an interest among a number of different people and as such this can be a very effective way for generating interest in the services offerings.