Exotic car rental services have become extremely popular over the past 10 years given that people want to experience luxurious lifestyles, a very large purchase. One of the key strengths to a exotic car rental service that these businesses can readily acquire their inventories using these financing things specific for the acquisition of vehicles institutions are willing to use exotic vehicles as collateral for a loan or a long-term lease. The gross margins generated from the rentals of exotic cars is substantial. These businesses can easily achieve rental fees of $1000 per day were more dependent customer. These businesses, while heavily subject to negative changes in the economy, are generally able to remain profitable given their low cost operating overhead. The largest ongoing is the with the financing or leasing.
For weaknesses, and economic recession can impact the revenues of these companies. This is primarily due to the fact that a rental of an. During times of economic recession, these. This is often remedied by the fact that most exotic rental car services typically operate in major metropolitan areas. Given the large population sizes in these markets, there are always going to be people that are able to of. You did even during times of a harsh economic recession.
For opportunities, exotic car rental services can simply expand by acquiring additional inventories or cars that are in the end automotive enthusiasts. Additionally, many exotic tablets additional locations in other major metropolitan area markets. Each of for these businesses is one of the strongest attributes.
For threats, the main issue faced by these businesses is damage to vehicles and other as such, it is imperative that the exotic car rental agency maintain extensive insurance policies on all vehicles and ensure that all drivers are properly insured. Many of these businesses do not allow anyone under the age of 30 to rent a vehicle from them. Competitive issues are somewhat of a moderate concern for these businesses given the unique nature of how these companies operate. In most major metropolitan areas, there are usually a handful of companies that operate in a similar capacity.