You can start an exotic car rental business with a minimum of $5 million. However, to start a standard exotic car rental business with a fleet of exotic cars will cost over $20 million.
This is so because exotic car rental businesses offer high-end and rare exotic cars for short-term rentals. Clients can experience driving exclusive and prestigious cars, including sports cars, luxury sedans, and supercars.
Factors That Determine the Cost of Opening an Exotic Car Rental Business
The Number and Types of Exotic Cars You Want to Start the Business With
If you intend to start your exotic car rental business with less than a handful of exotic cars, then you can spend about a million dollars or more.
But if you want to start a standard exotic car rental business with over a dozen of some of the latest exotic cars, then you should be prepared to spend over $20 million.
So also, it is important to note that the brand, type, and size of exotic cars you want to start the business with will go a long way to determining how much you will spend to get the business up and running.
For example, the price of a 2023 Bentley Mulanne is between $475,090 and $546,040. The price of the 2024 Rolls-Royce Phantom is expected to start around $493,000 and go up to $660,000 depending on the trim and options.
Range Rover Autobiography trim starts at $141,100 for standard-wheelbase PHEV models, $166,400 for standard-wheelbase P530 models, $168,400 for three-row long-wheelbase P530 models, and $170,400 for two-row P530 long-wheelbase models.
The Size of Your Parking Facility
You are not supposed to park your exotic cars indiscriminately on the street or main road. By law, before you can get approval to start an exotic car rental business, you should be able to at least secure a parking facility.
Trust me, the cost of leasing a secured parking facility in a highbrow area is going to be a significant portion of your budget.
For example, it will cost you between $2,000 to $10,000 per acre per year to lease a secured parking facility in a suburban area, and between $10,000 to $100,000 or more per acre per year to lease a parking facility in an urban or prime commercial area.
The Cost of Registering the Business, and Obtaining the Necessary Licenses, and Permits
Before you can start an exotic car rental business, you should have in place the following licenses and permits; Business License, Commercial Driver’s License (CDL) with Passenger Endorsement,
Motor Carrier Authority (MC Number), Vehicle Registration, and Commercial Plates, Vehicle Inspection and Safety Certificates, Exotic car rental or Limousine Operator’s License,
Insurance (Commercial Auto and Liability), Federal Employer Identification Number (EIN), State and Local Permits and Certifications, and Operating Authority from the Federal Motor Carrier Safety Administration (FMCSA) et al.
It might interest you to note that the amount it will cost you to obtain all the listed permits and licenses will form a significant portion of your budget.
The Required Insurance Policy Coverage
No wise businessman or woman would dabble in the exotic car rental business without having the necessary insurance policy coverage in place.
More often than not, the exotic cars that are used in the business might be under a lease agreement, coupled with the fact that exotic car rental businesses, just like any other rental business, are subjected to risks of different proportions.
You should at least have the following insurance policy coverage in place; Commercial Auto Insurance, Liability Insurance, Passenger Liability Insurance,
Workers’ Compensation Insurance, General Liability Insurance, Property Insurance (for your vehicles and premises), Umbrella Insurance (Excess Liability Insurance), Garage keepers Insurance, Business Interruption Insurance, and Business Owner’s Policy (BOP).
The Cost of Hiring and Training Your Employees
The fact that you cannot start an exotic car rental business alone means that you should make provisions for hiring and training your employees.
You should make plans for competent people to occupy the role of chauffeurs, an operations manager, dispatchers, customer service representatives, a fleet maintenance technician, an accountant or financial manager, IT, and administrative support staff, and marketing and sales officers.
The Equipment, Tools, and Supplies Needed to Operate Your Exotic Car Rental Business
Another major factor that can influence the cost of starting an exotic car rental business is the budget for acquiring all the needed equipment, tools, and supplies to operate your exotic car rental business.
As expected, you should budget for GPS navigation systems, communication devices (e.g., two-way radios, smartphones), vehicle maintenance tools and equipment,
Vehicle tracking software, reservation and dispatch software, office computers and software, accounting software, office furniture and supplies,
Safety equipment (e.g., first aid kits, fire extinguishers), safety and maintenance records software, payment processing systems, vacuum cleaner, first aid kit, fire extinguisher, tire pressure gauge, and roadside emergency kit.
Your Operational Cost, and Contingency
You cannot operate an exotic car rental business without having a budget for operation and contingency. Under your operational cost and contingency, you should be able to budget for:
Fueling your exotic cars, servicing and maintenance, toll fees, parking fees, towing fees, emergency vehicle repairs, unforeseen maintenance costs, unplanned vehicle downtime, legal fees (if facing any legal issues), accidents and collision repairs, and medical expenses (if injuries occur) et al.