Car Hire

[FazAdam]

I currently have a small fleet of 2 cars : ' ). The two cars my family have is the new BMW M140i and an Audi S3. Both cars are brand new but I would like to rent them out.

Things I need answering;

Since the cars are brand new, I would like a tracker to be added to them. Which should include Remote locking/Remote engine locking/GPS and the other features. Could anyone recommend anyone to me which do this or how would I accomplish this.

The cars are currently insured on my dads name, how would the insurance company feel when i rent these cars out. Would the person who hires the car, need to get insurance on the car and pay for it themselves?

Also, what do car hire companies do when someone crashes the car? What would happen then?
I'm only going to be renting the cars out for a whole week and I have afew people who are interested. If anyone has any other pointers as to what I should look out for, please do tell.

 

[Chawton]

Probably wise to ask your dad's permission first.

 

[APW]

You will need your own car hire insurance but is very expensive probably around £10-£15K per car thats if you can get insurance without a history in the sector and probably need to be 25+ years old before they would consider you.

Someone who hires the car can purchase their own car hire excess insurance which will cover the excess charges.

 

[Mr D]

These were purchased to rent out?
Or the family will be using them too?

Is this just to offset some of the costs of running the cars or to try and make money? Insurance will be expensive and you will have limitations. You'll also have some paperwork.
Do you have sufficient interest to cover the costs of setting up the business and ongoing costs?
Repairs, maintenance, cleaning, legal costs etc. Who is going to be cleaning the cars between hires, you or your dad?

 

[STDFR33]

Where I am from, the only people that do this on such a small scale are drug dealers.

 

[mattk]

The other things you need to factor in is maintenance costs and depreciation. People rent high powered cars to drive like they are an extra in Fast and Furious. Therefore expect regular bills for tyres and brakes and potentially larger bills for clutches, gearboxes and so on.

Similarity, renting out a car will add significantly to the mileage which will impact the resale value.

 

[aaron web designer]

Speak with local car hire companies and ask them to rent the cars out for you. They'll obviously take a cut but they should provide insurance for you. Although depending on where you are; many of them are dodgy to begin with! Be careful in this industry.

 

[FazAdam]

Probably wise to ask your dad's permission first.

Dad's all up for the idea.

These were purchased to rent out?
Or the family will be using them too?

Family would also be using these cars.

Is this just to offset some of the costs of running the cars or to try and make money? Insurance will be expensive and you will have limitations. You'll also have some paperwork.
Do you have sufficient interest to cover the costs of setting up the business and ongoing costs?
Repairs, maintenance, cleaning, legal costs etc. Who is going to be cleaning the cars between hires, you or your dad?

This is just to try to make some money on the side and hopefully expand. My whole family has been construction trade, but I just wanna try something new. My brother is a mechanical engineer and actually knows alot about the repairs and maintenance. I will be cleaning the cars myself.

Where I am from, the only people that do this on such a small scale are drug dealers.

The cars we have right now are earned from hardwork .

The other things you need to factor in is maintenance costs and depreciation. People rent high powered cars to drive like they are an extra in Fast and Furious. Therefore expect regular bills for tyres and brakes and potentially larger bills for clutches, gearboxes and so on.

We have warranty on both cars so the tyres would not be an issue and neither would the brakes. We want to play this safe by adding trackers on both cars, meaning they can have their fun but not excess.

Similarity, renting out a car will add significantly to the mileage which will impact the resale value.

We're not planning to sell the cars anytime soon .

Speak with local car hire companies and ask them to rent the cars out for you. They'll obviously take a cut but they should provide insurance for you. Although depending on where you are; many of them are dodgy to begin with! Be careful in this industry.

This actually seems like a good idea, will look more into it.

 

[Fortuityview]

I currently have a small fleet of 2 cars : ' ). The two cars my family have is the new BMW M140i and an Audi S3. Both cars are brand new but I would like to rent them out.

Things I need answering;

Since the cars are brand new, I would like a tracker to be added to them. Which should include Remote locking/Remote engine locking/GPS and the other features. Could anyone recommend anyone to me which do this or how would I accomplish this.

The cars are currently insured on my dads name, how would the insurance company feel when i rent these cars out. Would the person who hires the car, need to get insurance on the car and pay for it themselves?

Also, what do car hire companies do when someone crashes the car? What would happen then?
I'm only going to be renting the cars out for a whole week and I have afew people who are interested. If anyone has any other pointers as to what I should look out for, please do tell.

Hi there, if you are interested there are now peer 2 peer car sharing companies which you can book out your car to. Try the likes of drive or hiyacar. They also sell insurance to the hirees

 

[FazAdam]

Hi there, if you are interested there are now peer 2 peer car sharing companies which you can book out your car to. Try the likes of drive or hiyacar. They also sell insurance to the hirees

Can you link me their website, thank you.

Edit - Nvm thank you, will be looking at it.

 

[Fortuityview]

Can you link me their website, thank you.

Edit - Nvm thank you, will be looking at it.

HiyaCar and drivy just end in co dot uk also easycarclub

 

[FazAdam]

HiyaCar and drivy just end in co dot uk also easycarclub

Hiyacar looks amazing and their services look just as good. I'll also take alook at the others. Thank you

 

[Mitch3473]

For someone with no experience in the rental game, those are not the cars you would be wanting to rent out, they will attract the type of customer you dont want.
Worst case scenarios.......
They are more likely to attract the attention of the police.
They are hired to be used as spares, swopped wheels/tyres, battery, etc.
They are returned through the letter box ( Quote Homer Simpson....).
Can you spot a fake driving licence..??
Then there's the emotional connection to the cars, they are the familys and not a business tool.

Sorry to be negative but sooner or later it will happen. Probably sooner rather than later, you are new in the market and this will be noted, the type of customers who rent this type of vehicle will try it on.

 

[JEREMY HAWKE]

This will be the biggest nightmare you will ever have and that's just the insurance

 

[wevet]

Looks easy doesn't it? have 2 cars hire them out. They go out, you collect cash, they come back in and round you go again.

Our 20 years in the vehicle rental business has taught me fundamental laws of the universe:

Bring a seemingly sensible individual into contact with a rented internal combustion engine and this is a recipe for total idiocy.

Nothing travels so fast towards another solid object as a hire car.

The margins are skinny. the risks are huge,

If someone hires your car and it disappears, the Police are simply not interested. they do not record it as stolen but as an "overdue hire". Trackers can be found and removed with ease.

Unless you have a large fleet to spread the risk across you are likely to get your fingers very burned

Whatever you do, do not make the cars available for hire during Diwali as they will be used as drag cars on the streets of Hounslow or Birmingham.

Y

 

[Chris Ashdown]

Trackers is a shipping contained just dont work and as the cars are expensive they are very attractive to the wrong sort

I assume GPS tracking would be against the GDPR if the customer disagreed with having their movements tracked

Nice to hire and use for a track day and photo driving licences are cheap to get if you know the right people

Why not just by a couple of mid range middle of the road cars instead to hire out, but remember hire rates are very low anyway, cheaper to hire rather than buy a train ticket on the day

 

[Mitch3473]

Looks easy doesn't it? have 2 cars hire them out. They go out, you collect cash, they come back in and round you go again.

Our 20 years in the vehicle rental business has taught me fundamental laws of the universe:

Bring a seemingly sensible individual into contact with a rented internal combustion engine and this is a recipe for total idiocy.

Nothing travels so fast towards another solid object as a hire car.

The margins are skinny. the risks are huge,

If someone hires your car and it disappears, the Police are simply not interested. they do not record it as stolen but as an "overdue hire". Trackers can be found and removed with ease.

Unless you have a large fleet to spread the risk across you are likely to get your fingers very burned

Whatever you do, do not make the cars available for hire during Diwali as they will be used as drag cars on the streets of Hounslow or Birmingham.

Y

Was going to mention that but the PC brigade might get offended. It's true, they will be all over a new rental outfit with those vehicles like flies round a t&&d, you wont know what hit you.
All the above is sound advice.

 

[Mitch3473]

As someone once said to me...the quickest way to make a small fortune in car rental is to start with a large fortune..

 

[JEREMY HAWKE]

Looks easy doesn't it? have 2 cars hire them out. They go out, you collect cash, they come back in and round you go again.

Our 20 years in the vehicle rental business has taught me fundamental laws of the universe:

Bring a seemingly sensible individual into contact with a rented internal combustion engine and this is a recipe for total idiocy.

Nothing travels so fast towards another solid object as a hire car.

The margins are skinny. the risks are huge,

If someone hires your car and it disappears, the Police are simply not interested. they do not record it as stolen but as an "overdue hire". Trackers can be found and removed with ease.

Unless you have a large fleet to spread the risk across you are likely to get your fingers very burned

Whatever you do, do not make the cars available for hire during Diwali as they will be used as drag cars on the streets of Hounslow or Birmingham.

Y

Drive it like you hired it !

 

[Chawton]

You've posted on a forum for advice and you've had plenty of it, Faz. Good advice at that. In the other thread when you sensed some positive noises you mentioned you'd let your dad know. Make sure you do the mature thing and show your dad the whole thread. It's his money on the line at the end of the day. It's far too easy/tempting to dismiss it in your position.

 

[FazAdam]

Thank you all for your advice, literally it's all I need to make a decision. I guess, I'll just stick to hiring it out to friends and people that I work with. Got alot of interest for weddings and so on.

 

[revs]

I've worked for the uk's biggest car rental firm. Most of the fleet were vauxhalls and due to the size of the company we were able to negotiate sizeable discounts with the manufacturer across several hundred cars. The rental cars were often sold back into the market a couple of years later with little or no depreciation. The two cars you've mentioned will depreciate as least £2500 per year and excess mileage will reduce the residuals further. Any depreciating asset needs to be in use to derive as much value from it as possible so you'd need to be hiring them/using them at least 90% of the time. In addition you've got to be careful of people renting the cars for insurance scams. The scammers would make sure they had a car full of people when they staged accidents for whiplash claims! Camper van hire may offer a better business opportunity but competition seems really high. Hiring appreciating assets is the ideal business, think Rolls Royce and weddings.

 

[FazAdam]

I've worked for the uk's biggest car rental firm. Most of the fleet were vauxhalls and due to the size of the company we were able to negotiate sizeable discounts with the manufacturer across several hundred cars. The rental cars were often sold back into the market a couple of years later with little or no depreciation. The two cars you've mentioned will depreciate as least £2500 per year and excess mileage will reduce the residuals further. Any depreciating asset needs to be in use to derive as much value from it as possible so you'd need to be hiring them/using them at least 90% of the time. In addition you've got to be careful of people renting the cars for insurance scams. The scammers would make sure they had a car full of people when they staged accidents for whiplash claims! Camper van hire may offer a better business opportunity but competition seems really high. Hiring appreciating assets is the ideal business, think Rolls Royce and weddings.

I'm not planning on hiring the car out every single day, but the days I do rent it out, i'll make sure everything is legit and done right. For example, one of my mates offered me £200 for the m140i for a wedding which is taking place on the 7th of August. I doubt there is alot of risk in these type of hires.

 

[MBE2017]

I'm not planning on hiring the car out every single day, but the days I do rent it out, i'll make sure everything is legit and done right. For example, one of my mates offered me £200 for the m140i for a wedding which is taking place on the 7th of August. I doubt there is alot of risk in these type of hires.

Depends how fast the groom wishes to go when doing a runner.

 

[Mr D]

I'm not planning on hiring the car out every single day, but the days I do rent it out, i'll make sure everything is legit and done right. For example, one of my mates offered me £200 for the m140i for a wedding which is taking place on the 7th of August. I doubt there is alot of risk in these type of hires.

Glad you can take the time to make sure everything is legit and done right.
You know the risks you will accept.

 

[FazAdam]

Depends how fast the groom wishes to go when doing a runner.

Glad you can take the time to make sure everything is legit and done right.
You know the risks you will accept.

Yep