Why Exotic Car Rentals Fail

Summary

Dans cette vidéo, l'animateur Lucky expose les raisons pour lesquelles tant d'entreprises de location de voitures de luxe échouent. Il détaille les cinq principaux facteurs, allant de la mauvaise sélection du marché à la gestion inadéquate des coûts d'entretien. Il met en garde contre les pratiques de location non régulières et souligne les défis de l'assurance pour les voitures de luxe, recommandant aux aspirants entrepreneurs de commencer avec des voitures moins chères pour une meilleure rentabilité.

Takeaways

• 🚗 Les entreprises de location de voitures exotiques échouent souvent en raison du mauvais choix de marché. Un grand marché touristique est nécessaire pour réussir.
• 📍 Ne pas ouvrir une entreprise de location de voitures saisonnière dans des petites zones. Les grandes villes touristiques comme Las Vegas, LA et Miami sont préférables.
• 🚘 Choisir les mauvaises voitures est une erreur courante. Évitez les voitures comme Aston Martin et Rolls Royce qui ont un faible retour sur investissement.
• 🔧 L'entretien préventif est crucial. Ne pas le faire peut affecter la sécurité et la valeur de revente des voitures.
• 📉 La déflation du parc automobile met souvent les entreprises en faillite. La gestion des prêts commerciaux et de la dépréciation est essentielle.
• 📝 Avoir les licences, assurances et pratiques commerciales adéquates est fondamental. De nombreux entrepreneurs ne se conforment pas aux exigences légales.
• 💸 L'assurance pour les voitures exotiques est extrêmement coûteuse et difficile à obtenir pour les nouvelles entreprises.
• 🚀 Les pratiques commerciales douteuses, comme la location de voitures d'autres personnes sans assurance adéquate, sont courantes et dangereuses.
• 🔍 L'importance de la recherche de marché et de comprendre les dynamiques locales avant de se lancer dans la location de voitures exotiques.
• ⚠️ Les investissements personnels à long terme dans les voitures exotiques peuvent entraîner des dettes importantes en raison de la dépréciation rapide des véhicules.

Q & A

Pourquoi tant de sociétés de location de voitures de luxe échouent-elles?

Elles échouent pour plusieurs raisons, notamment le mauvais choix du marché, la sélection incorrecte de voitures, la maintenance insuffisante, les problèmes de licences et d'assurances, et la déflation.

Quel est le cinquième problème mentionné dans le script pour les entreprises de location de voitures de luxe?

Le cinquième problème est le choix du marché. Certains croient qu'absence de concurrence dans une grande ville est un avantage, mais cela peut masquer un manque de demande réelle.

Pourquoi les voitures telles que les Aston Martin, Bentley et Rolls Royce ne sont-elles pas de bonnes options pour la location?

Ces voitures ne sont pas de bonnes options car elles ont tendance à ne pas être demandées autant que prévu, et leur retour sur investissement (ROI) est souvent insatisfaisant.

Quelle est la différence entre la maintenance préventive et la maintenance de panne?

La maintenance préventive vise à maintenir la valeur de la voiture et à prévenir les pannes, tandis que la maintenance de panne est effectuée après qu'un problème est survenu.

Pourquoi les licences et les assurances sont-elles cruciales pour les entreprises de location de voitures de luxe?

Les licences et assurances sont cruciales pour protéger la entreprise contre les risques liés à la location de voitures coûteuses et pour se conformer aux réglementations légales.

Quels sont les risques associés au fait de ne pas avoir les assurances appropriées pour une entreprise de location de voitures de luxe?

Sans assurances appropriées, les entreprises prennent le risque de ne pas être indemnisées en cas d'accident ou de dommages, ce qui peut entraîner des pertes financières importantes voire la faillite.

Quelle est la principale raison invoquée dans le script pour éviter de louer des voitures de luxe à des tiers?

La principale raison est la responsabilité et la possibilité de devoir assumer les coûts et les réclamations en cas d'accident ou de dommages, surtout si les voitures ne sont pas correctement assurées ou enregistrées.

Quel conseil est donné pour gérer les coûts de maintenance des voitures de luxe dans une entreprise de location?

Le conseil donné est de mettre de côté une partie des revenus pour la maintenance, la dépréciation et les coûts opérationnels, au lieu de dépenser tous les bénéfices.

Quelle est la stratégie de déflation mentionnée dans le script et comment cela affecte-t-elle les entreprises de location de voitures de luxe?

La déflation est le processus de vente d'un véhicule ancien pour en acheter un nouveau, ce qui se produit tous les 2 à 3 ans. Cela peut causer la faillite des entreprises qui ne peuvent pas suivre le rythme de renouvellement des véhicules ou qui sont prises dans la dépréciation des voitures.

Quels sont les avantages potentiels de démarrer avec une entreprise de location de voitures ordinaires plutôt que de luxe?

Les entreprises de location de voitures ordinaires ont généralement un retour sur investissement plus élevé, des coûts d'assurance et de maintenance inférieurs, et un risque de faillite moindre.

Quel est le message final du script pour ceux qui envisagent de démarrer une entreprise de location de voitures de luxe?

Le message final est de faire preuve de prudence et de ne pas entrer dans le secteur de la location de voitures de luxe sans une compréhension claire des risques et des coûts associés, et de considérer les alternatives moins risquées.

Outlines

00:00

😀 Introduction et Contexte

L'animateur Lucky accueille les spectateurs sur sa chaîne YouTube, Automotive Life, et présente le sujet du jour : pourquoi tant de compagnies de location de voitures exotiques échouent. Il explique qu'il a choisi ce sujet en raison des nombreuses demandes de conseils qu'il reçoit sur la création d'une entreprise de location de voitures exotiques.

05:00

📉 Erreur n°5 : Mauvaise Évaluation du Marché

Lucky explique que beaucoup de gens pensent qu'une absence de concurrence dans une grande ville signifie une bonne opportunité de marché. Il illustre ce point avec l'exemple d'Oklahoma City, soulignant que même dans des villes comme Las Vegas, il y a des périodes de faible activité. Il conseille d'éviter d'ouvrir des entreprises saisonnières et de se concentrer sur des marchés touristiques importants comme Las Vegas, Los Angeles, et Miami.

10:02

🚗 Erreur n°4 : Mauvais Choix de Voitures

Il décrit comment de nombreuses entreprises choisissent les mauvaises voitures, souvent en fonction de leurs préférences personnelles plutôt que des demandes du marché. Il cite des exemples de voitures comme les Aston Martin, Bentley et Rolls Royce qui ne se louent pas bien. Il conseille d'investir dans des modèles plus demandés et d'éviter des investissements coûteux sans retour sur investissement assuré.

15:02

🔧 Erreur n°3 : Négligence de l'Entretien

Lucky souligne l'importance de l'entretien préventif pour maintenir la valeur des voitures exotiques. Il raconte des anecdotes sur des voitures de location mal entretenues, ce qui mène à des problèmes de sécurité et affecte leur valeur de revente. Il recommande de mettre de côté des fonds pour l'entretien et la dépréciation des véhicules.

📜 Erreur n°2 : Pratiques de Licence et d'Assurance Inadéquates

Il explique que beaucoup d'entreprises ne respectent pas les exigences légales en matière de licences et d'assurances. Il critique les pratiques de certains gourous de YouTube qui louent des voitures sans les assurances appropriées, mettant ainsi les propriétaires en grand danger financier. Il décrit les défis pour obtenir une assurance de voiture exotique et les exigences strictes des compagnies d'assurance.

💸 Erreur n°1 : Déflation et Dépréciation

Lucky parle de la pratique de la déflation, où les entreprises vendent leur ancien inventaire pour acheter de nouveaux véhicules. Il explique comment la dépréciation rapide des voitures exotiques peut entraîner des pertes financières importantes. Il conseille d'acheter des voitures de location régulières et d'accumuler progressivement des exotiques, tout en mettant en garde contre les fausses promesses de revenus faciles des entreprises de location de voitures exotiques.

🚫 Conclusion et Avertissements

Il conclut en remerciant les spectateurs et en leur demandant leur avis sur le marché de la location de voitures exotiques. Il met en garde contre les risques financiers et légaux liés à cette activité et recommande de commencer par des locations de voitures régulières avant de se lancer dans le marché des voitures exotiques.

Keywords

💡Location stratégique

La stratégie d'emplacement est essentielle pour les entreprises de location de voitures de luxe. Dans la vidéo, l'absence de concurrents dans une région donnée, comme Oklahoma City, est présentée comme une opportunité potentielle, mais aussi comme un piège si la demande est insuffisante. Cela illustre la nécessité d'une analyse de marché approfondie avant de démarrer une entreprise.

💡Maintenance préventive

La maintenance préventive est un élément clé pour assurer la valeur et la sécurité des voitures de luxe en location. Le script met en évidence l'importance de cette pratique, contrairement à la maintenance de rupture, qui peut entraîner des problèmes de sécurité et une dépréciation de la valeur de la voiture, comme illustré par l'exemple des freins à disque carbone céréamique.

💡Sélection de voitures

Le choix des modèles de voitures à louer est crucial pour la réussite d'une entreprise de location de voitures de luxe. Le script souligne que les voitures comme les Aston Martins, Bentley et Rolls Royce ne sont pas toujours les meilleures options en termes de retour sur investissement, malgré leur prestige.

💡Assurance

L'assurance est un aspect majeur et complexe pour les entreprises de location de voitures de luxe. Le script explique que les nouvelles entreprises ont des difficultés à obtenir une couverture d'assurance adéquate, ce qui peut entraîner des coûts élevés et des risques financiers importants.

💡Défleçage

Le défleçage, ou le processus de vente d'un véhicule ancien pour en acheter un nouveau, est un cycle récurrent qui peut causer la faillite des entreprises de location de voitures de luxe si mal géré. Le script indique que la dépréciation rapide des voitures de luxe et les taux d'intérêt élevés pour les financements commerciaux peuvent entraîner des pertes importantes.

💡Rendement sur investissement (ROI)

Le ROI est un indicateur financier qui mesure la performance de l'investissement. Dans le contexte de la vidéo, le ROI est comparé entre les voitures de luxe et les véhicules utilitaires, mettant en évidence que les investissements plus modestes peuvent parfois offrir un retour plus élevé.

💡Licence d'entreprise

Une licence d'entreprise est requise pour louer des voitures de luxe au public. Le script met en garde contre les pratiques non réglementées et illégales de certains acteurs du marché qui louent des voitures sans licences appropriées, ce qui peut entraîner des problèmes juridiques et financiers.

💡Tourisme

Le tourisme est un facteur clé pour déterminer la viabilité d'une entreprise de location de voitures de luxe. Le script suggère que seules certaines régions à forte affluence touristique, comme Las Vegas ou New York, sont aptes à soutenir une telle entreprise en raison de la demande constante.

💡Risques de l'assurance

Les risques liés à l'assurance sont soulignés dans le script comme étant élevés pour les entreprises de location de voitures de luxe, en particulier en cas d'accidents graves impliquant des dommages importants et des pertes de vies.

💡Concurrence

La concurrence est une réalité dans le marché de la location de voitures de luxe. Le script mentionne que certains acteurs du marché pratiquent une concurrence déloyale en louant des voitures à des prix très bas, ce qui rend difficile la concurrence pour les entreprises qui suivent correctement les réglementations.

💡Expérience client

L'expérience client est un aspect essentiel pour la satisfaction et la fidélisation des clients. Le script critique les entreprises qui négligent l'entretien et la présentation de leurs voitures, ce qui peut décourager les clients et nuire à la réputation de l'entreprise.

Highlights

Exotic rental car companies often fail due to various reasons, and the video discusses the top five.

Market area is a significant factor; absence of competition might not indicate a ripe market.

The misconception that a big city without an exotic rental service is a good opportunity is debunked.

Seasonal demand can lead to failure in the exotic rental business.

Choosing the wrong cars for the rental fleet is a common mistake.

High-end luxury cars like Aston Martins, Bentleys, and Rolls Royces are not ideal for rental due to low ROI.

Preventative maintenance is crucial for the exotic car rental business but often overlooked.

Neglecting maintenance can lead to safety issues and decreased car value.

Business licensing, insurance, and practices are often mishandled in the exotic rental industry.

The difficulty of obtaining exotic car rental insurance is highlighted.

The high cost of doing business legally in the exotic rental car industry is emphasized.

Deflecting, or selling old inventory to buy new cars, is a cycle that can lead to business failure.

Depreciation is a significant factor that affects the sustainability of exotic rental car businesses.

The impact of bad business practices on the exotic car rental industry's reputation and insurance premiums.

Advice against starting an exotic car rental company without significant capital and understanding of the business.

A suggestion to start with regular cars and gradually move to exotic rentals for better ROI.

A warning about the risks of using platforms like Turo for exotic car rentals due to insurance limitations.

Transcripts

what's going on YouTube family welcome

to Automotive life my name is lucky and

today we're going to be talking about

why so many Exotic rental car companies

fail so I can go on for hours on why so

many Exotic rental car companies fail

but I'm going to give you my top five

reasons now the reason why I picked this

topic today is because I do a lot of

Consulting calls along with YouTube and

so I get hundreds of calls in the last

three years talking about I want to do

an exotic rental car company it's the

coolest thing everybody wants to do it

and so I want to save you guys a lot of

time and a lot of headache and point out

a lot of the flaws that these companies

are making number five is market area

this confuses a lot of people people

think just because there's no Exotic

rental car company in your area and you

live in somewhat of a big city it must

be a good thing since there's nobody

there I had a call last week of a guy

saying that he wants to open up one in

Oklahoma City because there's nobody

there the Market's ripe there's

professional athletes and a lot of oil

money there he thinks that that spot

would be great and so I told them let's

play Devil's Advocate out of all the

people there I'm sure you're not the

only one that's thought about doing EX

red card company why do you think the

other people didn't do it I was like

they probably hired somebody like myself

to do research on the market to realize

that in 90 days you're going to be

burned through all your customers and

then you'll be broke and so he proceeded

to tell me no that's not the case man

you know there's so much money here

there's people here blah blah blah and

so I asked him how many people are

cruising around downtown Oklahoma City

during like a weekend is that like the

cool spot to hang out with is there

certain areas where it's always trendy

and it's going to be like that probably

not so much now I live in Las Vegas the

entertainment capital of the world we

have 2 million people here and we have

hundreds of thousands of people that fly

into Vegas every month to basically

throw their money away even with all

that being said we still have slow days

slow weeks and even slow months so if

Vegas like I said the entertainment

capital of the world has slow times how

do you think it's going to be in

Oklahoma City and that usually rings the

bell in a lot of people's heads I've

seen so many people open up in these

small areas just because there's nobody

there they think it's a great way to do

it or like you know the summer times are

booming or something like that you never

want to open up a seasonal rental car

company you pretty much are doomed to

fail I've seen them for years people

starting because maybe there's certain

events a lot of money flying in I set up

a few friends that were in different

places in Napa uh going through The

Vineyards and stuff during the summer

but at the end of the season those cars

just sit there collecting dust and the

insurance is astronomical so it just

wastes money so my advice unless you're

in a very big area with a lot of Tourism

don't even think about doing it to be

honest with you there's only a handful

of places I would recommend Vegas La San

Diego probably

Houston uh Miami

Orlando probably New York that's about

it to be honest with you rest of these

places I don't think it'd be good enough

for it to drive these cars year round

now the fourth reason why most rental

car companies fail is they pick the

wrong cars this is a very common problem

that a lot of rental car companies have

everybody thinks that oh this is exactly

what the customer wants I like this car

that means the customer is going to like

that car there could be nothing further

from the truth if you've watched my

channel um Houston's Channel or Rob

Freddy's Channel we always make jokes

about this we think the car is going to

be good but then nobody winds up getting

it a lot of cars I tell people to stay

away from are like Aston Martin's

Bentley's and rolls royes they are not

good renters now for a little while the

colins were kind of popping but as you

can see now they've kind of fallen off

the cliff and they're not really that

desirable plus the money you spend it's

not really worth it the ROI is simply

not there so I tell lot of people so why

risk $200,000 to buy something like this

when you know the car is going to be

sitting there majority of the time get

something else or rent more or buy two

or three cheaper cars to get it out we

just did some Consulting for a guy in

Atlanta he got his license did

everything correctly and I told him that

he should get three Lamborghini hurac

because he'll probably stay busy with

his marketing and everything else I

think he'll do really well but he didn't

take my advice he winded up taking one

of his friends advice and said you know

what you don't need three hurac you need

one Aventador and one regular Huracan so

now the Huracan is running out every

single weekend for $1800 a day but

unfortunately the Aventador is $3,300 a

day and it just sits there and it very

rarely gets rented I think maybe two to

three times a month if that so now he

has this massive insurance bill this

massive payment on this car where he

could have just sold that thing and take

that $400,000 loan and buy two more

$200,000 cars to put out there and

basically eat up some of that market

share and the third reason why most

exotic rental car companies fail is

because of Maintenance something so

simplistic but people just can't

comprehend it now it's very hard to have

people's wrap their minds around

actually doing preventative maintenance

instead of breakdown maintenance it's

two separate things but when it comes to

Exotic rental cars you have to do that

preventative maintenance to actually

keep the value of your car so if you

drive it 5,000 miles and you take it

into let's say Lamborghini or Ferrari

and it wants $220,000 worth of stuff

you're probably going to have to spend

that money but these guys are like if

it's not broken don't fit fix it let's

just ride it out they'll get exotic cars

with like carbon ceramic brakes and

instead of changing the rotors they'll

just keep doing what's called the pad

slap just switch out the brake pads

until the basically rotor disintegrates

or cracks now you have safety issues all

kinds of stuff you can get sued um on

top of that it affects the value of your

car if you ever go to resale it the

first thing a lot of these exotic car

people do is say hey what are the

maintenance records of this car if you

tell them it's a rental car you're going

to have an uphill clim but if you have a

rental car and it has lots of

Maintenance records you took care of it

and everything else you probably

shouldn't have that many issues but

unfortunately majority of these people

will not set money aside for maintenance

tuneups everything else I remember

flying down to Miami and Renning a

Lamborghini Huracan uh Spider for a

weekend when I tell you that that car

looked like hammered dog every seat

had holes and cigarette Burns in it

smelt like weed um I think there was

like four or five dents and scratches

all over the car every single wheel was

curbed every tire was a different brand

and he was running this thing out out

for $1,000 a day now with all that being

said even if he was renting it for 1,000

bucks a day just to like blow it out I

would still put some of that money

together to actually clean up the car

because it's kind of embarrassing just

imagine if you know this is your one

time you saved up money maybe it's your

wedding or something like that and you

wanted to rent an exotic car for your

honeymoon how disappointed would you be

going up and finding out this car

literally looks like it was just a repo

that was owned by a tweaker that just

beat the hell and that's kind of the

experience that they're they're giving

to people they just don't care

maintenance is not a factor all they

want to do is Rob the piggy bank you're

going to hear me use this terminology a

lot instead of actually putting money

away towards maintenance so let's say

you like I said he's getting 1,000 bucks

a day let's just say for you know worst

case scenario um you know 700 bucks is

goes out the door for overhead so they

have $300 in profit my advice would be

put $100 away for maintenance $100 put

towards your car for depreciation and

that last $100 put inside for

operational cost or pocket or whatever

else or Profit just so you have that

separated but they don't do that they

will continue to take every dollar they

make from the rental and put it straight

into their pocket and not pay any of the

maintenance and the second reason why

most exotic rental car companies fail is

because of business licensing insurance

and business practices this is what

drives me nuts about our industry now I

want everyone to actually get in there

and basically rent cars and make some

money you don't have fun doing it but

you cannot rent out exotic cars to the

general public unless you you actually

have an exotic car license I know a lot

of you guys are renting them through

turo which is fine you have that

insurance but just remember turo has a

cap of

$150,000 so if you're renting your

$300,000 exotic on turo and they crash

into a brick wall and catch it on fire

you're only going to get a check for

$150 but as long as you know that just

remember that now if you're dealing with

the general public now you have to have

your own insurance but plus you have to

make sure that they have insurance as

well and this is the downfall 99% % of

these gurus on YouTube and and social

media rental car automation join this

I'll rent out your car for you blah blah

blah none of these clowns have insurance

a license a bond most of them don't even

own any cars they're literally just

using your car to drive around after you

can sign it to them which is really bad

I'm not going to name names but there's

a lot of people out there that are

trying to take your money to do this

Exotic rental car company now I'm going

to tell you the truth when it comes to

why you should stay away from doing

exotic rentals the biggest thing is

Insurance it is impossible for a new

company to get Exotic rental car

insurance in the last 10 years I've only

seen one person be able to do it and

it's only because they had a lot of

money now to get an insurance policy

it's very very tricky you have to have a

proven track record so you don't have to

have an exotic rental car company you

can have a regular rental car company do

business for two years and then

eventually maybe add one exotic car you

have a proven track record and most

insurance companies will allow you to

add one of those cars on there if you're

trying to open up right from the get-go

with three or four insurance or excuse

me three or four Exotics the insurance

company will not write you a policy the

last one we did was a guy in Houston the

insurance company had so many

stipulations he had to have minimum of

five cars all five cars had to be in his

name they had to be paid off and owned

outright and he had to put $500,000 in a

secured account that they would hold

against any type of claims for the first

two years and even on top of that they

charged him

$2500 a month per car let that sink in

whenever you hear me or Rob Freddy or

even Houston and talk about why Exotic

rental car companies are so expensive

and it's really not worth the headache

anymore it's because it's not if you do

it correctly the right way legally it

costs a lot of money to do business now

why am I going to sit here and try to

rent out my Huracan for $2,200 being

licensed correctly when there's some

clown that has no job no house no car uh

he took some rental car from some other

person or some lease and he's renting it

out for $1,000 a month on Facebook and

Craigslist how am I supposed to compete

he has no overhead he has no liabilities

he's just renting out other people's

cars that's why we stopped doing it

because there's too many clowns out

there giving away cars for free and I

don't care what people say about oh well

my attorney I paid him 20 grand he wrote

this like uh bulletproof contract with

no loopholes that if the customer

crashes the car he has to pay I'm here

to tell you this if you don't have the

correct insurance or the correct

licensing and that exotic car is not in

your name if you get into an accident

and you hit let's say a school bus and a

bunch of people die the insurance

company is not going to pay you they're

getting smart first thing they're going

to do is what is this oh this was a

rental car the customer has to use their

insurance they're going to look at the

registration well who's Bob Smith this

is not you know whatever uh Las Vegas

exotic reyolds who is this oh well

that's my friend's car that he gave to

me CU he couldn't afford it so now I'm

leasing it out through my rental car

company

they will purposely not pay your claim

because they know that you can't go to

court to fight it because you're not a

real company you don't have any money

they have no liabilities and this is why

so many people are starting to have

issues if they crash the cars most of

these broker Jokers or these people that

take your cars and rent them out to

people wind up walking away remember you

guys are business partners when the

money's coming in once you have to start

paying money out it's your problem you

got to deal with it now it's a you thing

and that's what these guys do so that's

why I tell everybody if you want to do

Exotic rental cars don't give them to

other people think about it this way

I've been on YouTube for what four or

five years now I've had hundreds of

people say hey lucky I'm going to send

you my cars rent them out and I always

say no why would I do this why would I

not want to take your cars and say I

don't want the headache or liability

because it's not worth it and I can't do

it and I can't Tri them under my policy

because I can't because it's illegal for

me to take your car and run out to a

bunch of random people here in Vegas but

yet all these guys on YouTube and social

media and Instagram are like oh bro give

me your car cars Exotic rental car

automation I'll make you a bunch of

money just give me your cars and I'll

show you how to do it don't believe the

hype it's not like that bad business

practices are costing people millions of

dollars every single year I've seen

people lose their cars you can look at

my videos I have tons of them on there

of horror stories using these broker

Jokers these guys that basically will

take your car and rent them out to

people sometimes or they just say

they're renting them and they'll rack up

a bunch of miles just driving around

themselves so stay away from that so the

number one reason why most exotic rental

car companies fail is because of Def

fleing now def fleing is when you're

basically selling off your old inventory

and buying new stuff and this cycle

happens every 2 to three years and it's

because of this it actually puts rental

car companies out of business let me

explain so as an actual real licensed

rental car company when I go out to buy

a car I have to go to a Commercial Bank

I actually have to get a higher interest

rate because I'm using the car for

commercial use so the bank will offset

its risk also I have to get a shorter

term because they want me to outrun

depreciation and then on top of that I

have to put maybe 20 to 30% down because

it is a commercial used vehicle and

they're worried about me depreciating

the vehicle now if you noticed I kept

using the same word over and over again

depreciation this is what kills a lot of

these Exotic rental car companies

because they buy these cars in their

personal name at very very low interest

rates at maybe 84 months and I've seen

some people go to some of these other

Banks and get 14 4mth financing on

exotic cars and pay just the bare

minimum and that's the problem if you do

this you wind up being upside down every

2 to three years when these cars are

basically time to get rid of them and

get something new the depreciation curve

is pretty steep on Exotics so what we

used to do is if we bought something we

drive it around for maybe 5 6,000 miles

that could be anywhere from 12 to 24

months whatever it hits first either the

miles or the year we get rid of it go

get another car but since we put so much

money down our payments were higher and

we were constantly paying down the loan

we didn't owe that much so every time we

traded out in a car we had some sort of

equity and this is what brings me to why

everybody's failing now and another

reason why insurance is so freaking High

there's a bunch of these guys out here

that bought all these cars like I said

in their personal name at low interest

rates stringing out the payments forever

making the bare minimum for the last 3

years well guess what that 2020 you know

whatever let's say you know Huracan now

has ,000 mies and it's beat to dog

but he still has a loan for $300,000 and

he tries to trade it in and they want to

give him maybe $120

$140,000 for this car now he's upside

down way over

$100,000 what is he going to do he can

try to rent it but now the car is old

it's beat up it's having maintenance

problems and so this is why a lot of

these people wind up failing they can't

rent the cars out anymore they can't get

anything new the cars break down they

wind up sitting there and they just cost

them money and they let them go and so

they either wind up giving the cars back

and failing that's why it's another

reason why it's very hard for you to get

any type of commercial exotic car

lending because so many of these guys

fail and another reason why your

insurance is so expensive is because

when these guys can't sell their cars

they can't afford the payments and

they're upside down they get desperate

so they start crashing burning or the

cars mysteriously wind up being stolen

and now they claim this against their

insurance because you know they because

of their bad business practices they

don't want to come up money out of their

pockets because remember they robbing

the piggy bank the whole time every

dollar they made they never paid down

the loan they never paid towards

depreciation they just put that money in

their pocket living some bougie

lifestyle that they really couldn't

afford and so now because of all the

claims and all the people being

basically charged up on fraud this is

why it's impossible for people to get

new exotic Rental Car policies this is

why I tell a lot of people don't even

waste your time trying to do this and if

somebody says they can do it for you and

they have some magic key and your

insurance is not a lot of money U for me

to you they are lying they're full of

don't trust them it is very very

expensive and it's going to cost you a

lot of grief so my advice if you want to

get into the rental car business start

off with something regular the reason

why I stopped doing a lot of the high

lines in Exotics is because of the ROI

return of investment if I had a $100,000

convertible Porsche and I was running it

out for $2 $300 a day but I had a

$118,000 U-Haul box truck with a

liftgate that I was running out

commercially for $200 to $300 a day the

ROI on the 18 $1,000 car is much much

higher so why would I risk 100 Grand to

make the exact same amount of money and

this is what got me switching my mindset

over so don't get me wrong owning exotic

rocer company is fun but I'm telling you

right now majority of you guys cannot

afford it so stay away from it and if

you're using turo to rent out your

exotic car remember their insurance only

goes up to

$150,000 I think in some states it's

even lower than that so make sure you

double check and protect yourself

because like I said if you're Renning

out a $300,000 car and they crash it you

are not going to get the difference and

if you try to call your personal

insurance company to cover it they're

going to laugh at you and cancel your

policy and they're going to flag your

account so every time you try to go for

insurance they're going to say you use

these cars for commercial use and

they're going to basically blackball you

so do not do it just rent regular cars

eventually build up to getting Exotic

rental cars I want to thank you guys so

much for watching I would love to know

your opinion on the Exotic rental car

market did you guys know is this much of

a pain in the ass also did this deter

you from actually wanting to start a

rental car company

or are you still thinking of getting

into an exotic rental car company let me

know also if you're going to do just

regular cars and if you're doing turo

let me know what kind of cars you're

renting and how much you're renting them

for and if your state covers anything

over $150,000 when it comes to Exotics

anyways I want to thank you guys again

so much and don't forget to like And

subscribe and we'll see you next video

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