Subscribe to Updates

    Get the latest creative news from FooBar about art, design and business.

    What's Hot

    House Stacking Review (Roy And Rin)

    June 2, 2023

    Beyond BNB Reviews (E.O. Accelerator)

    June 2, 2023

    Travel With Jenny Review

    May 31, 2023
    Facebook Twitter Instagram
    Facebook Twitter Instagram Vimeo
    Pizza Time
    Subscribe Login
    • Home
    • Features
      • Typography
      • Contact
      • View All On Demos
    • Politics
    • Typography
    • Technology
      1. Politics
      2. Business
      3. Lifestyle
      4. View All
    • Buy Now
    Pizza Time
    Home»Uncategorized»Is Luxury Car Rental A Good Business?
    Uncategorized

    Is Luxury Car Rental A Good Business?

    adminBy adminDecember 22, 2022No Comments4 Mins Read
    Facebook Twitter Pinterest LinkedIn Tumblr WhatsApp VKontakte Email
    Share
    Facebook Twitter LinkedIn Pinterest Email

    Houston Crosta, who owns Royalty Exotic Cars, sure thinks so. He started the biz back in 2015 with a single car: a metallic blue Lambo. These days, the fleet’s gotten a lot bigger. His showroom looks like a bag-a Skittles basically. He specs each car himself and buys them new (something most luxury car rental places don’t do). One of his latest additions is a 2022 Ferrari F8 Spider. He bought it for about $400k and rents it out for $2,800 per day.

    That’s some big bucks, huh? Oh but it gets better. Because Houston says most of his exotics get rented out not just 15 days a month, not even all 30 days per month, but around 45 times per month! Yes, as in multiple times per day. The first guy might rent a Huracan for four hours, return it, then another dude might come in later that day and rent it for a full 24 hours; stuff like that. Or, what happens is, someone will request it for the future, which, on the books, goes on today’s rental day. Make sense? Cool.

    “And that’s what makes Royalty unique,” Houston explains. “That’s how we’re able to have so many cars, is because of the volume. We do 15,000 rentals a year on average. That puts us at monthly revenues of between $500,000 and $600,000. And we have summer months here in Las Vegas that are really busy, that go upwards of $8-, $900,000. The winter’s very slow; goes down to $200,000. You average it out, let’s say it’s $6 million dollars [gross revenue, per year].”

    Impressive, but how much of that’s profit? Houston estimates it’s around 10-, 12%. Split the difference, call it 11, so that’s, what, $660k he’s pocketing annually? Not too shabby considering he can hop in any exotic, any time he wants, and go cruise The Strip in it. What else? Houston says he used to buy each car outright, but in order to expand, he started leveraging those titles to establish a line of credit with the bank. Now he can pay the bank $5k per month for a new Lambo that earns him six figures a month.

    @royaltyexoticcars
    @royaltyexoticcars

    “Without debt and leverage in this industry, you’re never gonna be able to take profit,” Houston says. “When you think about it, this is probably the worst business to invest in, in general, because the market’s so variable. Unlike a home, this Lambo is depreciating at about a 2- to 3% rate per month. Right? And that’s very fast. And if you’re renting the car, it’s probably more like 5- to 10% per month. ‘Cause now it’s getting so many miles on it. Maybe 10 times what it would if it was for personal use.”

    Here’s another fun fact: You’d think with inflation, at least he could keep inching up his prices, but that hasn’t been the case. He’s actually been decreasing his rates over the past year or two. Why is that? Well, because it’s not an essential item. Like, if someone wants to buy a chicken sandwich [Houston also has a bunch-a Houston’s Hot Chicken franchises], and you raise the price by $1, nobody’s gonna blink an eye at that. They’re hungry, they gotta eat, they want the chicken sandwich. But nobody needs to tear around in a $400,000 Rari, fun as it may be.

    Royalty Exotic Cars is more comparable to seeing a show when you’re in Vegas or getting picked up in a limo or doing a helicopter tour, right? So when people get pinched for money, it’s just a much tougher sell. And if you’re still not turned off by this business, consider this: Houston had to build his own car spa (for a half a milli) just to keep those puppies clean and tuned up and always ready to rent out. Damn. I applaud the guy, but after hearin’ all that? I wouldn’t want anything to do with it.

    Share. Facebook Twitter Pinterest LinkedIn Tumblr WhatsApp Email
    Previous ArticleCan You Really Make Money On Turo?
    Next Article Sara Finance Course Review (Affiliate Marketing)
    admin
    • Website

    Related Posts

    House Stacking Review (Roy And Rin)

    June 2, 2023

    Beyond BNB Reviews (E.O. Accelerator)

    June 2, 2023

    Travel With Jenny Review

    May 31, 2023

    TargetAI Review- The Ultimate YouTube Ad Targeting App

    May 30, 2023

    Leave A Reply Cancel Reply

    Demo
    Our Picks
    • Facebook
    • Twitter
    • Pinterest
    • Instagram
    • YouTube
    • Vimeo
    Don't Miss
    Uncategorized

    House Stacking Review (Roy And Rin)

    By adminJune 2, 20230

    R oy Hoss says, yeah we’re in a recession, yeah it’s gonna get worse before…

    Beyond BNB Reviews (E.O. Accelerator)

    June 2, 2023

    Travel With Jenny Review

    May 31, 2023

    TargetAI Review- The Ultimate YouTube Ad Targeting App

    May 30, 2023

    Subscribe to Updates

    Get the latest creative news from SmartMag about art & design.

    About Us
    About Us

    Your source for the lifestyle news. This demo is crafted specifically to exhibit the use of the theme as a lifestyle site. Visit our main page for more demos.

    We're accepting new partnerships right now.

    Email Us: info@example.com
    Contact: +1-320-0123-451

    Our Picks
    New Comments
      Facebook Twitter Instagram Pinterest
      • Home
      • Politics
      • Business
      • Technology
      • Buy Now
      © 2023 ThemeSphere. Designed by ThemeSphere.

      Type above and press Enter to search. Press Esc to cancel.

      Sign In or Register

      Welcome Back!

      Login to your account below.

      Lost password?