Thinking about hiring out our cars

[Garnsgate Hall]

I'm guessing that these AMG's are all around the 2001 vintage?

In the link you've posted, they hire out classic and kooky cars which there certainly seems to be a strong market for; as someone that has his own business in the motor trade, I genuinely believe that the headaches and cost of hiring out circa ten year old AMG's will outweigh what you're trying to achieve by doing so.

My advice would be to sell the one car that gets used the least if you're struggling to run all three.

OH keeps telling me that they are at the point of "appreciating" and becoming classics - the E class is older than 2001 and only around 4000 of that particular model were made I believe, it was owned by John Judd (racing engine designer), the S class being the longer wheelbase is a little rarer than standard ones and was owned by Ron Dennis (F1 boss), my ML is what it is I guess - he also wants to add my FILs coupe AMG to the collection when he changes it next year (sorry can't think of model) as it was owned by Jenson Button - I keep telling him its the wrong colour (blue ). We could easily SORN them and store them but these cars do better when they're driven apparently - I'm sure its just an excuse to buy more AMGs.

He thinks we could do a car club thing and link it with staying at/using the house but I think by restricting ourselves to AMGs we are limiting our market but equally don't want to give him licence to go out and buy more cars of different types. We already have an Animal Di-D pick-up for towing the pigs around etc plus the little BMW my OH uses to commute - he has more cars than I have shoes -its just finding the best way to keep them running so they don't sit around becoming neglected!

Caroline

 

[Bluebell]

I wish you luck, but I fear your idea needs further research as to just what the market is, I suspect it is far more limited than your OH imagines it to be. I'm assuming you have also prepared a CFF of costs-vs-income (including a conservative real world load factor) to see if this makes financial sense?

 

[MD5]

Caroline,

I don't think the models you own will be appreciating any time soon. In fact, E55s are being broken regularly for their engines to give C43s a new lease of life! AMG parts being more expensive (especially brakes) means they are not the cheapest of vehicles to maintain, and I would think storage is probably more economical than the rental income v. (disrespectful) wear and tear on a 12+ year old car.

 

[Charles Morgan]

All of those AMGs will carry on depreciating. 80s ones (which are considerably rarer) are now classics. Early 2000s and you have far more made, 15 years of holding, maintenance and other costs before they will even begin to get in the same league.

I have too many cars, they bring admin, cost, heartache and speeding fines with them - and that's just with me driving them! Why double that with all the costs of trying to run them as specialist hire cars when you clearly have enough on your plate as it is?

I thoroughly approve of home made bacon and sausages from home raised Berkshires and Tamworths. The former is a much under-appreciated porker.

 

[bpsorrel]

I have too many cars, they bring admin, cost, heartache and speeding fines with them - and that's just with me driving them!

I could probably find a nice home for your SM Charles... :bannana:

 

[finisterre]

baby bmw
3 amg
L200

Nothing else?

 

[Vlad]

Sadly trying to move them on will not be an easy job in the current climate due to the engine size/fuel consumption.

A mate of mine sells a lot of Mercs and he almost threw a party when he finally sold the S55 that had been sitting on his books for nearly 6 months.....it was a minter but he couldn't even get a call on it. I cant bring myself to ask how its going with the low mileage ML55 that he's had on his books for a similar amount of time.

Safe to say that he is avoiding anything with big engined petrols like the plague.

 

[Garnsgate Hall]

baby bmw
3 amg
L200

Nothing else?

Not yet (the BMW is actually a 3series compact not a 1series) - he's bought two this year alone plus swapping our Audi A6 allroad (piece of junk and not a decent Rangie alternative as he promised me) for the ML at the end of last year so I've put the brakes on. He was thinking about going into business with a friend - he'd contribute three cars and his friend was going to contribute three cars but then he got cold feet about going into business with said friend - leaving us unsure how to proceed as we're not sure we have quite enough cars or the variation to make it work.

He wants an 850csi - he sold his old 850i when we bought our first house and has regretted it ever since plus there are a few others on his wish list, which thankfully don't come up for sale too often. He's trying to buy them at the bottom of their depreciation just before they start to increase in value - the more E55s being broken the better as then "ours" will be rare in 10 years time.

We did advertise the S55 a couple of years ago when we sold the Rangie - I had 10 times as many calls about the rangie as the S55 - sold it for full asking price within a week - the S55 we only got silly offers on and no-one even bothered to come and see it in the flesh so that's when he decided to keep it and find something else to do with it.

Caroline

 

[bolide]

I wouldn't shoot the idea down in flames right away - I think it has possibilities

Simplest thing to do would be to offer them to a local chauffeur company as additions to their fleet. They'd then be well-placed to offer an AMG package wedding, etc

Keeping their fleet busy would be their first priority but, as your cars probably don't duplicate anything they have, you might be surprised at the level of interest once the "fleet" was marketed appropriately

I've done this in the past with pro-audio equipment (sub-renting, not weddings!) and it works well so long as the equipment is reliable and doesn't depreciate too much as a result of being used

You'd have to be totally confident in the company you chose to partner with and have a cast-iron agreement on responsibility for breakdowns & damage

Nick Froome

 

[clk208]

Have you considering renting out for film/TV work? A friend of a friend used to hire out his ordinary-ish Mercedes to Granada TV. Not sure what the rates/terms were but less likely to have issues with car being abused.

Bonus is your car also becomes famous!

 

[finisterre]

I like Nick's idea best so far.
I hope it works for you.

 

[LTD]

I've read the thread and I think the answer is simple.

Keep the ones you will drive regularly and sell the others.

Your other businesses will probably make more from an injection of cash from the realised capitol from the funds secured by the sale, and subsequent maintenance savings, than hiring the cars out, and maintaining them, will ever do.

Do you need the hassle of the rental business ? It seems like you don't have enough time on your hands as it is. Why not look at bettering what you already have and understand ?