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Is it possible to make money driving a ferrari/lamborghini?

FearAverage

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A few days ago I was reading The 4 hr workweek by Tim Ferriss.
I'm sure most of you have read it.

Instead of saving up 200k to buy a ferrari, he says you need to finance it to smaller monthly payments.
That same day I was looking to rent a ferrari/lamborghini because I read an article of MJ about living your dream for a day.

When I was in the gym that night this crazy idea just popped in to my head.
If you finance a ferrari/lamborghini/another exotic and have other people rent it for a few hours a month, you can actually drive it for free because the people who rent the car will pay for the monthly payments.

I was skeptical but I decided to run some numbers to see if it actually worked.

Here's the result:
test.jpg

I reviewed some of the rental prices of other businesses in The Netherlands and the most recent ferrari you can rent is the Ferrari 360 for €250,- an hour.
So €300/hour for a Ferrari F430 seems like a good deal.
Buy a go pro, get a youtube partnership and you can make some extra money.
Is this actually possible or am I overlooking something huge?!

Can I really drive a ferrari for 28 days a month(rent it out for 2 days) and make money?

BTW, I know car depreciation is left out this example.
I wasn't really sure how much that would cost a month, but the car is 5 years old which means it doesn't depreciate as much as a brand new car.

This graph is an excellent example for car depreciation
dep-chart-1.jpg

Can you just rent the car out more often to make more money?

Please poke some holes in this plan or point out the flaws and tell me how stupid I am:rolleyes:

(Not a native english speaker so be gentle on grammar/spelling errors.)
 

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Kak

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Neat idea, but insurance will likely be quite a bit higher if you are renting it out.


2 days is unrealistic, to get 24 hours of use you will probably have to rent the car out much more than just 2 days.
 

MJ DeMarco

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Your insurance amount is WAY off. Since you are running a business, your insurance will be a helluva lot more than $172.

Additionally, the maintenance figure is missing. That can, and will run you $2K/mo if that car is being used and abused by strangers.

Another option would be to rent the car to childrens parties? Maybe take them around the block?

One thing I noticed in my Lambo is that little boys (and sometimes little girls) LOVE the car... they want to sit in it, they want to go for a ride, they want pictures, etc ... perhaps a Ferrari showing up to a 10 year olds birthday party is a market you can investigate... and, even better, you don't put the miles on it, or get strangers driving it.
 

Amail

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Fernando Alonso and Filipe Massa make darn good money driving Ferraris!

Seriously though, you're going to have big insurance expenses associated with this. There's a lot of liability. I suspect you'll have to register the car as a commercial vehicle since you use it in the course of doing business. Your financing will be tricky, I suspect.

There are lots of places that rent high-end cars, so it's certainly doable. For some reason I cannot see the images you posted, so I don't know what costs you've included.
 
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FearAverage

FearAverage

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Neat idea, but insurance will likely be quite a bit higher if you are renting it out.


2 days is unrealistic, to get 24 hours of use you will probably have to rent the car out much more than just 2 days.
Renting it out for 12 hours will cover the costs stated above, that means 2 days of 6 hours.

Your insurance amount is WAY off. Since you are running a business, your insurance will be a helluva lot more than $172.

Additionally, the maintenance figure is missing. That can, and will run you $2K/mo if that car is being used and abused by strangers.

Another option would be to rent the car to childrens parties? Maybe take them around the block?

One thing I noticed in my Lambo is that little boys (and sometimes little girls) LOVE the car... they want to sit in it, they want to go for a ride, they want pictures, etc ... perhaps a Ferrari showing up to a 10 year olds birthday party is a market you can investigate... and, even better, you don't put the miles on it, or get strangers driving it.
Haven't looked into the insurance part too much.
This quote was just regular all risk insurance, but it might increase if you're renting it out.
I'll have to look into that.

Maintenance is something I did overlook, I'll have to look into that as well.
But really that much for just maintenance? Wow, didn't know owning an exotic was that expensive!

I can tell from experience, 10 year old guys love cars like that.
I used to ride around town on my bike with friends looking for exotics when I was that age, talk to the owners and sit in the car/take pictures.
Visiting bday parties is a GREAT idea.


Thanks for the input!
 

thinslicer

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Interesting!
I would think that this is not easy as it seems at first glance, you know the saying, if it's easy, then everyone would.....
Some potential holes I could think of is the costs of running your rental business would be fairly high:
Marketing- it would help if you know of some potential customers already
Maintenance- this is probably no joke for exotics, and your renters will probably go overboard and ride the car hard to get the maximum fun for their dollar
Cost of Ownership of an Exotic Car
Insurance- I imagine this to be one of the biggest costs also
So see if you can come up with a detailed cost of ownership and cost of running the business analyses maybe

I wonder about being in a car club and renting it out this would take care of maintenance costs, but you will need some kind of competitive advantage like maybe professional driving lessons or involve hot chicks somehow haha
 

wade1mil

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You need a commercial insurance policy if you profit from transporting people - think taxi, limo, bus, courier. Maintenance on a rental Ferrari would be horrendous - tires, clutch, transmission, brakes. Also, if you had to finance a Ferrari, you probably couldn't afford to do this.

Renting it out for 12 hours will cover the costs stated above, that means 2 days of 6 hours.
People would probably not rent it for 6 hours at a time though. I would think something like 1-2 hours at a time.
 
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MJ DeMarco

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Wow, didn't know owning an exotic was that expensive!
These are just a few things I remember...

Full set of tires on my Murci: $2,400.
Clutch fix: $12,000.
Oil changes: $250
Spark plugs: $1200

Biophase just had to spend $12K on his Ferrari for a redone tranny.

With good driving, costs can be lowered. (My Murci was babied so my maintenance costs were only about $3K/year.)
You're asking people to "go nuts" for 1 or 2 hours which means damaged clutchs, worn tires, brakes, and a whole host of things that simply are expensive to repair.

BTW, before I started buying exotics, I used to rent Corvettes and Vipers -- lemme say, I didn't go easy on those cars. I used, and abused them for the day I rented.
 
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FearAverage

FearAverage

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Interesting!
I would think that this is not easy as it seems at first glance, you know the saying, if it's easy, then everyone would.....
Some potential holes I could think of is the costs of running your rental business would be fairly high:
Marketing- it would help if you know of some potential customers already
Maintenance- this is probably no joke for exotics, and your renters will probably go overboard and ride the car hard to get the maximum fun for their dollar
Cost of Ownership of an Exotic Car
Insurance- I imagine this to be one of the biggest costs also
So see if you can come up with a detailed cost of ownership and cost of running the business analyses maybe

I wonder about being in a car club and renting it out this would take care of maintenance costs, but you will need some kind of competitive advantage like maybe professional driving lessons or involve hot chicks somehow haha
I was thinking the same when I ran the numbers, why doesn't everybody do this?!
Haven't put much thought into marketing this, but running some campaigns on sites like groupon will kickstart it.

You need a commercial insurance policy if you profit from transporting people - think taxi, limo, bus, courier. Maintenance on a rental Ferrari would be horrendous - tires, clutch, transmission, brakes. Also, if you had to finance a Ferrari, you probably couldn't afford to do this.



People would probably not rent it for 6 hours at a time though. I would think something like 1-2 hours at a time.
Thanks for the info!
I'm 100% positive I CAN'T afford it:D
It was just an idea I couldn't get out of my head.

If you get 3 customers to rent it for 2 hours you're already at 6 hours a day.


These are just a few things I remember...

Full set of tires on my Murci: $2,400.
Clutch fix: $12,000.
Oil changes: $250
Spark plugs: $1200

Biophase just had to spend $12K on his Ferrari for a redone tranny.

With good driving, costs can be lowered. (My Murci was babied so my maintenance costs were only about $3K/year.)
You're asking people to "go nuts" for 1 or 2 hours which means damaged clutchs, worn tires, brakes, and a whole host of things that simply are expensive to repair.

BTW, before I started buying exotics, I used to rent Corvettes and Vipers -- lemme say, I didn't go easy on those cars. I used, and abused them for the day I rented.
That's crazy! 1.2k for some spark plugs.

To prevent the "go nuts" thing, have the renter sign a contract that he/she is fully responsible for any damage to the vehicle.
Or have them turn in some important documents.
Fully inspect the vehicle before and after the vehicle is rented.

Plus, I live in The Netherlands.
You don't even have to think about driving fast here!
2 mph above the speed limit will set you back $32.
 

JasonR

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These are just a few things I remember...

Full set of tires on my Murci: $2,400.
Clutch fix: $12,000.
Oil changes: $250
Spark plugs: $1200

Biophase just had to spend $12K on his Ferrari for a redone tranny.

With good driving, costs can be lowered. (My Murci was babied so my maintenance costs were only about $3K/year.)
You're asking people to "go nuts" for 1 or 2 hours which means damaged clutchs, worn tires, brakes, and a whole host of things that simply are expensive to repair.

BTW, before I started buying exotics, I used to rent Corvettes and Vipers -- lemme say, I didn't go easy on those cars. I used, and abused them for the day I rented.
MJ - do you have any exotics - or have you bored of them? I haven't heard you speak much of your cars.

And yes, maintenance costs can be expensive. My dad has had his share of nice cars, and he's definitely poured some money into them. Typically more than $3k a year from I can remember.

Here's a tip - if you have the time you can set up a wholesale car dealership to avoid luxury taxes and registration feeds. Keep in mind you have to look like a legitimate dealership and cant' do anything to throw up red flags to the DMV/government.

I know *someone* who did this - saved luxury taxes and registration near $20-25k on a Ferrari F430 purchase ($205k car at the time), and also did that for a Ford GT, Bently Continental GT. Anyways...off topic for this thread.
 

The-J

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I'd rather do something low-risk, like birthday parties. Any 10-year-old would LOVE to have a Ferrari at their birthday party. Imagine his excitement when he gets to RIDE in it!

What I would do: Go to a party planner. Talk to the owner and offer your idea "I want to take my Ferrari 430 to birthday parties. I can charge $700 for the first hour and $300 for every additional hour. You can have a 20% cut of whatever I make." Go to party planner after party planner until someone says yes. Make sure you don't have to prove that you have the car, yet. Let them advertise your offer.

Wait until you get an offer, preferably a 2-hour one ($1000). After you get that offer, go to your closest Ferrari dealer and finance the car over 24 months. You should be able to get a 430 for $3000-$4000/mo if your credit is good (according to biophase's blog).

What you'd be doing: bringing your car to the party and letting kids go for 10-minute rides on back roads. The kids would undoubtedly love it. After you do your first job, make sure you keep in contact with the parent (Little Jimmy loved it! It was a dream come true for him: he can't stop talking about it and now he's popular in school!). Pay the party guy his $200 (or however much his cut was) and wait till your next offer. If you get enough offers per month, the job will pay for the car.

The only problem with this is that it's not Fastlane in the least and you probably would not profit much off of it unless you had your own business doing this. However, if you wanted a Ferrari really bad and didn't mind working 8-10 hours a month to keep it, this could be a viable option.

All numbers were used as examples.
 

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FearAverage

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This idea was not intended to be fastlane, it was just an idea to enjoy an exotic car without spending thousands a month.
I can't afford a ferrari F430 right now.
But I can use your idea, I might shoot some e-mails to party planners and when they have an offer I'll rent a ferrari myself and go to that bday party.

It'll cost me 400 to rent the ferrari for 2 hours, so i'll make 600 profit(minus the partyplanners cut) AND I get to drive a ferrari for 2 hours
BRILLIANT!

Buy a go pro, film the reaction of the little kids.
A quick edit, burn it on a dvd put a photo of the kid with the car on the cover and sell it to his/her parent for 15 bucks.
5 children a bday party is an additional 75 bucks
 

danoodle

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How about you create a website similar to airbnb, but for exotic car owners? Now there's an idea for you...;)
 

Rawr

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It's just a bad idea if you don't have a lot of experience and funds. I remember Rob posting damage done to one of the cars when the client drove it into a curb..$$ added up quick.
 
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FearAverage

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How about you create a website similar to airbnb, but for exotic car owners? Now there's an idea for you...;)
I'm not sure how many people who own exotic cars want a stranger driving in them.
There's already a dutch website like that, that covers insurance, screens the people who rent cars, and guarantees payment) and I could only find 1 exotic car('98 Ferrari 550).
I don't think there's a need I could fill.

It's just a bad idea if you don't have a lot of experience and funds. I remember Rob posting damage done to one of the cars when the client drove it into a curb..$$ added up quick.
Have been following Rob for a while now through social media and I've seen some of the damages.
I think insurance covers the damages but I see the point.
Would definately suck to get your car returned in pieces.
 

MJ DeMarco

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To prevent the "go nuts" thing, have the renter sign a contract that he/she is fully responsible for any damage to the vehicle.
That won't change a thing -- once you need to count on that, you're now adding in $1000's in legal costs when the driver says "Nope, not paying."

MJ - do you have any exotics - or have you bored of them?
I just sold my Lamborghini Murciealago earlier this summer. When it was 80 degrees and I continually picked to drive the Toyota over the Murci, I knew it was time to let it go. I figured after a month or so I'd miss it. It's been about 5 months now-- still don't miss it. In fact, for the first time in my life there is nothing out there that I want, need, or desire.
 

Omerta

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Your insurance amount is WAY off. Since you are running a business, your insurance will be a helluva lot more than $172.

Additionally, the maintenance figure is missing. That can, and will run you $2K/mo if that car is being used and abused by strangers.

Another option would be to rent the car to childrens parties? Maybe take them around the block?

One thing I noticed in my Lambo is that little boys (and sometimes little girls) LOVE the car... they want to sit in it, they want to go for a ride, they want pictures, etc ... perhaps a Ferrari showing up to a 10 year olds birthday party is a market you can investigate... and, even better, you don't put the miles on it, or get strangers driving it.
Look like you guys have found a need here. That's awesome man!
 

Crumbs2Bricks

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I just sold my Lamborghini Murciealago earlier this summer. When it was 80 degrees and I continually picked to drive the Toyota over the Murci, I knew it was time to let it go. I figured after a month or so I'd miss it. It's been about 5 months now-- still don't miss it. In fact, for the first time in my life there is nothing out there that I want, need, or desire.

This is a great post. That is a good place to be mentally.
 

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I like MJ's bday idea. The only problem is that I prefer Bentleys. I'm not sure how many kids would want to ride in one of those tho... maybe I can drive the moms to their PETA and parent-teacher meetings and wait outside ;) ROFL
 

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Hey, OP, you're 18?

Don't get a Ferrari. Not till you have a couple years driving stick under your belt. And even after that, get exotic driving lessons.

Don't toy with your life, man. Especially not in a beast that can go 200 mph/310 kph. And if you're thinking of the b-day party idea, DEFINITELY don't do it until you're confident in your ability to drive it. Never break the law. Don't go faster than 5 mph/10 kph over the speed limit. If you let kids in your passenger seat, their life is in your hands. You kill them, your life is done. Period.
 

The-J

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Isnt a ferrari an automated clutch manual? Seems pretty easy to me...

I drive sticks all the time on caribbean vacations. Small diesel pickups with a standard are very common. It feels like second nature after about an hour behind the wheel.
Go to party planner, do the deal, wait for the order, and get the lessons before you have to drive for the kids.
 

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oldscool

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I just sold my Lamborghini Murciealago earlier this summer. When it was 80 degrees and I continually picked to drive the Toyota over the Murci, I knew it was time to let it go. I figured after a month or so I'd miss it. It's been about 5 months now-- still don't miss it. In fact, for the first time in my life there is nothing out there that I want, need, or desire.
Whoa I just read you sold the car!!! I haven't been here in a loong time! I guess that initial itch to experience the exotic car dream has faded with time.

What kind of toyota you own? Is it the toyota prius?
 

kahem89

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I would put people up for an liability amount. Meaning if they crash the car they would have to pay you 2000$ or something. not so much for the money, just to add a little pain on their part. Also i would push my price point as high as possible without loosing to much customers.

Why take a Limo to the nightclub when you can enter with a Ferrari, make a Ferrari cab service :cool:

You might actually get customers during day time, people trying to impress their clients and so on.
 

Chris_Willow

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To me it sounds like you want the result before the process.

Besides, the whole idea has a limited upside and unlimited downside.

Best thing that could happen:
You get to drive an exotic car.

Worst thing that could happen:
Somebody gets killed in your car because the brakes weren't maintained.
 

Np1389

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Just want to echo Chris Willow,

You can see a desirable item the supercar, can see the one visible value to get a loan with low monthly repayments buying the car outright and now comes the problem with the dream = all the unlimited variables that’ll puncture the dream:


Insurance cost as a business vehicle and unknown client driver coverage (risk of their death or disabling injuries of the leaser (who will likely be young and thrash your property around and the court proceedings if they want payout even if you are covered with indemnity - it’s the hassle, time, stress, emotional link and time without your written off car)

Finding enough regular clients in your area to make your one supercar productive each week to make it viable: how will you get your supercar to an agent who will lease it out, how will you get it back to use it yourself too, inspection by yourself or your agent of the car for upholstery damage, exterior damages or worse engine, tyre and brake wear. And chasing each customer to pay for damages and the time between repairs you can’t lease to the next client as they’ll expect the car in a safe good condition for that money. Cost of having an agent or leasing it to a supercar-driving-experience company.

The risk of eligible clients who’ve paid full amount and have the crazy £5,000-£10,000 security deposit there’s a real risk nowadays even with a tracking device fitted or geo/speed ring fence limiters to the car that professional thief clients could disable them and drive them out the country for selling parts or on the black market all for £10,000 plus £500 or so while you’re left with the hassle of filing with insurance and telling all booked clients sorry your car was stolen.

Plus depreciation of the value of the supercar you’re depreciating liability, plus cost of things like tyres, fuel, oil, servicing, road tax, speeding tickets and chasing clients and getting them to pay it and all the bailiffs you’ll have to hire to enforce speeding tickets,

Being the birthday party clown in the Ferrari for hopefully hundreds of wealthy parents (needed who are able to pay) for their 10yr old boys bday parties might be your best bet, hopefully you live in an area with loads of supercar fan 10yr olds who you’ll have to market to somehow

All in all, just find a good value adding way of earning money and buy this “luxury” for what it truly is “a personal very fragile toy” as it is the worst type of luxury item in the world, only a pure emotional value generating item to the owner (unless you’re really experienced in knowing which cars will appreciate in decades time - in which case you’ll have to keep the mileage off it)... nothing is more costly at the offset and then continually thereafter than a sports/super/hypercar

Unless: you don’t own the car and just shoot video reviews of them where your personality/car knowledge and videography on a regular basis is the product (youtubers), then cars are not smart leasing business (most supercar experience companies have closed and only a few have remained and they have a massive inventory and major deals directly with the supercar companies to be able to offload cars when they no longer become worth their depreciating value - high stress)

And to think after all the above you’ll want to drive the car yourself on a few days a month too if it still works after the first few weeks

My 2cents worth, sorry to puncture your run-flat idea mate, but liking your ingenuity keep up with the ideas
 
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Watch Rotal Exotic cars on youtube. He runs this business In Las Vegas and he is planning todo another branch in Hawaii.
 

ShadowX

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Watch Rotal Exotic cars on youtube. He runs this business In Las Vegas and he is planning todo another branch in Hawaii.
You mean rental business?


What I would do: Go to a party planner. Talk to the owner and offer your idea "I want to take my Ferrari 430 to birthday parties. I can charge $700 for the first hour and $300 for every additional hour. You can have a 20% cut of whatever I make." Go to party planner after party planner until someone says yes. Make sure you don't have to prove that you have the car, yet. Let them advertise your offer.
This idea is great!
 

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