“We searched for a place to rent a super car in the Northeast, and we didn’t find any worth a ph

As founder and president of Gotham Dream Cars in New York City, Noah Lehmann-Haupt is surrounded by a fleet of cars befitting British alaska airlines discount coupons royalty or a Saudi oil baron. And when the mood strikes him, he can take a Lamborghini Murcielago, alaska airlines discount coupons Bentley Continental GT or the relatively mundane Porsche 911 twin turbo out for a Sunday spin.
On the day after Christmas, 2004, Lehmann-Haupt was lying in bed when he got a call from the guy renting alaska airlines discount coupons his Lamborghini Gallardo. Lehmann-Haupt soon found himself staring at the back of a wrecker, with his $175,000 baby “crumpled into a little ball.� No one was hurt; knock on wood. However, “that started a six-month process of waking up every day wondering if I’d get my $175,000 back,� he says. “I had to fight him and his insurance company. They wanted to nullify the contract.�
Though Lehmann-Haupt eventually did get his money back, the story defines the nature of exotic car rentals: It takes plenty of working capital, extra attention to customer service and a healthy appetite for risk.
Being rich is not necessarily the rule when it comes to wanting to tool around in an exotic vehicle for a couple of days. Yes, wealthy clients who own expensive sport cars want to drive a similar type of vehicle when traveling. But the majority of customers who rent specialty cars are those who can’t afford to buy one.
John Kiland, owner of Rent-A-Vette in Las Vegas and San Diego, says his Las Vegas location attracts mostly tourists. At San Diego’s Rent-A-Vette, local clients rent the cars mostly for weekend getaways.
The Gotham fleet includes a Lamborghini Gallardo, Ford GT, a Porsche 911 Turbo Cabriolet, a BMW M5 and a Corvette C6. Lehmann-Haupt just purchased a Lamborghini Murcielago. For clients who want to really live large, that car will set you back $2,250 a day.
At Specialty Rental Cars in Bellevue, Wash., the bevy of beauties includes a Lotus Elise and Exige, Porsche Boxster alaska airlines discount coupons 5, Aston Martin Vanquish, Bentley Continental Flying Spur, a Lamborghini Gallardo Spyder (highest-ticket rental at $2,450 per day) and the Mini Cooper S Convertible (least expensive at $235 per day).
The exotic sports cars run the gamut from the Lamborghini Gallardo and the Ford GT to the Ferrari 360 Modena and the Maserati Spyder F1. The convertibles and sporty roadsters include a replica Cobra Roadster, Porsche Boxster and the Mini Cooper S MC40 Sport Sedan. Vehicles in the luxury two- and four-passenger convertibles fleet range from the Mercedes AMG CL55 Sports Coupe to the BMW M3 convertible and the Mercedes CLK320 Cabriolet.
As far as the most popular rentals, geographic alaska airlines discount coupons location plays a big part. In the Big Apple, Ferraris and Lamborghinis are the rentals of choice; in Sin City, Corvettes; and in Bellevue, a suburb of Seattle, Porsche Boxsters and Mini Coopers are in demand.
“We searched for a place to rent a super car in the Northeast, and we didn’t find any worth a phone call,â€� he explains. “Sure, there are many places where you can rent what others call an ‘exotic’ car, such as a Viper, a Mercedes or even a PT Cruiser. But when it comes to what we call an exotic vehicleâ€"a Ferrari, Lamborghini, Bentley or Aston Martinâ€"the market fell short.â€�
Lehmann-Haupt says Gotham Dream Cars started with a foundation of good personal credit, a solid relationship with his banks and investors who were confident in his business model. However, “there’s a huge amount of personal risk. I have to co-sign everything,� he says.
Unlike a traditional RAC, leasing is not an option. “Leasing companies will not lease to me because alaska airlines discount coupons they’re too scared to hold title on cars they’re unfamiliar with,� Lehmann-Haupt says. “There is a tremendous amount of haggling required. It’s an incredibly capital-intensive business.�
Specialty Rental Cars began as an offshoot of one of the biggest exotic independent highline dealerships on the West Coast. The business arose out of the buyers’ desire to test drive the vehicles before alaska airlines discount coupons they bought them, says Petherbridge.
alaska airlines discount coupons The very rough rule of thumb, Lehmann-Haupt says, is that the daily rental is 1 percent of the value of the car. Using that as a base, price is modified based on demand, prestige and public perception.
For the Lamborghini Gallardo, a $175,000 car, Lehmann-Haupt charges $1,750 a day. Though the Porsche 911 twin-turbo lists at $140,000, he only charges $800 a day, or .5 percent of its value. “People aren’t willing to pay $1,400 a day for a Porsche,� he says. “The Porsche brand does not have the prestige of the Ferrari alaska airlines discount coupons or Lamborghini brands.�
He also bases prices on what other rental companies around the country are charging, though he says it’s “a chicken and egg thing.� He sees newer companies pricing vehicles in $50 increments, a practice he started.
Clients may wonder why they’re paying $230 a day for a non-luxury vehicle alaska airlines discount coupons such as the Mini Cooper. The client pays extra for the luxury of booking the exact car on a specific date, says Petherbridge. It presents a utilization challenge alaska airlines discount coupons for the rental company. “If someone reserves a Mini Cooper in two weeks for a one-day rental, I would have to turn away a two-week rental during that time,� he says.
The industry alaska airlines discount coupons average is 75 to 100 free miles daily, says Petherbridge. Excess mileage charges start at 40 cents on the low end and can cost up to $2.00 for the ultra-exotics. Lehmann-Haupt gives 100 miles per day free and bills 75 cents for excess miles on cars in the Corvette and BMW range, alaska airlines discount coupons and $2.00 for the high-end vehicles such as the Ferrari, Aston Martin and Lamborghini.
All three operators have GPS tracking systems installed in their vehicles. All operators require renters to provide proof of insurance for the value of the exotic vehicle, and stipulate that the renter’s insurance is primary.
Many exotic car rental operators finance their cars, necessitating a third-party insurance policy, as opposed toâ€"gulpâ€"self-insuring. Yet very few carriers insure the ultra-exotics such as Lamborghinis and Ferraris. (Petherbridge says only two companies alaska airlines discount coupons in the country cover the very high-end alaska airlines discount coupons exotics.) Rates are high. Third-party collision damage alaska airlines discount coupons waivers simply aren’t available on the ultra-exotics, meaning operators must put their own policies at risk.
“We work closely with several of the well-known damage collection companies,� Lehmann-Haupt alaska airlines discount coupons says. “We have to go after our clients. With our insurance rates as exorbitant as they are; if we file claims [our rates] are just going to go through alaska airlines discount coupons the roof.�
Lehmann-Haupt adds to the fleet with sufficient customer demand. He recently got a call from a guy who wanted to go to Atlantic City but needed room for his buddies and their girlfriends. He couldn’t fulfill the request. Realizing highline four-seaters were lacking in his fleet, Lehmann-Haupt bought the comparatively roomy Bentley.
“Every car fits a profile,� he says. “I don’t get two cars that compete with each other. The guy renting the Aston Martin is not the guy renting the Ferrari F430; they’re different alaska airlines discount coupons customers.�
“We have good relationships with dealerships that offer us new cars for wholesale prices,� says Lehmann-Haupt. “They know we’re repeat customers, alaska airlines discount coupons and that the cars we purchase from them are rolling advertisements.�
Lehmann-Haupt says he generally purchases new vehicles, though buying a new exotic alaska airlines discount coupons comes with a warning tag: it can depreciate alaska airlines discount coupons by $100,000 in one year. He replaces vehicles on a car-by-car basis through private channels and selling to customers “who fell in love with the vehicle they rented.�
At Rent-A-Vette, Kiland buys both new and low-mileage used vehicles, and sells them at around 30,000 miles while they are still under warranty. To get them to market, he works with brokers, goes to auctions and also sells them himself.
In this digital age, exotic RAC operators say Yellow Page advertising is becoming less and less of a smart-money advertising outlet. Having a Web site is essential. Good word-of-mouth is a close second.
Petherbridge invests more than 50 percent of the company’s advertising budget on the Web site. The rest is spent on promotions, alaska airlines discount coupons local car shows and networking at trade shows. Kiland has found that placing ads with in-room magazines at high-end hotels brings in business. Getting cars in front of the right hotels and the concierges worked well for Petherbridge when the company alaska airlines discount coupons owned an exotic RAC in Miami.
Web sites catering specifically to exotics, such as exoticcarrentals.com and rentexoticcars.com, offer listings grouped by geographic area and vehicle alaska airlines discount coupons type. Some basic listings are free, while banner ads that link to an individual alaska airlines discount coupons RAC Web site range from $40 to $100 a month.
“This is luxury service business from top to bottom,� says Lehmann-Haupt. “We treat our customers like gold, and they can reach us by phone 24/7. Most of our clients alaska airlines discount coupons have my cell phone number or the number of one of my managers. I cannot stand companies that are in a service business but are only available to clients during certain days and hours.�
Petherbridge runs his business as if he had a competitor next door. “I grew up in this industry at Enterprise Rent-A-Car so I know the importance of customer service and cleanliness,� he says. “In conjunction with our first-class vehicles, we aim to provide first-class service,� says Petherbridge, “which means going above and beyond our clients’ expectations.�
Excellent customer service also extends to post-rental. “If the client returns the vehicle at our location, we will ask for his or her feedback; if the vehicle is returned at the hotel or airport, we will call the client for feedback,� says Kiland.
“This is a fun industry,� continues Lehmann-Haupt. “I love being in a business that makes people happy and seeing the smiles on their faces. I’m a total car nut and this gives me the opportunity to play with the toys I dreamed about.�
“During my