Welcome to Fantasy Exotic Cars. Devoted to car lovers the world over. Most of us will never be in the income bracket to afford to one of the ultimate rides we discuss and picture. But that doesn’t mean we commoners can’t ride in comfort and class — at least occasionally.
Over the last several years there has been big jump in small car rental agencies specializing in the rental of exotic cars such as the Lamborghini and Ferrari. You might not be able to buy a $150,000 car, but you may very well be able to rent one (even if for only a day).
If you’re looking for luxury and class over exotic and fast, as a traveler you always have the option of using a chauffeured transportation service. Especially popular in London and throughout the UK, you let the driver handle traffic and parking concerns while you relax in style in a BMW 7 Series or an E Class Mercedes.
Back in October, the Financial Times ran an article about “Bedroom Wall Syndrome.” Men who grew up lusting after 1980s supercars are now in mid-career and finally able to start thinking about acquiring that car they dreamed about.
The Porsche 959, the Ferrari 308, the Lamborghini Countach, all hung as posters in the bedrooms of young boys in the 1980s. And now that those young boys are grown up and have money, they’re bidding up the prices of those cars, sometimes even over 200 percent just last year. As the FT wrote:
Over the past five years, classic cars have received much attention as an emerging asset class. Hagerty’s blue-chip index of 25 classic cars has risen more than 200 per cent since 2009, comfortably outperforming investments in more conventional assets such as gold.
The timing of that index rise is more than just coincidental. It is quantitative easing that has fueled the financial industry, made Wall Street rich, and allowed people to bid such high prices on those cars.
And like all bubbles, it will eventually pop, although hopefully the results will not be as bad as in Dubai.
Now comes news that personalization of luxury cars is at an all-time high. Once again, who is to thank for all that easy money flowing out there? The Federal Reserve. And now that the Fed is winding down its QE, the ECB is ramping up its money printing. It’s like an inflation tag team. We’ll enrich our 1%, then you can enrich yours. It’s all going to end badly, of course, because money creation like this can’t go on forever.
The only question is, since the Fed has enabled so much wealth transfer over the past years, will there be anything left for the rest of us once quantitative easing is finally over?
The Booming Exotic Car Rental Industry
An exotic vehicle is classified as any auto where the technological advancement in engine general performance is significantly greater than present day cars. Good examples of these types of cars are those cars designed by Rolls Royce, Lamborghini, Ferrari and Bugatti.
All these vehicles not only operate far better compared with more normal costing automobiles, additionally they cost considerably more money — amounts that generally only the higher end of society can pay. Where your common automobile might cost between $20,000 to $35,000, an exotic auto commonly costs from $100,000 to $200,000. Noticing this disparity in those who can afford these kinds of automobiles and those who can not, exotic automobile rental services offer to rent out these kinds of autos at less costly prices to whoever is able to pay.
Much like all auto leasing companies, you’ll need a legitimate drivers license and have got to meet a minimum age qualification. Exotic car rental providers are usually located in large cities all over the world. For instance, in the states you can find an exotic car rental service in Chicago, New York, Los Angeles as well as other big cities.
In Europe you will effortlessly find such a firm in London, Madrid, Geneva along with other huge metropolitan areas. The reason behind this is due to the fact there exists a significantly greater demand for these kinds of cars in these larger sized metropolitan areas.
Most exotic car agencies expect people to currently have limited liability insurance protection of between $3500 and $7000. Many dealers are going to offer you this necessary insurance protection if you’re not already covered by insurance up to their particular expected amount. This larger figure compares with normal car rentals that customarily only call for $900 to $1400 dollars.
The rental cost itself for a well known exotic car for a single day may well be in excess of a thousand dollars, which could easily be fifty times as much as a regular sedan rental. For instance, a Ferrari in Los Angeles for a one day rental can cost from $1000 to $2000 based on the model.
One important similarity between exotic car rental services and the average automobile rental enterprise is that weekly charges are dramatically less costly than daily prices. Starting at $5000 or thereabouts, a good number of exotic car rental companies will present you with an exotic car for the entire week, which would save you substantial dollars.
Additionally there are other constraints you’d not often see in other more conventional car rental agreements. For instance there can be quite steep charges for in excess of the daily mileage limit, towing is not permitted, you’re not permitted to take the automobile off-road, and you surely are not allowed to smoke or drink alcohol in the automobile. Considering the cost of buying and maintaining these sorts of autos, enforcing these sort of regulations is wise.