Screen grabs from ClassicsAndExotics.com.
From homes, to boats, to garage space, the "sharing economy" is opening opportunities for renters and rentees in a variety of markets. Add classic and exotic cars to the list, as Classics&Exotics Inc., based in Cape Cod, Massachusetts, aims to pair car owners with pre-qualified drivers, potentially netting additional income for the former while broadening access to the old car hobby.
Classics&Exotics (spaces deleted intentionally) was founded in 2014 by Peter Zawadzki and Michael Sakkas, friends and car collectors from Sandwich, Massachusetts. Both had experience with property rental site Airbnb, and Zawadzki had used the similarly themed Boatbound to rent his boat, thus reducing ownership costs. Despite the potential horror stories one hears in the news, Zawadzki told The Seattle Times that his own experiences had been extremely positive. If a boat sharing service could be successful, why not start a similar business built around classic and exotic cars?
The initial stumbling block was insurance coverage for car owners, since renting out valuable automobiles to drivers with clean records, but (in some cases) minimal classic car experience isn't a business model traditionally embraced by insurers. Enter classic car insurance specialist Hagerty, which underwrites the transactions overseen by Classics&Exotics, providing car owners with $1 million in damage and liability insurance along with the protection of its roadside assistance program.
Car owners get to set many of the rental terms, including price per day; number of miles included; cost for each additional mile; minimum driver age (though Classics&Exotics already specifies 30 as the minimum by default); whether smoking is allowed in a vehicle or if pets can be transported (the answer to both is universally "no"); security deposit required (typically $500); whether refueling is required; type of fuel required; and maximum distance for pick up and drop off. Before a car is entered into the database, Classics&Exotics (or its representative) performs an inspection to ensure it's as described, mechanically sound, and in compliance with local regulations.
Potential renters must submit to a criminal background check and a review of their driving history and record. There's no charge for either party to sign up for the service, which currently includes over 1,000 vehicles across the United States.
Classics&Exotics makes its money by charging a fee to owners and renters on all transactions. Owners pay 35-percent, while renters pay an additional 10-percent (though this is discounted for frequent renters with a proven record of safe driving). For a hypothetical car renting at $200 per day, that nets the company $70 from the car owner plus an additional $20 from the renter, but a (likely significant) portion of this goes to fund the insurance on the rental. In addition, background checks cost money, as do vehicle inspections.
The company allows renters to sort by zip code, type of car (Classic, Exotic, Muscle, Classic Truck, Hot Rod, Luxury, Antique and Kit Car, at the moment) and origin (Domestic or Foreign). Once these fields are defined, additional fine tuning allows for selection by rental cost, transmission type and car features.
Since pricing and terms are set by the car owner, costs vary greatly from vehicle to vehicle. In the Northeast, a 1969 Buick Skylark convertible can be rented for $295.90 per day (including fees) and a $500 security deposit, which includes 100 miles; each additional mile is priced at $0.70. Those looking for an interesting wedding vehicle might consider a 1937 Cadillac Series 85 sedan, which rents for a fee-inclusive $577.50 per day (plus a $500 security deposit) with 75 miles and $0.75 for each additional mile. Renters wishing to learn firsthand about drop-throttle oversteer can rent a 1991 Porsche 911 Turbo for $616 per day (plus a $500 deposit), with 100 miles included and $0.75 for each additional mile.
Opt for something newer and faster, and prices can climb quickly. A 707-horsepower 2016 Dodge Challenger Hellcat rents for $933.90 per day, plus a security deposit of $2,500, including 100 miles; each additional mile adds $2.49 to the tally. A 2007 Lamborghini Gallardo is available to anyone willing to spend $1,430 per day, plus a $3,500 deposit, with 100 included miles and each additional priced at $3.49.
While not inexpensive, the rates seen on Classics&Exotics are generally in line with exotic car rental fees from other agencies. Compared to the cost of buying and owning such a vehicle, a one-or two-day rental may be more of an attainable dream for many.
For more information, visit ClassicsAndExotics.com.
from Hemmings Daily – News for the collector car enthusiast http://ift.tt/2eiqg4P
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