One of the most important questions an entrepreneur looking to start a car service business is how much money he actually needs to shell out to get the limousine business up and running.
Running a car service business requires having capital and expenses properly figured out ahead of time. Anyone who has explored the idea of investing in luxury vehicles knows how much a single unit costs. In addition, there are many other expenses to be incurred during the day-to-day operations of a limousine business.
The single biggest cost in starting a limousine business is the acquiring the vehicle.
Quite naturally, limousine customers turn to renting these luxurious vehicles because of its glamorous appearance and plush interiors. This means really investing in top of the line vehicle models and moreover, outfitting it with state of the art accessories and equipment.
The average age of vehicle models in a car service industry garage would be no more than 4 years old. Beyond that, industry experts would tell you that the limousine would no longer be getting reservations or inquiries no matter how much you advertise.
Somehow the image of someone riding an old and dilapidated limousine does not achieve the desired impact as emerging from a shiny, sleek and elegant one.
Buy the Best Limousines and Warranties You Can Afford
Limousine business owners have learned to be innovative and creative with regards to how they run their car service businesses. The traditional limousine models have been replaced with a variety of car options to match the taste, purpose, and occasion that the limousine customer is going to.
Your car service business must offer a wide variety of models to choose from for airport pick ups and transfers; corporate-sponsored events, to theme inspired limousines for birthdays, weddings and debutante balls or school proms.
Sports Utility Vehicle or SUVs are becoming more and more the craze, so are modified vans and buses; And, for celebrities or extremely high-profile limousine customers, armored vehicles to ensure the safety and protection of your clients.
Here are some car models worth looking into:
1. Audi A8L, Mercedes-Benz S-Class
2. BMW 760li
3. Hummer H2
4. Leyland Miracle
5. Lincoln Town Car L Edition
6. Cadillac DTS
7. The limo bus
8. Stretch SUV limos.
After-Sales Expenses: Car Insurance and Maintenance
Generally, the cost of insurance for the limousine industry could be anywhere from sixty to a hundred dollars a week, and that is not even the most expensive or comprehensive kind of insurance available.
You have the option of paying insurance premiums on a weekly or monthly basis, or well in advance. Insurance companies would usually offer a good rate or insurance package if you’re insuring an entire fleet of brand new limousines and other types of vehicles.
Besides the insurance, another serious cost to consider is the upkeep and maintenance of the vehicles. Car washes, waxing, interior detailing, oil changes, tune ups, tire changes etc. These are expenses that you must always set aside budget for as you simply cannot afford to have any of the vehicles on your fleet to look like its suffering from wear and tear and neglect.
All limousines and cars should regular undergo maintenance checks from trained professionals.
Investing in People – A Limousine Business Key To Success
The truly successful limousine business operators would tell you that second to the cars themselves, their best assets are their people. Whether it’s the chauffer, the secretary who takes in the limousine reservations or bookings, or the in-house mechanic, and even the security guard who watches over the establishment – the fact remains that human resource is one the best resources you can have.
It isn’t enough to just pay people an hour’s wage for an hour’s worth of work. Invest in their training and development so that they become more efficient employees and more confident members of your organization. There is nothing more wonderful than seeing the people who work with you grow as fast or as much as the business that you’re running.