Owners
Putting Your Luxury Car Under Rental Management
A sports car sitting in the garage costs money. Renting it out on your own sometimes costs even more. Here is what to check before you hand over the keys.
The starting point
A car standing still keeps costing
The insurance runs whether the car is driven or not. The garage space is paid every month. Servicing falls due. And depreciation moves on without warning.
Many sports car owners use them a few weekends a year. The rest of the time, three lines of costs go out while the car earns nothing. That is what rental is for: putting the car to work during the weeks you do not need it.
The rental still has to earn more than it costs. That is not a given, and it is what this guide is about.
The options
Three ways to rent out your car
The first is to rent it out yourself, through listings or word of mouth. You keep all the income. You also keep everything else: checking renters, the contract, the deposit, the inspection, disputes and the calls at two in the morning.
The second goes through a peer-to-peer rental platform. It brings the renters and an insurance policy. Before listing a prestige car there, read the value caps and exclusions in that policy. You are also still on your own for the key handover and the check on return.
The third is managed rental. A professional runs the car with their own clients, contracts and logistics, and is paid from the rentals. It is the model that takes the least of the owner’s time, provided you choose carefully who you hand the car to.
First of all
Three checks that decide everything
Your insurance
As a rule, a standard car insurance policy does not cover renting to third parties for payment. During each rental, the car must be covered by insurance suited to that use. Ask the manager which insurance applies, and for how much. Ask your own insurer what your policy says too.
Your financing
A car on a lease-to-own or long-term lease, or in a company’s name, can often be put under management. But some finance agreements forbid subletting. Read yours again, or ask the finance company, before going any further.
The real demand for your model
A model that nobody books will earn nothing, even if it is well run. A good manager tells you so before you sign. On the French Riviera, demand is mainly for recent models from the major brands, in good condition and with a full service history.
Staying in control
What you should be able to decide
This is every owner’s first concern, and it is a fair one. A serious manager lets you set the rules before the first rental:
- The dates you keep for yourself, which can never be rented
- A minimum price below which the car does not go out
- Excluded uses: no track days, no trips abroad
- The profile of accepted drivers: age, years holding a licence
You should also know at all times who has the car, where it is and until when. If a manager cannot answer those questions, they are listing your car online. They are not managing it.
On the renter’s side, the same rules as for our own fleet apply: licence and ID checks, a deposit every time, and an inspection at departure and on return. They are set out in our guides on rental requirements and on the deposit.
The real question
How much it earns
Nobody can tell you without seeing the car. The income depends on the model, its condition, the demand for that model, the season and the weeks you keep for yourself.
Be wary of a figure given over the phone. A promised return made before any visit is the first sign to walk away. What you should receive is a written estimate over twelve months, with the expected seasonality and the manager’s fee clearly stated.
Do the sum the other way round too. Every rental adds kilometres and wear. A well-priced rental covers that cost comfortably. A cut-price rental barely covers it. That is exactly what the minimum price is for.
The calendar
Seasonality on the French Riviera
On the coast, demand is concentrated between May and September. The Cannes Festival and the Monaco Grand Prix open the season. July and August carry it on. In winter, the Riviera is much quieter.
That has two consequences for an owner. First, if you keep all your summer weeks for yourself, the car will not work much. Second, a car that is only rented out on the coast will have slack months. At Morelli Conciergerie, we also run vehicles in Île-de-France, which evens out the year.
The contract
What the management agreement should contain
Nothing should be left unsaid. Before the first rental, the agreement should set out in writing:
- The length of the commitment and the exit terms
- Your reserved periods and the minimum price
- How costs are split between you and the manager
- How a claim is handled: reporting, assessment, repairs
- How often you are paid and what the reports contain
An agreement that is vague on how costs are split is a frequent source of disputes. With us, routine upkeep linked to rental use is paid by us. Major scheduled servicing and normal wear and tear remain with the owner. It is written down in black and white.
Our method
How we work
You send us the model, the year and a few photos. We reply within 24 hours. If the car matches what our clients ask for, we come to see it, then you receive a written estimate with figures. Nothing is committed before you sign.
We work on short, renewable terms rather than long contracts. If the results do not suit you, you take your car back. And if your model will not rent, we tell you so rather than getting you to sign.
See also: rental management, our current fleet and how a concierge charges.
Frequently asked questions
How much does a luxury car earn under rental management?
It depends on the model, the real demand for that model, the season and the dates you keep for yourself. A serious manager does not give a figure before seeing the car and its papers. A promised return made over the phone is a warning sign.
Does my car insurance cover renting out my car?
As a rule, no. A standard car insurance policy does not cover renting to third parties for payment. The car must be covered by insurance suited to rental use during each rental. Check your policy with your insurer before you sign anything.
Can a leased car or a car in a company’s name be put under management?
Often yes, but it depends on the finance agreement and the insurer. Some lease-to-own and long-term lease contracts forbid subletting. Check this before taking any other step.
Can I keep using my car?
Yes, during the periods you block in advance. They are never offered for rental. Outside those periods, you need to give the manager reasonable notice, because a confirmed booking cannot be cancelled without consequences.
Who pays for the upkeep of a car under management?
At Morelli Conciergerie, routine upkeep linked to rental use is paid by us. Major scheduled servicing and normal wear and tear remain with the owner. The split is written into the management agreement.
How long do you have to commit for?
At Morelli Conciergerie, we work on short, renewable terms. If the results do not suit you, you take your car back.
Owners
Tell us about your car
The model, the year and a few photos are enough. A reply within 24 hours, with no commitment.