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July 30th, 2002, 04:39 AM
If you were starting out in the limousine industry would you:

Purchase a brand new stretch that cost you $1300/month in a lease?

or

Purchase a used stretch (98 or 99) that cost you about $800/month in a lease?

And do you think $1300/month is significantly high or normal?

July 30th, 2002, 05:17 AM
Well Vic,what do YOU think?
Can you use the $500.00. a month you`d save on a used car on something else like advertising or can you afford to spend the $1300.00. a month.What does your Area (Toronto,right?) demand?Do they want new cars or older cars.Why don`t you check what Insurance is gonna cost you,wait for the shock!then decide from there.I know lots of guys with older cars and they do O.K.I have a 1996 6 passenger and a new 8 passenger {No it isn`t a 10 passenger} the `96 helps pay for the new one and nobody has complained because it`s a `96.I think the trick is to keep your cars spotless and in good running order and you should do O.K. http://limos.infopop.cc/groupee_common/emoticons/icon_biggrin.gif

July 30th, 2002, 05:28 AM
Sandy,

I know the insurance will run me at least $400/month. So yes, the savings each month could pay for the insurance allthough I'm concerned about repairs on used vehicles. A new vehicle would be under warranty and most likely experience less mechanical problems. Actually the figures I gave before I converted to USD. The price I'm looking at is about $2100/month cdn. Brand new. The extra money on the payments wouldn't be a concern if the business was busy of course. I'm also a little skeptical on leasing used stretches. Don't want to get cause in an upside down lease.

Your opinion?

July 30th, 2002, 06:19 AM
<BLOCKQUOTE class="ip-ubbcode-quote"><font size="-1">quote:</font><HR>Originally posted by Vic:
If you were starting out in the limousine industry would you:

Purchase a brand new stretch that cost you $1300/month in a lease?

or

Purchase a used stretch (98 or 99) that cost you about $800/month in a lease?

And do you think $1300/month is significantly high or normal?<HR></BLOCKQUOTE>

Vic I would try to find a really clean, low mileage 2000 or 2001 still under warranty. I have seen some really low mileage 2001's for $45,000 USD and some really clean 2000's for $35,000 to $40,000 USD. That way you save lots of money and still have a warranty. You won't get any more for a new 2003 than you would a clean 2000 to 2002 model. The new body style change is not a big difference. Now is the chance to steal a clean, low mileage 2000-2002 model.

Wade Randolph

July 30th, 2002, 08:34 AM
Laredo Coachworks ( 210-732-5466 ) has some great deals on their remaining 2001's.

Dean Schuler

July 30th, 2002, 02:21 PM
<BLOCKQUOTE class="ip-ubbcode-quote"><font size="-1">quote:</font><HR>Originally posted by Vic:
If you were starting out in the limousine industry would you:

Purchase a brand new stretch that cost you $1300/month in a lease?

or

Purchase a used stretch (98 or 99) that cost you about $800/month in a lease?

And do you think $1300/month is significantly high or normal?<HR></BLOCKQUOTE>

I agree with Wade. Get a car with some warranty left on it. I for one dont lease. I feel more comfortable with a bank. Any extra money you have at the end of the month you can either put down against your loan or save for rainy day.
Also LCW makes a fine vehicle. Buy one if you can new or used.

July 30th, 2002, 05:43 PM
I agree, however wouldn't businesses that are starting out want to find that edge over their competition by having the latest and greatest? Otherwise what else do they really have? (We all know everyone claims they have better service, on time, etc as making them 'different' from the rest).

July 31st, 2002, 01:51 AM
Vic,

The latest and greatest can be an excellent training program for your employees, a few major accounts that don't mind letting you throw their name around - such as a big hotel who likewise benefits by telling guests they have a "hotel limo service". I have a contract with our local arena & convention center where most major concerts are held. We advertise as "The Official Limousine Service of Centennial Garden & Convention Center" and then we tell people on the phone who are "shopping" that we cost a little more than some of our competitor but we have the experience and reputation to provide service to people like Elton John, Neil Diamond & Tina Turner and the training programs that we put are drivers through cost money but we believe you would expect the absolute best service for your special event - I am right?

If you have clean cars, impeccably dressed drivers, arrive on time and are attentive to detail, it doesn't matter if you have new or used. The client doesn't care either.

August 25th, 2002, 04:57 AM
I don't have to worry too much about competition where I live, (it's a small town) so I have 2 97s and a 93 NCE 120s. I was fortunate enough to have saved up a little cash to start my "retirement business". I paid 55K for all three cars, granted I have a higher maintinance bill but when you are able to do some of the work yourself, you can control that. The upside is insurance and interest. I do not have to carry collision and comp on my cars for the bennifit of the lein holder, nor do I have to pay out a lot of interest every month. If I wreck one, There are a lot of good 93 to 97s out there for less than 20K. I keep my cars clean, exceed the clients expectations on every run arrive on time, it's service, not the car that really counts.

David E. Merrill