Loaner car for customers

R

Richard Grasa

New member
Does anyone offer a loaner car to their customers? I'm thinking of picking up a used Ford Taurus or similar car to let customers use while their car is here at the shop.



My biggest question would be about the registration/insurance. I know that when you rent a car, you can use your own insurance policy to cover the car. Can this be done with a loaner, or would I need to insure it myself under a policy where anyone can drive it? Any input is appreciated.
 
I have 4 loaner cars. They are GREAT for business. You need to create a loaner car bailment with their insurance information, and also carry supplemental insurance.







John
 
ExplicitDetails said:
Does anyone offer a loaner car to their customers? I'm thinking of picking up a used Ford Taurus or similar car to let customers use while their car is here at the shop.



My biggest question would be about the registration/insurance. I know that when you rent a car, you can use your own insurance policy to cover the car. Can this be done with a loaner, or would I need to insure it myself under a policy where anyone can drive it? Any input is appreciated.
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I've looked into it and it's a huge hassle. A friend with another shop does a great promotion where he provides a basic rental car free for the day and the customer pays for the fuel/insurance. I think he said he can get a basic rental for $15 from 8-5 and the customer is responsible for any extra charges etc....
 
ShineShop said:
I've looked into it and it's a huge hassle. A friend with another shop does a great promotion where he provides a basic rental car free for the day and the customer pays for the fuel/insurance. I think he said he can get a basic rental for $15 from 8-5 and the customer is responsible for any extra charges etc....
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That's what I have considered. In Ontario a loaner car comes with massive insurance hassles. A friend of mine who owns a small mechanic shop just calls a local fleet rental place and has them drop the car off for the customer. They arrive within 15 minutes and the rental is $21/day which includes 200km of travel, customer pays gas. The customer just provides DL#, signs, and is on their way.
 
Picus said:
That's what I have considered. In Ontario a loaner car comes with massive insurance hassles. A friend of mine who owns a small mechanic shop just calls a local fleet rental place and has them drop the car off for the customer. They arrive within 15 minutes and the rental is $21/day which includes 200km of travel, customer pays gas. The customer just provides DL#, signs, and is on their way.
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Exactly my thinking.
 
Picus said:
That's what I have considered. In Ontario a loaner car comes with massive insurance hassles. A friend of mine who owns a small mechanic shop just calls a local fleet rental place and has them drop the car off for the customer. They arrive within 15 minutes and the rental is $21/day which includes 200km of travel, customer pays gas. The customer just provides DL#, signs, and is on their way.
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$21 a day is very expensive. I have 4 cars, and all are out every day. That means $84 in rental charges per day at 25+/- days a month = 2100. That will easily pay 4 car payments, and insurance. Plus 4 or 5 years later you'll own the cars outright. It's not a hassle at all, in fact the customers are so gracious, and appreciative you will earn a lot more business from it.
 
JohnKleven said:
$21 a day is very expensive. I have 4 cars, and all are out every day. That means $84 in rental charges per day at 25+/- days a month = 2100. That will easily pay 4 car payments, and insurance. Plus 4 or 5 years later you'll own the cars outright. It's not a hassle at all, in fact the customers are so gracious, and appreciative you will earn a lot more business from it.
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I doubt you're familiar with car insurance in Ontario let alone the GTA where Picus is. The insurance alone would most likely be $1000-$2000 a month on top of the car payment, storing the car, maintenance etc....
 
ShineShop said:
I doubt you're familiar with car insurance in Ontario let alone the GTA where Picus is. The insurance alone would most likely be $1000-$2000 a month on top of the car payment, storing the car, maintenance etc....
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You're absolutely right about that. That makes a lot more sense then....
 
ShineShop said:
I doubt you're familiar with car insurance in Ontario let alone the GTA where Picus is. The insurance alone would most likely be $1000-$2000 a month on top of the car payment, storing the car, maintenance etc....
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Scotty, is the insurance issue because of something that's been legislated in Ontario, or is it just how the insurance companies work ? (IIRC, Ontario has privatized insurance, yes ?) I'm seriously considering doing this if it's at all feasible.
 
WAS said:
Scotty, is the insurance issue because of something that's been legislated in Ontario, or is it just how the insurance companies work ? (IIRC, Ontario has privatized insurance, yes ?) I'm seriously considering doing this if it's at all feasible.
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Yeah it's all private insurance here and in the GTA they are apparently getting hit hard because of a lot of fraud and stuff. I know I'm paying $125 a month for basic coverage (no collision) on a 2005 Aveo I bought for the shop just to use as a runner car. If I had to insure it for customers to drive and added collision I'm sure that would drive the price over $200.
 
ShineShop said:
Yeah it's all private insurance here and in the GTA they are apparently getting hit hard because of a lot of fraud and stuff. I know I'm paying $125 a month for basic coverage (no collision) on a 2005 Aveo I bought for the shop just to use as a runner car. If I had to insure it for customers to drive and added collision I'm sure that would drive the price over $200.
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Hrmmmmmm, I'll have to look into it some more. My personal vehicle is $370 a year for full coverage ;)
 
WAS said:
Hrmmmmmm, I'll have to look into it some more. My personal vehicle is $370 a year for full coverage ;)
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I officially hate you. The historic vehicle insurance on my 76 Scout II is $400. I won't even get into what I pay for the Z06, SRX or my Harley. We get screwed on everything here
 
This thread is funny. Poor me in the GTA will easily pay $600/mo MIN for to insure a loaner car.. and WAS in Whitehorse pays like $30 a month. :p



JohnKleven said:
$21 a day is very expensive. I have 4 cars, and all are out every day. That means $84 in rental charges per day at 25+/- days a month = 2100. That will easily pay 4 car payments, and insurance. Plus 4 or 5 years later you'll own the cars outright. It's not a hassle at all, in fact the customers are so gracious, and appreciative you will earn a lot more business from it.
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Ya, I have thought about it but as mentioned Canadian insurance tends to be a little rough particularly in major metro areas (Montreal, Toronto, Vancouver, etc). My wife and I have been driving over 20 years, multi car discount/homeowners/business insurance and still pay ~$1700 a year each just because we commute into the GTA (Greater Toronto Area). When I was in San Francisco I paid 1/3rd that. :/



Also, FWIW, the mechanic I mentioned does not cover the cost of the rental, he basically just has his receptionist call the rental co for interested partied.
 
Yeah guys, living in the North has it's advantages ! Cheapest car insurance in the country is one of them :) And $15 a day federal tax credit for living here and maintaining your own dwelling. Oh and $2100 a year tax-free tavel credit to go south.



Did I mention no provincial sales tax either ? Just the lowly 5% GST. What does HST stand for again ?? ;)
 
WAS said:
Yeah guys, living in the North has it's advantages ! Cheapest car insurance in the country is one of them :) And $15 a day federal tax credit for living here and maintaining your own dwelling. Oh and $2100 a year tax-free tavel credit to go south.



Did I mention no provincial sales tax either ? Just the lowly 5% GST. What does HST stand for again ?? ;)
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Whats your address? I have a big bag of Iron X stink I wanna send you! :)

 
Damn you Yukon! I think I have the highest insurance rates in Ontario, according to my insurance insider $8400 for 3 cars 4 drivers. 2 drivers with 14+ year driving history and 2 drivers under 22 (me and my sis). Damn GTA insurance frauders!
 
WAS said:
Yeah guys, living in the North has it's advantages ! Cheapest car insurance in the country is one of them :) And $15 a day federal tax credit for living here and maintaining your own dwelling. Oh and $2100 a year tax-free tavel credit to go south.



Did I mention no provincial sales tax either ? Just the lowly 5% GST. What does HST stand for again ?? ;)
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Well....on the upside it was -4c with snow flurries and whiteouts here today; so pretty much the same as the best weather you'll have all year! :D :D :D :D
 
WAS said:
Yeah guys, living in the North has it's advantages ! Cheapest car insurance in the country is one of them :) And $15 a day federal tax credit for living here and maintaining your own dwelling. Oh and $2100 a year tax-free tavel credit to go south.



Did I mention no provincial sales tax either ? Just the lowly 5% GST. What does HST stand for again ?? ;)
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There has to be some advantages to living there.
 
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