Glitterati on wheels turns handsome profits

If this is too pricey, you may want to settle for a cheaper make but that means that you forego some comfort. The level of comfort dictates the price tag.

The stretch Lincoln Limo goes for Sh15,000 per hour but excludes champagne and bodyguard and only has a single screen. However, the seating capacity is similar to the Chrysler’s and it is also fitted with a refrigerator.

A Mercedes Limo is the cheapest among the class of limousines that are charged on hourly basis. This model is stretched and assembled in Kenya thus making it completely different and less prestigious from the models imported from the manufacturer.

Every hour spent in a Mercedes limousine will cost at least Sh12,000, while an Opel convertible limo attracts an hourly charge of Sh10,000.

The service provider is expected to fuel the vehicle. To cushion against fluctuating fuel costs, Mr Mwangi and others in the limo business must plan their charges in advance and factor in possible spikes in fuel costs, which is not impossible considering the nature of events these vehicles are hired for.

“A wedding is not something you just think of and embark on it the same day. You must plan and book in advance to help us study the demand against the expected costs,” he said.

To the advantage of car-hire companies, the demand for limousines is not dictated by the registration number rather by the type of service that the vehicle comes with.

Hence, there is never need to constantly replace the fleet with newer versions like in the case of general car hire.

Due to the high costs of acquiring limousines, most car hire companies have entered sub-leasing arrangements where they sign contracts with owners of such vehicles who wish to generate income but do not own car hire outlets.

At Mr Mwangi’s company for example, 60 per cent of the limousines are sub-hired.

Besides boosting the fleet, sub-hiring enables a company to explore new models without the headache of having to buy or resell old models.
But private owners must insure the limo for public transport use in order to qualify for the deal.

Unlike general car hire where one can pay for the service the same day they intend to use the vehicle, limousine hires must give a week’s headsup.

ikarambu@ke.nationmedia.com