investigator759

I've been pondering the idea of opening a "Classic Car Storage" business near my home in Southern CA.

What do you think? Do any of you currently pay to keep your car in a storage facility?

Would you be nervous about keeping your car in a clean, beautiful, discreet location, with access to lifts, and other “Man Cave” amenities?

I figure no group of people love their cars as much as we do so your opinions matter, and may sway me one way or another into sinking my retirement money into a side business of this nature….

Thanks,
Tom

steveale

I have heard that a few of these have been popping up the last few years with the popularity of the car hobby. They are like a timeshare village for the collector. I think there have been a few threads on them here or over in the garage forums. You could probably talk to someone who has done them (in an area away from your area, so not a competitive threat) and get some insight into the business model.

I personally have not even considered this type of service/community, mainly because the concept is relatively new....

66jack

http://www.valleyautostorage.com/cla...s-angeles.html

investigator759

Thanks Jack. Do you have experience with the facility ? It's around 100 miles away from me, but that is the general business idea I am thinking of.....

Frankie the Fink

I've done several business plans for secure data centers (millions of dollars in servers/network equipment) and the requirements for classic car storage are similar in many ways. Start up costs will be significant. Building construction/renovation, site prep, environmental controls and backup systems, fire suppression and water intrusion safeguards, physical security (fences, guards, keyed/badge access) and electronic security (video, burglar alarms), liability insurance. It would have to be a high-end setup to attract the more prestigious collectors. If you 'miss' on any of this and the site has a high vacancy rate; fixed costs can take you down. Location is hyper-critical. Has to be within driving distance for the middle tier classic car owners, outside the sphere of competitive offerings but far enough from urban blight to be secure and cost effective (e.g. crime/taxes, etc.). Marketing won't be cheap either. Web site, distributing flyers at car events; magazine/newspaper spots -- perhaps TV ads; partnering with some classic car dealerships is not a bad idea -- they could possibly store some overflow at the facility if needed or steer clients your way.

Background checks and screening of employees won't be cheap. Make a wrong hire and a car gets stolen and lawyers will have a field day. The first time some expensive wheels (check the value on some original Kelsey-Hayes!) , etc go missing and word gets out in the classic car community you're toast. Putting 'lifts' in the facility ups the ante and if anybody gets hurt working on a car you are in a whole different tier of liability.

Monthly costs will be big..HVAC, lighting, monthly lease/mortgage, etc., etc.

Work the numbers VERY carefully...and form an LLC company to manage the biz.
A rock solid home life is a necessity. The biz will "own" you for the first 5-8 years and families can feel neglected and detached. Too many times hot-to-trot first-timers overlook this aspect.

Put a professional business plan together before even attempting anything else. It can be an eye-opener! If I was looking for some return on retirement money I would consider this a high-risk venture and inappropriate. Classic car storage is a niche market and you would be better off investigating regular storage; the numbers are more available for crunching, the market is broader, there are probably facilities for sale/lease you could buy that are good-to-go.

That IS my PERSONAL opinion as I'm not qualified or licensed to give financial advice to others.

Chuck Gongloff

I would worry most about liability, fire, damage, etc.

In addition, ground rules would have to be set regarding what "work" can be performed there.

Storage only?

Maintenance?

What type of "maintenance"?

With no ground rules, I can envision guys performing frame off restorations, sand blasting, shooting paint, etc. etc.

Those would be definite "no nos" for such a facility.

Storage, washing, waxing.... those are OK. Light cleaning of undercarriages and engines....... etc., that's OK too.......

Chuck

corvetteed

A fellow old car friend of mine did this a few years ago, but not "high end". He bought a 75 year old building, and can store about 100 cars in it. He doesn't need to advertise; its all word of mouth. He doesn't allow any work to be done in it either. Its always full, but, he'll take on furniture storage to help fill the spots. He doesn't seem to be having any problems with it.

Frankie the Fink

That doesn't sound like the same business venue that a classic car storage near LA would have IMO. Good for your friend but I think he's been lucky in many ways or else not sharing all the issues he has to deal with. Storing a $30K car is equivalent to storing a boat; storing a $250K+ car is a different beast...that's sorta how I think about the So Cal market.

I have buddies that store their cars in a regular pay-by-the-month storage shed too. Not something I would do.

Here is sort of a 'middle ground' venue a mile from my neighborhood - it was still a big investment and huge commitment for the owner/operator; I've talked to this guy and the profit margins are slim (chasing deadbeats renters around after the economic crash near killed him -- don't believe all that crap you see on Storage Wars; there is a whole convoluted procedure to seize someone's stored belongings and auction them off):
http://www.bigtoystorageflorida.com/index.php?page=home

I did a tour of it and there are several classic cars stored there.

This may be a better idea for the OP and avoid being in too tight a 'niche'....store ANY big stuff with special attention to classic cars.

Redbird

I'm agree Frankie's comments if it's a pure rental situation. If each is a form of condo ownership, then each owner is responsible for his own insurance. You would need some very clear and restrictive declarations and by-laws. Fire & theft would be my worst fears.

gbvette62

There's a classic car storage facility here in South Jersey, that's been open for about 30 years.

I've never needed to store a vehicle there, but I have visited the place. When they first opened, they approached my father for some ideas about how to operate and where and how to promote the facility (my father was always heavily involved, and very well known, in the local antique car hobby). Besides climate controlled car storage, they also have a small meeting room.

Antique Auto & Classic Car Storage, was built from the ground up, as an antique car storage facility, not converted from a building previously used for something else. The place is strictly for car storage, and not part of a general storage facility. They also provide 24 hour security. This particular location, is very attractive, and well groomed.

Here's a link to there website. http://www.antiqueautoandclassiccars...efeatures.html

A second car storage facility recently opened in South Jersey. I don't know anything about the place, other than that they are about 5 minutes from me. This place doesn't appear to be on the same level as the one above. This one is located behind a local auto repair company, and features much simpler buildings, and doesn't have the high end look that Antique Auto & Classic Car Storage has.

This is the other facilities website. http://neubertstireauto.com/

TheGanzman

F the F's most erudite posts reflect OUTSTANDING due diligence on this topic! Add to it the KNEE-BUCKLING cost - either rental or purchase - of real estate here in SoCal, which further skews the curve on this as a risky business model. A very close friend and I discussed this same thing 2 months ago. He's a smart cookie, a car JUNKIE, and one of the hardest-working guys I know, with impeccable "credentials" in the car biz here in SoCal, and a numbing network of car guys to pitch this to. We just could NOT see a viable ROI in a reasonable time-frame (we're both in our mid-late 50's)...

SoCal is neck-deep in KILLER vehicles across ALL marques, making this a VERY tempting proposition. Add to it the relative scarcity of secure storage for same - oh SO alluring! I ain't got the nuts for it; having said that, it WOULD be cool if it's done correctly! You also gotta factor in the "accessibility factor" - such a facility would have to be close to freeway(s) - easy on, easy off; easy in, easy out...

FYI - "Family Classics" in San Juan Capistrano DOES offer this service already too; albeit not to the "extent" that I think you're talking about, so factor them is as "the competition" as well...

Bluestripe67

I have a friend who operates a business in the marine industry, and that involves the storage of boats. He is constantly chasing deadbeats for not paying storage. Some of those boats he now owns, but that doesn't make the issue any easier. Dennis

cv67

I rented spots for yrs when I lived in apts. Impossible to find now they dont store cars...or if they do no gas tanks funky hours etc etc etc.

Looked into renting someones garage before moving here and just cant swallow the high prices now. Did it a few yrs ago and when I drove by randomly and saw the garage open all day that was it for me.


If I knew a local place I could keep it have access and maybe do work maybe.....hell I make a good wrench and sales guy and I hate my current job Think it would be fun to run something like that just keep the riff raff guests out.

Mr D.

1) No I would not be nervous

2) Yes I would like to have access to lifts, and other “Man Cave” amenities.


Here is where I stand on all this, I would like to have the option of renting a stall to do maintenance / a frame off in that also had a lift. This would have both short term and long term options. This would also include access to shop presses, blast cabinet etc. A paint booth would be a huge bonus. Everything can be included in a flat rate price or by the hr depending on the bussiness model used.

Think of it along the lines as opening a Automotive Hobby Shop like you would see on Military bases run by MWR. The below link will give you an idea of what I'm talking about.

http://www.myhurlburt.com/pages/autohobby.html

I do see this being too problematic and not cost effective in CA, but if installed in a more user friendly or less regulatory enviorment who knows.

I have also thought about this over the years but an not sure if there is a profit to be made or if the avg Joe would pay for it. Guess it really depend on the location and more demand would be towards the urban environments.

Now having said all that, if I lived in a house with only a two car garage and could afford this service than YES I would be all over this.

INMYBLOOD

Did you see the TV show that went to a HIGH end place. The owners decorated their garages. It was like a private gated community/car show. Sun was shinning people were out mingling chatting and appreciating it all. Looked very exclusive. May have been Dennis Gauges show.

toddalin

You may want to talk to this guy also in our area, (unless you are this guy).

He has been trying to get a similar project going, except that it would be a working shop. I think this is the same guy and the last I talked to him, he had no takers. I was trying to learn machining to use my new CNC mill/lathe.

http://orangecounty.craigslist.org/cto/3561907018.html

Frankie the Fink

The thread has drifted away from classic car storage and into the realm of a hobby/repair facility for DIY car owners. That's not how I read the OP's proposal.

At any rate, I wouldn't want my car stored anywhere near somebody doing a frame off restoration. Not counting the potential for damage to my car I would be leery of "parts migration".

tuxnharley

I have two reference ideas/locations for you to consider.

First of all, not being a real "high end" type myself (more upper middle class, small collection, not a "1% er"), I store two of my cars at a close by facility that combines self storage units on the upper floors with vehicle storage on the ground level. It is semi open air with on site staff during business hours, and drop down lattice work steel gates when closed. It is definitely sprinklered, but the open air ventilation eliminates the gas tank/fuel Fire Code problems. It is secure when closed - interior and exterior gates, alarm system, cameras, on site live in manager, etc. The only minor issue is that you have to plan ahead and get your car during business hours. The facility is called Stor'it Los Gatos. The combination of self storage units and car storage seems to generate a steady revenue stream for them. This is a high end demographic area, and the units have a waiting list. Hopefully the picture below gives you some idea of the building layout I am trying to describe.

Secondly, for a real high end facility, check out this web site for a place in San Jose near the airport. They took an old warehouse and converted it into a really nice autosport facility with shops, social events, etc. I go there about once a month; they host race day parties on big screen TVs. charity functions, etc. This was put together by a local real estate developer - Ralph Borelli - who is also a big time car guy.

www.clubautosport.net

MrPbody

The industrial park, where I once owned a business, has kind of become a car storage facility, without actually being called that. there are various size bays available, all with roll up doors, individual plumbing, heat, ac, etc. one or two car guys started renting a space to store there cars in several years ago, and the word just kind of got around. no advertising was done towards that use. You rent a space, pay your own utilities and the required liability insurance, and store cars or do whatever you want to do with the space. There is one small space available to all, which has been made into a "lounge" that only renters have keys to. by being separate spaces, the renter has the option of heating and cooling to the degree he wants to, is protected from the "parts migration" Frankie mentioned, and is responsible for their own insurance needs. There are a couple "builders" in the complex also, so lifts and such are available close by, but not controlled by the land owner (and therefore not liable in their use).
I would think a similar arrangement could work, and somewhat protect the owner from liability issues, even in California.

Russ

mrg

Perhaps a bit on the high end side: From mild to wild - factory stock, exotic, race, muscle car - a really cool facility to visit and see the goings-on. . .

http://clubautosport.net

My oops .. Tux beat me to it!