Author

Andrew Lloyd

Andrew Lloyd is the Editor here at Cars for Stars News and oversees all of the editorial content on the website. Having worked in a variety of print publications focused principally on motoring news, Andrew brings a wealth of experience to the role of Editor.

What is the definition of Hire and Reward?

If you are looking to set up a business offering chauffeur driven cars or limousine for hire, it is essential that you understand the definition of ‘Hire and Reward’. With the prevelance of companies offering a stretched limousine on a “self-drive hire” basis, in order that more than 8 passengers can be carried it is also a useful to the potential hirer.

The UK based Transport Office have provided the following definition;

Hire or reward is any sort of payment which gives a person a right to be carried on a vehicle regardless of whether a profit is made or not. The payment may be made by the person himself, or on his behalf and may be a direct payment (such as a fare or other payment made directly in respect of the journey) or an indirect payment (such as a membership subscription to a club, payment for a bed in a hotel, school fees or payment for concert tickets). Although such indirect payments are usually made in respect of other services (rather than for transport) they are nonetheless viewed by the courts as hire or reward because anyone who had not made the payment would have no right to be carried.”

Cars for Stars is a licensed operator of chauffeur cars and limousines in the UK and also operates a franchised limousine hire business.


 

Disclaimer:
Any information contained herein is provided in good faith and based on research and public documents available at the time. However, it is entirely the responsibility of the reader (or any other party) to establish the veracity of any of the claims or information contained herein through their own independent sources, including, but not limited to, their own accountants, legal advisors and contacts with the relevant licensing, industry or government bodies. Cars for Stars Limited accept no responsibility or liability for any errors, omissions or exceptions.

What type of licence do I need for my limo business?

There are two principal types of licence available to operate a limousine business in England and Wales (Scotland differs and is not covered here). In other words,  a business where passengers are going to be carried on a ‘hire and reward‘ basis. Currently, if you only provide stretched limousines for weddings or funerals, you do not need to hold an operators licence. The Road Traffic Act 2006 introduced amendements that requires all limousine operators to be licensed from the 1st January 2008

The most popular form of licensing for limousine companies in a Private Hire Vehicle licence, these are issued by the local authorities and each will have its own intepretation of the rules. However, one thing that will be common to all of the local authorities is that the maximum number of passengers that can be carried is 8. This issue is currently under discussion with industry representatives and any changes would require an amendment to the relevant legislation. At the time of this post, the rules are clear, no more than 8 passengers.

Provided you meet all the criteria, a PHV licence should not be difficult to obtain, given all of the local authorities have received clarification on how they should intepret the existing and new legislation. In London, the Public Carriage Office is responsible for licensing on behalf of Transport for London, the rules are similar to those imposed by local authorities outside London, but the costs vary. It should be noted, for clarity, that you will require a PHV operators licence for the business and a PHV licence for each limousine or chauffeur driven car that you operate. All chauffeurs will have to be “badged”, in other words, they will have to be licensed to drive a private hire vehicle, whilst in London they will require a PCO Licence.

The alternative is a Bus Operators Licence, once again, you will need an Operators Licence for the business and a Public Service Vehicle Licence for each limousine.  There are four types of Bus Operators Licences, which are described as follows:

  1. a Standard Licence – for national and international operations
  2. a Standard Licence – for national operations only
  3. a Restricted Licence – for small operations only
  4. a Special Licence – for holders of taxi licences only

Few, if any limousine businesses would be able to, or perhaps want to, commit to the financial and management resources required to comply with the regulations for a ‘Standard Licence’. Particularly in relation to ‘Professional Competence’. Therefore we will cover only 3 and 4. Further information of a Standard Licence can be found on The Transport Office website.

Restricted Licences are designed for small scale operations, given they restrict the operator to the use of just one or two vehicles. Neither of these vehicles can be constructed to carry more than 8 passengers. However, vehicles carrying up to 16 passengers may be used if;

  1. The vehicles are not used as part of a passenger transport business, for example they are used in connection with a hotel business.
  2. Your principal business or job is NOT the operation of Passenger Carrying vehicles capable of carrying more than 9 passengers. In other words, the operation of the PSV’s is incidental to your main business.
  3. Any vehicle offered for hire and reward, which is used to carry more than 8 passengers must have a ‘Certificate of Initial Fitness’.

Unlike a Standard Licence, you will not have to satisfy the Professional Competence requirement, but other than that, all other rules are the same. All chauffeurs will also be required to have an appropriate PCV licence to drive these vehicles.

A Special Licence (also known as an ‘PSV O Licence’) can be granted only to someone who already holds a taxi licence. Its only use is to let a licensed taxi operate a local service. Special conditions apply if you want to undertake a local service, for example; You must actually undertake to operate a local service and you must register the service, or in London, get a London local service licence or an agreement with London Transport Buses. All the vehicles used under the licence must be ones for which you hold taxi licences.

Local bus services (other than excursions and tours) are the only type of PSV operation you can undertake. You cannot run any other type of PSV service with your taxis (eg an express service with stopping places more than 15 miles apart). In addition, on any service you run, at least one stopping place must be in the area of the district council which issued your taxi licence, the other stopping places can be in any other district.

And perhaps most importantly, the vehicles must be licensed taxis for which you have proper licences., you cannot use private hire cars under a special licence. Unless you already own a taxi business, this type of Licence is not really appropriate for a limousine business. Similarly, Community Bus Permits and Minibus Permits are not suitable for a limousine business, including those who attempt to offer hire ans reward under the guise of self-drive hire, because these permits are designed for voluntary, non-profit organisations.

It is essential that you digest and understand fully the implications of using a Bus Operators Licence for your limousine business, given the restrictions and obligations are clear. Although not all limousine businesses adhere to the regulations, there is a good chance that from the 1st January 2008, the Traffic Commissioners will look more closely at limousine hire companies that are utilising a Bus Operators Licence for their business.

 Cars for Stars is a licensed operator of chauffeur cars and limousines in the UK and also operates a franchised limousine hire business.


 

Disclaimer:
Any information contained herein is provided in good faith and based on research and public documents available at the time. However, it is entirely the responsibility of the reader (or any other party) to establish the veracity of any of the claims or information contained herein through their own independent sources, including, but not limited to, their own accountants, legal advisors and contacts with the relevant licensing, industry or government bodies. Cars for Stars Limited accept no responsibility or liability for any errors, omissions or exceptions.

Can I legally copy some or parts of another website?

The internet has spawned an increasingly common occurence of copyright infringements. Given, rather than create their own unique content,  some website owners, or their webmaster, prefer to scour the internet looking for suitable copy. If this is for inspiration, then no-one will ever know, but if you (or someone acting on your behalf) choose to use ‘copy’ that has been found on another website (or elsewhere), then it is likely that you will be infringing the copyright of a third party (the author). In the UK, this is governed by the Copyright, Designs and Patents Act 1988.

Contrary to popular belief, it is not sufficient to vary a few terms because the law states that where the content is substantially similar in design, structure or content to such a degree, that it can be reasonably argued that the work was adapted or copied from the authors original work, then an infringement will have occured.  For example, copying complete paragraphs, even if you include your own company name, or a few minor changes would most likely constitute an infringement of copyright. A very common copyright infringement is to copy the ‘terms and conditions of sale’ from another website, rather than employing your own solicitors, this is a clear infringement and is therefore actionable. Similarly, using images, without the owners permission is also an infringement of their copyright.

There are a number of software programmes, such as Copyscape, that scour the internet seeking out sites with similar content to that of their clients’; this information is then passed back to the copyright owners, who can take appropriate action. Where it is believed that an infringement has occurred, you will be contacted in writing and advised of the infringement, in most cases, if you immediately remove the infringing work and provide an undertaking not to repeat the offence, no further action will normally be taken. However, if you ignore this request, then most organisations will instruct specialist solicitors to deal with the matter, which can involve long and costly litigation. If you wish to argue that you are the righful owner, or that it is not an infringement, then it would be advisable to do so through your lawyers, given you will need some objective advice in what is a specialist area of law.

It should also be borne in mind, that the webmaster or, site owner may not be the only parties to an infringement.  As a consequence, the owner of the copyright may elect to ‘place on notice’  the website host given they are the defacto publishers. More often than not, when a web host has been advised of potential legal action, they will invoke their own terms, which may result in your website being disabled. In addition, some of the major search engines will also act where there is clear evidence of copyright infringement and this could result in your site being removed from the index.

Cars for Stars Limited, a UK based franchised operation specialising in limousine hire and chauffeur cars, successfully argued a case of copyright infringment, further details of the case are outlined below;

Cars for Stars Limited v Party Limos Limited

Southampton County Court this week gave judgment that Party Limos Limited infringed the copyright owned by Cars for Stars Limited. The Court’s decision in the case of Cars for Stars Limited v Party Limos Limited is a victory for the national limousine hire company.

The claim was issued in December 2004 alleging copyright infringement of website text owned by Cars for Stars. On or around September 2004, Stephen Hughes, Director of Cars for Stars Limited, instructed Lawdit Solicitors Limited to represent Cars For Stars.

The website www.partylimos.org contained identical text to that found on Cars for Stars’ website (www.carsforstars-manchester.co.uk).

The Law provides that Copyright is a property right which vests in the author of original literary, dramatic, artistic or musical works. The website text created and uploaded by Cars for Stars is protected by copyright as a literary work under section 3(1) of the Copyright, Designs and Patents Act 1988 (the ‘Act’).

Cars for Stars provided notice to Party Limos Limited of the copyright infringement and an offer was made to settle this matter swiftly and amicably. A legal letter, referred to as Cease and Desist Letter, was drafted by Lawdit Solicitors and served on the infringing party with digital evidence of the infringement. The letter explained that Cars for Stars was both the author and owner of all literary works contained on its website and therefore only it is entitled to perform the exclusive acts set out under section 16 of the Act. This section gives an exclusive right to the copyright owner to copy, lend and / or make adaptations of the work. This right was infringed and Cars for Stars was forced to issue a claim for copyright infringement and / or seek a court order for the removal of the infringing material.

District Judge Naylor of the Southampton County Court found in favour of Cars for Stars Limited and awarded over £2,000 in damages.

The ruling sends an important message to businesses that operate via the Internet. It is very easy to ‘CUT and PASTE’ words, images and sounds from others websites, for the use on websites. However, the law fortunately recognises that creators of work need protection against blatant infringement.

Therefore, serious consideration must always be given to the use of copy or any images displayed on your website where another party has a rightful claim to copyright. You should also be aware, that it is NOT necessary for any company, organisation or website, to place a copyright notice adjacent to their work to prove ownership, given copyright is an automatic right and arises whenever an individual or company creates a work.

Where can I promote my limousine hire business on the internet?

There are a number of possibilities, five of which are dealt with below, with their relative merits.

 

Yell.com

This is one of the most popular sites on the internet and is often one of the first places consumers and business users look when they are looking for chauffeur cars or limousine hire. For top positions, it is necessary to pay for a featured advertisement, which is not a cheap options and there is also a great deal of competition, however, the site itself receives a great deal of traffic.

 

Specialist (Niche) Directories

There are now a number of directories that deal specifically with a limousine hire, as well as a few that deal with chauffeur cars and/or wedding car hire. Listings are relatively inexpensive and because most are optimised for local search, the return on your investment should be quite high. With most directories, the cost of the listings amounts to less that the profit on one small hire, so if you believe you can secure at least one hire from the directory, it is almost certainly worth the investment. In addition, provided the directory allows you to add your website URL, you will also benefit from a valuable ‘backlink’ to your own website from what is considered to be a site of similar content. 

Some Specialist Directories

www.limousine-hire-directory.com (limousines, chauffeur cars and wedding cars)

www.chauffeur-cars-directory.co.uk (chauffeur cars and wedding cars)

www.vehicle-hire-directory.com (limousines, chauffeur cars, wedding cars, classic cars)

www.limodirectory.co.uk (limousines)

www.limosdirectory.com (limousines)

www.uk-limo.co.uk (limousines and chauffeur cars)

 

General Directories

There are many web directories available on the internet, however, very few will provide you with a return, unless of course they offer free listings and/or they are within the search results when you conduct a local, keyword search. For example, if you were to use the search string ‘limo hire Grantham’ and a number of web directories were included in the results, then this could be a good investment. Others to consider are those that have a specific section for limousine hire, chauffeur cars and/or wedding cars.

Google AdSense (or similar)

This is a fairly common form of advertising on the internet and can be quite successful if you select your keywords carefully. However, it can also be very expensive, particularly given the number of times you advertisement is shown is determined by your budget and the position is calculated by the amount bid on certain keywords (limousine), or keyword combinations (limo hire). If you are looking for a quick boost to your enquiries, then AdSense can be a good medium, provided you carefully consider you budget first.

 

Lead Generation

There are a growing number of websites now that are designed and optimised to offer up limousine hire enquiries to existing businesses. These types of services are very good at providing volume, however, it must be borne in mind that the quality will be determined by a number of factors, some of which you control other you do not. Typically, for example, each enquiry received for a given area, will be passed to all of the companies registered in that area. If you are fortunate, there may be no other companies operating in the same area, that are registered with the company you are using, if you are not, there may be 10 or more, all of which will be your competitors, vying for the same customer. Not all lead generation companies operate this way, but most do, some for example may charge on a per lead basis.

One thing that is within you control is the speed you respond, the best operators recognise the value in responding quickly and positively to all enquiries with a view to securing them before their competitors do.

Some Specialist Lead Generators

www.limos.com (international)

www.limoshop.co.uk (UK)

www.look4limos.co.uk (UK)

www.limocrazy.co.uk (UK)

 

Cars for Stars Limited is the largest limousine franchise in the UK, operating through a network of franchisees who benefit from in excess of 6000 enquiries every month, as well as the attendant benefits of being part of a larger organisation. 

Does my stretched limousine need to have had a SVA?

If it is already registered with the DVLA and has been issued with a registration number and, you do not intend to use it for ‘hire and reward’, then probably not. However, if you want to use your limousine for private hire, rather than just for weddings, then in all likelihood, your local licensing authority will insist that the vehicle has an SVA. In fact, it does not just stop there, but this will be covered later.   If you have yet to buy a stretched limousine, then the best advice that can be offered is to ensure that it already has an SVA, if on the other hand you already have limousine that does not have an SVA and, you want to register the vehicle for private hire, then you need to consider arranging for a voluntary SVA. 

In the past, it was possible to register a stretched limousine without the need for an SVA, simply by registering the vehicle as a 10 seat limousine. This is no longer possible. Now as a consequence of the amendments contained in the Road Safety Act 2006, from 1st January 2008, all stretched limousines that are to be used for hire and reward, will have to either be registered with the local authority for Private Hire or be registered as a Public Service Vehicle, which also requires the owner to have obtained a Public Service Operators Licence. Limousine companies operating within London are governed by the Public Carriage Office, part of Transport for London. 

Section 53 of the Road Safety Act 2006 introduced an amendment to section 75(1) of the Local Government (Miscellaneous Provisions) Act 1976, covering hackney carriages and private hire vehicles in England and Wales (excluding London which is covered separately), whereby paragraph (b) was omitted. It was this paragraph that originally allowed limousine operators to operate without a Private Hire Vehicle licence or Public Service Operators licence. Because the London area is covered by the Private Hire Vehicles ( London) Act 1998, a further amendment was made to this particular Act to ensure that the Licensing requirements were uniform. This part of the Act will come into force from the 1st January 2008.

Whether or not a vehicle has an SVA has gained significance because most local authorities will not register a limousine unless or until it has an SVA. If you already own the vehicle, then fortunately, you can apply for a retrospective SVA, known as a ‘voluntary SVA’. However, it is possible that you may have to complete some additional conversion work before the limousine will be accepted for an SVA and the best advice here is to go to a specialist.

Another issue that will come into play if you wish to apply for a voluntary SVA is whether or not the vehicle was built by a coachbuilder, who was approved, at the time of manufacture, by the vehicle manufacturer. The most popular limousine is the Ford Lincoln and this should have been built by a coachbuilder that was as authorized QVM (Lincoln Qualified Vehicle Modifier) coachbuilder. Another limousine, very rare in the UK is the Cadillac; they have their own programme CMC (Cadillac Master Coachbuilder). Provided the limousine was built by an approved QVM or CMC coachbuilder, then as SVA should not be particularly difficult. However, it should be remembered, that as with any test, no two examiners are likely to have the same opinion of each and every issue. Compliance, therefore, will always be fraught with inconsistencies.

It should be noted, that whilst some of the latest Chrysler 300 stretched limousines have an SVA, many do not and because the manufacturer has not approved the vehicle to be stretched, it has no comparable programme to the QVM and CMC. This does not exclude it from obtaining an SVA, nor does the fact that a limousine was stretched by a non-approved QVM or CMC coachbuilder; however, it does make it much more difficult. This is because VOSA will insist that a great deal of technical information is provided, some of which may be available from the coachbuilder, but  the majority will not be available and if you have to provide the data yourself, there is a very real chance that the cost would exceed the value of the vehicle.

The safest bet, if you intend to apply for a Private Hire Vehicle Licence, is to ensure that you only buy a limousine with an SVA and if this option is not available, then at the very least, don’t but a vehicle that has not been built by a QVM or CMC coachbuilder. If you already own the vehicle, then you need to talk to a specialist or the NCLA (National Limousine & Chauffeur Association), who may be able to offer advice or assistance.

If you haven’t purchased a limousine at this time and it is your intention to Licence the Vehicle for Private Hire, then the best advice is to be guided by your local licensing authority. With over 400 separate authorities across the country, interpretation of the rules varies and some may be more lenient than others. If you disagree with their interpretation, you are entitled to appeal, but this process can be time consuming.

Most, but not all, local authorities will not approve under any circumstances a Hummer, Excursion or Navigator even if these have been issued with an SVA (unlikely) or have undergone and passed the Schedule 6 conversions. If you intend top operate of buy one of these vehicles, then it would probably be more appropriate to apply for a Public Service Operators Licence and register the vehicles as Public Service vehicles, however, it must be borne in mind, that to carry more than 8 passengers, the vehicle must have a COIF (Certificate of Initial Fitness). Whilst not impossible, there are very few vehicles that have achieved this status and those that have will have a price attached to them that directly reflects the considerable investment that is required to achieve this certification.

The information herein is provided in good faith, rules and regulations can and do change, as with all advice, you should complete your own research and satisfy yourself that you have all of the facts before making any decision. The author of this article accepts no responsibility for any errors or omissions contained in this article. For the most up to date information, readers are urged to make contact with the National Limousine & Chauffeur Association or contact any of the bodies referred to in this article.

Cars for Stars Limited is the largest limousine franchise network in the UK providing start-up assistance, support and advice for franchisees.

Top 10 Tips for hiring a limousine for Royal Ascot racing

Royal Ascot week is the event of the year for those seeking a little glamour, a flutter on the horses and the chance to spend quality time with friends and colleagues. Increasingly, people want to arrive in style and a stretched limousine or prestige car such as a Rolls Royce Phantom, Maybach or Bentley Arnage is the order of the day. This article deals specifically with those seeking to hire a stretched limousine for Royal Ascot.

In the limousine operators calendar, Royal Ascot week is the busiest of the year, coupled with the fact that there are an increasing number of end of year school proms held at the same time. As a consequence, demand always outstrips supply, so the late comers tend to end up with the more questionable limousine operators, (yes there are a few) or some of the older limos, that have been dusted off for the week. So the first piece of advice is to book as early as possible, you simply cannot book your limo too early, many regular Royal Ascot fans will actually book a year in advance!

Finding a limousine company is not difficult there are, for example, many niche directories on the internet such as the Chauffeur Cars & Limousine Hire Directory (limos and chauffer cars) and the Chauffeur Cars Directory (chauffeur cars only). Utilising these specialist directories you will be able to navigate down to your nearest limousine operator, but remember, because of the limited supply, you may actually have to hire your limo from further afield, but this should not concern you too much, because most professional limo operators will not penalise you based on the fact that will have to travel a longer distance to commence the hire. To find the ‘right’ company requires a little more work.

A check list is provided below. Most limousine companies, but by no means all, will offer a package for Royal Ascot, typically this would include an open sided marquee, tables, chairs and some complimentary wine and/or Champagne. Most will not, however, offer an ‘inclusive’ package which includes parking and entry tickets. The majority of limo operators would prefer to leave these types of packages to the experts. But, to be certain what you will get for your money, insist on a written quote and a copy of their terms and conditions of hire.

Another important aspect of hiring a limousine for Royal Ascot is to ensure that the company you select for your hire is correctly licensed. In the past, it has been possible to limousine operators to trade without the need to apply for an appropriate private hire or PSV operator licence, this has now changed. Section 53 of the Road Safety Act 2006 introduced an amendment to section 75(1) of the Local Government (Miscellaneous Provisions) Act 1976, covering hackney carriages and private hire vehicles in England and Wales (excluding London which is covered separately), whereby paragraph (b) was omitted. It was this paragraph that originally allowed limousine operators to operate without a Private Hire Vehicle licence or Public Service Vehicle Operators licence. Because the London area is covered by the  Private Hire Vehicles (London) Act 1998, a further amendment was made to this particular Act to ensure that the Licensing requirements were uniform. This part of the Act will come into force from the 1st January 2008.

So the bottom line, is all limousines must be licensed from 1st January 2008 either as a Private Hire Vehicle (PCO Licence in London) or a Public Service Vehicle and the companies must hold the corresponding operators licence. This does not mean any hires accepted after 1st January 2008, but any hire completed after that date. So booking early will not negate the requirement that the limo company be properly licensed. So this year, more than previous one’s, it is essential that not only do you enquire as to whether the company is licensed, but also ask for proof, it is not beyond the imagination, that a few operators will flout the new regulations and if they do it following the introduction of this new Act, then it is most unlikely that the passengers will be insured. In addition, VOSA target limousine going to and from Ascot, it is a racing certainly that following the introduction of the new Act, they will have an even higher presence and, of course, VOSA are entitled to and probably will impound any unlicensed limousine.

Another aspect to consider when hiring a limousine is the number of passengers that can legally carried. For limousine operators that are either ‘licensed for private hire’ by their local authority or, in the case of London, by the Public Carriage Office, the maximum is 8 passengers. This is not something that can be negotiated on a case by case basis, it is mandatory. Holders of a Public Service Vehicle Operators licence can carry more, if, and only if, the limo has a Certificate of Initial Fitness (CoIF) and then, only for the proscribed number on the certificate. The chauffeur must also have an appropriate PCV licence. Please note, that there are literally just a handful of limousines that have a CoIF, don’t risk travelling in a vehicle without this and, if the limo operator claims to have one, ask them for a copy of the certificate for the limo YOU will be hiring. Given the very limited number in the UK (probably less than 20), no-one will object. There is one other way that up to 16 passengers can be carried using self-drive hire and a ‘contracted in chauffeur’, this is a questionable practice, with many legal ramifications, but at the time of writing this post, the law has not been properly tested in the courts (it undoubtedly will), however, this topic will have to be covered in another post. In the meantime, the best advice is to steer well clear of anyone suggesting self-drive hire with a contracted in chauffeur.

Once you have short-listed you preferred company, received a detailed quotation, together with their terms and conditions and then established that they are a bona fide licensed limousine operator, you will then need to clarify exactly which limousine they are proposing. Do not be fobbed-off with library pictures, or “we don’t know at this stage” and especially, “we sub-contract the hire to a third party”., this is simply unacceptable. If the operator is prepared to take a deposit off you, then they, at the very least, must provide you with images (inside and out) of the actual limousine you will be hiring. If all these of points are satisfied, the chances are that you will have whittled your way down to one preferred company, then it is decision time. Provided you are happy with everything and they provide you a booking form (or email/letter) to sign which outlines precisely what has been agreed and the price, then you should be prepared to hand over your deposit. Typically this will be around 25-50%, with the balance due, up to 4 weeks prior to the hire date. When paying a deposit, particularly if it is a relatively large amount of money, make sure you use a credit card, which in the unlikely event that the service is not provided, or the company disappears, affords you some protection, given you will be in a position to attempt a claim against the card issuer.

So, in summary, here are the Top10 tips for hiring a limousine for Royal Ascot racing.

  1. Book as early as practicable (this is a very busy time of year and demand always outstrips supply)

  2. Use the internet to search and, take advantage of specialist directories that deal with limousines for hire

  3. Aim for a short-list of 2 or 3 companies

  4. Ask about any special Royal Ascot Packages (these will typically include marquee, chairs, table and Champagne)

  5. Insist that you receive a detailed quotation in writing, including what is to be included in the price, the type of vehicle and a set of their terms and conditions)

  6. Make sure that they are a correctly LICENSED LIMOUSINE OPERATOR. They must either be a ‘Public Service Vehicle Operator or be Licensed for Private Hire by their local authority (PCO in the case of London based operators)

  7. Insist on knowing exactly which limousine you will be hiring, ask for images of the interior and exterior so that you can satisfy yourself that it is suitable and in good condition

  8. Don’t allow yourself, or your party, to be carried in a vehicle that is carrying more passengers [typically a maximum of 8] than it is licensed for

  9. Run a mile is anyone suggests a self-drive option to circumvent the rules – in relation to the requirement for a CoiF – where more than 8 passengers are going to be carried for hire and reward

  10. Be prepared to pay a deposit of up to 50%, but pay by credit card for the additional security

 

A final friendly word of warning, if you subsequently cancel the hire, be prepared at the very least to lose your deposit, if it is a late cancellation, you could be liable for the full cost of the hire, even if you haven’t paid the balance. The reason most operators are strict on this policy is because they will almost certainly have turned down dozens of hire enquiries because their limo(s) were booked out.

 

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Should my limo company be licensed?

In short the answer is yes.

In the middle of 2006, the Road Safety Act 2006 was introduced which closed the ‘loophole’ by which companies could operate a limousine hire business without an operators or private hire licence. Because this was an amendment to an existing act and as a consequence of the material affect it would have on many existing businesses, a softly, softly approach has been adopted to the introduction meaning that the law will only be enforced from January 2008.

Therefore, from 1st January 2008, no unlicensed limousine operator will be able to avoid the risk of prosecution; given there has been ample warning in relation to the amendment to existing legislation. The most common form of licensing is a local authority approved ‘private hire licence’ or in the case of London, a PCO licence which is issued by the Public Carriage Office, part of Transport for London. It is also possible to operate a limousine business with an ‘Restricted Licence’ issued by the Traffic Commissioners, however, in this case, any vehicles which carry more than 8 passengers must have what is known as a ‘Certificate of Initial Fitness’ (most limousines cannot meet the requirements of this test) and the chauffeurs must have an appropriate Public Carrying Vehicle (PCV) licence. Furthermore, operators with a Restricted Licence can only operate one or two such vehicles and the operation of these vehicles must be not be the primary business, it must be incidental.

Whilst you may think that whether or not a limousine company is licensed or not is a problem for them you would be wrong. If the enforcement agencies stop an unlicensed limousine, they will, in all probability, terminate the hire and it will be for the passengers to make their own way home. In addition, most people are aware of the risks of traveling in an unlicensed cab and yet, using the services of an unlicensed limousine company is no different. There is no obligation to have the chauffeur pass a Criminal Record Bureau (CRB) check and the vehicles do not have to undergo regular and stringent tests. That notwithstanding, consumers should ask themselves why, if a company is of good standing and their vehicles are in good order, they would not subject themselves to the appropriate licensing authorities, given they are offering a public service.

How can you be sure that the company you want to book your limo through is properly licensed. The only way is to ask, but do not just take their word for it, ask them what type of licence they have and then check that it is valid, this takes just a few minutes and ultimately it will be for your benefit. No professional, licensed limousine will every object to being asked about their licence, in fact, most will appreciate the fact that you have completed enough research to know the right questions to ask!

Another way to spot a potentially unlicensed limousine company is by the number of passengers they offer to carry. For example, no limousine company, that is ‘licensed for private hire’ by their local authority, (or in London the PCO) can carry more than 8 passengers. Those limousine companies that operate under an ‘O Licence’  or ‘Restricted Licence’ can only carry more than 8 passengers if the chauffeur has an appropriate PCV licence and most importantly, the vehicle has a CoIF (Certificate of initial Fitness). It is this CoIF that is virtually impossible to obtain on a stretched limousine and there are literally only a handful of vehicles that have passed this test because of the cost of conversions. There is a very good chance, though not a guarantee that if someone offers to carry more than 8 passengers that they are not operating within the law, either as a consequence of the CoIF or the fact that they are not correctly licensed.

When hiring a stretched limousine is is very much a case of ‘buyer beware’, do not be tempted to allow your decision to rest purely on price, at the potential heightened risks associated with having to use an unlicensed company. And never be tempted to accept an offer to carry more than 8 passengers unless you have been provided with proof that the vehicle has a CoIF. Anyone that wants to be certain can check with their local authority to find out if a company is licensed for private hire or with VOSA if they claim to have a Public Service Vehicle Operator Licence and/or offer to carry more than 8 passengers. VOSA have a hotline for anyone that is concerned about the veracity of any claims given by an operator and their number is 0870 60 60 440. Companies using limousine exclusively for weddings or funerals are exempted from the amendments to the Road Safety Act 2006.

One such licensed limousine operator is Cars for Stars Limited, who are licensed by the PCO in London and through the local authorities in the case of their franchises.

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So you want to set up a limousine hire business in the UK

Setting up a limousine business in the UK does not have to be difficult. Cars for Stars are a well established, award winning company operating a franchised business model for budding entrepreneurs.  Independent limousine operators have an unenviable position trying to break into the market and many struggle with the red tape, the risk associated with buying a stretched limousine for the time, generating enquiries and so on.

The Cars for Stars franchise programme removes much, but not all, of the risk. All they have a number of excellent franchised areas available; they are fussy and will not accept anyone carrying an open wallet. They want people that can share their ethics, add value to the network and willing to work hard for the benefit of the network as well as their own business interests.The barrier to entry is low, because Cars for Stars do not charge large ‘franchise premiums’, because they recognise that new businesses need to be investing in their infrastructure and fleet, as well as receiving a return on their investment. All Cars for Stars franchisees can hit the ground running, because enquiries are pouring in through excellent internet marketing activities and a strong brand images. Cars for Stars franchisees enjoy the following.

  1. An established trading style, with a highly regarded brand which is registered in all 25 countries of the European Union 

  2. Exclusive operating area 

  3. All internet and telephone enquiries for their designated franchise area

  4. Extensive internet marketing programme including entry in many major web directories, as well as niche limousine directories and chauffeur car hire directories.

  5. Free Cars for Stars website and email address

  6. Access to a bespoke software programme allow franchisees to automate the handling of enquiries, acceptance of bookings, deliver of chauffeur itineraries, as well as handling some of the ‘red tape’ issues related to local authority licensing and vehicle management

  7. Assistance and advice in relation to obtaining an appropriate license to run a limousine hire business

  8. Generic templates for stationery and advertisements

  9. A fixed monthly “Licence Fee” in place of the traditional turnover based fee calculations

  10. Support of an established and experienced team

Cars for Stars is so well recognised that it is always receiving enquiries from perties interested in setting a branded Cars for Stars business in other countries, thse include, Ireland, Cyprus, Spain, France, Greece and Turkey. The best part of enquiring about a Cars for Stars limo hire franchise is that you do not get the ‘heavy sell’, in fact quite the opposite, the meetings are informal and open allowing each party to ask questions of the other in an open forum. Because Cars for Stars Limited does not rely on the limousine franchise income for its survival, interested parties can be sure the interest is about expanding the network, with quality individuals rather than a short-term financial gain through an initial franchise fee.

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Hire a stretched limousine for a school prom

Although this blog is written with a UK audience in mind, many of the pointers provided will apply equally to hires in other countries.

The first rule for booking your limousine is to start as early as possible. The reality is that the ‘school prom season’ is a relatively short one and as a consequence, demand will far outstrip supply. If you can, put pressure on your school to provide you with the date as early as possible, in addition, they could save all of their students a great deal of heartache if they had the prom on a day other than a Friday.

Once you know the date, you need to find a limousine company, first prize will be a company that has been recommended to you. Failing which, a good place to find limo operator is the Internet or Yellow Pages. The former will probably be faster and give you an opportunity to read up on the company and view images of some of their limousines before you call them.

If you are looking on the Internet, then you could start by searching for specialist limousine directories,  these niche directories will list companies by town and county, so they are an excellent source for finding a limo company fast. Yellow Pages will provide a group of companies in one place, but the downside is there is very little information included in the actual advertisement and you cannot see images of the vehicles.

Another useful tip is, to ask your local authority if they have a list of limousine companies that provide limousine hire, they will not recommend any particular company, but they will be able to let you know those that are licensed for private hire. Whether you contact your local authority or find a company via some other media, you should always ask if they are licensed for private hire or if they have an operators licence, do not be tempted to use a company that has neither. From the 1st January 2008 it will be illegal for anyone to operate a limousine business without an operators licence or a private hire licence and any professional (and licensed) organisation will be able to provide you with this information on request. You wouldn’t get into an unlicensed taxi and the same applies to stretched limousines.

Shortlist 2 or 3 companies and then ask them for a quote, most will provide one over the phone, but you should also ask them to confirm it in writing, together with their terms and conditions, including what deposit they require and when the balance is payable. If they refuse to confirm the price in writing or provide a copy of their terms and conditions, simply move on, they just can’t be serious about their business.

Once you have received their quotes compare them carefully, take account of the price but do not be tempted to rely solely on price as a measure of whether you should use them or not. Also, make sure that they list anything that has been included in the price, on the contract, this may include soft drinks, balloons and so on. Please remember, whilst regretable, it is not uncommon for the less scrupulous operators to agree a low price in order to guarantee that you place your hire with them. However, when someone else comes along and offers to pay more, they drop you like a stone, normally with the excuse that they have “double booked” or “the car has been in an accident”. Unfortunately, you rarely get much notice and you could find yourself looking for a limo a few days before the event, or worse still, on the actual day. Ask around you will find that this type of thing happens all too often.

If you have the time, ask if you can view the vehicle, a well maintained limousine is a good sign of a professional operator. Don’t worry if they work from home, this does not mean that they are not serious about their business. Because demand outstrips supply, many limousine companies will travel to your location to fill the void, so don’t be too concerned if your preferred company does not operate from the same town.

Deposits vary by operator, but you will typically be asked to pay between 25% and 50% of the hire price, the balance will normally be due up to 21 days before the hire or ocassionally, on the day, payable to your chauffeur. If you can, and the deposit is over £100, ask one of your parents to use their credit card to pay for the deposit, this will afford some protection in the event that the company ceases to trade or does not deliver on its promise. Insist on a written ‘hire agreement’ so that both parties know what is expected of the other.

It is also worthwhile asking if there are any contingency plans in the event of an unexpected breakdown etc. Some operators collaborate and support one another in these circumstances and some may be part of a larger group, but quite a few will have nothing to offer in these circumstances except disappointment!

Another factor to consider is whether or not you want to use the limousine to bring you home from your prom. If you do, it is often less expensive overall (and more reliable) to retain the limo for the evening, especially of the prom is only going to last 4 or 5 hours. This is because it will often cost you more to have a separate outbound and return journey, than it would for a continuous hire. The reason for this is that most operators will either return to base or go onto another hire. The former means additional costs and the latter can result in the limousine being late to collect you. Always ask at the outset.

In summary:

  1. Try and book as early as practicable, those who leave it late will have problems finding a reputable company and will almost certainly end up paying a significant premium (supply and demand). 
  2. Use the internet or Yellow Pages to find a local company. You can also use specialist niche directories to avoid trawling through the thousands of pages on the internet.
  3. Ask your friends or family for recommendations
  4. Make sure that the company has either a current PSV Operator Licence or a Private Hire Licence
  5. Ask for a written quotation and a copy of their ‘terms and conditions of hire’
  6. Make an appointment to view the vehicle if you can
  7. Never be tempted to base your decision on price alone
  8. Ask about contingency plans in the event of a breakdown
  9. If the deposit is over £100, pay by credit card
  10. If the prom is only going to last 4 or 5 hours, consider retaining the limousine for the duration, rather than arranging a separate outbound and return journey, it will almost certainly be quicker.

This posting can only be a guide, in the final analysis you must decide on who to placer you prom hire with, but these tips and guidelines should aid you in finding a reputable operator.

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