Luxury car rental company Riceline Car Rental says it will shut down for good

Luxury rental company Luxury Car Renting announced it will close its doors on its Malibu car rental service this month, citing the escalating cost of living in California.

The Los Angeles-based company, which launched in 2008, announced on Thursday that it will cease operation in the state by May 2020, and would be replaced by a new service that will focus on “quality, affordable, and sustainable transportation services.”

Luxury Car Rentals was one of the first luxury car rental companies to provide cars in California, and it offered a fleet of rental cars at prices ranging from $35,000 to $60,000 per month.

The company also offered its own limousine service for $40,000.

In its announcement, the company said the rising cost of California’s housing market, which is expected to reach $1 trillion by 2021, was forcing the company to shut down its services.

“We can no longer afford the increased costs of living for our customers,” Luxury Rental CEO Mark Cogan said in a statement.

“We have been forced to take this step in order to provide our guests with the best value and best service possible.”

The company’s California service, which had a combined fleet of 22 vehicles, also announced that it was suspending operations in January 2020.

Cogan said at the time that Luxury Cars service was a critical component of the company’s business and was valued at more than $1 million per month, which was “well above the $200,000 monthly cost of rental car leasing services.”

“The cost of the rental car rental business has increased dramatically, and the business of renting luxury cars is becoming more expensive and more fragmented,” he said.

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