Quote:
Originally Posted by Kolyan2k
Huge depreciation on new cars is what I don't understand. Take that guy for example, a new M4 will probably depreciate $20-30k first year or two and that's if you are able to sell it quick. Then 30% of your income goes to Turo, then your personal insurance say $1500 per year, then you have loan with interest rate, then there is 6.25% sales tax on vehicles plus registration and title fees, etc (6.25 in MA). I assume you also get some income IRS forms from Turo as well....
Looks like $2000-2500 (after Turos charges) is what some make but when you deduct all those expenses, you make basically nothing
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Yeah, that's what I'd think as well. The only real way to make money is if you find a "high end" car that's been wrecked (salvage title), fix it up (good enough) for cheap, then charge slightly less than your competition in order to actually make a worthwhile profit.
I will say that I've used Turo once (just last weekend) and it was super smooth from start to finish; especially as it relates to airport pickup/drop-off. Inventory is obviously location dependent, but when looking for something "cool" to cruise back and forth to the beach with in South Florida, the options are pretty much endless. The SUV we picked up was ~5 years old w/ ~40K miles and was in near perfect condition. The guy also had a Camaro 'vert and a couple other cars in his fleet so it's obviously worth his while. In the end this option was much more entertaining than whatever entry level price equivalent Hertz, Sixt, etc. would have offered and I saved ~20% in comparison to that cost as well. That, plus the aggravation of avoiding the rental counter made it more than worth it.
Again, as a user of the platform there are some plusses and minuses, but dependent on the available inventory, etc. it could certainly work out in your favor.
I will say that locally it appears that every Tesla owner in the mid-Atlantic area has their car for rent lol not sure what's driven that theme (electric car much more likely to be a second vehicle..??) but thought that was interesting.