Exploring Turo

[kevm14]

We don't get paid to fix the cars - it's not like we could charge the customers - that word would spread fast. We can write it off but that's not the same as getting paid. I don't know how you write off your own labor without actually saying you are an LLC who repairs cars and all that jazz.

If the cars needed costly repairs frequently, this would break the model pretty badly.

I think you'd very carefully fill the fleet with interesting but hopefully reliable cars (as reliable as they can be) that are enough of a novelty that someone would pay a lot more than what they're actually worth as straight up transportation. You couldn't charge like real modern car money for the equivalent car (like a new Mercedes or Cadillac). In many cases, you wouldn't be able to charge a rate consistent with like a fully restored and museum quality vehicle either, because in all likelihood they would not be in that condition. Most of these cars would not be that fast, which decreases the likelihood that someone will just destroy it.

But, you could certainly charge more than like whatever you think is actually the rate for "an old shitty car" because the whole point is, these are old but interesting novelty vehicles. Not in the realm of a 60s GTO (because that costs real money) but more like "you know, it might be fun to rent that 78 Fleetwood for a weekend for $75/day" or whatever. Because where the hell is that person going to rent something like that anywhere else?

[kevm14]

Here's what I could come up with for Fleetwoods. Pretty bad data set. The price on the 59 seems fair but none of them have any reviews, the 93 seems WAAY too cheap and the 92 shows a Town Car, and says he doesn't own it anymore.

https://turo.com/rentals/cars/co/golden ... ood/144081
https://turo.com/rentals/cars/ga/riverd ... wood/26099
https://turo.com/rentals/cars/fl/miami- ... wood/22860

People are probably more adventurous with novelty car rentals ANYWHERE other than southern new england. I can't really think of a worse place when it comes to automotive uncreativity.

[kevm14]

Roadmasters

This 96 RMW has 85 trip reviews!!
https://turo.com/rentals/cars/dc/washin ... ster/37997

https://turo.com/rentals/cars/il/chicag ... ster/29954

This one is immaculate. Only 1 trip review.
https://turo.com/rentals/cars/ca/walnut ... ster/57269

[bill25]

Yeah I agree. Probably pretty tough to pays these off at 22 a day...

At 3K with no additional costs or repairs, just paying the car at 0% interest: 136 rented days assuming do deals for cheaper rate for multiple day rental...

Realistically, getting cars in rental shape will be tough for less than 3K on average...

On the flip side, at 22 a day rented 300 days a year, each car would generate $6,600 so definitely profitable considering they aren't going to need that kind of work per year.

300 days per year is a lot, 200 is still $4,400 per car, so 20 cars is about 100K minus all expenses... (Repairs, insurance, time working)

We would have to determine how to get our work and risk minimized. And maybe determine some more profitable cars to have to be more like bread and butter to support some low cost oddities.

LLC is probably a must to remove our personal liability. - 500/year

[kevm14]

I think Turo covers that end of it pretty well. Unless you were talking about not using Turo.

[Bob]

I think actually the oddities are where you're going to make the money on Turo. You're not going to make any money renting out a 2016 Altima because people can just go rent that from Enterprise and it's way more convenient.

I actually think the Focus RS might be a good Turo car. Since November, this one was rented 32 times @ $101 per day: https://turo.com/rentals/cars/co/denver ... -rs/215615 That's a fairly good rental rate and good price. Let's just assume this works out to an annualized rate of $6000/year (some of those 32 rentals were more than one day, but Turo also takes a cut of the income). I think that's enough to stay ahead of depreciation on the RS. Basically, you can own an RS for free if you're willing to live without it about 20% of the time and deal with potential abuse issues.

[bill25]

I would definitely use Turo, wasn't implying to try it on our own, with all the advertising etc. I didn't know Turo removed the liability. THat is good if it is true.

The RS is an interesting example I will have to think about.

[kevm14]

I think that's enough to stay ahead of depreciation on the RS. Basically, you can own an RS for free if you're willing to live without it about 20% of the time and deal with potential abuse issues.

Brakes, tires, and wear and tear (both mechanical and cosmetic) will all be worse with someone renting it. At least that's the assumption I would make. It is intriguing though as a means to have cars like that.

What is the Turo demographic? The point I thought was basically to cater to car enthusiasts (doesn't mean it has to be performance, but to rent a 96 Roadmaster, I'd say you are an enthusiast of some sort) who may be out of town on travel. You wouldn't want to rent to someone in their early 20s who just wants to beat the shit out of that sweet car they saw in the magazine.

[bill25]

Some cars for the Turo Rental lot based on discussions:

Mercedes 240/300d/sd
Roadmaster/Fleetwood/B/D body

(People might actually pay a reasonable price per day or weekend to drive these $50-100?)
IROC
Monte Carlo SS
Grand National (after we are established, this would probably get real money)
1990 Corvette
Fiero

Maybe
Full Sized Blazer/Bronco
Tahoe/Suburban
Wrangler
Silverado

Specialties???:
90's RX-7
Supra (probably not...)
Sporty Nissan?
Prelude?

[bill25]

Based on a quick look at Providence... It isn't good.

Not many trips overall on most cars.
Most cars have "No trips"

Wrangler did pretty good.

https://turo.com/search?location=Provid ... omLevel=11