Owning a business with 2 rental cars I can tell you, there's no way in hell one person with 2 employees could manage 69 vehicles. It's literally not physically possible.
Yes, you would have to have a legit office, and that's at least 2 people, paperwork,answer the phone, and someone to get the car ready and check cars in,pick up and delivery,,no f-in way
@@Poorschedriver your right about all that stuff, but luckly no inspections in florida. I guess thats where shes making up that extra 1 million in the red, lol.
@@Poorschedriver even if you were only at 50% capacity (utilization) and every rental was for a whole week, that's 5 cars a day 7 days a week, But at 70 cars why would you need,,or want TURO at that point ?
While I overall agree, I saw an "interesting" setup while in Hawaii. All the cars, and at a quick glance I saw at least 10, were in a parking garage. When you booked the car, you got a PIN, which opened a lock box clipped on the window, and the key to the car was inside. That's exactly how I dropped it off, parking in the garage, key back in the lockbox. I can only guess the owner checks things every morning maybe?
Those cars in the background are storage vehicles or did you think he rebts out the hot rod? Let the anti Italian crap go because that is what the original jack bag was doing hey Italian guy let's call him spaghetti make a comment hit like hit not like whatever don't be anti Italian and if you are Italian and you did shame shame
He owns his own business so he can charge a lot more, turo is way too competitive and you can gat exotics super cheap compared to going to a legit rental company.
I put my 10 year old car I bought for $5K on turo. My first month I made $2700, That means I made more than her monthly average per car. If you get into turo do not use a financed car ESPECIALLY not if it’s financed under your personal name.
I wish her bankruptcy well... Haha savage Rob. When it comes to renting exotics... there is nobody better than Rob tbh, been following him since life after the 1/4 mile.
Reminds me of this VC fund that only invested in women-run businesses... they were touted in all the financial news that they have positive returns because women work more than men. Then someone looked into it... the fund has less, than 1M in assets and they reported the positive returns 69 days after the fund was created.
I wouldn’t be surprised if it started from 2 and 4. Is actively 1 that is doing 3, and they just did number 5 for their taxes and Ppp loans. #6 is coming soon!
I saw that article and stopped reading when I saw the cars in the picture and realized that just those alone are worth around 3+ million not to mention all the other cars not listed and she's only making 922k, with insurance, storage, maintenance, wrecks, taxes? No way in hell lol
You definitely should talk to youtuber and turo renter Aubrey Janik. She will be able to tell you how this is not possible based on what you have shown. It would probably take her 5 minutes to come up with factual data based on information in the story. She would know how much money the woman is actually making and losing.
Appreciate you! I saw the Business Inside article and was...skeptical. There is a reason why I don't take on investors, exotic cars or ultra high end luxury...the business model (in my opinion) just doesn't work. 100% agree with Rob here!
No one really factors in the tax free cash flow from all of your deductions. You can make money from it if you do it right. I’m like Aubrey . I run 14 low cost vehicles and I have been able to pay myself a salary for 2 years now. It probably won’t work forever.
Why? He just did an entire breakdown of that. And made a video that generates income on this. This is the ultimate win: he made fun of a BS instathot trying to get PR pieces out for more "influence clout" and made money off of it
You cant rely on Turo’s insurance for those more expensive cars, LMI only covers up to $125k.. I think she is using commercial insurance. I think that her partnering with a dealer is letting her get wholesale prices and a solid exit strategy. Im also wondering if the dealer is somehow using their auction line of credit to secure vehicles for her. Very interested in what that partnership looks like
Without taking the $1m/year in depreciation into account, best case she is breaking even. I guess she gets to drive fancy cars around for free while her sugar daddy pays her bills. Good for her
Interesting breakdown. As far as Business Insider, I don't know if what you said it true about paid features or not, but I can tell you that as a media company, they are always looking for interesting stories, and her story is gold, there was no reason for her to need to pay for it as if she wanted the media coverage they're looking for stories like that to publish anyways. So that part of your assumption may not be true. But I agree that the depreciation of these exotics don't make financial sense.
Another thing to consider. I have run a few $6000 cash cars on turo and doubled my money in a years time while still owning the car. It can be a great tool for investing a moderate amount of money to double it when you can’t make returns like that in the market. Maybe not a full scale business with employees, but run it as a side hustle.
I love love love how you brown down the assets and liabilities of this article! I found myself dissecting this breakdown as soon as I clicked on your video!
If a customer comes in and wants to buy the rolls Royce. Meanwhile you have it booked on turo next week. That could create some logistics problems. Not to mention if a car gets damaged now you have diminished value
Something is definitely up, seems like a made up story honestly lol. I wonder if that company she partnered with are the actual ones renting out the cars, and used her for marketing? I still don't see the advantages of that but at least they would have the inventory. It must be some kind of weird money laundering thing if it's not fake. They're using her as a frontwoman so no one looks into where their money is coming from.
I mean if their goal was to draw attention away having an article written about it is the opposite of that haha. Don’t get me wrong it doesn’t make sense taken at face value. Either some major things got left out/glossed over or it is in fact a lie.
The simplest answer is that this woman has overestimated her skills and abilities, and believed she could create a high-dollar car rental business on Turo. She then managed to sucker in some investors while taking a massive cut for herself. Now she is doing it again with this article as an attempt to drum up new investors who will see this as a thing they should get in on. But you are correct that the more elaborate answer is that cars and parking garages were bought cash using drug money or other ill-gotten sources of cash, and this woman is part of a scheme to help move money around. The use of Turo might be because that somehow further reduces the risk of not having to set up your own business, get your own insurance, etc., despite the high fees associated with the platform.
You kinda hinted at it with 5-10k cars. Like to see you do an interview with a solo entrepreneur renting say 5-6, hopefully similar cars outta his driveway, doing all maintenance himself (hence similar?). That’s more of a (attainable) real world situation
I do think that what the article meant was her take home/wage/potential margin for distribution is $900k, not company revenue. You should do a break down of what those 15 types of vehicles rent for in her area, give it a 50% of the time rental usage and see where just that gross revenue sits. For the remaining 54 cars do an average in the same capacity at $75/day Just a thought.
@@zazuch I'm still gonna say what the guy up there is saying. Her take home is that 900k figure... can't imagine you'd make less than what 15k for a WHOLE car a Whole year.?
This has "came from money" written all over it (whether she wants to admit it or not). That's why it "looks" successful. If you're rich it's easy to make your ventures "look" successful.
Not really, it doesn't make any sense. Even if she has enough money to somehow pay for an entire fleet of millions of dollars in cars, the cost of depreciation alone would invalidate her absolutely pathetic $922k, let alone maintenance, storage, employees, car cleaning, car detailing, and insurance. This number should be double or triple that with her supposed fleet of cars, yet it's not enough to even cover the cost of these used and depreciating assets
I don't want to sound like 'that guy', but I gathered from reading the article that the figure quoted was her net earnings figure: total income minus total expenses. The $922k wasn't her total 'revenue' figure from Turo, it was what she earned AFTER all her expenses were deducted (she quotes the Aventador alone at $1700, so with 3 Lambos alone - not too difficult to do the math!). Am I missing something here???
What if the 900k figure was her earnings? Divide 900k by 69 that's a little over 13k per car per year. That seems reasonable after all the costs you mentioned. Not as good of margins as you would like but with Turo and investors taking a cut it seems reasonable.
well... lot's of missing information here... I guess you could call it fake news... I have 4 cars, made $45k (gross) last year with 3 x $20k, 1 x $35k cars. Loans on all 4, haven't made a car payment out of pocket in 3 years, and get to drive a porsche, bmw, miata, Audi, whenever I want to block one out, and no mention of the tax benefits, and expenses that get written off, including depreciation, maintenance, etc.. Tax cuts and jobs act, 179 rule, etc... I'd bet she is making way more than $900k gross. Turo can be done wrong, and it can be done right...
Business insider, MSN, they all love to do this. They find one person who made a lot of money with RU-vid or Instagram and think everyone can do it. With regards to Turo, I think it's dying. Regular rental car companies are back to normal inventory and it's cheaper to rent a newer car with way less miles than some worn down 170k mile Nissan Versa for 35/day. My one issue with big rental car companies is they are now pushing electric cars as their "cheap car" and I personally prefer a gas car
As someone who had a 400k per year revenue producing turo business I would agree with most of your points. There is a few things you're missing like tax returns, with a million dollars a year in vehicle depreciation she's getting a few hundred thousand back in tax returns alone. Not to mention making money on damage claims, smoking fess, cleaning fess, over mileage and direct to client rentals. High end clients are a very good source of be-back customers especially on high end vehicles. It was a great business when covid hit because all the rentals companies sold their vehicles giving a perfect opportunity for turo to explode.
The tax depreciation basically an interest free loan though. When you sell the cars you have a lower basis and have to recognize higher gain, therefore paying more taxes.
Why did he deduct the depreciation of the car to the gross income? In real estate, depreciation isn't considered a cash out expense... is it different in the car world?
@@Diabolical05 because presumably you have to trade out your inventory at some point so you need the cars to be fully paid off and to have covered their depreciation before you dump them, where as depreciation doesn't matter nearly as much in real estate because you usually don't sell your properties very often.
You Nailed It. All BS I don’t believe a lot of what’s shown out there. Even “Reality” TV is no longer Reality. Storage Wars was a great example thought it was amazing and then come to find out items were “planted”
As a car dealer and a small car rental operator as well. I absolutely love Turo! How I can rent a $60k SUV with unlimited miles for around $160 a day. Gotta love the suckers out there. I rent 4K shitboxes for $39 a day, those things fly off the shelf hehe. I just don't see how ANYONE makes any money on turo.
The only way that would work is if she had the cars loaned to her from Magic City to rent and she pays the insurance and a fee per rental. I’m sure she has access to those cars but owning them I doubt. There are dealers out there that will let you use inventory to rent to make a side income but you have to be good friends with them…
Here's what I think is happening..... The other investor is her "Sugar Daddy." He owns a business that is supplying the cars. The cars belong to him however, who wouldn't want to rent a car from a hot chick. The news fluff piece was manufactured to gain media coverage aka FREE ADVERTISING! It's a win-win for her "partner" and her. I am sure she's getting a cut for being the face of the business. The other possibility, is the "Sugar Daddy" is using this as a purposeful loss to offset other income or as a money laundering scheme. Just my 2 pennies.
I didn't rent super cars in the us but i did in other places around the world. The vest ever deals i got was not from a renting business but from delerships who would rent out their stock (not new) while they sit around and hope that when you are in the market to buy you gi back to them
$922,000 divided by 69 cars equal $13,300 per year per car. 13,300 per car divided by 12 months equals 1100 dollars a month per car of revenue. So regardless of the rest of the numbers, somethings off here with this article. 1100 per month minus 150 a month for parking only leaves $950 a month per car. First glance and it’s already falling apart.
The only thing I don't think you factored in, which I don't think makes that much of a difference, is that I'm sure she built up to having that many cars. This means a lot of the more normal run of the mill cars were likely paid off before she started buying exotics. But that's only if she did it properly. Even then I doubt she's making that much.
Ohhh holy noodles and spaghetti I knew people were buying articles..a ton of those influencers write their own articles. This was probably a flex gone bad. Thanks Rob *Plotting to put cheap car on Turo”
I visited Hawaii in late 2019, and had dinner with a friend's friend, a local. He was turo-ing Jeeps. He had I think 3 or 4, with 5 more ordered. At the time, seemed like he was making great money. He was sure talking it up about how great it was. I want to say his were over $100 a day, and twice during dinner he commented, "Just got another 7 day rental." "Just booked a 5 day rental." Wonder how covid was for him with like 8 Jeeps and no tourists?
It wouldn’t make sense to use turo for that volume of revenue. You would be making enough that you could create your own advertising and website or business front and not pay turos fees
LOL, in no way does he consider her competition! His aim is to shine the cruel light of truth on truth on her fluff piece with the hope that doing that will save some poor fool from committing financial suicide.
I run 14 budget cars. I have no problem managing it myself and have plenty of spare time and I think I could comfortably handle 20+. 2 people for 69 does seem a little tight but productivity does compound a bit.
An easier way to cut the numbers is $13k annual revenue per car off Turo, which is totally reasonable for cars worth anywhere from $20k to $50k each. Don't be fooled by her posing in front of the exotics, that's not where the bulk of the business is. With her high cost model of paying for parking, paying staff, paying depreciation or maintenance/repairs, insurance, her margins are tight. Maybe $1k - $5k per car leftover after expenses, which gets her to a reasonable annual income. She's working part time and taking vacations and earning less or she's working all the time and making more money to save for other things. It's not a bad lifestyle, but the scale of her business comes with risks and headaches that I wouldn't want.
I doubt there is even a record of her inventory existing on Turo. Find her zip code and look for any one of the "70 cars" in that area you probably won't find any of them. If she has so many it should be easy to rent one right?
