@@itsir2u a 2 minute search and I found ford fusions, Nissan Maximas, a couple vw Jettas and a Chrysler town & country van. That doesn't even touch on developing a relationship with a car dealer to take you to auctions. Most will do it no problem for a couple hundred bucks.
@@itsir2u I'm about to buy a 2014 Chevy Cruze 2.0l Diesel with 68k miles on it for $5,500, granted only because it has emissions related issues that I'm going to solve with a quick tune on it, lol. Else it would be a 10k dollar car most likely. But you can find cars out there that especially if you know how to do basic mechanical work like the OP said you can pick up cheaper and then fix it. But you have to put the work into it. Great thing about buying a rental car, although I've never done it is you really don't have to be picky about options or colors you just buy what no one else wants because I doubt anyone renting it is going to care that much on a cheap car to just drive around for a weekend business trip.
Spent $20,000 on a depreciating asset so he could rent it out to people who will cause it to depreciate even further. If he's lucky and the renters cover the cost of the car, he'll own the car in about 5 years. But the car will only be worth a few thousand dollars at that point because it's already been in one accident and people beat the crap out of rentals. So he invested 20k and a lot of time for the potential profit of about 5k, paid out in the form of a junked rental car that is a maintenance nightmare.
@ryantesta4493 Doesn't seem like the most trustworthy thing. If the insurance doesn't pay out, he might end up paying more for maintenance than the profit he might end up making seems like a high risk for low returns.
You’d be surprised bro. I can get a 2019 civic for 20k and rent it out for 60 bucks a day. Consider 75 percentage take home. If you’re averaging 4 days a week rental you’re grossing around 180 (60*0.75*4), to make back 27k (incl interest) it’ll take 3 years. Over the 3 year time period, you’re still technically not writing off the car. It’s also a cash positive business. The accident is just unfortunate Also, this is assuming you’re in a very active city with good recurring rental business, you don’t have to pay for parking and have a good 9-5 /alternate income stream that would help with instalments when your car is giving issues
So fair warning kids, this is how the bulk of "get rich quick" and "amazing passive income opportunity" go. I feel like he keeps trying to justify and impress caleb with all his horrible financial decisions 😂
@@wicktypes and the vast majority of people who do this will never be thought of at all. That quote you have is used to part countless suckers with their money by guys flogging their get rich quick bulls**t.
There’s a reason so many people are selling online courses on how to make “easy” money online. If it was so easy, why are they selling courses!?? There’s always a catch.
@@Fuzzballthe thing that’s makes you rich is the course they sell they’re making all the money from you buying the bs they’re the ones getting rich off dumb mfs that buy there courses
With turo the depreciation will get you. I have 4 vehicles and I only buy vehicles 7 years or older. After 7 years the only main factor that will depreciate is the miles. Best to start with your car or a family members car to start since it’s so dependent on the area you live. Paid for my first 3 vehicles in cash and just got a loan for the 4th and put 50% down.
I work in insurance, and if you insure the car properly(as a commercial business) it will even cover the loss of use( the loss of the car being in the shop). So him talking about these monthly payments makes me think that he wanted to save money and got the cheapest possible policy.
One time, I looked into getting commercial car insurance to help set up for a mobile business. Commercial insurance was so absurdly expensive (and personal car insurance is already expensive enough). I decided to not be in the business
As someone who does turo, this is 99% of hosts. They're clueless with no plan. It's like uber, $23 an hour sounds decent until you realize you spend $15 in gas alone each hour... Plus depreciation, plus maintenance..
@@HoffyRS not my point. I don't do uber but I have multiple friends that do. You're getting a payout now by losing a payout later. Your vehicle depreciation, taxes, and maintenance will offset earnings later regardless
@@NC-xt6qj I do Doordash, I average $200 a day pre-expenses. Lets say 6 days a week, 24 days a month is $4,800, 150 miles a day at 25 mpg in my car, we'll be generous and say $4 a gallon because my car's a diesel, $580 a month in fuel, (which is $24 a day, not 15 an hour), So we're $4,800 a month, minus $580 in fuel is $4,220 We'll say minus 20% for taxes because you can write off your mileage so it may even be cheaper depending on area, $3,380 dollars a month. My car was involved in an accident and got totaled recently at 190k miles, a 2014 Chevy Cruze Diesel. I'm going to buy this one with emissions issues for $5,500 it's a 2014 model with only 68k miles. It'll just be deleted like my last car to make it run better. So $40,000 a year after taxes and fuel, maintenance isn't that bad if you don't own a lemon and try to do stuff yourself. I run Amsoil and do 10-15k mile change intervals. I also send the oil off for test analysis to keep an eye on potential issues. Maybe a $100 oil change very 2-3 months. Tires should last at least a year or year and a half. Yeah you're not getting rich doing this job but it's really not bad and it gets you by if you need to and lets you work in peace. Right now I'm working on starting a car import business, bringing cars over from Japan to sell and hopefully that takes off, and as it does I can do less and less Doordash as the importing takes more and more of my time, but if it slows down I can still pay the bills with Doordash and still work when I need to, and not work when I'm investing my time elsewhere.
@NC-xt6qj you're not as wise as you think yourself to be... as a professional Uber driver with over 15000 completed trips, I have only ever spent $150 in a week on gas....and in that same week I earned $1900 in 58 hours of hustling and grinding. My average maintenance cost PER YEAR is roughly $3500...oh, and I get to write off literally every last penny since this is my business. Its VERY likely that your friends are simply telling you that its tough for them, so that they don't make you feel bad when you wonder, "Man, was all that time and student loan debt worth it? My friends are making $60-75k per year just driving a car around".... Maybe your friends didnt wanna hurt your feelings?
@@MisterNMason this reply is ridiculous. You know very well it depends on market, car, state taxes, depreciation etc. Uber has such a high turnover because most people don't make money and have no plan. For someone calling out someone else for being "wise" , you're hypocritical asf
Insurances could cover for loss of use if you purchase it but as far as I know its only covered to businesses. rentals do this because its normal that within a month you get 1 or 2 cars involved in an accident.
That's not a bad rate... Assuming he pays minimums for 72 months, that's all of 2500 in interest over the life of the loan. Sure, 2500$ isn't chump change, but it's also a 20k car.
@@totalmetaljacket789 It’s not a bad rate but with the Turo app, it’s depreciating faster than you can say “oh shit”. Tbh, the low interest rate is just a smaller pile of shit on a heaping pile of hot shit.
I used Turo once to rent a car, and my experience was great. The lady I rented the car from told me the transmission had just been replaced because the last person to use it before me was driving it 120 miles an hour and blew out the transmission. I've heard so many other stores of people destroying cars on Turo. Great service if you're looking to rent a car, never would I ever use it to rent out my car.
Lion's fan, knew there was a reason I'm picking up what he's saying. Plus, giving great advice that will hopefully help these people get on the right track financially
Good concept, poorly executed. Should have had a backup plan for things like this, he put himself into a far riskier position then he could have and should have. But honestly, can't be mad at the hustle. Live and learn.
Yea you can be mad at the hustle. It was incredibly stupid and he doesn’t make any better financial choices either.… Hearing stupid things like that is how he ended up like this.
My mom bought Maserati for 20k.. she wasn’t gonna be able to use it so I listed it for her on turo.. first month I brought in $1900.. she needed it back though so I gave it back to her and she listed it in her city and it’s been dead
4 cash cars. Took the advice of seasoned vets in the business and tried it with my personal car, first to test the waters. Within 24 hours of going live on the app, it was booked and I hardly ever saw the car again. 2017 Civic, 65K miles. Sold it for $14K (no loan) and bought 2 cash cars. Currently have 5 cars and focused on reinvesting all earnings (I’m in sales ,9-5) since I don’t need the business revenue and won’t stop until I have 100 cars in my fleet. Goal is to go legit and use Turo just as a marketing tool while at the same time, building my brand and clientele. Definitely not for everyone. And it’s not passive. Requires keen attention to detail, accurate documentation , basic understanding of car mechanics, and mastering negotiations when purchasing cars bc in this business, you make your money when you buy the car at an undervalued price.
Considered doing this with my type R but no, people abuse cars and I don’t want my baby covered in stains and dents. Even though I’ve done all that in my own situations lol. One jerk rammed a shopping cart into me for no reason. So things like this happen and cost hundreds to fix that I still haven’t been able to get around to. Nobody would cover it. Cops wouldn’t even do anything about this guy. He was very hostile. Sucks that he faced no punishment at all.
We need T-shirt’s with him doing the praying hands and THAT face !! Hahaha He’s so funny And GOD bless his guests !! They didn’t know but now they do and I hope they all get debt free and become so smart with the money Angels be with you all
You can double what you make renting by going private. Often enough the Trip fee charged is higher than the actual rental rate. Increase your fee 25%, go private, and viola!
@@jayy7712 People use it in different ways. I rent out a new honda civic for 10 days which pays for car payment and insurance. The rest of the month you have a free car. Resale value is huge. I have a Land Rover which makes $1k a month but I had major mechanical issues and the value tanked.
Same kind of thing scares me with rental property.. I would never want to depend on the rental income to cover the mortgage. What if something happened?
@@rite2bcreativehow do you save enough money without taking risk? Are you dumb? You will struggle and take risk before you see THAT type of money. But you sound like a typical worker who needs a boss
@@tactful_proposalProperty, unlike almost every other investment, is taxed per year at its value regardless of whether you made, or lost, any money on it. Property also has fixed maintenance cost, is highly susceptible to local conditions and natural disasters, and is highly illiquid. For most people most of the time, it’s a terrible investment compared to other options.
F everyone bro I admire the hell out of you for actually trying and not being too skeptical or negative to ever implement anything wealth building. Nobody’s first try is what made them wealthy, you have to put your soul in it and make shit work
In the rental car game we call this loss of use. You for sure can get billed for it if you damage a rental vehicle and it sits at a shop. Lots of insurance covers damages but NOT the loss of use. You'll get billed per day what the going rate was as if you were still in it. I guess they don't have that in the contract like big car rental companies. Poor guy.
Seriously? Taking out a $20,000 loan to try TURO constituents a decent head in your head? The two of you should go into business together. Jesus Christ.
I appreciate his hustle, and I’ve never tried this myself, but it just doesn’t seem like a great idea all things considered. I wish him the best with future hustles 🙏
Turo also is FOS. I had good rental experiences during my first few remtals, as a customer. Then a host decided to accuse me of smoking inside their vehicle and Turo agreed. Not only did I not smoke in the vehicle nor allow any passengers to smoke inside the vehicle, but I abhor smoking. To add insullt to injury, Turo attempted to charge my cc's on file $169.50, for violating their rental agreement. Fortunately, they were unsuccessful in charging me. They won't even let me cancel my service with them. Lol. And yes, I gave Turo a lengthy response letter but they believed the host anyway. Lastly, apparently Turo doesn't believe in a fair judicial process. They believed the host's false accusations and attempted to charge my cc's on file before allowing me to defend myself with an appeal.
I totally disagree with Caleb here. When you start a business you’d rather use the banks $ and have time to pay it off, I have multiple exotic cars I rent on Turo and they all make $ and cover the depreciation, maintenance and any payments on the cars.
You do that once your other finances are in order. This dude had tons of CC debt. The car debt. And minimal income. You don’t start a business with debt when you can’t even cover your current debt.
At least he tried. Most people I know are stuck in their miserable 9-5 without a try at something different. Props to this guy. Sometimes it might seem stupid, but it works. I started with books from thrift stores. Now own a 7 figure empire. Who woulda thought
I have a 65 car fleet in vegas.. about 20 of those cars are paid off now and my car payments always get paid from rental bookings.. any out of pocket expense is a tax write off.. i have new corvettes that are about to be paid off this year with about 40-50k positive equity in each one
I work at a hotel (which of course is a place of temporary housing), and let me tell you something: a lot of people do not take care of the rooms because they have no long-term attachment to them (because they do not own the temporary housing). I would not expect car rental places (Avis, Hertz, Enterprise, Sixt, and Turo) to be much different.
I know several people on who have 10-20 cars on Turo, and all of their cars are rented out 75% of the month except for a few of them. Notably, if they have sports cars; they’ll sit more than the others. A $20K investment, for something he can take in to a dealership any day of the week & offload, is not a bad investment. Turo is one of the very rare business investments that can yield a quick return, if you can afford to have an extra car or two.
I would argue that even done with cash this is a risky income strategy. The reason for that is whenever insurance is involved, you will not come out with great profitability, and all it takes is 1 accident.
This was truly a beautiful, interesting, and informative conversation for me. At least in this one, the interviewee was trying to do the right thing - he just lacked forecasting skills. Most people with some accounting, math, and economics skills could have sketched this one out. That said, there are probably a lot of people offering cars on Turo that could not sketch it out.
Leased a car for $200/mo netted $400/mo after insurance and car payments. After 10 months I bought out the lease and was able to sell at $3500 profit. Also wrote off over 20k miles on my taxes. Ended up making $7500 in 10 months not including over 10k in tax write offs. Got very lucky with the timing and used car market.
I heard that you can rent out classic cars on turo. Now if that’s true and you’ve got basic knowledge on maintenance you could easily find a good deal pay cash for it and have it making money right away. Just imagine how easy it is to maintain old square body Chevy’s. Not to mention the more unique they are with the patina the better. Just clear over it and doll it up. No need to make it fast just make it sound good.
Sounds like a decent plan. I paid cash for my last 3 vehicles, but if got 4% rate and COULD AFFORD CASH BUT CHOSE NOT TO and making bank, sounds good. I did similar with room rental in couple houses, but those are appreciating assets and deal with guests in my house. Depending on finances, $20K sounds like good testing money and sounds like going decently minus current situation.
My friend had his car totaled while on Turo! Turo cuts you a check for the value of the car so if you aren’t upside down in the loan Turo pays off the car!
This absolutely works with Uber/Lyft with the right car. Nissan Sentra, Honda civic, Toyota Corolla, Vw Jetta, will all last over 200k miles and get over 30mpg.
You know your story sounds crazy when the other person is focusing so hard on what your while their eyes are closed💯 The guy hesitated when he said “Maintenance”🤣
I flipped car and started renting them out for a few months before selling them. My roi is 70% I try to pay around 60%to 70% of blue book for a good car . I'll put 30 or 40k miles on it and sell it for around what I paid.
I was a turo partner and that company is shady, they breached the contract with me and i lost all the cars due to repo, atleast i learned debt negotiation and learned to never partner with a company like that again! My credit is damaged but I’ve been trying to fix it on my own
I hope this guest took it to a shop they chose, and not the insurance company. And I really hope that the shop and the guest have the repair done with new OEM parts, not knock-offs or salvage parts (which insurance company favored shops often use). I doubt that the guest went to their own shop, since insurance is covering the bill completely, outside of lost revenue.
Lol! Mechanic here and I've had Turo customers with blown engines from track days. Talking thousands in parts and labor. Worst investment to make next to bitcoin.
As an Austin resident, I promise all of you people that this guy will never run out of entitled trust fund kids making horrible decisions regarding money... So plenty more good videos to come!
This is why I want to do this, I know how to work on them enough, literally my neighbors and friends too, and starting with cars between the range of 10k-less, flipping cars to get there, then turo
1990 and newer and I have 2 cars on turo I WISHED - PRAY - I would have seen this video before, ITS NOT WORTH IT YOU WILL BE THERE PAWN. And when your client complains and you get kicked off then you’re stuck. DONT DO IT
From someone that made that same exact mistake of taking out a $20,000 loan for a vehicle to put onTuro. It is NOT WORTH IT in the long run. Unless you have a vehicle that you bought in cash. It's definitely not advisable taking out a loan because if anything happens to that car, unless insurance covers it and GAP covers it. You're stuck with that loan.
The only person I know who was super successful with this route was a guy in LA who rented his Tesla and made $15k profit a year with it, but that was pre covid and present economics.
i give this guy props though bc at least he is trying to do something good with his extra money rather than argue with caleb ab how he shouldn’t spend his only money on junk like most people do
Lesson learned here. 1. Diversify income 2. Don’t start a risky business on a loan. 3. Test the water by dipping a toe first 4. Prepare for unexpected winters 5. Make sure the business can provide a good amount of cash flow before considering it
