...to rent. I want to buy a car, stick it up on Turo and see if I can make it cash flow positive. I almost kept my other Tesla to do this with but I had $10,000 in equity trapped in the car that I wanted to free up so I sold it.
The car needs to be something that people realistically want to rent and that rents for a decent amount of money. For instance, people want to rent Teslas but now there are so many of them out there that they only rent for $100 a day and of that you only get $75. So if it's rented 15 days a month you're netting $1125. If you're doing a 100% loan and paying $45,000ish for the car that's going to be a monthly payment of about $700 + insurance. The car would likely pay for itself but you wouldn't be cash flow positive on it.
So I'm looking to either start small (Porsche Cayman) or just jump off the deep end and and grab a BMW i8, 2015+ M3, Panamera, 911 Carrera or R8.
The beauty of this is most people just want to be seen in something flashy in LA. So a V6 Panamera doesn't fetch much less than a turbo and the V8 R8 doesn't really rent for less than the V10. Plus Turo only insures up to $75,000. So I don't really want to grab anything worth more than that. That might eliminate the i8 off the bat.
Initial thoughts are for the Panamera, a 2011 V6. I can grab one for $35,000, it would be suitable for people that have more than two people (unlike the other cars), is "flashy" and relatively cheap to own. They rent for anywhere from $150 - $200 a day. I'd put it up there for $150, assume an average rental rate of 10 days a month for $1125 a month net. Subtract a payment of $632 for the car an insurance. Potential profit on really conservative numbers: $493 a month + the benefit of having access to the car myself.
The other plus to a car like the Panamera is it would potentially be easier to sell if things don't work out versus an R8 which I'd love to have and drive but have no interest in owning. Additionally, I have to assume cost of ownership on the R8 is way higher than a base Panamera. So the more I think about the R8 the more I think that's a bad idea.
A friend of mine's brother lives out here and has a new Porsche 911 and a 6 series BMW, both of which pay for themselves by being rented out on Turo.
The car needs to be something that people realistically want to rent and that rents for a decent amount of money. For instance, people want to rent Teslas but now there are so many of them out there that they only rent for $100 a day and of that you only get $75. So if it's rented 15 days a month you're netting $1125. If you're doing a 100% loan and paying $45,000ish for the car that's going to be a monthly payment of about $700 + insurance. The car would likely pay for itself but you wouldn't be cash flow positive on it.
So I'm looking to either start small (Porsche Cayman) or just jump off the deep end and and grab a BMW i8, 2015+ M3, Panamera, 911 Carrera or R8.
The beauty of this is most people just want to be seen in something flashy in LA. So a V6 Panamera doesn't fetch much less than a turbo and the V8 R8 doesn't really rent for less than the V10. Plus Turo only insures up to $75,000. So I don't really want to grab anything worth more than that. That might eliminate the i8 off the bat.
Initial thoughts are for the Panamera, a 2011 V6. I can grab one for $35,000, it would be suitable for people that have more than two people (unlike the other cars), is "flashy" and relatively cheap to own. They rent for anywhere from $150 - $200 a day. I'd put it up there for $150, assume an average rental rate of 10 days a month for $1125 a month net. Subtract a payment of $632 for the car an insurance. Potential profit on really conservative numbers: $493 a month + the benefit of having access to the car myself.
The other plus to a car like the Panamera is it would potentially be easier to sell if things don't work out versus an R8 which I'd love to have and drive but have no interest in owning. Additionally, I have to assume cost of ownership on the R8 is way higher than a base Panamera. So the more I think about the R8 the more I think that's a bad idea.
A friend of mine's brother lives out here and has a new Porsche 911 and a 6 series BMW, both of which pay for themselves by being rented out on Turo.
