Leasing verse Purchase Questions


Rebel

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Been renting my two extra cars on Turo for the past few months. Having a good time mostly, but I want to start scaling up and increasing profits. Looking at purchasing a new vehicle and trying to decide whether I should be leasing or purchasing. My #1 pick right now is a Tesla Model 3. Wanted a Tesla for a while (Model S, but I can work up to it), and knowing my goal is to sell once it hits 50K miles, I don't plan on keeping it longer than 3 years most likely if it even lasts that long. The confusing part I'm having is knowing figuring out the better deal between the two. I was thinking, 3 year lease w/ 12K miles and paying for any overages. Do I need to be concerned with the residual value at the end of the lease if I plan on trading up at the end anyway? Should I purchase to keep the payment low and sell at my leisure when I feel like the time is right?

Other honorable mentions for vehicles is a 3 series BMW, BMW SUV, Highlander, Tahoe, Jeep. AWD is a must with the winters here, don't trust anyone to put chains on a 2WD vehicle.
 

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All I know is when I priced out Tesla’s they leased like shit, way more than a BMW with a comparable msrp
 

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Been renting my two extra cars on Turo for the past few months. Having a good time mostly, but I want to start scaling up and increasing profits. Looking at purchasing a new vehicle and trying to decide whether I should be leasing or purchasing. My #1 pick right now is a Tesla Model 3. Wanted a Tesla for a while (Model S, but I can work up to it), and knowing my goal is to sell once it hits 50K miles, I don't plan on keeping it longer than 3 years most likely if it even lasts that long. The confusing part I'm having is knowing figuring out the better deal between the two. I was thinking, 3 year lease w/ 12K miles and paying for any overages. Do I need to be concerned with the residual value at the end of the lease if I plan on trading up at the end anyway? Should I purchase to keep the payment low and sell at my leisure when I feel like the time is right?

Other honorable mentions for vehicles is a 3 series BMW, BMW SUV, Highlander, Tahoe, Jeep. AWD is a must with the winters here, don't trust anyone to put chains on a 2WD vehicle.
With new inventory so low your payment will be higher than normal if u can wait out 6-9 the market should come back to normal. Maybe
 
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All I know is when I priced out Tesla’s they leased like shit, way more than a BMW with a comparable msrp
Comparable MSRPs, lease pricing is within $100 of each other in favor of the BMW but they require $1000 more up front. I'm not opposed to getting a BMW, the numbers are more important to me than the vehicle but, I think I should research the 3 series a bit more and check local inventory.

With new inventory so low your payment will be higher than normal if u can wait out 6-9 the market should come back to normal. Maybe
Maybe, Maybe not. I'm not in a rush to purchase anything but if the numbers make sense I wouldn't regret my purchase either way. Based off my current rentals, I'm pretty confident I wouldn't have any issues. I do know used is not an option, and luckily Tesla doesn't do any ADM on their vehicles.
 

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Comparable MSRPs, lease pricing is within $100 of each other in favor of the BMW but they require $1000 more up front. I'm not opposed to getting a BMW, the numbers are more important to me than the vehicle but, I think I should research the 3 series a bit more and check local inventory.


Maybe, Maybe not. I'm not in a rush to purchase anything but if the numbers make sense I wouldn't regret my purchase either way. Based off my current rentals, I'm pretty confident I wouldn't have any issues. I do know used is not an option, and luckily Tesla doesn't do any ADM on their vehicles.
Definitely look at inventory. I went to a couple BMW stores up here and they had nothing on the lot.
 
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jason05gt

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A couple of tips. First, the residual is set by the financing company/MFG and to my knowledge is not negotiable. The things that are negotiable are the sale price (discount) and money factor. You also want to look at any applicate rebates or incentives (IE Costco). You can go to Edmunds and pretty easy find the MF and incentives for a vehicle.

Another good site is Leasehackr. You can look around and see what others are paying and they have a lease calculator to keep who you are negotiating with honest. You should shoot for the monthly payment (including taxes) being 1% of MSRP. So for simple math purposes, if the MSRP is $60,000 you should shoot or a monthly payment of $600.

Lastly, one of the golden rules that I've read and been told is to never put money down as your down payment isn't protected in the event of a total.
 

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I see you posted about the Q50... they’re nice cars, but you have to think of your market as far as a rental customer base goes. Will they pay a premium for it? Try to get your hands on something “cool” or “cute” like the Tesla, a BMW, etc. Tesla seems like a great option as far as maintenance costs go.

Also, where are you located that Turo becomes viable? Or do you keep them at a lot near the airport, etc?
 

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Tahoe, Escalade, etc seem like good options as well. Some people like the space or have families. I know the handful of times I’ve gone somewhere and rented a car I try and get an SUV. Whether it’s a Pathfinder, Tahoe, etc I don’t really care. Just what I’m used to driving anyways.
 

svtcobra725

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If used values are so high right now shouldn’t that make leases even cheaper since the residual value is higher than normal now days?
 
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I see you posted about the Q50... they’re nice cars, but you have to think of your market as far as a rental customer base goes. Will they pay a premium for it? Try to get your hands on something “cool” or “cute” like the Tesla, a BMW, etc. Tesla seems like a great option as far as maintenance costs go.

Also, where are you located that Turo becomes viable? Or do you keep them at a lot near the airport, etc?
I think so. They pay $100/ day for my 2014 WRX with 120K miles on it. Most of my rentals are tourists in town for a wedding or a weekend vacation. My photos need improvement and some of my systems as well. I'm a bit surprised but grateful that it rents since the resale on it sucks. 50/50 pay for delivery to airport or they pick up from my house. I live in Reno with Lake Tahoe less than a hour away and mammoth 3 hours away. Current renter is at a wedding in June Lake. I think though even when the market corrects and rentals normalize, that I might be priced okay with it being a more fun car to drive.

Tahoe, Escalade, etc seem like good options as well. Some people like the space or have families. I know the handful of times I’ve gone somewhere and rented a car I try and get an SUV. Whether it’s a Pathfinder, Tahoe, etc I don’t really care. Just what I’m used to driving anyways.
I was looking at SUVs, I think before the winter I want to get one for ski season.

Went to 3 dealerships yesterday. I was going to splurge and buy a newer BMW or a low mileage M3. Showed up on my motorcycle since my other two cars were rented out. First dealership I walked around for 20 minutes and no one came out so I left. Second dealer, I had to literally hunt someone down and when I was asking questions, he gave off a vibe of either buy it or leave, I don't really care. Third Dealer, sales guy was on me before I even had a chance to see where the car might be on the lot. Turned out not to be the right fit for me. Looked at 3 other BMWs on the lot and bought a 2014 435i.
 
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Update. 435i has two photos on Turo of just the interior that the dealership said I could use. Been on the app for less than 10 hours at 135/ day. Got my first rental for $525 before turo fees. I plan on taking nicer photos later today. Fingers crossed that this is a winning car.
 

Yaj Yak

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Update. 435i has two photos on Turo of just the interior that the dealership said I could use. Been on the app for less than 10 hours at 135/ day. Got my first rental for $525 before turo fees. I plan on taking nicer photos later today. Fingers crossed that this is a winning car.

share pics of that too. i dig those cars a lot
 
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Update, I said screw it and bought the Q50 the day after. I went to crater lake the next morning so I forgot to take photos. Went to list it Friday but turns out that it has an open recall. Bringing it to the Nissan Dealer first thing tomorrow to hopefully get fixed. I'm iffy currently that there's no infiniti dealer within 150 miles, but there is a Nissan Dealer. I'm catering to the wedding/ tourist crowd right now, but I think I need an SUV.

Projected August earnings with the current two cars (not Q50, it's not active yet) is $3K after Turo fees but before my expenses (car note for 1 vehicle, insurance for 2 and work supplies, cleaning supplies, lockbox, security camera). Net profit is around $2400 and I'm only 50% booked for the month.

I see you posted about the Q50... they’re nice cars, but you have to think of your market as far as a rental customer base goes. Will they pay a premium for it? Try to get your hands on something “cool” or “cute” like the Tesla, a BMW, etc. Tesla seems like a great option as far as maintenance costs go.
I really want to bite the bullet and get a tesla. They're a bit hard to find and overpriced though for a used one and it would stretch my budget and comfort level.
 
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Update: the app said the Q50 was good to list but then came back a day later and said I need to fix an open recall. Closest Infiniti dealer is 2 hours away. I’m at Nissan possibly considering trading in, or I might bite the bullet and drive down the mountain. Hoping to find a solution quickly. I’m coming up on double booked listings next week.
 
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Update 2: I’m definitely impulsive. Bought a 2021 Nissan Rouge SV Premium while I was getting an oil change for the Infiniti. Got the car for invoice price per the Sales Manager’s offer. I told him, I’m not paying any ADMs,(originally 1500 over MSRP) and if he was going to pretend like buying a car at MSRP was a great deal, I’m in no rush to buy anything. I did acknowledge that I understand the market right now, but I’m not in a rush so there’s no incentive for me to purchase anything.
 

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