How To Decide if a Turo Car is Worth Buying
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- Опубліковано 25 лип 2024
- Let's talk about how to analyze Turo deals
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00:00 - Intro
What's up you guys! In today's video, I am going to walk you through step-by-step how I analyze deals for my Turo fleet. Let's go!
00:36 - My Thought Process With My Fleet
First and foremost I have to mention that at this point in time I have been on Turo for nearly 5 years, so because of that I certainly have learned what works and what does not work. This means that as long as I stick to what I know I don't do a ton of market analysis, the one time I do is if I am buying a new car that I don't know a lot about or that I've never owned before.
06:32 - Car Sales Are Slowing
Additionally, used car sales are beginning to slow down as well. If we take a look at a chart with data gathered by the US Census Bureau you will see that used car sales hit an all-time high around this time last year, but ever since then, sales have been declining. Of course, this is in part (and mostly) due to the fact that there have been MAJOR production problems in the used car market, but we've seen even heavier decreases in the last 60 days and I believe this is due to lowering demand, not necessarily poor production.
01:54 - ROI For Cars 0-$10,000
First, let's take a look at cheaper cars, these are cars that are below $10,000 (preferably around the $5,000 mark) these cars have a different set of requirements that I would like for them to meet when it comes to ROI than say for example a more expensive car.
04:41 - ROI for Higher Value Vehicles
The next set of vehicles are higher value cars, this is really any car that is above $15,000 but really I am talking about the "normal" everyday cars that are priced between $30,000-$50,000. These also have their own set of rules when it comes to ROI.
13:53 - Other Things to Take Into Account
But, when it comes to determining a good Turo Investment, ROI is just part of the equation. Maintenance should also be taken into account as well as the depreciation of the car.
15:33 - Closing
I hope you guys enjoyed this video, make sure to hit the like, subscribe, and the notification bell and I will see you guys in the next video.
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Disclaimer:
I am not a CPA, attorney, lender, or financial advisor. The content in these videos should not be construed as tax, legal, or financial advice...etc, and may be outdated or inaccurate; it is your responsibility to verify all information yourself. This is a UA-cam video for entertainment purposes ONLY. IF stocks or companies are mentioned, Aubrey may have an ownership interest in them - Please do not make buying or selling decisions based on Aubrey’s videos. If you need advice, please contact a qualified professional.
#SideHustle #Turo #CarMarket
If you live in tourist city like hawaii miami, sports Cars like C8 corvette, Porsche Cayman gts easily rents out easily for $400~500 a day.
Also lower end sports cars like mustang easily rents out for $120~$150.
One of my best Turo friend who owns 8 mustangs in Hawaii and he’s making average profit of $23k a year per mustang he owns.
Teslas are worst car if you’re looking for short term, but super great in long run. as they do not require much maintenance for the vehicle and battery warranty is good for 150k miles. being it’s an EV, it filters people who’s trying to put lots of miles as people don’t like to charge every 3~4hrs during their long distance trip.
I used to own a fleets of used BMWs which performs really well on Turo and great ROI. But had some risk of random repairs. Also handful of large SUVs like chevy suburban and Cadillac Escalades.
One of my best Bmw I ever own was 2018 BMW X4, “net profit”(not gross) of $26300 in 2020, $23600 in 2021. Bought used for $41000 back in November 2019 with 21k miles, sold it for $32000 in January 2022 with 94k miles.
No random repairs, Just regular oil changes and 2 sets of tire changes.
Ended up selling most of them last winter, and started buying teslas and now I have 4 model 3 and 7 model Y. 4 more model Y is incoming, lucky I got them before recent price raise. In my market, model 3 rents out for $90~130, model Y rents out for $120~150. And after 320 trips with all my teslas average miles customer puts on the vehicle are 47 miles a day mostly city drivings.
Having 1 $60k car that rents out for $150 vs having 8~10 $6~7k cars that rents out for $30
Also individual person can manage about 15 cars alone. After 15, you will need an employee or someone’s help to manage all the cars plus you will need to rent a parking spaces. Factor that in when calculating profit. Also factor in possible repair cost.
But if you’re starter, I’d recommend cheap $6~7k cars to learn how to do Turo business, then later upgrade your fleet.
Nice
A lot of great tips!!! THANK YOU!!!
Where you live. Sounds like ur market is a hit
you were dropping all kinds of jewels in this video..thanks
Thank you!
Love your channel, thanks Aubrey.
Some great info here thanks! I’m in the Dallas area to and am really looking into starting a car renting business as a side hustle
Really like this model as a rule of thumb. Made an excel sheet that takes into account taxes, depreciation, maintenence, finance charges and insurance on top and most new or newer used vehicles don't break even (ROI) until about year 2 or 3.
This video was needed I can figure things out with a realistic return thanks
Aubrey, you have great style in your presentations.
great information!! thank you for sharing..
Found your analytical approach very good. Now that carsync is being blocked by Turo, where do you get your analysis info?
I had to scour the internet for hours before finally finding your video which told me exactly what to look for SMH thank you so much!! just got my first car on Turo probably paid more for it then I should have but now I know better.
Amazing! Good Luck!
Brilliant Analysis!!! Your Methodology is Sound.
Most useful video I have seen in your collection.
Thank you!
Thank you for your help
Thanks - super helpful.
Wow! I'm starting to have an interest in buying my first car! Thanks for this, Aubrey!
Thank you for watching!
Good Info thanks
Have you done a video on the type of insurance to purchase when not renting on Turo? Just traditional or commercial?
Thank you 🙏🏿
Never thought of using Carsync for checking the ROI!! thanks! Cars i know very well, the market over here in the UK as Turo is relatively unknown is very much up in the air as there simply arent that many cars on Turo to compare to.
We all agree cheap cars has best Roi.
Here are some critical questions.
1. how about cost of parking spaces?
2. Time you’re spending to clean, delivery? can you manage 30 cars by yourself?
3. There is no $5000 cars nowadays who meets Turo requirement 13 years old, under 130k mileage. Minimum $6500 can you show us how much you recently paid for your kia?
4. Finally, these cars won’t rents for $35~40 a day. Even you’re renting out your cars under $30
I think it depends on your market but in my market (Las Vegas). I bought a vehicle for 10k and i rent it out for an average of $40. You can also make more money with deliveries and providing extras.
@@omghedances yep I paid 20k for my 2014 Audi Q7 and it’s renting out for avg 200 a day during winter season, spring and fall is almost dead and summer it goes out for avg 7~80 a day. Located in Denver
Hello Aubrey, what is that website called where you check all the data? Thanks
I’m new to turo I love your vids
Thank you!
What is the market data tool you are using I this video? Carsinc ? Thanks!
hi want to ask about what is the name of the site used to determine car location and set price? thnx
Maika'i loa 👍🏽 ROI & how long for 🚗 to pay fo itself. Mahalo 😊🌺
You need to include the cost of one year ownership to the equation. A lot of people are gonna get burned by not knowing how much it cost to take care of the car. If you make $10k on a car, if you don't look at the cost of servicing. The damage a renter can do mechanically to your car will eat away your profits. For example, a Corolla rents for $30/day vs a Lexus IS300 for $80/day. While they are both reliable. If both has some mechanical problem. Corolla can be fixed for about $500-1200 avg while the Lexus can cost you $1500-3000. Reliability can be a factor but renters can also destroy a good car if you don't chose who you rent to wisely.
what is the analytics tool you are using around 8 minutes? can you post a link to it?
Love your videos and appreciate your efforts. I think you have some of the best free Turo content available. Since you are so heavy on the math I wanted to ask if how you present the calculations is what you experience in your payouts from turo. Specifically if you rent a car for $106 for 1 day does Turo pay you $85 or something closer to $79? My guess is Turo will take 25% of the $106 not the other way you presented it. 😁
Yea this is a good video I revisit for some analysis, but as I was re watched today, I had noticed that slight flaw in the math. You are correct, 25% more of $85 is $106 but 75% of $106 is not $85, its $79. I believe the best math for this example would be to divide the daily price by 75% to get the desired price per day needed.
I've been on Turo for some months now and they do take 75% of the total trip price (if on the 75% plan). I think something that's also worth mentioning here are the discounts that many hosts (including myself) often provide to entice guests to want to book. This furthermore cuts into profits.
How long do you keep the car after 18 months ???
When you buy 5000 car, you also need to register it and get license plate. It adds around 1500$(including tax)
Your Fotd Escape looks like your best renter. Is there a reason you only have one?
Would you ever consider taking on a more risky protection plan (i.e. higher deductible) to reach your full R.O.I. faster than the typical plan you have been using? Maybe then you would switch to your normal plan after achieving full R.O.I.? Do you have a video where you explain the pros and cons of switching your protection plan for the same vehicle based on the circumstances of where you stand with a specific car?
When you purchase more expensive cars, how long do you finance the vehicle? 5 year; 7 year?? Just started my Turo business
Thanks for the help! I love being able to look at the data to make informed decisions. My only issue is that I would like to use CarSync to buy my first car for turo but am unable to use CarSyncs data until I have hosted my first trip. Any advice?
Are you able to confirm if this is still the case? I went to connect Turo on CarSync, and I am not given an option of connecting that platform.
@@bgpautomotive Turo blocked third party apps such as CarSync in April of this year.
These men won't break down the numbers like you! Very good insight
I like this! You rock girl. 💓💓💓💓☕☕☕🤗🤗
Thank you!
Is it a good time to start a car rental company with TURO right now, or an HYRECAR business as an owner since covid is almost a thing in the past? My credit is good, not great or bad, but good. I also have my dealer's wholesale license.
I have never heard anything good about Hyrecar, but have never used it myself so I can't speak from experience. I think it is a great time to start a Turo biz
I was definitely disappointed to find that car sync is no longer supported by Turo.
Have you find another alternative for the job? I just began trying Turex but only the free version to see if it’s helpful. Car sync looks like it was light years ahead of Turex.
6 hours of your content today.
Around San Diego cheap cars has been rented by 25 USD/day... really hard to be profitable.
Carsync isn’t working for me. What would you recommend for a first-timer to post on here with Limited funds
Toyota Yaris
What about buying a flood title car? It’s a 2020 ford explorer with less that 15000 miles on it
Never never never would I buy car with flood damage. You are much better off not doing that. Please save yourself the heartache.
With low end economy cars (like my fleet too), I choose 90% of earnings due to the low cost of replacement. Just my $.02 💵
This is for sure a valid point! It depends on how many damage claims you have and what the numbers work out for you for sure!
Likewise !
I think in the model, you need to increase your price by 33%, not 25%. If you're 75/25 split w TURO.
Where do you store or park all of your cars?
I never have to worry about storage as they are always gone - but I do rent 4 spaces in a commercial lot
Plan on 2 tires a brake job a battery and a starter or alternator along with a water pump within 18 months of usage. These are common failure items . These items may not fail in this period but these cost to repair these items should go in your cost of ownership
What is that software you're using?
CarSync
Hey Aubrey! Awesome video. Thanks to you I’ve added CarSync to my toolbox for deal evaluations. But there’s one small issue- I can’t use the data analytics to evaluate the viability of a prospective Tesla in my area as the tool requires at least one trip on Turo.
Could you please possibly give me a hand (5 min of your time) say, over zoom, so I could look at the rental prices of a model Y/X/3 in Houston? Screenshots over DM could work too! Thanks for the video- I’m excited to get started in Turo. Thanks and let me know!
Why don't u ever mention hondas, I think they would be the best investment for a decent price except reliability and great resale value
I’m surprised a car on Turo can even last 18 months
U never say Honda 😢
over 2000 different cars????
2 Dozen
Yes 2 dozen, not 2000 lol
Where is $5000 car?
REVENUE STREAM --------------> Selling a $500 masterclass.
If you stay away from cars that are known for problems I’m surprised you bought a ghibli! I’ve been in the car industry all my life and those things are like the second worse car on the road, right behind a Range Rover
We wanted to test to see how a luxury car would earn compared to multiple low end economy cars of the same value (5 low end vs. 1 high end) we needed a car that didn’t hold its value and thus we could get it for cheap which no one does better than the Ghibli lol, ours was good to us but I think we lucked out