How To Start a Rental Car Business 2021 (Turo & Store Front)

what's up youtube welcome to automotive life my name is lucky and today we're gonna be talking about how to start your rental car business now i focused a lot on dealership stuff uh for the last few weeks and i really want to get into how the rental car business is gonna be so important coming in 2021 but before i do i just want to take a moment and thank you guys so much by the time i post this video we hit 10 000 subscribers which is truly amazing two months ago we had five thousand today we have ten thousand which is like i said i'm just extremely shocked so thank you guys so much if you haven't already please subscribe click the notification bell i post great content like this all the time everything i do is about automotive starting your business um you have any questions put them down in the comment section below i personally answer every single one and follow us on instagram automotive.life and without any more shameless plugging let's get into the video okay one of the reasons why i believe that the rental car market is going to be so huge in 2021 is the subprime market now the subprime market is basically a bunch of banks that lend to people with bad credit well through legislative uh and regulatory uh things they're being fined and penalized for doing predatory lending so a lot of the banks that normally would give people with bad credit loans are no longer giving them loans and little by little this has started trickling down if you've watched some of my videos before you heard me talk about it when i first started in this industry i had 27 subprime banks now i only have four so just in a few years all them have pretty much gone to the wayside so now with this new movement everybody's basically taking uber and lyft and you know they don't want to pay for a three to four hundred dollar car payment because they can just go ahead and and take uber for you know five six bucks but as people have noticed uber and lyft are getting more and more expensive because of the regulatory things that states and the government's putting on them so now they have to step up their game and start getting more money for rides which means less people are going to be riding them they're going to start looking at buying cars now this tax season which everybody knows in the car business tax season is our christmas this is when everybody has two three four five six seven thousand dollars extra from their tax returns to put down on cars now when these people show up they're only gonna have you know two to three thousand dollars because some of these people are going to get uh taxed because of the whole rona thing and pandemic don't want to say too much because i'll get demonetized but you know they're going to be taxed because of that and they're going to lose a lot of their tax returns so normally these people that really bad credit are gonna need three four five thousand dollars down on like a fifteen thousand dollar car they're not gonna get it so now they have no choice now they have two thousand dollars maybe fifteen hundred bucks but these people with bad credit still always wanna drive the nicest cars so they're not gonna wanna drive an older car for cheap money that's where the rental car market is going to be extremely strong here in las vegas we have a lot of people that will not buy an older car so we tell them okay i'll tell you what you give us 1500 that pays for a month and a half of you driving this 2018 uh nissan altima most of them are okay they're like yeah that's great i was like yeah just keep paying uh you know 275 a week you drive it no maintenance no nothing you just come by we'll check oil do oil change and get you out the door and we're getting more and more of these people so right now we have a little over 20 vehicles out on the road that are being rented out constantly so we're just started restocking our inventory because my last batch we actually sold off with our company so i'm just restarting up arturo and some of the other accounts that we have to get this thing expedited because i know that here in the next few months all these people that are going to have these tax money are not going to have anywhere to go and this is where you need to capitalize on it especially if you're in a small market or a market where there's not a lot of stuff uh not a lot of banks lending another reason why it's going to be so great in 2020 or excuse me 2021 is a lot of people right now are working from home a lot of people are doing side hustles so they do not qualify for traditional financing one of the things that i've seen a lot especially nowadays is like we had a lady come into the dealership the other day and you know she's been on her job for five years you know on time all the time great employee but she got laid off for three months because of the whole pandemic well the casino opened back up she got back in there but all the banks declined her because of that gap in her job time so a lot of these people by the get by the time they get their tax return they're only going to have 90 days under their belt and the banks are just going to kick them back out so you can qualify them people with rental cars as well as we have a lot of people that do cash hustles you know ever since this whole pandemic we have people that are working from home that are doing side hustles hey i'm i'm making candles online i'm building websites i'm doing e-commerce i'm day trading on the side the most beautiful thing about rental cars is it doesn't matter what you do for a living you qualify for it so especially here in vegas we don't care if you're a professional gambler a stripper a substitute pimp whatever it takes hey if you got the cash you're approved i'm going to give you the keys to the car and you go ahead and take off and the best thing is what rental cars is the people never own them but they want to drive these nice cars so we have customers right now that we basically get them started in something affordable we do weekly rentals so when they first come on our program we say hey you know what folks um we're gonna get you something like a 2015 hyundai sonata something that we bought for like 6k at the auction hey we're going to get you rolling for like 250 a week you know after you make a few payments and you do good then we'll go ahead and bump you up to a nicer car you know we have some three series a c class you know we have one s550 that we rent out as well we usually do that daily on turo but we do have people that rent it out for a thousand dollars a week it's insane but they actually do so you start your program start building it that way you get the cars you start lining up your customers and it's a great business opportunity plus these people never own the cars they just keep paying on it and we've had people that have been in some of these cars like on one of my other videos we had a traveling nurse for almost nine months she was in one of our cars she paid the car off herself and now the car's still driving around making money and it doesn't cost us a dollar so if you're doing 250 a week that's a thousand dollars a month now if you're going through your own personal platform you get the pocket the money but if you're going through third-party apps like turo and hagerty and all these other ones it's going to cost you money now i won't go into that because that's a lot of stuff to go into i actually have a course if you go to my website i actually teach people how to do everything set up your website set up all your third party things but just for now i just want to give some general information so when you start your rental car company the biggest thing that you're going to have to find is insurance most insurance carriers in this industry are very very expensive and you need to have a minimum of anywhere from three to ten cars now before you start this process you can actually sign up for turo turo can at least get you started day one in renting you can guinea pig this project this guinea pig these ideas put your personal car out there for 20 bucks a day it's not really about making money i just want you guys to put the car up there and see how the process works as you start getting some rentals then you can go ahead and start trying other things now there's a lot more platforms that we use there's multiple companies from multiple different types of cars there's different type of coverages you could pick for each vehicle but just for the sake of shortening this video so it's not seven hours long is we're just going to tell you that that's the easiest way to start right now is get your personal car in turo get that started next thing we need to get you set up legitly best thing about being a rental car company is it's almost like being a dealer you could basically rent to own these vehicles to all these people but you don't have to have the crazy inventory you don't got to have the massive like lot one of the things i tell people is go to a hotel most hotels will love to have a small independent rental car company in their facility so if you go to a hotel room and you say hey or a hotel and you say hey i want to put a little booth right here next to your concierge charge me 300 bucks a month i'll park my cars in there and i'll be able to take care of your clients as well as my other clients so now excuse me so now you have a real business address that you can bring people to it's nice you got walk-in traffic which is always great you can actually do this virtual i show people how to do it online as well and you start building your business now if you do the rent to own model it's huge like it's just like buy here pay here if you haven't seen some of my videos about buy her pay here watch them if you think buy here pay her is insane rental cars is even more insane because the people never owned the cars they just keep writing them renting them renting and renting them and then they get bored they take them back and the best thing is about rental cars if 5 pm if you don't make your payment i shut your car off that's it with if you do buy here payer or if you're a bank i have to wait for you to get one two payments behind before i can even i have to one send you a letter and then two i have to go chase your car for repo with rental cars you send that car out and their money ends let's say they paid till the friday and at friday at 5 00 p.m they don't come in with a check you could be like hey you know you folks need to come in work with them you know try to do what you can do to build your relationship with your customers though they come in fantastic if not all of my cars have gps lockdown and shutdown so the second they do that shuts off so the next time they stop the car it will not turn on unless they call me and guarantee you when that car won't start they will call you first thing oh i'm on my way i'm running behind no problem you push the button car starts back up they drive and make your payment if they don't come back you just shut that thing off again you always have two sets of keys for every car so you go pick up the vehicle so you don't have to wait two three months to get your vehicle back and worry about getting it damaged exposed to you know whatever else is out there in the world you have that ability to get that back and on top of that it's in your name you can walk by and pick up the car go pick it up with your keys and in most states you don't have to hire a third party uh repo company you don't have to do a lot of legal paperwork because it's in your name it's your car so you can go get it they're just renting it from you now there are some risks to these things if they steal your car legally it's not stealing it's embezzlement or it's considered grand larceny they will not consider it a stolen car because it is a rental vehicle so if any of these things happen you got to make sure that you have your gps's set i have a friend of mine in atlanta which i won't say their name they had a customer that took off with one of their porsches and you know it was almost impossible to find and it took them i think about two three weeks i think they find out getting the car it was damaged i think they sold it to another person people will do some crazy stuff with your cars so you want to make sure you protect yourself by getting a really good gps module now the next thing you want to do is once you have all this stuff set up and you have you know one or two three cars that you're getting ready to go you need to start on your marketing process you need to really appeal to as many people as you can i strongly recommend facebook and instagram ad campaigns with just a few hundred dollars you can get the word out and it and it's you'll probably run out of cars before you uh run out of customers it's one of those things where people just once they find out that they can come to your lot today drive away with a thousand dollars you will get people they don't even care like hey this thousand bucks only gets you like two and a half weeks it's okay i just need a car so they'll give you 1500 bucks they drive the car around you call them up hey you got to bring your car back tomorrow okay they're bringing the car back sometimes they'll come back hey i just got an extra 500 bucks no problem here we go like we have some clients that actually pay us daily for cars which is crazy they insist on going through turo the app and keep renewing every single day just to build it which is kind of hilarious but hey you know what if it works for them that's fine now one next thing we're going to talk about is some of the highline and exotic cars okay now i'm going to tell you right now if you want to do exotic cars it is almost impossible to get insurance for them i don't care what you say who you know whatever else that's one of the biggest things you'll learn if you start this industry is that there are no companies that will write new policies the reason for this is there's too many idiots out there that don't know how to properly um rent out cars now i won't give out too much because like i said i have a bunch of stuff in my course but make a quick observation is it's all about depreciation when it comes to exotic cars a lot of these people buy these 300 000 cars they rent them out for 2 000 a day and they pocket all the money and they pick them they make the minimum 2 000 or 3 000 payment but they don't pay for the depreciation of miles they never pay for the insurance they go cheap cheap cheap they want to be ballers and have four five six lamborghinis and ferraris and stuff like that i have a customer he's in houston texas and that's all he does and i'm telling him right now he's on a road to like really bad places but he's using that money to buy more exotic cars but i'm like what happens when your cars get too many miles they get over depreciated rental cars is like a ticking time bomb every month you need to allocate x amount of miles x amount of dollars to paying the principal off and once you hit a certain threshold whether it's a year 16 months whatever else or a mileage threshold 20 000 miles 30 000 miles you sell it because when it comes to exotic cars the depreciation curve is massive so let's say you have a i don't know a 48 ferrari and you want to rent it out for i don't know let's say a thousand dollars a day or 1500 a day and you got to rent it out for 25 days a month and you think you're balling out of control but now you start racking up these miles and your 300 000 bill at the end of the year is probably your loan is probably around i don't know let's say let's just say 280 for good measure so you paid off a good chunk you got a good interest rate you paid about 280 maybe 270 on your loan but now your car is worth about 250 at the first year but most of these people don't continue to pay on it so when they ride into the second year now your car has even more mileage let's say you got 30 000 miles now you're getting whacked now your car is like worth 180 but you still owe it at the next whatever 18 months you owe like maybe 220 and that that gap keeps getting bigger and bigger what happens is when these guys take these cars to the auction um they lose big time they're like well i owe three hundred thousand dollars on this car but the auction's only gonna give me two hundred thousand dollars well yeah because you beat the out of it and you racked up a bunch of miles so what these guys do is they get scared five or six cars you're talking five six to a hundred thousand dollars they don't know what to do they crash and blow up the cars and claim the insurance so thanks to these idiots now you people like you and me can no longer get exotic rental car policies so that's why it's so hard and a lot of people do it illegally they get a dealer's license because technically you're covered but if you rent your car out to somebody else and they crash it it doesn't cover them that's it they're out so you lose that money but they do it just so they can get around with paying without paying the extremely high insurance now there are ways to get bonds and stuff like that which like i said is more complicated i leave that in my class but if you're going to do exotic rental cars the biggest thing to start off with is turo turo is one of the few platforms will let you put something up there about 80 to about 150k i think once you get over that they start blocking you unless you're an actual business and show them a license because they don't want to take the risk of renting one of these exotic cars and then having one of their customers crash it and total it out but it is extremely lucrative it is really good money there are several people here in vegas that make really well uh living off of doing this and you can do it in pretty much any market i tell most people you know just like like me like my car i plan on buying something really nice in 2021 i don't know if it's going to be a rolls royce wraith or huracan or something like that but the whole reason i'm going to buy it is my goal is to rent it out two to three times a month that's it just enough to pay my insurance and my payment so the few days that i do drive it it's free i get to own this car for free so you know start off with something like that with turo do some more research i i strongly tell people don't do exotic cars because it's not as great as what it is you really have to have a group or you really have to have a in with people a few people i know like to joe my known houston he's part of he knows a bunch of oil people he knows people in the music industry um this person i know in atlanta same thing she has a bunch of people in the music industry and her little group of people a lot of people here in vegas they have contracts with casinos entertainment companies you know your typical rich tourist that's coming here just to party and rockstar out for a weekend or so so it's a very hard market to get into i always tell people the biggest money makers is commercial and u-haul type of vehicles people laugh and they think that no there's no money in it you can't do anything with it well there's certain rental car apps where you could actually rent out u-hauls and some of these trucks from anywhere from 50 bucks a day to 300 a day and i didn't believe it until i actually talked to one of my friends in construction when i bought a crusty u-haul truck from the auction for fifty three hundred dollars it was a 2013 uh ford f 350 um it had the 5.4 v8 had a big i think it was like a 20 foot 21 foot uh cab on the back end with a ramp and i winded up switching it out and getting a tailgate lift and i was like what do i what should i price it at and they're like well just just put it at 250 bucks a day so i winded up doing it and the construction company booked it from me for an entire month after that they called me back hey can we extend it can we extend it again can we extend it again they extended it for six months as they were doing some of the casino builds uh during the whole pandemic i was shocked so now they finally called me and they said they're returning it next week the car's almost five times paid for itself over which is insane so there's a lot of avenues to to do to get into the rental car industry to make some money but please get into it now because all these dealerships are going to be hurting when it comes to selling these people cars because they're not going to have the banks to do it and a lot of people don't have big money to do buy here pay here that's why rental cars is so great and plus there's a lot of different types of lenders which we show you they do rental car lending you can actually get lines of credit loans and stuff like that to get these cars to rent them out to other people where dealers it's hard for us to get loans and lines of credit to go buy cars to sell to other people and once we sell them we have to pay them off with rental cars you make monthly payments just like a regular car you know so if you're paying 400 a month you know but your customers paying you hopefully eight nine hundred dollars a month for that exact same car you're paying down the car plus a little bit of depreciation and you're stacking your chips every month and it's the snowball just like if you watch them i buy here pay her video it just adds up and up and up so um like i said i really wanted to make this video i don't want to go too much in detail because there are a lot of people that did buy my rental car course and i don't want to give away all the good stuff but i want to definitely leave a positive image in your head for 20 21 about why it's so great to get into rental cars especially if you don't have a lot of money if you're just working out of your house there's no laws that say you can't actually do it out of your home just like dealers you have to have a physical location some rental car companies they allow you to use your your personal address for a business if you get any types of loans or lines of credit unfortunately you're gonna have to have one but like i said go to a hotel rent a little tiny space where you can put your kiosks and you know for two three hundred dollars now you have a physical business location you could start this up in your house in your pajamas on your cell phone with your turo app start running your cars out today and start making that money it's really not that hard just takes a little bit of dedication but anyways if you find this video useful please smash the like button i truly appreciate it if you have any other questions once again put them down in the comment section below i personally answer every single one um subscribe if you haven't already and once again check us out at instagram automotive.life and we'll see you next [Music] video [Music] you

Channel: Automotive Life

Views: 80,134

Rating: 4.9711776 out of 5

Keywords: rental cars, rental car business, turo, car rentals, cash rentals cars, rent out your car, 100 rental cars, rental car, car rental, Flipping Cars, Car flipping, Cash cars, automotive business, car dealership, exotic car rental business, exotic cars, exotic car hacks, exotic car rental, car hacks, supercar rental, supercar rental business, buying exotic car, cars for cheap, how to rent a car, rental cars for uber, rental cars for sale, rental cars on demand

Id: N3DrR9LovuI

Length: 20min 57sec (1257 seconds)

Published: Tue Dec 29 2020