The Best Cars For Turo (Rental Car Business) (Money Making Cars)

what's up youtube welcome to automotive life my name is lucky and today's video is all about what are the best cars for turo now i've been asked this question multiple times facebook instagram all over the comments sections below which you could see everybody wants to know what's the best cars what are the best cars to buy what rent keep running out the most and which ones i make the most money on now if anybody tries to tell you an exact formula or like the cars the specific cars they pick they're full of because there's a lot of things that go into picking cars so you know there's a lot of youtubers out here that are talking about their turo experience which is great you want to learn little tidbits from each of the youtubers that you can but that's what works great in their market so we're going to show you what i do and how we set up other rental car companies and figuring out what's the best cars for your area how to pick out you know cars that maximize your budget and thinking outside of the box because a lot of people always pick the same thing thinking it's the car that everybody wants and it's really not but before i get the video for you to be a huge favorite and smash the like button for the youtube algorithm it helps you find more amazing people like yourselves and enjoy automotive content also if you can consider subscribing i post great automotive content like this all the time and one of the big shout out we just hit 30 000 subscribers which is a huge milestone first of all i want to thank you guys so much i truly appreciate it um i know we just hit i think 20 000 subscribers last month this month we're at 30. i'm hoping if we get to 40 50 next month we're gonna do something really cool but i've never done a giveaway but i think i want to do something for our uh our basically our our group now is i would like to give away a free consultation if so if anybody comments in the section below i don't care if it's a question toast gummy bears i buy that for a dollar you know your mama anything just put anything in the comments section below i will pick one of the people down below for a free consultation it's usually about 250 dollars we spend an hour on the phone we go over whatever you want to talk about whether it's your car dealership you want to learn about financing and learn about rental cars you want to learn about opening up auto repair shop getting insurance work for your body shop whatever the case is i'll answer all your questions you have a one hour uh zoom conference call with me which will be a lot of fun so definitely appreciate that or if you just want to talk about life sports football everything else i do so much more outside of this channel i actually have another channel which i'll show you guys here in a little bit but i'll go over that another video but without any more shameless plugging let's get into the video so as i stated in the beginning a lot of people say these are the cars you need to buy these top five cars or 10 cars or whatever else and i tell a lot of people don't ever take that information to heart because that is their particular experience like i said i talk to multiple rental car companies multiple dealers multiple banks and different states we all have a little community that we talk to and we find out what's working in different areas and i have a system where we pretty much set up to find out what's the best one in your area so i'm going to divulge a little bit of the information just to kind of give you guys a heads up because the turo questions are coming in insanely fast i want to make sure i give you guys the best information possible so this way that you guys understand everything what we're doing so a little bit of background i've owned a car dealership for several years owned auto repair shop for even longer than that and we started in rental cars about a few years ago and it worked out really great we were on turo some of the first people to be on the platform we used hire car really well and we actually got our rental car license through the state so this way we can rent individual people we're doing cash rentals weekly rentals commercial rentals everything else so all the stuff that i'm going to tell you today is stuff that we've already personally done and figured out you know the pitfalls the good the bad and the ugly so a lot of people really focus on turo in one type of way so hopefully after watching this video we're going to expand your mind a little bit so hopefully it gives you a better inclination of what the best cars are the reasons why and some of the factors you need to put in mind because i can tell you that ferraris are the best car but if your budget's not intact you're not going to be able to get these cars so enough chattering let's head to the whiteboard we're in front of the whiteboard again i'm going to try to keep this quick and simple because all my videos tend to be 30 40 minutes my classes and lectures are even longer so i'm just going to try to do it really quickly first one we're going to talk about is the big b is your budget before you start anything before you start reading reviews on what the best cars are to buy you know with uh ferturo hire car your rental car company first thing you need to figure out is your budget what is your budget what kind of cars you're gonna buy so the first thing you should ask yourself is how are you gonna pay for this car are you gonna do cash are you gonna do a traditional auto loan are you gonna do a like line of credit loi are you going to do some sort of rental line the reason i say to find these out is because this is what's going to give you part of your exit strategy which we're going to talk about here in a minute but you need to figure out which one of these is going to be your loan so let's say your budget is 10 000 cash so we want to find the best car we can to optimize cash if you have an auto loan you have good credit personal credit this may be a car you'll consider keeping if the rental business is not for you then i would do an uh a typical auto loan if you can use a loi line of credit there's multiple companies out there they'll give you their business line which is like an automotive business loan or you can do just straight up line of credit and they use that as collateral these both here have higher payments so a lot of people turn these ones down because they trick they pick the traditional auto loans but when you go to sell your car it's much easier to sell them with your rental line and your line of credit because there's more things you can do to move stuff around and you can even recycle some of the debt back on your line of credit which that's the way to do it i'm not going to go into too much because this is a whole other thing but this gives you more options so now that you got your budget figured out next thing you need to figure out is your area so what i mean area is everybody's always talking about like you know what rent's great for me teslas and civics teslas and civics they may live in california now though i make an example all the time so here in vegas the most popular car that i've ever rented are camaros convertibles and mustang convertibles the only thing more popular is a slingshot but that doesn't really count and turo likes to kick them off in certain areas so we're just going to stick to that so that's very popular in my area so people always ask me lucky what do you rent and i tell them this is what i rent so guess what they did they tried to copy the exact same thing i did so one of my clients was in minnesota it's not the warmest weather so the mustang convertible and the camaro convertible were very very hot in the summer and springtime but once the winter came nobody rented it it was stuck it wasn't doing anything and people i don't know why they don't think about this stuff ahead is you need to figure out what is good for your area so you know do you have a lot of snow rain or you just sunshine all the time these are some of the things you need to ask yourselves because you know i have a few clients that are in new jersey new york and philadelphia area their biggest rentals are suvs luxury suvs is killing it in that market that's why they do it here i had my g wagon we did a little bit of rentals with that we did really good but i got some ford explorers a few tahoes just didn't do that well we're sunshine all the time people come to vegas because they want to let loose they want to have fun so luxury cars and convertible suvs were in my area because it's all sunshine same thing with florida and arizona so before you like i said you take these people's advice on youtube saying this is the best car to buy stop and figure out your area the next thing you need to figure out not only the the type of weather you have but what kind of city are you in you know if are you in las vegas like me and you have tons of tourism you have people flying in all the time vacation willing to spend that money or do you live in tulsa oklahoma if you live in tulsa oklahoma and you're thinking you're going to start the next exotic rental car business i'm going to tell you right now you're a fool and don't even try it rent for your area you need to figure out what is good in your area everybody's always like i want to run teslas i want to write mercedes i want to rent luxury cars if i make more actually i make more money with my u-haul old u-haul rentals than i do with any of my other cars but you need to find out what your area does also the state of your economy so let's say perfect example i have a client that's in washington state he's in this like little middle ground between seattle and yakima washington and it's a bunch of like these little wine places and agriculture and it's booming in the springtime so he rents a lot of really nice cars but after the season's done that's it nobody rents so his rental cars are only rented out for three to six months out of the year this is something you have to figure out are you seasonal sorry my handwriting sucks you know is your market seasonal this could cost you a lot of money people buying these exotic cars rental companies i won't mention names but there's quite a few they open up on the east coast all the time it doesn't work because unless you're getting solid rentals all through the summer winter time pretty much crushes you so think of your season and other things that could pop up that way next one we're going to talk about are cars you may be asking yourself well this is what the video is about is which cars to pick this is why i don't ever tell you this is what you should do this is what you pick i'm going to show you the formula on how we figure it out and how we pick our cars because when it comes to this this is very important first thing i look at are reviews everybody and their grandma can tell you that their tesla is the best car it rents it gives them all the money they're making great money but when i look at the reviews and they got 13 reviews and it's been online for six months that's not a really good matrix for me you know you need to read this type of stuff also you need to see you know like check cars that you don't think are popular i tell everybody everybody sleeps on minivans i don't know why it's a necessity when you travel a lot of people when they take vacations whether it's business or for family it's in a big group and they need a minivan i tell people check out minivans don't sleep on minivans also you need to look in your area and search around for cars that are not on there so perfect example another one is trucks so if you're in your area and you're looking and you want to do a c-class mercedes because all your friends say that c-class is the best car for touro and you're scrolling through and you're scrolling through and you look and there's no trucks anywhere on turo you look and you look and there's no trucks that's your market let's go ahead and let's look up trucks you add that to your list you know and you start doing this little by little slowly figuring out your market and all this is going to tie into each other because once you pick the cars you need to go back to your budget we need to figure out what we're going to do because a lot of these vehicles you know it's a lot of money so if you buy any of these things you want to be somewhat sure of what you're doing you also want to get a good price on them because if for some reason it doesn't rent out you want to be able to get rid of it and that's what brings us to our last part which is oh ran out of board but it's exit strategy most people do not talk about this i don't know why this is probably one of the most important things you need to figure out if you're a rental car company because everybody talks about renting their cars out and everything else they don't talk about depreciation they don't talk about maintenance and they don't talk about their exit strategy one of the big things am i going to keep this car we talked about this earlier all goes back to your budget step one if you get a personal auto loan to buy let's say a mercedes benz if for some reason turo doesn't work out are you okay with keeping that vehicle if you are then okay go ahead and take a risk on your mercedes but if you're not if you're like well i have a family of six and this two-door sports car mercedes is not gonna work for my family don't buy it all these things have to come into play to figure out the best car for you on turo not everybody else is not everybody's top 10 hits now if you have the capital you already have your own personal car then yeah you could kind of you know try with some of these other cars sorry my brain went one stream i had to go back to the piece of paper i wrote out so we talked about are you planning on keeping it next thing we're going to talk about sorry i had to move the board i was fading in and out so the next thing we're going to talk about is for your exit strategy is minimal rentals now you need to be able to move off these cars if they're not renting for some reason so i always tell people you need to rent them out for a minimum of 15 days every month and you need to give it a 90 day test sample so this way you can realize if the car is good if it's working in air or if it's not if it's not do not keep it move off of it you need to figure out okay how am i going to sell this how am i going to get rid of it you know because you don't want to keep a car that's not making you money and that brings you to your last part of your exit strategy put this in big letters think about the sale you guys are not going to know this term it's a dealer term this is the way i teach a lot of my people you could buy all the cars here and you get amazing lines of credit but if you don't think about selling the vehicle what you're going to do how you're going to sell it you know how you're going to maximize it because when i buy a car for a rental fleet i basically look at what's the most popular thing i could sell what's going to give me the most bang for my buck as far as maintenance and what's going to have the highest resale value after i rack up some miles and then you got to time it is it going to be 10 000 miles and you get rid of it is it going to be one year and you get rid of it is it going to be 30 000 miles and you're getting rid of it it's going to be two years that's something that you need to figure out and and find out what you want to do so one of the ways i minimize my risk as far as this goes is i tell all my people and all my students shout out if you guys are watching we always have a dealer's license with our rental car license so this way we can actually sell these cars after we buy them so we don't lose that much money the depreciation's already lost we already put the miles in whatever else we made our money but now we could sell it for retail instead of trading it into a dealer getting a new auto loan and you're only getting kelly wholesale blue book on it so that's something that i recommend doing if you want to find out more about it like i said comment section down below and the very last one which you need to think about is for your exit strategy i know i said this one was last one after you get through all this and you figured out your budget your top 10 cars and you think you got it down next thing i'm going to tell you guys is you need to start thinking about your actual retail sorry man right scrappy anyways your retail actual rental license it's something that's very important it's going to help you set up for success so i always tell people you want to use turo as much as you can because it's very free and it's inexpensive to get started but eventually you want to be able to have more freedom to run out more things cars trucks suvs motorcycles boats whatever you want to rent out you can rent it out also with your rental platform you can do hourly weekly daily monthly rentals whatever you want to do that gives you the freedom to do that as well as once you get your actual business license i can help you guys get your rental lines bigger lois your lines of credit all that other stuff so once again thank you guys so much for watching um i was trying to wrap this one up as fast as i can i know i left a lot of blank questions but i will make another video here shortly i'm just trying to keep my videos under 10 minutes so if you can please do me a favor if you learned anything smash the like button once again also subscribe i'm posting great content like this all the time and once again we'll see you soon oh yeah also follow me on instagram [Music] automotive.life um

Channel: Automotive Life

Views: 65,849

Rating: 4.9389801 out of 5

Keywords: turo, turo car rental, renting cars on turo, turo app, car rental, best turo car, car rental business, turo rental, turo car rental business, passive income, what car should i list on turo, Dealers license, car dealer, Rental car classes, Dealership Classes, Flipping cars, Car flipping, weekly rentals, hosting on turo, how much i made on turo, turo business, how to make money on turo, turo 2021, how much can you make on turo, how to get a dealers license, rent on turo

Id: TeelqQSsjBo

Length: 16min 43sec (1003 seconds)

Published: Mon May 10 2021