Rental Car Market Crash

Rental Car Business is TRASH
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[sebastiaanthijn]

It seems like the demand has tanked, and rental car companies are struggling to stay afloat.

[jwattie]

Airbnb killed itself with cleaning fees that made it more expensive than a decent hotel. It's just not worth the hassle of dealing with some rando host anymore.

[MMS]

Imagine buying a $40k car just so you can rent it for $30 a day😂

[dominofive]

Considering how people drive these days, I'm not renting a thing to anyone

[Keneth]

Every crash/collapse brings with it an equivalent market chance if you are early informed and equipped, I've seen folks amass up to $1m amid economy crisis, and even pull it off easily in favorable conditions. Unequivocally, the collapse is getting somebody somewhere rich.

[kaylove]

I know a guy who purchased three brand new SUVs for turo. He traded them in and he ended up owing the bank around $20, 000.

[CaffeineGeek]

Can confirm everything Lucky says. Someone in my circle of acquaintances who chases get rich quick fads is getting out of the Turo game after losing his shirt. Even pulled the scam mentioned in a previous video to finance each car beyond what his income could support. For the first six months he would brag on social media how he was "making thousands" a month and "killing it" in life. Sure he was grossing thousands per month but so much was spent to paying the notes, insurance, platform fees, maintenance, repairs, and other costs. Over the last year, those posts have stopped. When I saw him during gatherings, he would complain about all the stuff wrong with the cars. There was always some problem he we working on. One renter drove super aggressive or possibly took a car to the track and wore down the rear tires. That was $600 out of pocket because he could not prove the car did not go out with worn tires. Toss in his time to get the tires replaced and time the car was off the platform and the car was a money pit. Another car must have hit a pothole or curb hard causing the front to be badly out of alignment. More time spent off the platform and sitting around at the shop. Another car somehow had extensive underside damage that needed... wait for it.... out of pocket repairs. When cleaning out the trunk of one car, he realized someone stole the spare tire, jack, and tools. The cars were parked about a 10 minute walk away from his home near a park with very little foot traffic at night and four of them had their catalytic converters stolen overnight. The fifth cars was a Tesla so no catalytic converter to steal. Ironically, his Tesla did capture some video of the thefts in progress but there was nothing usable to identify the perps. Unless you are experienced like Lucky, don't get into the rental car game.

[raymond_sycamore]

Can't afford to leave the house, Lucky! Let alone go anywhere.

[AadhilaEesha]

It’s hard to nail down specific predictions for the housing market is because it’s not yet clear how quickly or how much the Federal Reserve can bring down inflation and borrowing costs without tanking buyer demand for everything from homes to cars.

[famenycvp]

San Diego CA Turo host. Own both my cars 2020Sonata & 2019 Jetta. Combined the cars make about 1.2-1.6k/mo.

Agree it is a race to the bottom, but I own my cars cheap. Insurance is a combined $250/mo.. very little maintenance for my cars and I spend less than 1hr/week cleaning/gas. I’ll admit checkin can be annoying but takes very little time. Luckily never has a major incident - one annoying rental, but I was made whole by Turo.

Most customers actually don’t drive a ton of miles, but every now and then you get a week booking by that drive over 1k miles and that kills the profit for this trip and the next.

Also I live in SD by the coast - year round tourist destination + I WFH.

I wouldn’t recommend Turo to most people.

[ConversionCenters]

It's very similar to rideshare. Drivers just work all day, buy gas and assume the money is theirs. Old friend put 75, 000 miles on a new Rav4 over 24 months driving rideshare. Folks don't want to look at the truth, tires, brakes, oil, residual value and have you seen how trashed your car is inside and out? Taxi companies and rental car companies have this figured into the are just destroying your car for nothing so Truro and the rideshare companies can pretend to make money.

[hrg_tv]

I think your math is off. Most people rent a car for more than a single day. I usually rent a car for a whole week. So it would be $45/day times 7 days, times 45 rentals. Maybe drop that to 3 or 5 days average per rental. That brings the annual revenue to between $6, 075 and $10, 125. I do agree with you that it is absolutely not worth the hassle. I used to detail cars and took on an account with dollar thrifty. They gave me their basket case cars- and let me be candid, people can be really gross. People smoke drugs, throw trash, spill stuff, etc etc. now imagine strangers doing that in your car and it’s up to you to clean it. NO THANKS.

[taffmudman]

As a Business owner I try to keep in mind that usually 50% of every sale is not mine. 50% goes to taxes, supplies, maintenance and other hidden costs. It keeps things in perspective. If someone says they are making $40 an hour in their GIG business their true income is $20 an hour or less.
They would be better off working for minimum wage and have no hassle with running their business. So much competition in the last few decades has made it very hard for Business owners to make a profit. It's only going to get harder. Thanks for your insights on the Rental market.
😃

[roofusdoofus]

45 trips don't mean 45 days rented as a trip can be anywhere from 1 day to a year. The average trip length for my market is 3 days.

[MyronGreenfield]

Wow. This is the shocking truth about turo. I could never understand how someone could rent out a brand new car for $40 a day and make a profit. Makes no sense.

[RepuBlicOfChaD]

Went to a popular restaurant yesterday for a local college football game.... it was dead!

People are effed!!!

[JoeFpoc]

I always rent cars from large rental companies. It’s usually when im going cross country and figured its better just to rack up the miles on their car and if anything goes wrong can always get another rental. Always figured if you’re in your personal car and something major like a transmission or a differential goes out you’re pretty much screwed 500mi from home

[PassportBrosBusinessClass]

Just about any new business, whether it be Airbnb or Uber Uber/Lyft, etc. starts up and runs interesting and exciting new tropes that attract newcomers to the business and make headlines. The problem comes later in that business is life when making profit becomes the main goal, and they have to make changes that away at what initially made that business attractive.

Uber and other rideshare services are not paying drivers as much as they initially did. The competition has risen and the market is saturated.

These exotic car rentals are the exact same way. It’s harder to make a profit out of them since insurance costs and maintenance cost have risen.

[gmc]

Love how you cover all types of things in the auto industry🙏

[someguy]

Mostly bait and switch fraud with the big names anyways.

Last week I rented a "premium elite" car from Enterprise. When I arrived, they said "Too bad. Here is a Mustang for the same price and you should be happy to get this."

What am I going to do? All my travel plans hinge on getting a car. Absolutely disgusting business practices.