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Making money sharing cars via sharing economy?

Discussion in 'Motoring Related Discussion' started by Conor, May 15, 2019.

  1. Conor

    Conor Senior Member

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    Seeing that this months magazine has been sponsored by Turo, it has reminded me to make this post.

    I was theorising the other day that. One could buy a car with a view to solely renting it out via car sharing platforms such as Turo et al.

    If you were to do all the work yourself such as service, minor repairs etc, it could turn into a nice little money spinner. You would have to pick the most optimum car with regards purchase price and reliability etc.

    I haven't done the math but I must have a look and see.. what do people think.

    Fwiw - I live in London and something like this might only be suitable to population centres. I must have a gander.

    I know a number of people who have rented out cars to go on a road trip or to move stuff, so something like an estate could be worth thinking about. Unfortunately, according to the T&Cs of Turo my S212 has too high mileage (silly!?) so I can't experiment with it. I might try and do some market research and see what I can glean.

    I guess a number of things need to line up:

    * Purchase price / depreciation
    * Maintenance / Running cost
    * Rental occupancy / costs

    What do people think. I know there will be the usual commentary about cars being wrecked etc, which is worth considering.

    I have been renting out my spare room on Airbnb for a little over 12 months now and make approximately 500-600 per month from it, by renting out (90%) European couples who wish to explore London for a long weekend. After having a very quick scan, it could like rates of £35-40 could be achieved per day.

    What do people think?
     
    Last edited: May 15, 2019
  2. AMGeed

    AMGeed Senior Member

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    Insurance could be big stumbling block I would imagine. It would have to be insured for any driver (over a certain age obviously) and fully comprehensive.
    I think the costs would outweigh the profits.
     
  3. LostKiwi

    LostKiwi Senior Member

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    There's also issues around hidden damage (buckled rims etc from potholes/kerbs etc).
     
  4. AMGeed

    AMGeed Senior Member

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    I can envisage a scenario where the car is in an accident miles and miles away and needs recovering. Again more cost eating into any profit. Anyone renting a car isn't going to be too fussy how well its looked after judging some of the Hertz/Enterprise models I have seen around.
     
  5. OP
    Conor

    Conor Senior Member

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    Yea I need to investigate that but from reading before the ride sharing platform covers all of that.
     
  6. JohnArnoldBrown

    JohnArnoldBrown Senior Member

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    My wife used to rent out her Toyota Auris hybrid via EasyCar. They covered all insurance. Not sure what might have happened in the event of a breakdown, as it didn't happen.
    Now EasyCar has been taken over by Turo, it seems to have gone to pot.
     
  7. dry run

    dry run Senior Member

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    It;s interesting and I'm no expert, but it seems like a very hard way to make money.

    My concerns are that you would be dealing with the public who would expect you to be available to them on their timescale (not yours). I can see a lot of "due diligence" being needed reference Driving license, endorsements, proof of identity/address, payment collection, etc.

    Funnily enough, I hired a car today (while my wheels are being refurbed). It worked out at about £60 for 2-days. The length of time it took just to complete the above paperwork (at their premises and at a time that suited me) and then an inspection of the car, recording of fuel levels, etc, well all I can say is that I don't think I'd have been bothered even if all of the £60 was prorfit!

    I can see it might be different if yoiu are using someone elses platform to achieve all the above and you are just supplying the car, but surely if the system works well, the platform owner will simply cut you out at siome point in the future and get his own cars. I would.

    Just my thoughts, but good luck :)
     
  8. Capra

    Capra Senior Member

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    Turo take on the insurance for you, you decide what level of protection you want. I think you might have to make your insurance company aware of it. You don't ever make a claim against your insurer. Been a while since I read about this setup.
     
  9. Capra

    Capra Senior Member

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    Sorted out by Turo.
     
  10. Capra

    Capra Senior Member

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    I've watched a few vids on the scheme, if you have a car that you're prepared to leave for Turo customers then you can make some money, but you need to be in a good catchment for customers, not much point in me using this service for my car, as someone not too far had the same car and I don't think it's been hired out yet, but someone in the London area has.
    When you list your car the system gives you an "appropriate" price, you then pick your add with whatever detail you like, upload pic, select insurance then you're off. You can opt for your own insurance if you like. You can even select an age group that you will hire to.
     
  11. OP
    Conor

    Conor Senior Member

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    Yes, as @Capra has stated, a lot of this stuff is handled by Turo, as this is the value add they provide and how they earn their commission.

    You can also specify your availability hours, i.e. when you will be available for pick up drop off etc.

    My get rich quick scheme is gone now anyway, they only allow cars that are 10 years old or less. (And 130k or less miles). This is frankly garbage but such is life. If it was a simple requirement that could be gamed, fine, but it might tie into the insurance aspect, which is something not to be "gamed"...

    Also they allow renters clock up 1000 miles per rental...:shock:

    Sod it.. I will see if there are any other platforms out there. I think it could be handy I used to spend an hour turning over my flat/spare room for Airbnb and if spent 30 mins checking the car each time that wouldn't be bad.

    Problem is though..with a lot of these platforms, is that they put the buyer first. Meaning the provider usually gets the short straw when it comes to the platform resolving issues that involve the buyer.
     
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  12. OP
    Conor

    Conor Senior Member

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    I am in SW London and in what I would regard as a good catchment. I do think if I could buy a "high quality banger" at the right price, it could work, but the problem is their 10 year limit on registration date.
     
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  13. Capra

    Capra Senior Member

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    You could buy a 2014 year old Focus for around £4000. but if the daily amount was £45, would need 90 days of rental to get that back, hopefully it starts making profit before it's gets too old!!
     
  14. OP
    Conor

    Conor Senior Member

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    Fair enough.

    I was hoping for Toyota / Honda for reliability.

    And also an estate as that would be most desirable I think as it would allow for:

    * Road tripping friends getting out of London for weekend
    * Moving flat / house
    * IKEA runs

    I must do the arithmetic. I probably wouldn't even need to insure for the full year myself. Because I have a policy with another car I think if I needed to drive it for repairs / tests I could get temp cover.
     
  15. OP
    Conor

    Conor Senior Member

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    One thing I dislike is that Turo set the rate.. I have not seen an option to override like Airbnb.

    That is complete bo11ox.
     
  16. keefysher

    keefysher Senior Member

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    An interesting thing around these 'platform/app' get rich quick things is are they sustainable?

    With the drive, forgive the pun, in Londinium to demonise the car with ULEZ etc who pays that on the price list?

    As for driving out of Londinium for the weekend, have you seen the gridlock caused on a Friday down here, stay the f away please. A road trip is weeks away on open roads, not sitting in a q for hours on end. Or stand on a train.

    Don't Ikea do a per hour rental for a van to get your flat pack home? Costco do at £15 per hour out here in the sticks, despite having a vehicle to get there in the first place as I know what I'm going to buy, although I could buy the bigger item online and have it delivered for free. Is Londinium a bit behind the times?

    Take an example of the too lazy/thick to cook decent food snowflake tech bods that dreamed up 'eat me' or 'just eat' wotever. Based on slob in yer booth at yer playstation or wotever console, touch a screen and order a takeaway chinese for example. They charge the vendor of the takeaway 20% of the menu price of the food. As they are finding in for example Bristol, the chinese takeaways don't do electronic payments, it's all cash, for a very good reason, the restaurants that signed up initially now don't deal as the 20% wipes out their profit. Plus the rate for the deliveroo cyclist to get it to you that has to be paid at a living wage. There is no value added, just cost. You could knock up a proper meal with fresh ingredients in less time than that, and better for you healthwise to boot.

    I use Bristol as an example as there is currently a faux outrage about the slave trade ongoing. Perverse the new generation of tech bods are apping slavery in the 21st century. Perhaps history was a lesson worth staying awake in.

    The tech kids playing on slides in their uber kool offices aren't developing and doing anything positive. They buy fancy coffees on their way to work, buy lunch consisting of crap, with more sugar loaded coffee, buy a meal on the way home and at the end of each month are skint and can't afford to save a deposit on a home as they are paying over priced rent. If it was that easy it would have been done before.

    Before Uber a good living could have been made running a chauffeur service, now its a direct drive into poverty.
    Tesla will go bust.
    Yes 1 or 2 may get rich, but most won't. Bit like celebrities, there aint many who sustain it.

    Be innovative by all means, but copying another idea aint innovation, nor is slavery to make a fast buck.
     
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  17. Capra

    Capra Senior Member

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    Imagine have no insurance and the customer rings to say for whatever reason can you pick up, you'd have to arrange temp insurance for that. Plus you would need to get things like tyres repaired/changed, small issues sorted quickly.
     
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  18. Capra

    Capra Senior Member

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    And there it ends......:)

    Good points really, I bet a large number of cab firms in the city went bust with Uber.
     
  19. OP
    Conor

    Conor Senior Member

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    All good points Capra.

    @keefysher I agree that technology has a huge wealth concentration problem..
     
  20. keefysher

    keefysher Senior Member

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    It's a greed concentration problem. But should be a wealth enabling tool. ergo history lessons.

    I often ask people in tech how much do they give as % of income to charity, when they last did a voluntary act of kindness - the silence is deafening. Ask about the latest 'thing' they bought and they go on for hours.
     
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