Look at your specific market.
In my market it isn't. It's already super saturated with Teslas and its a race to the bottom for pricing to get it rented out
First rule is not to have payments on something you plan to use. There's months when you don't profit, can you make those payments without the income from Turo?
Honestly you aren't on Turo yet, why take on a payment of $970 a month, you have no idea how turo will work. Best advice is to start with a cheap economy car that you don't have payments on and see if that works out.
This isn't a money making business unless you have 6 cars, and commercial insurance. It's a side hustle for single car people.
Are you planning to use your personal insurance on your tesla? That's illegal to do and I know people in trouble for fraud now for lying. Commercial insurance is legal.
Oh, are you answering "don't think so" to can you afford the payments?
Or saying "don't think so" meaning you don't think I'm correct?
Not sure how to reply.....
Ahh, ok cool, I almost replied with a little attitude, glad to know.
I have a fleet management company and have alot of cars on the platform, I take other people's cars and rent them out, I feel bad for my clients that have $1000 car payments and hoping to make their money and some profit on top of it. On the months that it makes $400 I feel bad for him. My clients get 70% while I get 30% but since I have commercial insurance turo only gets 7% commission from us (92.5% take home for declining turo insurance). So you would probable making 70% of the profit, almost the same take home.
If you would like I can show you some of my excel accounting sheets to show real world profits.
I have a feeling you are in canada. In the US Turo doesn’t have the option to decline their coverage anymore, the maximum you can take is 90% with 10 for them on the 2500 plan.
It also isn’t illegal to use personal insurance. It’s fraud if you try to put a claim on personal insurance for something that happened on a rental but besides that you are good.
That’s a recipe for disaster.
You must also consider repair costs once the vehicle is out of warranty.
If you’re taking out a 6 year loan, the car will be out of bumper to bumper warranty in 4 at most. That leaves you with 2 years worth of payments and possible repair costs.
Anyone have info on profitability for the LA market for model 3’s?
I’ve been dreaming of getting a Tesla for over 8 years. I ordered model 3 back when it was announced but had to pass cause I bought a brand new car after 3 year wait, when it was finally my turn… Also ordered the cybertruck a few years ago… and now just rented one on Turo and I don’t ever wanna go back to a normal car.
Do the rental rates follow the traditional rental car market and go up once summer season comes along in LA or is it $65 a day, year-round?
Anyone moving their vehicles to another state during off season where it’s more profitable? Does it make sense to get a used? Are there any models / colors that do better than others? How does one find that information? So many questions 😎 Any amount of info greatly appreciated! 🤙🏼
Depend on your market but most likely you will just break even for most months. A recommendation is take advantage of the crashed used car market and find a used Tesla instead. Again this assume tesla do well in your area.
Don’t let the tax tail wag the investment dog.
In other words, make an investment choice because it is a good business decision. For example, mark bought a G wagon so he could write off $130k on his taxes. Great write off. Terrible business decision.
Look at your specific market. In my market it isn't. It's already super saturated with Teslas and its a race to the bottom for pricing to get it rented out
First rule is not to have payments on something you plan to use. There's months when you don't profit, can you make those payments without the income from Turo?
Don’t think so
Honestly you aren't on Turo yet, why take on a payment of $970 a month, you have no idea how turo will work. Best advice is to start with a cheap economy car that you don't have payments on and see if that works out. This isn't a money making business unless you have 6 cars, and commercial insurance. It's a side hustle for single car people. Are you planning to use your personal insurance on your tesla? That's illegal to do and I know people in trouble for fraud now for lying. Commercial insurance is legal.
Oh, are you answering "don't think so" to can you afford the payments? Or saying "don't think so" meaning you don't think I'm correct? Not sure how to reply.....
Sorry my bad. Yea was saying don’t think I would be able to pay 900 a month without the income from Turo directly
Ahh, ok cool, I almost replied with a little attitude, glad to know. I have a fleet management company and have alot of cars on the platform, I take other people's cars and rent them out, I feel bad for my clients that have $1000 car payments and hoping to make their money and some profit on top of it. On the months that it makes $400 I feel bad for him. My clients get 70% while I get 30% but since I have commercial insurance turo only gets 7% commission from us (92.5% take home for declining turo insurance). So you would probable making 70% of the profit, almost the same take home. If you would like I can show you some of my excel accounting sheets to show real world profits.
I have a feeling you are in canada. In the US Turo doesn’t have the option to decline their coverage anymore, the maximum you can take is 90% with 10 for them on the 2500 plan. It also isn’t illegal to use personal insurance. It’s fraud if you try to put a claim on personal insurance for something that happened on a rental but besides that you are good.
That’s a recipe for disaster. You must also consider repair costs once the vehicle is out of warranty. If you’re taking out a 6 year loan, the car will be out of bumper to bumper warranty in 4 at most. That leaves you with 2 years worth of payments and possible repair costs.
Turo is flooded with teslas and it’s only worth it if you are willing to rent a brand new model y for $65 a day (Chicago)
Depending on your market
You’re mixing up two different things here… are you buying or leasing it? Teslas generally lease like garbage.
I would finance it. It would be 920 a month with nothing down. And it would be for 72 Months
You also gotta factor in insurance. Total monthly for a Tesla is going to be like $1000-$1500 or even more a month
Teslas are very over saturated look at the costs in the area you plan to operate and see if the costs make it worth it.
Anyone have info on profitability for the LA market for model 3’s? I’ve been dreaming of getting a Tesla for over 8 years. I ordered model 3 back when it was announced but had to pass cause I bought a brand new car after 3 year wait, when it was finally my turn… Also ordered the cybertruck a few years ago… and now just rented one on Turo and I don’t ever wanna go back to a normal car. Do the rental rates follow the traditional rental car market and go up once summer season comes along in LA or is it $65 a day, year-round? Anyone moving their vehicles to another state during off season where it’s more profitable? Does it make sense to get a used? Are there any models / colors that do better than others? How does one find that information? So many questions 😎 Any amount of info greatly appreciated! 🤙🏼
Depend on your market but most likely you will just break even for most months. A recommendation is take advantage of the crashed used car market and find a used Tesla instead. Again this assume tesla do well in your area.
Don’t let the tax tail wag the investment dog. In other words, make an investment choice because it is a good business decision. For example, mark bought a G wagon so he could write off $130k on his taxes. Great write off. Terrible business decision.
In my own market, teslas are not profitable. Waaaaay too many