I can see how it would make sense if you do a one pay lease. if you estimate a monthly lease times the remaining months and assume average miles remaining, then a 2 year lease with 18 months left would flip for $1800 easily and that is just $100/mo. It works best if you have someone buy the lease from you one pay as well.
Soā¦ I spent a lot of time researching Turo. It looks like they are heavily in the business of denying and underpaying insurance claims. They have definitely paid a marketing company to go online and post āmy car got stolen/wrecked/damaged and Turo was awesome at fixing itā type stories. Then EVERY comment after that story is some horror show of what happened to a real person. Like a renter abandoned a car after crashing in a snow storm and because it took the owner over a day to find it Turo denied the claim. I might consider rolling it with an inexpensive car but definitely would not consider renting any type of luxury car.
Yeah,
I was thinking of doing a Chevy Cruze. One pay will be around $1000 cost for 2 years.
Even if I break even, it will be an experience for me.
What are your thoughts.
I think you should look at insurance coverage outside of Turo. I would not rely on them to cover damage. I would also take a large deposit.
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Sure, thanks for the deposit idea.
Iāll be exploring more options for commercial insurance. I donāt want to add that Turo car on my policy.
If you have any suggestions, please do share.
I would suggest getting an umbrella policy. They are usually pretty cheap and starts at $1 million liability (confirm with your insurance agent for more details). You never know what can happen.
edit: umbrella insurance covers more than just auto, fyi
I think this is a cheap way of learning how to start an rental car company so if you treat it as that, probably worth it.
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Iāve come across Getaround.com also. Theyāre not available everywhere though, but what I seem to have read is they actually install something in your car that allows renters to open and drive you car from their phone, so you donāt have to deal with physical transfer of keys. I think device also able to track car (maybe?). Can also look at Automatic Pro device, which plugs into OBD port and can give you location information.
If you get quotes for commercial insurance post them here. Iād guess itās going to run 3-4x the cost of standard insurance.
Yes I will. I have contacted couple of local agents.
Waiting on them.
Tried Geico online , it said I cannot get umbrella insurance based on my initial online inputs.
I just check carmax, chevy volt 1k miles for $28k. Now what will happen to your incentives that they gave you?
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Not understanding your question. Are you buying or selling to Carmax? If you are buying, they never have incentives and they do no-haggle pricing.
Selling it, i donāt have the copy of my lease agreement but i think the cap cost was around $20k after the rebates, incentives and discounts.
Check what your buyout price is. If Carmax offered you $28k, sell it and then go buy another new one for less.
Lol, i havent made my first payment yet. Lol.
Hey Iād take the 8 grand any day. Thatās awesome if that works out!
I reached out to my agent just to see and got referred to a commercial agent. Thereās a lot of ifās since the market is new and the liability is vague. She said the biggest question is if the companies are willing to quote for a new company, that they will likely run credit and ask for premiums paid quarterly/yearly. Ballpark rates didnāt sound too crazy, she quoted off of Uber/lyft driver policies to try and be in a realistic range. It sounded like about double a normal vehicle policy for CO. That would mean around $250/mo on a $20k car.
Thatās not too bad.
The question is what liability/penalty do you have if something happens and the leasing company finds out that the car āis for hireā when in the lease contract it statements the vehicle cannot be for hire.
I see a 2017 Volt on Carmax sale price $28,998. They would offer you around $22-23k for the same car to buy it from you. I would sell it and repeat the process for a couple grand.
You will be forfeiting any state phev credit and the federal credit if you do a quick flip. Please research before doing this.
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