I’ve read quite what I can find on here about listing lease vehicles on Turo.
Has anyone had any personal experiences so far on this? Good or bad?
How would a company track on whether you list a car that is leased on an app like Turo?
Which companies legally allow you to do this besides BMW?
Ive called Tesla Financial they said no. I called the sales office in NorCal and they said yes. A bit confusing.
I have no information, but I wonder what Tesla could actually do to if you were renting a leased car on Turo, unless you have your insurance thru them.
If you read your lease agreement and it doesnt forbid it, then you probably could just assume you can. Again, what’s tesla going to do.
Now as to whether you SHOULD do it, that’s something else altogether. I certainly would understand what your insurance situation is, and consider the value of your time, as I’m sure its quite a hassle.
With BMW, you have to opt-in on a Car & Ride Sharing Lease, which is an extra $2,100 for most models, I believe. You can’t do it on their standard lease contract. Not aware of any other captive finance arm that offers anything similar.
Edit: GM’s Maven claims to allow leased cars as well (presumably through GM Financial) but I haven’t read the fine print:
I lease my car, are lease cars eligible?
In most cases, you are able to list a leased car for rent with Maven. Before listing your car, we recommend reviewing the terms of your lease (and any other accompanying financial documentation) to ensure there are no restrictions for you to participate in car sharing.
aside from that a big risk though? car gets totaled etc. etc. yeah the insurance covers it but then you have to go and find a new car, deal with the companies etc. etc.
Even getting damaged but not totaled would turn into a huge headache I would imagine.
I just tried listing my 2019 Corvette on Maven and said that my vehicle is currently ineligible. Why is that? I also called Maven to ask, but the agent did not have an answer for me. Weird.
I had a car listed for a while, did about 20 trips with 2 vehicles and the experience was fine for most rentals. There were two occasions of some dings and a final bad experience where a person thrashed the car, but luckily I was able to bill them and get the issues resolved. - I should mention, Turo sided with the driver but I threatened legal action and was able to invoice the renter directly without having to go to court.
Your margins aren’t going to be that high, you’re lucky if you 2 or 3x a decent lease payment. If you deal in large enough volume you might be fine but in most cases when you factor in drop off/travel time and logistics, it’s not worth it unless you’re in a financial jam.
There is also the possibility that you just want to lease a car you wouldn’t normally be able to afford. That’s fine, but keep in mind that most vehicles that go for good money rates on Turo are usually sports cars. What do you think someone that rents a sports car does with it when it’s out for rent? You can track it and gps it, but in general it’s going to constantly be a liability.
If you do pursue this, i would not recommend using Turo’s insurance on rentals. If a person wrecks your car, who do you think the leasing agent and the insurer is going to side with if they have to pay vs making a host pay? It’s a dangerous game and you’ll notice most big time renters, at least in the LA market, have their own insurance coverage just for this reason.
Do you happen to know any of these individuals who do it in volume in LA? I’m thinking of doing it in volume as well.
This girl in Orange County has over a dozen cars. She has a YouTube channel as well. Some interesting stories on her channel. Sounds like a headache to me.
I was just watching some of her videos earlier today. Lol.
Hmm! I have some time on my hand and some cash in the bank earning squat. I’m also a car guy who used to be involved in the car sales business a long time ago (15 years ago) but never found the “used car sales” as an owner / operator particularly too appealing.
This thread has made me think that I can easily start off with a few cars in the 15K-20K range but would probably not wish to go above that per car scenario with taxes & licenses are included (I’m a CA denizen). I still have access to the wholesale auto market so I can probably pick up a few cars faster than just trying to compete with Carmax / Carvana / Vroom! Too bad that I recently sold my own 2014 Honda Pilot to Carvana before this particular brain*rt had occurred to me.
Although I lease my own personal cars, I WOULD NOT gamble with my other assets trying to make some side $$$ by renting a leased vehicle. Having not even tried my hands at this, I can just feel the can of worms that such strategy may open / unearth!
Thank you for posting the channel to this girl in OC. I suspect that her partner/BF is a wholesale dealer and that they also tried to utilize another angle in the auto biz melded with the sharing economy. Again, hmm, I maybe a day late but I’m not a dollar short, yet anyway!
Any constructive input vis a vis dos and don’ts will be greatly appreciated
Cash in the bank in CA? Should go into real estate…
Nah! I have 2 of those already and don’t want any more R.E. rental headaches. I want fast and swift because I can move cars a lot faster. Thanks for the suggestion.
I don’t think there are many cars valued at $20k used that will lease well. Did you see the user’s car selection and pricing posted above? 2/3/4/6-series, X4, c/e-class, Model S, etc all listed for under $60/day. After all the fees, doesn’t seem worth the trouble at all.
I am listing my newly acquired BOLT on Turo, I will report in 60 days how I make out
Someone with $700-$800 i8 should make it work
Recently i helped someone get a Sienna lease. It was their 14 auto (all leased). Surprised the bank was ok with it. After that all his “friends” were calling hoping to get approved on their 10th+ unit.
Bank finally said we believe these are rentals and declined deals.
So there is a big group of people doing it.
I just watched some of videos of the girl some one mentioned above she says she does 72 month loans on the cars only buys new and trades them in 12-14 months after purchased. Someone left a comment and said u are taking a bath on the depreciation she said she isn’t because she gets enough discount to cover it so when she trades it it’s just a even deal.
I’m paying cash for the cars or flooring them… I can get up to 10 cars, give or take and expand from there… I like to have fast liquidity and dump the cars at auction when I need to turn over. I will have to do lots of number-crunching, for certain because can not rent a car in dealer’s inventory (against CA rules if driving on DLR plates) so cars must be taxed and registered which means an extra 10%+
I have looked up popular cars and they can be bought relatively cheaply in the auctions (Prius, Mustang, Bolt, Camaro, yada… some Wranglers too). Point being, if the idea is a pig then I can just get out W/O much damage. The reason that it may work for me is because I have connections with detailers, place of Biz to rent out of and paint/body shops. If they trash the car, I will make $ on insurance claim but must make sure that the ins is iron clad.
Bottom line, I will not be doing this as a “venture” from my driveway using my own car but to use an oft used and very apropos cliche: as always YMMV!
I’ve watched the videos too. I think that she’s too young and too wide-eyed! Nothing wrong with entrepreneurial spirits though as this Country was by and large, built on such!
Her much earlier videos show her suggesting some recipes from Trader Joes, so without denigrating her esteem, I really do not know till I do my own numbers and take my own risks. New cars on 72 months may or may not make sense because of that huge depreciation when you roll those wheels off the showroom floor. I think that the sweet spot is in the 2015-2017 models, +/-1 year, maybe?