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How To Buy Multiple Cars For Turo Rental Car Business

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Anonymous
Not applicable

How To Buy Multiple Cars For Turo Rental Car Business

So here is the deal. I started a Turo Rental Car business with my 2017 Kia Sorento. Turo APP is the platform where you rent your own car out. Shockingly I made over $2,000 my first month of May 2021 and already have $1,100 scheduled for June 2021. With my car note and insruance only being $536, this is a profitable business. Now, it's time to duplicate. Many people have over 20 or 30 or even 40 cars on Turo raking in an easy 6 figures per year. 

 

My question is how are they getting financing for all of these cars. No, they are not going out and buying them all cash because that would be foolish. Turo gives you basically a free car if you can get the financing. A couple of guys said they financed all of these cars within 1 month from multiple dealerships and that's why the banks don't see that they have the cars. I want to grow this easy business and achieve he status of 30 years but does anyone have an idea of how to get multiple cars fast? Yes, I just plugged you into starting your own business also but let's talk about for sure how to get financing. My income is 6 figures a year and my scores are around 700 to 733. 

 

Thank You

29 REPLIES 29
TattnallTrio
Frequent Contributor

Re: How To Buy Multiple Cars For Turo Rental Car Business

I wouldn't advise this, but buy them all in a wave now. Apply for credit union financing at a few different credit unions and use the financing from those. Car dealers enjoy selling cars. Tell them your intentions, and they may finance one with the manufacturer's arm, and a few more with Capital One, Ally, BoA, .etc. 

Message 2 of 30
Shooting-For-800
Senior Contributor

Re: How To Buy Multiple Cars For Turo Rental Car Business

Be VERY cautious.  

Right now rental cars are the highest priced they have ever been.

That trend won't last.

Renting out an exotic is quite different than a normal rental car.

If it were me, I would not have more than 2 or 3 car notes at a time.

If it is really that profitable, you should have no problem paying off cars fast.

GL!

Rebuild started in 2014  -  $100k unsecured credit in 2017  -  $500k unsecured credit in 2024.

DON'T WORK FOR CREDIT CARDS ... MAKE CREDIT CARDS WORK FOR YOU!



Message 3 of 30
sccredit
Valued Contributor

Re: How To Buy Multiple Cars For Turo Rental Car Business


@Shooting-For-800 wrote:

Be VERY cautious.  

Right now rental cars are the highest priced they have ever been.

That trend won't last.

Renting out an exotic is quite different than a normal rental car.

If it were me, I would not have more than 2 or 3 car notes at a time.

If it is really that profitable, you should have no problem paying off cars fast.

GL!


THIS! With supply shortages car rental companies are having a hard time buying cars. This has driven rental prices through the roof. As supply issues ease over the next 12 months their prices will drop again. I get the allure. We're flying up to the PNW next month and a compact car was $1,300 for the week, we rented a Tesla for the week through Turo for $650. 

 

When the rental car mess changes direction and rental car prices normalize can you carry multiple car loans with less rental income?

Message 4 of 30
Anonymous
Not applicable

Re: How To Buy Multiple Cars For Turo Rental Car Business

I would imagine most people doing similar things actually take out business loans or use a business line of credit to purchase rather than financing multiple cars under their individual credit profile.

 

Another thing to keep in mind is that you need to make your insurance aware that your vehicle is used for ride sharing/rentals, if someone renting your car gets into an accident and it isn't noted on your policy that the car is used for ride sharing then you may be on the hook for the repairs, medical bills, and damage to property associated with the accident.

Message 5 of 30
sccredit
Valued Contributor

Re: How To Buy Multiple Cars For Turo Rental Car Business


@Anonymous wrote:

I would imagine most people doing similar things actually take out business loans or use a business line of credit to purchase rather than financing multiple cars under their individual credit profile.

 

Another thing to keep in mind is that you need to make your insurance aware that your vehicle is used for ride sharing/rentals, if someone renting your car gets into an accident and it isn't noted on your policy that the car is used for ride sharing then you may be on the hook for the repairs, medical bills, and damage to property associated with the accident.


Turo requires/provides insurance while the car is rented. That said, some insurance companies will not insure a vehicle if it is rented. When I was renting out my toy hauler on Outdoorsy Progressive would not insure it but SafeCo would. This applies to the vehicle when not rented, the rental platform handles insurance while it is rented.

Message 6 of 30
Dj4Money
Established Contributor

Re: How To Buy Multiple Cars For Turo Rental Car Business

 Some opinions -

  
 A close friend of mine bought a lightly used S-Class Mercedes and hired a driver for Uber Luxury. His business is seperate from his personal accounts.

 
 I would highly recommend setting up a Corporation or LLC and start developing business credit.

 

 Randy formerly Uber Man on YouTube would be somebody to talk to since he's done Turo before.

 

 You may want to look into taking over leases to get more cars.

 
 Also look using Getaround app for additional customers. You have the option of allowing vehicles to be used strictly as rentals or used for gig economy work. 

 

 

Message 7 of 30
Dj4Money
Established Contributor

Re: How To Buy Multiple Cars For Turo Rental Car Business


@Anonymous wrote:

I would imagine most people doing similar things actually take out business loans or use a business line of credit to purchase rather than financing multiple cars under their individual credit profile.

 

Another thing to keep in mind is that you need to make your insurance aware that your vehicle is used for ride sharing/rentals, if someone renting your car gets into an accident and it isn't noted on your policy that the car is used for ride sharing then you may be on the hook for the repairs, medical bills, and damage to property associated with the accident.


 The landscape has changed it is no longer hard to get coverage anymore.  You have to pay more but you can get accounts from Progressive, Mercury and others.

Message 8 of 30
tparks5961
Regular Contributor

Re: How To Buy Multiple Cars For Turo Rental Car Business

So.. I recently bought two vehicles.

 

I tried to get my own truck financing but was declined. I tried with Navy first, and again with Chase.

 

I decided to go the dealer route.. knowing they pimp your credit out to the highest bidder..  Going through the dealer resulted in several hard pulls which I was expecting, but they got an approval.

 

 After about two days, I called the dealer back and asked how many approvals did i get.  I think I had a total of 6. I asked if I could use one of the other appovals for a different truck.. And they were happy to sell me another.

 

Kinda shady on their part.  But I technicaly could have done this 6 times to get 6 trucks.  Im not advising that you go this route.. but if you can afford the notes, this is one way.

 

Side note and reason for declines: I have another vehicle but it's listed in the name of my business. So I dont have much of a history with very high balances on the personal side. I also did not work last year due to covid so my income was pretty much non existent.

 

Another side note:  I realized after my second truck that the dealer will always do what is in their best interest.  The Finance charge on the first truck was 5.94%, the second truck was closer to 5%. So even though they had the 5% approval, they sold me the 5.94% .   If I ever go through dealer financing again, Ill be sure to ask them , which company offered the best rate.

Last Inquiry 12/23/2022 Ally Bank Mortgage
Fico Score Progression: 10/1/2018 EQ 530 TU 535 EX 540 | 1/10/2023 EQ 785 TU 789 EX 787
Message 9 of 30
mross1080
Established Contributor

Re: How To Buy Multiple Cars For Turo Rental Car Business

Ive been a Turo host for a last roughly 3 years. Just want to start by saying be VERY cautious, if not done correctly or if you just get unlucky you can lose your car in an instant. That out of the way. Were in a bubble right now with Turo being super hot. The bubble is going to burst and it will go back to previous demand and you dont want to be holding the bag with a bunch of underwater cars. Best bet is to buy some cash inexpensive cars "shooters is what its called in the Turo groups" and go with that so if you need to get out you can recoup your money back easily.

Now if you want to go all in and risk it all. Go to a dealer that will be more then happy to sell you as many cars as it can and have them shotgun your app to as many banks as possible and take a long with each one that approves. This is what many hosts do but keep in mind gap wont cover a loss if they find out it was for commerical use.

Message 10 of 30
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