Rental Cars Are the New Airbnb (wsj.com) 78
Do-it-yourselfers want a piece of the rental-car market. Small-time entrepreneurs are amassing vehicles to rent out through car-sharing services such as Turo and Getaround, or their own websites. From a report: They aim to take on giants including Hertz and Avis Budget -- assuming they can master the difficult logistics of the business. One owner said he had to retrieve a car that was stolen, driven all the way up the West Coast and abandoned at the Canadian border. Another rented out a car that was involved in a shooting. Still another said a customer totaled a Maserati by driving it into a wall.
"It can be tough if you don't know what you're doing," said Jerome Mends-Cole, who rents out more than a dozen Teslas on Turo and his own website in Sacramento, Calif. "People look at it as a get rich quick thing, or a set it and forget it." It usually isn't. The costs of parking, cleaning, insurance and financing can quickly add up. Vehicles need to be picked up, dropped off, maintained and repaired. The expenses can quickly outpace any revenue. Renting cars is the latest iteration of gig work, which has become a robust piece of the American economy. People who started side hustles such as renting out rooms on Airbnb or driving for Uber are now taking on the more elaborate task of maintaining inventories of cars.
"It can be tough if you don't know what you're doing," said Jerome Mends-Cole, who rents out more than a dozen Teslas on Turo and his own website in Sacramento, Calif. "People look at it as a get rich quick thing, or a set it and forget it." It usually isn't. The costs of parking, cleaning, insurance and financing can quickly add up. Vehicles need to be picked up, dropped off, maintained and repaired. The expenses can quickly outpace any revenue. Renting cars is the latest iteration of gig work, which has become a robust piece of the American economy. People who started side hustles such as renting out rooms on Airbnb or driving for Uber are now taking on the more elaborate task of maintaining inventories of cars.
Rentals lose money (Score:5, Informative)
Re:Rentals lose money (Score:5, Interesting)
Not surprising. I haven't rented a car in a couple years, but I did need to rent a special tool from Home Depot. I needed a 10 foot sheet metal brake to bend some aluminum flashing to repair my garage. I rented the tool for 4 hours, transported it home, assembled it, did my work, disassembled it, and transported it back. I was 10 minutes over my 4 hour window because of holiday traffic and road closures, but the guys at the counter cut me a break. I found out that they were just thrilled to get the tool back in one piece or even get it back period. The brake I used cost around $3500 dollars and the rental counter told me that was the third one they replaced in 6 months.
If you don't have a full-time team of lawyers and recovery goons, I can't image renting your car out to someone is a good idea.
Re:Rentals lose money (Score:4, Interesting)
This is why, when I look at tool rentals I often end up just purchasing. Because the rental price for 4 hours/day is roughly the same as just buying the thing. Or maybe just 2-3 rentals. Depends on the item, I guess. Well, sometimes it's buying a tool a step or two down in capability or durability, but if it can still get the job done...
But anyways, then I have the tool permanently.
Re:Rentals lose money (Score:4, Insightful)
The parent post said the tool cost $3.5k, which is way more than a few rentals, so that's kind of the opposite of the point you're making.
But it can definitely work out that way, I looked into renting a lens to take on holidays and a telephoto Canon rental for a week would be like 1/3rd of purchasing price.
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BLUF: I said "often" for a reason. Exceptions exist, but at least in my area, for most of the tools I've considered renting, the expense is very close to what I'd need to just buy the thing. Especially since I live far enough from most tool rental places(my local home despot doesn't rent tools), that I'd need to go for the full day option most of the time, because it's an hour just to go pick it up.
It was unstated how much he paid for that rental, right? (researches)
Okay, it's $42 for 4 hours. [homedepot.com]
Though it
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HD telling the guy that the "cost", IE what they'll attempt to charge you if you don't return or destroy the item, is $3.5k is probably actually true.
It absolutely was true. I realize they can probably get it for less than $3500, but the rental agreement stated that's what I would have to pay them if I ruined or lost it.
The just over $50 that included taxes I paid for 4 hours of use was far more economical than paying a couple grand for a tool that I would never likely need again. But yeah, hand tools are usually much cheaper just to buy outright. I needed to use a chainsaw to finish cutting up a downed tree and the 18V battery powered one we purchase
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It absolutely was true. I realize they can probably get it for less than $3500, but the rental agreement stated that's what I would have to pay them if I ruined or lost it.
Indeed. Probably actually a way to make money by having a substantial markup. For example, Home Depot should be able to get the things for even less than the amazon price.
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Re: Rentals lose money (Score:2)
That's a consumer. Prosumer units are well made.
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For Home Depot, renting such things can also bring in other revenue from the shoppers even if they lose money on the rentals.
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This is why, when I look at tool rentals I often end up just purchasing. Because the rental price for 4 hours/day is roughly the same as just buying the thing. Or maybe just 2-3 rentals. Depends on the item, I guess. Well, sometimes it's buying a tool a step or two down in capability or durability, but if it can still get the job done...
But anyways, then I have the tool permanently.
OTOH, I hate buying a tool I am only ever going to use for one job. I'm never going to use that 22mm lambda sensor socket ever again, I don't even have the car I bought it for any more. It had one job (replacing the O2 sensors on an old Toyota 1ZZ) and it'll sit in a tool box for all eternity after.
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That's where I'll use the "free rentals" available from Advance Auto and other such stores.
Though yes, because my dad bought it, we're going to have a 25mm socket that is used for one bit of engine work, though admittedly toyota uses it on a lot of their engines, but it's like a once a decade job.
Then again, Toyota. I might use it again on my truck.
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If you don't have a full-time team of lawyers and recovery goons, I can't image renting your car out to someone is a good idea.
And fans of Capitalism really have to wonder why Socialism is popular again? When the professional recommendation based on experience is to build your business "up" from the ASS end of a damn lawsuit? Talk about one hell of a justification at the bank for the "extra" business capital. Don't even get me started on business insurance.
The Justice system was replaced by the Legal system long ago. For lawyers, by lawyers. Start there if you're somehow still wondering.
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It's a volume business. They buy cars in volume at a discount, and rent lots of them. The cost of legal paperwork is amortized over all the cars then end up renting, and there's a team of people who check all the cars in and out and clean them up. Sure it feels like a major hassle waiting in line at the airport, but it's amazing what they get done. An "app" is more likely to be useful to a major rental outfit but when used by a fly by night company hoping to make a buzz and get bought out it's not going
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When these just started showing up as an option, I looked into renting out my beater and/or maybe buying something to rent out as a way of making money work. It didn't seem to be worth the risk and headache.
I've heard some horror stories from renter's side as well. I'd stay the hell away from these.
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You get lots of horror stories with AirBNB as well.
I once rented a car from a company called "rent a wreck" - cheapest option for renting a car, obviously I got an older but still clean vehicle. It fit with what I needed, and was less than half the price of the big names.
I mean, I think that the car rental business could maybe use some disruption, but I don't think this is it.
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I've done the wreck thing as well, drove all the way around Taiwan in a 15 year-old Toyota.
I'd happily take a beat-up piece of junk as long as it runs, won't cost $100/day, and I won't get billed for every single scratch that was probably already there. Americans seem to have collision insurance covered by their credit cards but I always have to pay extra for it and it can often double the rental price.
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You get lots of horror stories with AirBNB as well.
It's hard to make a house go to zero value in a few minutes.
A car? It's easy!
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When these just started showing up as an option, I looked into renting out my beater and/or maybe buying something to rent out as a way of making money work. It didn't seem to be worth the risk and headache.
I'm with you. I have an exotic and a beater I thought of renting out on Turo several years ago. But all it would take is the renter to hit a curb hard and I'm out $800 for a control arm and possibly more. And the problem with vehicles compared to houses is it's harder to blame the renter. A hole in a wall is obvious, but vehicles have wear and tear, and it would be difficult for me to prove the renter did the damage to the vehicle. I don't know how anyone is making money on turo.
P.J. O'Rourke said it best... (Score:5, Funny)
"Nothing handles better than a rented car. You can go faster, turn corners sharper, and put the transmission into reverse while going forward at a higher rate of speed in a rented car than in any other kind. You can also park without looking, and can use the trunk as an ice chest. Another thing about a rented car is that it's an all-terrain vehicle. Mud, snow, water, woods – you can take a rented car anywhere. True, you can't always get it back – but that's not your problem, is it?"
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My brother used to work at a rent-to-own place. The store that rents out furniture, appliances, and other stuff to just married teens with low income looking to furnish their apartment. They made a lot of money even though most the stuff was trashed when they got it back, and half the time they got it back by repossessing.
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I follow a few automotive YouTubers who tried car rentals as a business and they concluded that you lose money on this even if you fix cars yourself. Here is WatchJRGo [youtube.com] discussing quitting Turo.
There in lies the problem, they were fixing it themselves, probably even buying the car.
Nope, the hire car industry works off a fixed monthly payment. They lease the cars from the manufacturer (at pretty low prices) then get a service contract for any maintenance and repairs. The lease cost only really has to cover depreciation as the lessor will sell the car when they get it back (whilst writing the depreciation off for a nice tax dodge).
This is why car hire companies ran into a huge stock crisis in
if i was to do this (Score:4, Funny)
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For some reason I really want a Dodge Rampage. https://en.wikipedia.org/wiki/... [wikipedia.org]
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For some reason I really want a Dodge Rampage. https://en.wikipedia.org/wiki/... [wikipedia.org]
They're strangely attractive. When I was a kid walking to school, I'd pass on everyday up my block, and I'd always take time to admire it. It was like a sportier, cut-down, smaller El Camino. One of those neat concepts that just never really caught on: low to the ground, sportscar-looking front and practical hauling rear half.
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Australia gets modern versions of these types of cars ("Utes") [wikipedia.org]
If you got the cash and ther wherewithall you can get them in the USA
https://lefthandutes.com/ [lefthandutes.com]
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...sportscar-looking front and practical hauling rear half.
The mullet of the car world, except reversed?
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Dude... if you can find any of those off-the-lot junkers that are still drivable and keep them running you should forget about renting them out. Because if that's the case, you are clearly a fantastically talented mechanic who can basically write your own ticket at any auto shop anywhere. Or you could open your own shop, pass your skills along to your employees, and be the toast of your town.
I owned a Plymouth Reliant once. I was glad to have it at the time (teenager). But objectively, those were really
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As a fellow one time Plymouth Reliant owner (a baby-blue '88) I would agree. Getting the thing up to 70mph was a struggle in itself with it's 3 speed transmission. Same transmission that melted down at around 75k (mechanic dropped the pan and a pile of metal came with it)
If you think Chrysler quality is bad today...
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I found mine to be pretty good for an econobox. It's the car that saved Chrysler, isn't it?
It liked to crack flex plates, and to get up to the speed limit you hoped for a downhill section of road or a good tail wind... but for what it was it was pretty good.
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Mine was good as well, until it suddenly wasn't.
There's a reason though you still occasionally see Toyotas and Hondas from that era on the road even today and barely see any K-cars still running.
You are correct it was pitched a cheap car and it did do that just fine I suppose, but these are not cars worth pining over today. They were built to a price and nothing else.
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> If you think Chrysler quality is bad today...
The wacky thing is that by every account I've read on the matter they've actually *improved* after getting acquired by Fiat. I have an uncle who owned a Fiat once and they're also on my "never buy" list. That list is academic because of my begins-with-J rule, but whatever. The very idea of Fiat's notion of "engineering" improving... well... anything... is just so far beyond the absurd that it was like we were reading about bizzaroworld from the Superman c
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I was thinking a fleet of Pontiac Aztecs but K cars would do nicely. The mid-80's LeBaron comes to mind.
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Only Jon Voight's LeBaron.
too late! (Score:2)
>i would start collecting 1980s era K cars
You're too late. I already bought both of the still working ones
>and install governers that wont let them go faster than 65mph
uhh, they came equipped with that from the factory. Chrysler called it "the accelerator" . . .
>and hide a gps tracker on em
I suspect that neighborhood watches would take care of this . . .
hawk
1970s beater pickup (Score:3)
So long as it was reliable, I'd love to be able to rent some gnarly old pickup with mad-max style welded-on fenders/hillbilly-armor and the kind of bodywork that a few more small dents and scrapes would only improve. It would be far easier to navigate through traffic in Miami.
Or do what the locals in Denver do when it snows, go to work in the beater jeep
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Or do what the locals in Denver do when it snows, go to work in the beater jeep
Classic Jeep CJ's are being snapped up by restorers, fast. There are fewer and fewer "beater Jeeps" left. And now they've moved onto buying up old Iaccoca-era Wranglers as well. I love Jeeps... I own one... but they're the most overpriced non-luxury vehicles in America. They've become Apple-ish in that regard.
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How late did they build them like that? How long back do you have to go to hit Jeeps that really were built and meant for off roading, non-luxury vehicles?
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My 16 year old Jeep is a money pit. Engine blew at 104K miles. Replaced it, did a bunch of suspension work, complete brake job, hubs, new tires, cat converter and o2 sensors, manifolds, the works. Spent about $15K, doing all the work except engine replacement and manifolds myself, which was way less than what I could replace it for.
Soon after?
The computer went out. $700.
Steering box went out, $1700.
Seat pan on driver's side rusted out. $700.
It fills with water every time it rains.
The fuel gauge is sketchy.
I
Nice, but when will... (Score:2)
This is good, but when will Avis or Hertz buy then out to kill their business ?
I know people who were zip car members, but Avis bought that company and killed it. They stopped being members due to the constant price raises and byzantine price schemes. If the US had real enforceable anti-trust laws, zip car would still be around.
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That seems to be the model, offer a service below cost until you irritate the incumbent players enough that they buy you out.
This is ... (Score:2)
This will probably just remain a niche (Score:5, Interesting)
People tried to do AirBnB because they already had a place they lived in but knew they'd leave empty when they went on vacation or to stay in a second summer home or what- not. It grew into a bigger operation for people who decided they'd buy more real estate just to AirBnB it. But at least for them, the housing purchases were generally an appreciating asset. If the AirBnB idea failed, they still owned the valuable property which could be potentially resold for a profit.
Vehicles are depreciating assets 99.9% of the time. You're not going to buy a bunch of vehicles to rent out and then make money reselling them if it doesn't go well for you.
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Great Just great (Score:2)
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Can't wait to have my street turned into a car storage and maintenance yard for some get-rich-quick DIY car rental schemer. The AirBnB across the street has already been a major downgrade to the neighborhood (lots of street parking, car alarms on rentals late at night, lots of late/loud arrivals).
Gig work is not a robust part of the US Economy (Score:5, Insightful)
As for this, yeah, like the article says this is a disaster waiting to happen. Rental car companies are already on thin margins. As a renter I wouldn't go near this. I can't imagine the cars are going to be well maintained or that I'm going to get much help if they break down.
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It's a cancer eating away at it. High risk, low reward with no benefits in a country where you get healthcare from your job. I'd say it needs to be banned if it wasn't already illegal under even our weakest labor laws, but the courts have consistently refused to enforce the laws in most states and in the few that do hundreds of millions are spent to undermine those laws.
It's only a cancer to the general population. The decision makers and the people that pay them, mostly the multi-millionaire and up club, LOVE gig work. They hope that all employment will lean this way as fast as possible, to save them paying benefits and other such "let people live their lives" nonsense, like healthcare. Pfft. Healthcare is not meant for the proletariat. When one gets sick, shove 'em in the waiting room for the cemetery or burn pile and grab the next cog.
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there are a lot of stupid Canadians up here who think it's real great that you didn't have to wait in line to get wiped out
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No they haven't (Score:2)
Uber spent half a billion dollars that we know of on Prop 22 and it still squeaked by. And it's looking like it'll die because it's unconstitutional [sacbee.com] (California constitution, not US one).
Americans overwhelmingly oppose gig work, but sometimes with enough money and threats you can cow a population.
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people beat the hell out of rent a cars and you ne (Score:2)
people beat the hell out of rent a cars and you need an big lot with lots of cars for places like an airport
Better have massive insurance (Score:2)
Then, the premiums will make it hard to make a buck.
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Yeah, tell your agent what you want to do. They need a good laugh. And you need the premiums...
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The platforms provide insurance to the vehicle owners. It's funded by their cut of the rental fee.
Insurance & vehicle protection for Turo hosts [turo.com]
I messed up a rental car (Score:2)
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Also a mid 90s Durango had torque to yeild fasteners that would bend and break before tor
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Yeah, it is an odd choice for Slashdot to try and irritate us into leaving. Maybe they figure with Reddit shitting all over its users we have nowhere to go?
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Didn't we see this bullshit in the past? I was getting them constantly the other week.
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I was curious if subscribing to the newsletter would work to get rid of the popups? Surely they aren't asking you sign up for their newsletter if you already are signed up for it?
Then ill just set up a rule to forward it back to feedback@slashdot.org and every other working mailbox I can find for them.
I mean, if I click no, then I meant "no". I wasn't confused the first time. I was definitely not confused the 2nd or 3rd time. So why are you still asking me?
Maybe they'll get the hint if they start receiving
Another scam (Score:3)
Just like the "taxi" and "delivery" service, they are counting on people not doing the math.
You have a car anyway - why not let it earn you money? But people will forget about maintenance and the inevitable damage to their vehicle.
Such a rip off (Score:3)
Turo Cannot do Maps (Score:2)
I tried to book a Tesla on Maui while on vacation.
It offered me cars that were on the Big Island, because they were "close".
Useless.
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Don't Teslas float?
Not until the next software update.
Cool! (Score:2)
Good sideline for used car dealers (Score:2)
They buy cheap at auction and can afford a high vehicle attrition rate. Many have their own shop facilities if they're of any size and already know the auto biz including tracking and recovery.
know your customer (Score:2)
this surely won't fly - unless it's based on trustworthy data on customers. If it serves particular communities or employs some social credit system (at a minimum, ratings by the renters), then you can lower the risks. This alone can completely change the game...