Owning a business with 2 rental cars I can tell you, there's no way in hell one person with 2 employees could manage 69 vehicles. It's literally not physically possible.
Yes, you would have to have a legit office, and that's at least 2 people, paperwork,answer the phone, and someone to get the car ready and check cars in,pick up and delivery,,no f-in way
@@Poorschedriver your right about all that stuff, but luckly no inspections in florida. I guess thats where shes making up that extra 1 million in the red, lol.
@@Poorschedriver even if you were only at 50% capacity (utilization) and every rental was for a whole week, that's 5 cars a day 7 days a week, But at 70 cars why would you need,,or want TURO at that point ?
While I overall agree, I saw an "interesting" setup while in Hawaii. All the cars, and at a quick glance I saw at least 10, were in a parking garage. When you booked the car, you got a PIN, which opened a lock box clipped on the window, and the key to the car was inside. That's exactly how I dropped it off, parking in the garage, key back in the lockbox. I can only guess the owner checks things every morning maybe?
Those cars in the background are storage vehicles or did you think he rebts out the hot rod? Let the anti Italian crap go because that is what the original jack bag was doing hey Italian guy let's call him spaghetti make a comment hit like hit not like whatever don't be anti Italian and if you are Italian and you did shame shame
He owns his own business so he can charge a lot more, turo is way too competitive and you can gat exotics super cheap compared to going to a legit rental company.
I put my 10 year old car I bought for $5K on turo. My first month I made $2700, That means I made more than her monthly average per car. If you get into turo do not use a financed car ESPECIALLY not if it’s financed under your personal name.
Reminds me of this VC fund that only invested in women-run businesses... they were touted in all the financial news that they have positive returns because women work more than men. Then someone looked into it... the fund has less, than 1M in assets and they reported the positive returns 69 days after the fund was created.
I wish her bankruptcy well... Haha savage Rob. When it comes to renting exotics... there is nobody better than Rob tbh, been following him since life after the 1/4 mile.
I wouldn’t be surprised if it started from 2 and 4. Is actively 1 that is doing 3, and they just did number 5 for their taxes and Ppp loans. #6 is coming soon!
I saw that article and stopped reading when I saw the cars in the picture and realized that just those alone are worth around 3+ million not to mention all the other cars not listed and she's only making 922k, with insurance, storage, maintenance, wrecks, taxes? No way in hell lol
You cant rely on Turo’s insurance for those more expensive cars, LMI only covers up to $125k.. I think she is using commercial insurance. I think that her partnering with a dealer is letting her get wholesale prices and a solid exit strategy. Im also wondering if the dealer is somehow using their auction line of credit to secure vehicles for her. Very interested in what that partnership looks like
Another thing to consider. I have run a few $6000 cash cars on turo and doubled my money in a years time while still owning the car. It can be a great tool for investing a moderate amount of money to double it when you can’t make returns like that in the market. Maybe not a full scale business with employees, but run it as a side hustle.
You definitely should talk to youtuber and turo renter Aubrey Janik. She will be able to tell you how this is not possible based on what you have shown. It would probably take her 5 minutes to come up with factual data based on information in the story. She would know how much money the woman is actually making and losing.
Appreciate you! I saw the Business Inside article and was...skeptical. There is a reason why I don't take on investors, exotic cars or ultra high end luxury...the business model (in my opinion) just doesn't work. 100% agree with Rob here!
No one really factors in the tax free cash flow from all of your deductions. You can make money from it if you do it right. I’m like Aubrey . I run 14 low cost vehicles and I have been able to pay myself a salary for 2 years now. It probably won’t work forever.
Why? He just did an entire breakdown of that. And made a video that generates income on this. This is the ultimate win: he made fun of a BS instathot trying to get PR pieces out for more "influence clout" and made money off of it
Without taking the $1m/year in depreciation into account, best case she is breaking even. I guess she gets to drive fancy cars around for free while her sugar daddy pays her bills. Good for her
Something is definitely up, seems like a made up story honestly lol. I wonder if that company she partnered with are the actual ones renting out the cars, and used her for marketing? I still don't see the advantages of that but at least they would have the inventory. It must be some kind of weird money laundering thing if it's not fake. They're using her as a frontwoman so no one looks into where their money is coming from.
I mean if their goal was to draw attention away having an article written about it is the opposite of that haha. Don’t get me wrong it doesn’t make sense taken at face value. Either some major things got left out/glossed over or it is in fact a lie.
The simplest answer is that this woman has overestimated her skills and abilities, and believed she could create a high-dollar car rental business on Turo. She then managed to sucker in some investors while taking a massive cut for herself. Now she is doing it again with this article as an attempt to drum up new investors who will see this as a thing they should get in on. But you are correct that the more elaborate answer is that cars and parking garages were bought cash using drug money or other ill-gotten sources of cash, and this woman is part of a scheme to help move money around. The use of Turo might be because that somehow further reduces the risk of not having to set up your own business, get your own insurance, etc., despite the high fees associated with the platform.
Interesting breakdown. As far as Business Insider, I don't know if what you said it true about paid features or not, but I can tell you that as a media company, they are always looking for interesting stories, and her story is gold, there was no reason for her to need to pay for it as if she wanted the media coverage they're looking for stories like that to publish anyways. So that part of your assumption may not be true. But I agree that the depreciation of these exotics don't make financial sense.
If a customer comes in and wants to buy the rolls Royce. Meanwhile you have it booked on turo next week. That could create some logistics problems. Not to mention if a car gets damaged now you have diminished value
This has "came from money" written all over it (whether she wants to admit it or not). That's why it "looks" successful. If you're rich it's easy to make your ventures "look" successful.
Not really, it doesn't make any sense. Even if she has enough money to somehow pay for an entire fleet of millions of dollars in cars, the cost of depreciation alone would invalidate her absolutely pathetic $922k, let alone maintenance, storage, employees, car cleaning, car detailing, and insurance. This number should be double or triple that with her supposed fleet of cars, yet it's not enough to even cover the cost of these used and depreciating assets
I love love love how you brown down the assets and liabilities of this article! I found myself dissecting this breakdown as soon as I clicked on your video!
I do think that what the article meant was her take home/wage/potential margin for distribution is $900k, not company revenue. You should do a break down of what those 15 types of vehicles rent for in her area, give it a 50% of the time rental usage and see where just that gross revenue sits. For the remaining 54 cars do an average in the same capacity at $75/day Just a thought.
@@zazuch I'm still gonna say what the guy up there is saying. Her take home is that 900k figure... can't imagine you'd make less than what 15k for a WHOLE car a Whole year.?
What if the 900k figure was her earnings? Divide 900k by 69 that's a little over 13k per car per year. That seems reasonable after all the costs you mentioned. Not as good of margins as you would like but with Turo and investors taking a cut it seems reasonable.
Here's what I think is happening..... The other investor is her "Sugar Daddy." He owns a business that is supplying the cars. The cars belong to him however, who wouldn't want to rent a car from a hot chick. The news fluff piece was manufactured to gain media coverage aka FREE ADVERTISING! It's a win-win for her "partner" and her. I am sure she's getting a cut for being the face of the business. The other possibility, is the "Sugar Daddy" is using this as a purposeful loss to offset other income or as a money laundering scheme. Just my 2 pennies.
You Nailed It. All BS I don’t believe a lot of what’s shown out there. Even “Reality” TV is no longer Reality. Storage Wars was a great example thought it was amazing and then come to find out items were “planted”
You kinda hinted at it with 5-10k cars. Like to see you do an interview with a solo entrepreneur renting say 5-6, hopefully similar cars outta his driveway, doing all maintenance himself (hence similar?). That’s more of a (attainable) real world situation
Business insider, MSN, they all love to do this. They find one person who made a lot of money with RUclips or Instagram and think everyone can do it. With regards to Turo, I think it's dying. Regular rental car companies are back to normal inventory and it's cheaper to rent a newer car with way less miles than some worn down 170k mile Nissan Versa for 35/day. My one issue with big rental car companies is they are now pushing electric cars as their "cheap car" and I personally prefer a gas car
As a car dealer and a small car rental operator as well. I absolutely love Turo! How I can rent a $60k SUV with unlimited miles for around $160 a day. Gotta love the suckers out there. I rent 4K shitboxes for $39 a day, those things fly off the shelf hehe. I just don't see how ANYONE makes any money on turo.
The only way that would work is if she had the cars loaned to her from Magic City to rent and she pays the insurance and a fee per rental. I’m sure she has access to those cars but owning them I doubt. There are dealers out there that will let you use inventory to rent to make a side income but you have to be good friends with them…
I don't want to sound like 'that guy', but I gathered from reading the article that the figure quoted was her net earnings figure: total income minus total expenses. The $922k wasn't her total 'revenue' figure from Turo, it was what she earned AFTER all her expenses were deducted (she quotes the Aventador alone at $1700, so with 3 Lambos alone - not too difficult to do the math!). Am I missing something here???
The only thing I don't think you factored in, which I don't think makes that much of a difference, is that I'm sure she built up to having that many cars. This means a lot of the more normal run of the mill cars were likely paid off before she started buying exotics. But that's only if she did it properly. Even then I doubt she's making that much.
$922,000 divided by 69 cars equal $13,300 per year per car. 13,300 per car divided by 12 months equals 1100 dollars a month per car of revenue. So regardless of the rest of the numbers, somethings off here with this article. 1100 per month minus 150 a month for parking only leaves $950 a month per car. First glance and it’s already falling apart.
It wouldn’t make sense to use turo for that volume of revenue. You would be making enough that you could create your own advertising and website or business front and not pay turos fees
well... lot's of missing information here... I guess you could call it fake news... I have 4 cars, made $45k (gross) last year with 3 x $20k, 1 x $35k cars. Loans on all 4, haven't made a car payment out of pocket in 3 years, and get to drive a porsche, bmw, miata, Audi, whenever I want to block one out, and no mention of the tax benefits, and expenses that get written off, including depreciation, maintenance, etc.. Tax cuts and jobs act, 179 rule, etc... I'd bet she is making way more than $900k gross. Turo can be done wrong, and it can be done right...
An easier way to cut the numbers is $13k annual revenue per car off Turo, which is totally reasonable for cars worth anywhere from $20k to $50k each. Don't be fooled by her posing in front of the exotics, that's not where the bulk of the business is. With her high cost model of paying for parking, paying staff, paying depreciation or maintenance/repairs, insurance, her margins are tight. Maybe $1k - $5k per car leftover after expenses, which gets her to a reasonable annual income. She's working part time and taking vacations and earning less or she's working all the time and making more money to save for other things. It's not a bad lifestyle, but the scale of her business comes with risks and headaches that I wouldn't want.
I didn't rent super cars in the us but i did in other places around the world. The vest ever deals i got was not from a renting business but from delerships who would rent out their stock (not new) while they sit around and hope that when you are in the market to buy you gi back to them
I run 14 budget cars. I have no problem managing it myself and have plenty of spare time and I think I could comfortably handle 20+. 2 people for 69 does seem a little tight but productivity does compound a bit.
To start her business, I bet she got a small loan of a million dollars. While you can make income through Turo, it's not an extremely lucrative way of business. Especially with those exotics, which, as I have seen while watching Rob's videos on his business, requires a decent amount of backend work.
LOL, in no way does he consider her competition! His aim is to shine the cruel light of truth on truth on her fluff piece with the hope that doing that will save some poor fool from committing financial suicide.
I visited Hawaii in late 2019, and had dinner with a friend's friend, a local. He was turo-ing Jeeps. He had I think 3 or 4, with 5 more ordered. At the time, seemed like he was making great money. He was sure talking it up about how great it was. I want to say his were over $100 a day, and twice during dinner he commented, "Just got another 7 day rental." "Just booked a 5 day rental." Wonder how covid was for him with like 8 Jeeps and no tourists?
The only thing Rob was wrong on. is parking, If you were renting out 70 cars, you should never have more than 40 cars at the most hanging around,,,If you did, time to sell some cars, I mean if it was me, I would not buy another car till the cars you have are past 50% utilization, I mean that sounds right to me, you cant pick up every penny if it costs you a dollar to bend down and pick up.
Business Insider and CNBC are business entertainment providers that promote businesses and people who can bring clicks and ratings. They should never be taken seriously as journalism.
I doubt there is even a record of her inventory existing on Turo. Find her zip code and look for any one of the "70 cars" in that area you probably won't find any of them. If she has so many it should be easy to rent one right?
Business Insider sucks now.. Don't get me started on the latest crop of Auto Journos. Jalopnik blows now. Especially the toxic comment section. Sad really. Thank goodness we have people like Rob putting out great content.
Owning a business with 2 rental cars I can tell you, there's no way in hell one person with 2 employees could manage 69 vehicles. It's literally not physically possible.
Yes, you would have to have a legit office, and that's at least 2 people, paperwork,answer the phone, and someone to get the car ready and check cars in,pick up and delivery,,no f-in way
@eric wsmith not to mention pick up and delivery, maintenance visits, state inspection, car washing, refueling etc
@@Poorschedriver your right about all that stuff, but luckly no inspections in florida. I guess thats where shes making up that extra 1 million in the red, lol.
@@Poorschedriver even if you were only at 50% capacity (utilization) and every rental was for a whole week, that's 5 cars a day 7 days a week, But at 70 cars why would you need,,or want TURO at that point ?
While I overall agree, I saw an "interesting" setup while in Hawaii. All the cars, and at a quick glance I saw at least 10, were in a parking garage. When you booked the car, you got a PIN, which opened a lock box clipped on the window, and the key to the car was inside. That's exactly how I dropped it off, parking in the garage, key back in the lockbox. I can only guess the owner checks things every morning maybe?
I love “investigative reporter” Rob. 😂 Seriously your breakdown of these things helps cut through the BS.
well dudes been in the business for years he sees through these things
@@360fanboy360 true. rob doesn’t even come off as a hater. just likes to break down the bs for us normies and I can respect it.
@@F80mthree im a long time sub of rob i like these business oriented videos
@@360fanboy360 so do I. Also been here since the true superspeeder days.
Rob went full CSI on her ass
in this episode rob spaghetti stands in front of his fleet of luxury rental cars and tells us why the luxury car rental business is not profitable
Those cars in the background are storage vehicles or did you think he rebts out the hot rod? Let the anti Italian crap go because that is what the original jack bag was doing hey Italian guy let's call him spaghetti make a comment hit like hit not like whatever don't be anti Italian and if you are Italian and you did shame shame
lol
He didn't say that at all. He said he makes significantly more with 15 cars, but a lot of it is eaten by the cost of business.
lol
He owns his own business so he can charge a lot more, turo is way too competitive and you can gat exotics super cheap compared to going to a legit rental company.
Love the real world facts from someone that has actually made a real business. Thanks Rob. Seemed too good to be true when I read it…
I put my 10 year old car I bought for $5K on turo. My first month I made $2700, That means I made more than her monthly average per car. If you get into turo do not use a financed car ESPECIALLY not if it’s financed under your personal name.
What car was it?
Geo metro 🥳
Just like with car dealers. The real money is in the simpler cars
BS, not possible
@@arethouready Audi A4 Quattro 2013
So she’s making a million with like 10-20 million dollars worth of cars?
yeah, it is 13k$/yr/car... does that even cover insurance? :D
@@rkan2 doesn’t make sense at all
@@kenarts11 Forget making sense, how do I get that million?
@@ryansmithc by having $10 million worth of cars
@@ryansmithc Start with 10 million
Reminds me of this VC fund that only invested in women-run businesses... they were touted in all the financial news that they have positive returns because women work more than men. Then someone looked into it... the fund has less, than 1M in assets and they reported the positive returns 69 days after the fund was created.
I wish her bankruptcy well... Haha savage Rob. When it comes to renting exotics... there is nobody better than Rob tbh, been following him since life after the 1/4 mile.
Rob’s videos are an instant watch for me. Always authentic content with great analysis and advice!
Real story... pick 2 of the following:
1) sugar daddy's money
2) daddy's money
3) money laundering
4) organized crime money
5) tax scammer
6) (future) insurance fraud
I wouldn’t be surprised if it started from 2 and 4. Is actively 1 that is doing 3, and they just did number 5 for their taxes and Ppp loans. #6 is coming soon!
I just rolled 2 dice...3&4
I saw that article and stopped reading when I saw the cars in the picture and realized that just those alone are worth around 3+ million not to mention all the other cars not listed and she's only making 922k, with insurance, storage, maintenance, wrecks, taxes? No way in hell lol
She's from Hollywood, Florida.. She ain't even faking it in the real Hollywood...
You cant rely on Turo’s insurance for those more expensive cars, LMI only covers up to $125k.. I think she is using commercial insurance.
I think that her partnering with a dealer is letting her get wholesale prices and a solid exit strategy. Im also wondering if the dealer is somehow using their auction line of credit to secure vehicles for her.
Very interested in what that partnership looks like
Probably looks like scraped up knees
they've upped it to 200k but still not covering those cars
Another thing to consider. I have run a few $6000 cash cars on turo and doubled my money in a years time while still owning the car. It can be a great tool for investing a moderate amount of money to double it when you can’t make returns like that in the market. Maybe not a full scale business with employees, but run it as a side hustle.
You definitely should talk to youtuber and turo renter Aubrey Janik. She will be able to tell you how this is not possible based on what you have shown. It would probably take her 5 minutes to come up with factual data based on information in the story. She would know how much money the woman is actually making and losing.
I watch Aubrey too. She knows her stuff too
Appreciate you! I saw the Business Inside article and was...skeptical. There is a reason why I don't take on investors, exotic cars or ultra high end luxury...the business model (in my opinion) just doesn't work. 100% agree with Rob here!
No one really factors in the tax free cash flow from all of your deductions. You can make money from it if you do it right. I’m like Aubrey . I run 14 low cost vehicles and I have been able to pay myself a salary for 2 years now. It probably won’t work forever.
Why? He just did an entire breakdown of that. And made a video that generates income on this.
This is the ultimate win: he made fun of a BS instathot trying to get PR pieces out for more "influence clout" and made money off of it
Man this is why I love your content. Just authentic
Why do I feel like watching a Chris Fix video all of a sudden?
both from jersey
Could be the soupy wooder
What if Rob is Chris fix?
@@sltillim Ha!
Subliminal messaging 🤣 works everytime
Without taking the $1m/year in depreciation into account, best case she is breaking even. I guess she gets to drive fancy cars around for free while her sugar daddy pays her bills. Good for her
You gave her the great value price on everything she pays for.. 😂 realistically it would cost her substantially more.
Yeah 100,000 in maintenance per year on a fleet of 69 high end cars is wayyyy low lol.
Your investigative reporting is awesome
Robs does better investigating then the news lol
Always right to it and no BS
That's what makes Rob awesome
News doesn't investigate, it propagandizes
Something is definitely up, seems like a made up story honestly lol. I wonder if that company she partnered with are the actual ones renting out the cars, and used her for marketing? I still don't see the advantages of that but at least they would have the inventory. It must be some kind of weird money laundering thing if it's not fake. They're using her as a frontwoman so no one looks into where their money is coming from.
I mean if their goal was to draw attention away having an article written about it is the opposite of that haha. Don’t get me wrong it doesn’t make sense taken at face value. Either some major things got left out/glossed over or it is in fact a lie.
The simplest answer is that this woman has overestimated her skills and abilities, and believed she could create a high-dollar car rental business on Turo. She then managed to sucker in some investors while taking a massive cut for herself. Now she is doing it again with this article as an attempt to drum up new investors who will see this as a thing they should get in on.
But you are correct that the more elaborate answer is that cars and parking garages were bought cash using drug money or other ill-gotten sources of cash, and this woman is part of a scheme to help move money around. The use of Turo might be because that somehow further reduces the risk of not having to set up your own business, get your own insurance, etc., despite the high fees associated with the platform.
Business Insider is notorious for pay to play. They aren’t the respectable business magazine of 10-15 years ago.
Interesting breakdown. As far as Business Insider, I don't know if what you said it true about paid features or not, but I can tell you that as a media company, they are always looking for interesting stories, and her story is gold, there was no reason for her to need to pay for it as if she wanted the media coverage they're looking for stories like that to publish anyways. So that part of your assumption may not be true. But I agree that the depreciation of these exotics don't make financial sense.
“I wish her bankruptcy well” lolol you’re a savage Rob hahaha
This was a great breakdown. I always enjoy the videos, Rob.
Is it possible that dealer partner is carrying the cars, or at least a chunk of them, on his floorplan and they're constantly rotating?
If a customer comes in and wants to buy the rolls Royce. Meanwhile you have it booked on turo next week. That could create some logistics problems. Not to mention if a car gets damaged now you have diminished value
Thanks for keeping it real, Rob. You're the best.
The Chris Fix was epic. Good one.
She is in the guru or coaching business I'm sure, she will probably launch a course soon if she doesn't have one already.
This has "came from money" written all over it (whether she wants to admit it or not). That's why it "looks" successful. If you're rich it's easy to make your ventures "look" successful.
Not really, it doesn't make any sense. Even if she has enough money to somehow pay for an entire fleet of millions of dollars in cars, the cost of depreciation alone would invalidate her absolutely pathetic $922k, let alone maintenance, storage, employees, car cleaning, car detailing, and insurance.
This number should be double or triple that with her supposed fleet of cars, yet it's not enough to even cover the cost of these used and depreciating assets
“An institution like Business Insider” might have been the best laugh I’ve had this year.
It's really easy to get into the news. "Trust me I'm Lying" is a GREAT book about exactly that!
I remember seeing this article and seeing under 1m in revenue thinking “that’s definitely not profitable” and closing it immediately.
Hey guys, it's ChrisFix here at 6:26
@chrisfix hat tip
I have a question, if a exotic car rental is so unprofitable, them why do people do it?
Was awesome getting to meet you on the last day of the auto show last week. The boat ride over to Wehawken was quite boring lol
Chris Fix @ 6:26 ... would that be a well timed joke?
"AND... You start to Dream!"
Rob just knows to hit you with the reality bat
If you want to achieve your dreams, you need to deal with reality.
It's obvious Turo is covering her losses and considering it as "advertising" cost.
I love love love how you brown down the assets and liabilities of this article! I found myself dissecting this breakdown as soon as I clicked on your video!
I do think that what the article meant was her take home/wage/potential margin for distribution is $900k, not company revenue.
You should do a break down of what those 15 types of vehicles rent for in her area, give it a 50% of the time rental usage and see where just that gross revenue sits. For the remaining 54 cars do an average in the same capacity at $75/day
Just a thought.
He gave her almost all the benefit of the doubt and it still way off. There is no way her story is real as it’s listed in that article.
@@zazuch I'm still gonna say what the guy up there is saying. Her take home is that 900k figure... can't imagine you'd make less than what 15k for a WHOLE car a Whole year.?
lol
What if the 900k figure was her earnings? Divide 900k by 69 that's a little over 13k per car per year. That seems reasonable after all the costs you mentioned. Not as good of margins as you would like but with Turo and investors taking a cut it seems reasonable.
Exactly.
Here's what I think is happening.....
The other investor is her "Sugar Daddy."
He owns a business that is supplying the cars. The cars belong to him however, who wouldn't want to rent a car from a hot chick.
The news fluff piece was manufactured to gain media coverage aka FREE ADVERTISING!
It's a win-win for her "partner" and her. I am sure she's getting a cut for being the face of the business.
The other possibility, is the "Sugar Daddy" is using this as a purposeful loss to offset other income or as a money laundering scheme.
Just my 2 pennies.
This week someone tried to serve us Noni’s secret recipe sauce but Rob let us know it was really “RAGU”👨🏽🍳
🤣
You Nailed It.
All BS
I don’t believe a lot of what’s shown out there.
Even “Reality” TV is no longer Reality.
Storage Wars was a great example thought it was amazing and then come to find out items were “planted”
You kinda hinted at it with 5-10k cars. Like to see you do an interview with a solo entrepreneur renting say 5-6, hopefully similar cars outta his driveway, doing all maintenance himself (hence similar?). That’s more of a (attainable) real world situation
Aubrey J or Saimeh are two of the best Turo hosts on RUclips that are legit. They would be great to interview also!
Business insider, MSN, they all love to do this. They find one person who made a lot of money with RUclips or Instagram and think everyone can do it.
With regards to Turo, I think it's dying. Regular rental car companies are back to normal inventory and it's cheaper to rent a newer car with way less miles than some worn down 170k mile Nissan Versa for 35/day. My one issue with big rental car companies is they are now pushing electric cars as their "cheap car" and I personally prefer a gas car
My problem,,, right off, If you had 70 cars,,,, why the heck are you bothering with paying TURO anything ?,,, you wouldn't need them at that point.
As a car dealer and a small car rental operator as well. I absolutely love Turo! How I can rent a $60k SUV with unlimited miles for around $160 a day. Gotta love the suckers out there. I rent 4K shitboxes for $39 a day, those things fly off the shelf hehe. I just don't see how ANYONE makes any money on turo.
The only way that would work is if she had the cars loaned to her from Magic City to rent and she pays the insurance and a fee per rental. I’m sure she has access to those cars but owning them I doubt.
There are dealers out there that will let you use inventory to rent to make a side income but you have to be good friends with them…
I don't want to sound like 'that guy', but I gathered from reading the article that the figure quoted was her net earnings figure: total income minus total expenses. The $922k wasn't her total 'revenue' figure from Turo, it was what she earned AFTER all her expenses were deducted (she quotes the Aventador alone at $1700, so with 3 Lambos alone - not too difficult to do the math!). Am I missing something here???
The only thing I don't think you factored in, which I don't think makes that much of a difference, is that I'm sure she built up to having that many cars. This means a lot of the more normal run of the mill cars were likely paid off before she started buying exotics. But that's only if she did it properly. Even then I doubt she's making that much.
I bet the tax man will be taking an interest in her after that news article was published
Certainly possible, but extremely hard to believe. Has to be more than what meets the eye
$922,000 divided by 69 cars equal $13,300 per year per car. 13,300 per car divided by 12 months equals 1100 dollars a month per car of revenue. So regardless of the rest of the numbers, somethings off here with this article. 1100 per month minus 150 a month for parking only leaves $950 a month per car. First glance and it’s already falling apart.
It wouldn’t make sense to use turo for that volume of revenue. You would be making enough that you could create your own advertising and website or business front and not pay turos fees
Just numbers. 69 as well. Great marketing.
well... lot's of missing information here... I guess you could call it fake news... I have 4 cars, made $45k (gross) last year with 3 x $20k, 1 x $35k cars. Loans on all 4, haven't made a car payment out of pocket in 3 years, and get to drive a porsche, bmw, miata, Audi, whenever I want to block one out, and no mention of the tax benefits, and expenses that get written off, including depreciation, maintenance, etc.. Tax cuts and jobs act, 179 rule, etc... I'd bet she is making way more than $900k gross. Turo can be done wrong, and it can be done right...
today mr spaghetti exposes a fake meatball businesswoman
*why does CHRIS FIX IT icon quickly flash on the screen* ???
saw the chris fix as well
Half the costs don't make sense.... put them underground with good entry/exit control? do it cheap and SECURE?
The only people making money on Turo is Turo
why did chris fix show up lol
If owning the cars was profitable TURO would own all the cars.
💯
An easier way to cut the numbers is $13k annual revenue per car off Turo, which is totally reasonable for cars worth anywhere from $20k to $50k each. Don't be fooled by her posing in front of the exotics, that's not where the bulk of the business is. With her high cost model of paying for parking, paying staff, paying depreciation or maintenance/repairs, insurance, her margins are tight. Maybe $1k - $5k per car leftover after expenses, which gets her to a reasonable annual income. She's working part time and taking vacations and earning less or she's working all the time and making more money to save for other things. It's not a bad lifestyle, but the scale of her business comes with risks and headaches that I wouldn't want.
I didn't rent super cars in the us but i did in other places around the world.
The vest ever deals i got was not from a renting business but from delerships who would rent out their stock (not new) while they sit around and hope that when you are in the market to buy you gi back to them
Anyone else notice the Chris Fix frame around 6:30?
I rented from a guy in Denver on Turo. He has I think 29 cars. He was making a ton of his money selling the cars after 100,000 mi.
Rob didn't read the article. These cars are joint venture. Dealerships / investors give her cars to rent out and split a cut
I run 14 budget cars. I have no problem managing it myself and have plenty of spare time and I think I could comfortably handle 20+. 2 people for 69 does seem a little tight but productivity does compound a bit.
The voice of reason from rob on this fine Friday
To start her business, I bet she got a small loan of a million dollars. While you can make income through Turo, it's not an extremely lucrative way of business. Especially with those exotics, which, as I have seen while watching Rob's videos on his business, requires a decent amount of backend work.
3 people successfully managing a rental company with 70 super cars? Seems legit.
I was waiting for what Spaghetti's fleet count was right now. 15 vs 69
Mr. Spaghetti goes scorched earth on the competition in Florida.
LOL, in no way does he consider her competition! His aim is to shine the cruel light of truth on truth on her fluff piece with the hope that doing that will save some poor fool from committing financial suicide.
Chris Fix, another great youtuber, nice
I got an M4 and put it on turo 6 mo ago and I can tell you there’s no way she takes home that much with only 2 people running cars
If that was her plan she is bankrupt. PERIOD!
What an attention whore!
It's best to remain under the radar.... 😎
I visited Hawaii in late 2019, and had dinner with a friend's friend, a local. He was turo-ing Jeeps. He had I think 3 or 4, with 5 more ordered. At the time, seemed like he was making great money. He was sure talking it up about how great it was. I want to say his were over $100 a day, and twice during dinner he commented, "Just got another 7 day rental." "Just booked a 5 day rental." Wonder how covid was for him with like 8 Jeeps and no tourists?
The only thing Rob was wrong on. is parking, If you were renting out 70 cars, you should never have more than 40 cars at the most hanging around,,,If you did, time to sell some cars, I mean if it was me, I would not buy another car till the cars you have are past 50% utilization, I mean that sounds right to me, you cant pick up every penny if it costs you a dollar to bend down and pick up.
Man I love these videos thanks Rob
"I didn't get all the info" but this is the right answer?! 😂 😂
I remember reading that article and saying to myself, hope rob makes a video on this. Here we are lol. Glad I also thought it was bs
$922k in revenue but her expenses are probably well over $1million. Mainstream news sucks- this is such basic economics/accounting.
Business Insider and CNBC are business entertainment providers that promote businesses and people who can bring clicks and ratings. They should never be taken seriously as journalism.
I doubt there is even a record of her inventory existing on Turo. Find her zip code and look for any one of the "70 cars" in that area you probably won't find any of them. If she has so many it should be easy to rent one right?
They had an article about a guy writing Chrome scripts with GPT and now he sold that for thousands. Business Insider is not reputable I see
“I wish her bankruptcy well” 😂😂😂
Mr spaghetti dropping 🍖 💣
Basic accounting and economics knowledge is not common to most people sadly.
You mean not?
@@nick.100 corrected
When you launder money and Danial Mac asks what you do for a living so you say Turo
Business Insider sucks now.. Don't get me started on the latest crop of Auto Journos. Jalopnik blows now. Especially the toxic comment section. Sad really. Thank goodness we have people like Rob putting out great content.
Maybe the cars have special “company “ or consumable bagged options..???
Rob is flabbergasted lol, how could someone rent an exotic car and actually return it in one piece, or at all considering Mr Spaghetti's luck
Great breakdown I own a Turo biz as well
If the NET income (by definitions is after expenses and taxes) is 900k. that would be after all of the expenses you are adding up in the video, no?
The 900k was the money on her Turo statements, so it would not include expenses
Well done ..
But what if that 900K already was her net net?