Interesting interview. Glad to hear his perspective, but man he has a very expensive operation! I work with many Turo hosts, including the largest one in the nation, to help manage their fleets. Having worked in the fleet/rental industry for the last 15 years, I'll tell any new operator to be careful going forward. You need to have a good plan in place! Back when interest rates were low, vehicle availability plentiful, it made Turo pencil out a lot better than today. Today, you have much higher interest rates, going from 4%-6% to 8-12%, and vehicle prices up 30% to 70% higher, many vehicles don't make sense anymore. If you are looking to start today, the 4 main things you need to look at is first, what is your acquisition price vs what will you be able to sell the vehicle at end of life (true vehicle depreciation costs). You need to have a plan on when you'll be getting out of the vehicle. 1-2 year old vehicle with 30k-50k miles or 3-5 year old vehicle with 50k-100k miles? This will be one of the more important decisions and influences your business model of what you want to do. Second, what will your utilization rate be (how often will the vehicle be on rent) and your average daily rate. This will determine what is your total revenue coming in per vehicle. If you can't determine what that will be, best for you to not buy that vehicle and rent it out. Third, how are you going to fund the vehicle? Cash, finance, lease? Each has their benefits and costs and this will determine what your gross profit will be. For example, if you buy a $25k car on a 5 year finance at 8% interest rate, you'd be looking at ~$500/monthly payment. If you have an average daily rate of $30, and utilization rate of 80%, you'd be looking at about $960/month in revenue. So about $460 in gross profit. After you subtract out insurance, maintenance, cleaning, admin, your net profit is a lot less. And remember, you need to account for the value of the vehicle, or if you have a positive or negative equity position on the vehicle. If I bought the vehicle for $25k, and it's worth $10k after 3 years and you owe $12k, you need to take that into account! Vehicle values are dropping fast! I'll tell you that some of my operators have negative equity on some vehicles that looked good initially, but values dropped hard! For example, the Audi E-tron and Tesla Model Y's! A lot of the EV's have been hit hard! Ouch! And then 4th, what kind of experience will you be providing to the renter? It's all about the reviews and keeping people happy. Good luck everyone! Always glad to help out people take out the big rental companies! And to answer people why he doesn't cut out Turo and start his own thing or app, well, that probably has to do with liability and costs. Once you become a sole car rental provider, you need to account for vehicle accident and losses, screening renters, handling claims, and booking reservations. Turo covers most the liability aspect and it's hard to start tackling that yourself. The amount you're paying Turo to handle all of that, would you be able to do it better and more cost effectively? Possible but difficult.
I currently have 2 Turo cars in San Diego and getting a 3rd. Getting a 2nd VW Jetta. The market is steady, but competition from other hosts is rough. The only way to make some money is to buy the car reliable and cheap.
This guy has grown so big he doesn't need the middle man anymore for his operations. At this point it's eating into margins that could be all in house now by investing into engineers to make an web app for it.
@@rndmprsn3532 IMO, he should continue using Turo for his "advertising" right now. I'm sure he has a lot of return customers, though. He could bring those customers in-house for their future transactions. Slowly over time branch out. I'm sure he rents to some people already, without going through Turo, just directly through them.
@@whatta7793Maybe. But turo has a non-compete and exclusivity clause in their contracts. If he got caught listing and renting outside and on turo he at best would get blacklisted at worst sues.
Crazy. This is not a bad business. There are a lot of other equipment rental businesses to get into as well. However, I think the goal should be to start your own business and not work with Turo long-term as they take a big cut and their prices are low.
Main reason to not work with Turo, or any other third-party is that you can wake up one day and be off the platform for a variety of reasons which you have no control over.
You went into detail with so many questions. Amazing great in debt video only quests a real businessman would ask Hope ur Chanel blows up Great job. Answered so many questions I would have wanted to ask him
He needs to develop and create his own app that does the same thing that the Turo app does. Then he needs to promote it. It's easier and more cost effective to stay using the Turo app. People know it and obviously use it.
“Start out with cheap economical cars…”. Sure.. he’s just saying that so we don’t become his competetition. Smart businessman 😂. Great video. Thanks for the info guys!
Actually, if you look at the numbers today, he's correct. Here's a current example of a 2020 Porsche Taycan 4S AWD. Purchase price of $105k, 5 year loan at 8%, monthly payment of $2129. For the last 4 months, it rented at a average daily rate of $105 with a occupancy rate of 63% bringing in $1985 of revenue. This isn't even including other operating costs. Losing money! And I can give you many more example of higher end cars not penciling out all too well.
So many questions I was waiting for. Does he buy the cars cash, does he lease them, does he own them. What about resale? How does he sell an exotic car with so many miles etc??
Hey Austin, I'm located in Australia. Do you reckon FlippinSimple would be worthwhile? or should I go with a program/mentorship that caters to Australian real estate wholesaling?
What would you like to know how it's handled? You either take Sec 179 or bonus depreciation, or 5 year MACRS schedule. Most my clients do bonus depreciation the first year to offset their profits now since they don't know what they'll be next year or years later.
$200,000 a month on a great month, what is his average profit margins? This question needs to be asked of every person that you interview! A lot of people hear big crazy numbers that a business is doing, but never discuss what their profit margins are, what are they bringing home at the end of the day?
Cool video and content. However, the company's website is NOT good. Starting from just the color of the font. Then, it seems like you are being directed to buy some course instead of renting a car. Confusing
@@AustinZaback do you think he will go private in the future with such a large fleet? I mean he has so many cars he could probably compete with the big car rental businesses.
i wanted to start this in new york but i see other people with similar exotic cars with only couple trips done so theres obviously no demand in people breaking bank to rent exotic cars I want to know how this is even possible for them to profit on this business I even checked other states and most exotic cars only had max 40 trips made which is not gonna even pay for 10% of the car value
Something else doesn't make sense. He said he makes 200K Gross. HOW? After paying all the employees, the leases of the property, the cars, maintenance, the insurance on the cars, the overhead. Maybe this was a typo, he should be making $2M gross a month, not 200K
You answered your own question bud lmao. After paying all that stuff yeah he’s probably not making anywhere near a MILLION A MONTH much less TWO MILLION. That’s 12-24 million a year family. I’m sure his whole fleet isn’t even worth 24 million. 200k a month sounds right. He’s making 7 figures a year, that’s a hell of a lot fam lol
Profit should lower if you increase volume and quality. He is probably cycling these are and the overhead for the inhouse mechanic and that sweet office.
Why would he stay on Turo he’s losing out on a lot of money if he would have had a private rental business instead he already has the inventory and clientele
You have to improve your interview techniques. You take too much control. You dont let the guy speak but just blast your own agenda. That is anniying to watch.
200 000k gross revenue per month for the best month doesn't look like a really profitable business for someone owning 150 cars. Look more like a rats race than something else.
Nice video, great content! I'm the biggest Turo host in my city, I have a 17-car fleet and make $30,000 a month! This is definitely motivation!!
Love this Man! That’s incredible, thanks for leaving this comment. It’s that exact reason we make this type of content. Wish you all the success bro!
Just curious 30k a month in revenue or net? If revenue what is ur net after all fees and expenses?
@@jasonsmithers2448that’s revenue
I agree! Love the video, 7 car host here.
🔥🔥@@japnikki
Interesting interview. Glad to hear his perspective, but man he has a very expensive operation! I work with many Turo hosts, including the largest one in the nation, to help manage their fleets. Having worked in the fleet/rental industry for the last 15 years, I'll tell any new operator to be careful going forward. You need to have a good plan in place! Back when interest rates were low, vehicle availability plentiful, it made Turo pencil out a lot better than today. Today, you have much higher interest rates, going from 4%-6% to 8-12%, and vehicle prices up 30% to 70% higher, many vehicles don't make sense anymore. If you are looking to start today, the 4 main things you need to look at is first, what is your acquisition price vs what will you be able to sell the vehicle at end of life (true vehicle depreciation costs). You need to have a plan on when you'll be getting out of the vehicle. 1-2 year old vehicle with 30k-50k miles or 3-5 year old vehicle with 50k-100k miles? This will be one of the more important decisions and influences your business model of what you want to do. Second, what will your utilization rate be (how often will the vehicle be on rent) and your average daily rate. This will determine what is your total revenue coming in per vehicle. If you can't determine what that will be, best for you to not buy that vehicle and rent it out. Third, how are you going to fund the vehicle? Cash, finance, lease? Each has their benefits and costs and this will determine what your gross profit will be. For example, if you buy a $25k car on a 5 year finance at 8% interest rate, you'd be looking at ~$500/monthly payment. If you have an average daily rate of $30, and utilization rate of 80%, you'd be looking at about $960/month in revenue. So about $460 in gross profit. After you subtract out insurance, maintenance, cleaning, admin, your net profit is a lot less. And remember, you need to account for the value of the vehicle, or if you have a positive or negative equity position on the vehicle. If I bought the vehicle for $25k, and it's worth $10k after 3 years and you owe $12k, you need to take that into account! Vehicle values are dropping fast! I'll tell you that some of my operators have negative equity on some vehicles that looked good initially, but values dropped hard! For example, the Audi E-tron and Tesla Model Y's! A lot of the EV's have been hit hard! Ouch! And then 4th, what kind of experience will you be providing to the renter? It's all about the reviews and keeping people happy. Good luck everyone! Always glad to help out people take out the big rental companies!
And to answer people why he doesn't cut out Turo and start his own thing or app, well, that probably has to do with liability and costs. Once you become a sole car rental provider, you need to account for vehicle accident and losses, screening renters, handling claims, and booking reservations. Turo covers most the liability aspect and it's hard to start tackling that yourself. The amount you're paying Turo to handle all of that, would you be able to do it better and more cost effectively? Possible but difficult.
Thanks bro 😎
Real legitimate business thanks for showing great motivation
Thanks for watching!
Met Brandon last year when I rented the silver Z06 Corvette. He is the Real Deal!! Thank you Brandon!!
He is!! V2 of this video is dropping next week! Stay tuned!
I currently have 2 Turo cars in San Diego and getting a 3rd. Getting a 2nd VW Jetta. The market is steady, but competition from other hosts is rough. The only way to make some money is to buy the car reliable and cheap.
Honestly, I would Toyota Corolla instead of the Jetta they’re more reliable.
Are you able to get any insurance that covers a diminished value claim if the renter gets into an accident with your car?
And in ca$h.
They shut down
I want to start that business in my homeland st lucia just need a start
This guy has grown so big he doesn't need the middle man anymore for his operations. At this point it's eating into margins that could be all in house now by investing into engineers to make an web app for it.
advertising would astronomical, competing with Turo while he gets started. big risk v. reward there
@@rndmprsn3532 venture capital time
@@rndmprsn3532 IMO, he should continue using Turo for his "advertising" right now. I'm sure he has a lot of return customers, though. He could bring those customers in-house for their future transactions. Slowly over time branch out. I'm sure he rents to some people already, without going through Turo, just directly through them.
@@whatta7793Maybe. But turo has a non-compete and exclusivity clause in their contracts. If he got caught listing and renting outside and on turo he at best would get blacklisted at worst sues.
go to his site it is all about pushing a MLM coaching scheme
Crazy. This is not a bad business. There are a lot of other equipment rental businesses to get into as well. However, I think the goal should be to start your own business and not work with Turo long-term as they take a big cut and their prices are low.
interesting point!
@@AustinZabackinterview this guy. Please
@@G1-Worldwidewho?
Really. Yes
Main reason to not work with Turo, or any other third-party is that you can wake up one day and be off the platform for a variety of reasons which you have no control over.
This channel is gonna be huge man great content
I really appreciate that! Means the world to me
cool guy, nice info, would certainly will look up his company when in the Arizona area, deserves the support
🙏🏼 thanks for watching
Very cool interview and walkaround of the garage!
Thanks for watching!!
Watching this showed me to short all public rental car companies. They are toast. Rentals is a mom & pop business now..
Rental car companies may be a thing of the past with Turo companies like these
Would have liked to know how he built up and also he’s putting a lot of stock in Turo as a company so how he feels about what Turo is doing.
We will do a part 2 and answer this!
Great interview
Love the video, he must have and big bucks to start with , especially with a high end fleet and facility.
Thanks For Watching! 🙏🏼
he owned a security company prior
Thanks guys, great info !
Thanks for watching!
Looks like a fun place to work. I love business people like Brandon. We need more people like him in this world.
You went into detail with so many questions. Amazing great in debt video only quests a real businessman would ask
Hope ur Chanel blows up
Great job. Answered so many questions I would have wanted to ask him
Appreciate you watching bro! More of these videos to come! Thank you
Another great Video Austin!
Thank you Ron 🙏🏼 Appreciate You!
great interview austin
Thank you!
another question for him is, now that he has his own brand, why stay on turo and not start his own commercial business
A great question
He needs to develop and create his own app that does the same thing that the Turo app does. Then he needs to promote it. It's easier and more cost effective to stay using the Turo app. People know it and obviously use it.
How else would you be selling courses to the masses.
Great work brother
Thanks for watching!
Cool video. Educational !!👍✌️
Thanks for watching!
Let’s go! 🚀🚀
🚀
“Start out with cheap economical cars…”. Sure.. he’s just saying that so we don’t become his competetition. Smart businessman 😂.
Great video.
Thanks for the info guys!
Actually, if you look at the numbers today, he's correct. Here's a current example of a 2020 Porsche Taycan 4S AWD. Purchase price of $105k, 5 year loan at 8%, monthly payment of $2129. For the last 4 months, it rented at a average daily rate of $105 with a occupancy rate of 63% bringing in $1985 of revenue. This isn't even including other operating costs. Losing money! And I can give you many more example of higher end cars not penciling out all too well.
@@user-cy3pz1sk1lNobody's renting a six figure car at 8% APR for Turo, especially for five years. That's WILDLY irresponsible.
Would like to know how he tracks his P&Ls. Whether it be quickbooks or some other platform
I.R.S loves them interviews
they prolly claim all that they make to the irs,,they amount they say here matckes what they claim.
Turo sends a 1099 so IRS already has all the info they need.
Awesome video. Did he buy so many cars with a credit line or his own funds?
They are probably leased / financed
GOT FROM THE OWNERS WHO WANTS INCOME VS HASSLE @@marthatessema
Great interview brother
Thanks man!
That sprinter
Right? 🔥
Good stuff 🎉🎉🎉
🙏🏼
So many questions I was waiting for. Does he buy the cars cash, does he lease them, does he own them. What about resale? How does he sell an exotic car with so many miles etc??
Incredible questions.. Maybe a Part 2?
Yes please. I have never watched a long video like this, you did an amazing job though from start to finish. Thank you@@AustinZaback
appreciarte You!@@FamilyFlippers
At what point do you just become a luxury rental company. Ie. A Airbnb company that owned a whole condo would just be a hotel?
Hey Austin, I'm located in Australia. Do you reckon FlippinSimple would be worthwhile? or should I go with a program/mentorship that caters to Australian real estate wholesaling?
Hey man! I would recommend to go with a program that works in Australia. Unfortunately I don’t know all of the rules and regulations in Australia
I would've been interested to hear how depreciation is handled on taxes.
Great point. Part 2
What would you like to know how it's handled? You either take Sec 179 or bonus depreciation, or 5 year MACRS schedule. Most my clients do bonus depreciation the first year to offset their profits now since they don't know what they'll be next year or years later.
Hello
How do you keep up? Each car needs to be brought, driven, washed, serviced, oil changed, etc.
Hi! Visit www.youcanrentme.com/ to learn more
This guys seems awesome
He is an incredible guy!
Good review
Glad you enjoyed it!
what a cool waiting room. first impressions are so important. I happen to live 20 min from this place lol
If you ever get a chance to, definitely check it out. Such a dope showroom too
$200,000 a month on a great month, what is his average profit margins? This question needs to be asked of every person that you interview! A lot of people hear big crazy numbers that a business is doing, but never discuss what their profit margins are, what are they bringing home at the end of the day?
We’re filming a Part 2 today and this question will be asked!
@@AustinZaback Awesome! Thanks for the reply :)
150 cars second largest not true but he’s doing great and definitely up there
Im pretty sure he is! He knows all the top guys on Turo. The #1 company has 1,000 or so cars and we've talked a-lot about him being #2.
You offer nothing to substantiate your claim, Shawn.
Hey bro love from india❤
Thank you!!
Those shoes are fireeee 🔥
🔥
What model and year fiat?
Do you want to interview my turo fleet? I locate in NJ 80+ cars
Cool video and content. However, the company's website is NOT good. Starting from just the color of the font. Then, it seems like you are being directed to buy some course instead of renting a car. Confusing
not sure if someone has Already asked . But why do the cars have different states license plates, if he is based in ARIZONA?
good content
Dude really asked if a vette was rear wheel drive...
Hi I like this! Bring to north Florida??
🙏🏼🙏🏼
@@AustinZaback do you think he will go private in the future with such a large fleet? I mean he has so many cars he could probably compete with the big car rental businesses.
What city is American motors in?
Scottsdale Arizona. @@premierpeachtree3407
$200,000/month with all those cars ?? That's trash for all the work and liability... Really re-considering if I want to do this turo crap...
He obviously has employees who do everything, he probably just runs operations. It's most likely passive for him.
How so? His ROI is fine
Sarcasm I hope
I’ll take 200,000 a month 💯💯💯
I have a question: Does this person bring clients and rent cars to them?❤❤
Superb 😅
Thanks for watching! 🙏🏼
i wanted to start this in new york but i see other people with similar exotic cars with only couple trips done so theres obviously no demand in people breaking bank to rent exotic cars I want to know how this is even possible for them to profit on this business
I even checked other states and most exotic cars only had max 40 trips made which is not gonna even pay for 10% of the car value
Ahh but what a perfect place to launder money. 🤔
Peace.. Shalom.. Salam.. Namaste 🙏🏻 😊 🌈 ✌ ☮ ❤
What state are your cars in, author?
Arizona!
@@AustinZaback thanks, Do you give and accept cars yourself, or do you have employers?
Something else doesn't make sense. He said he makes 200K Gross. HOW? After paying all the employees, the leases of the property, the cars, maintenance, the insurance on the cars, the overhead. Maybe this was a typo, he should be making $2M gross a month, not 200K
You answered your own question bud lmao. After paying all that stuff yeah he’s probably not making anywhere near a MILLION A MONTH much less TWO MILLION. That’s 12-24 million a year family. I’m sure his whole fleet isn’t even worth 24 million. 200k a month sounds right. He’s making 7 figures a year, that’s a hell of a lot fam lol
@@Beastieboy2263 He said 200K gross a month, not net.
Is the biggest Turo dealer Aura?. I rented from them and they have several offices around the us
He went out of business
This one didn't age well...Brandon just went out of business and closed his operation down.
why not ask about profit.
You need 150 cars to get $200k ? Doesn’t make sense. Sound low. You would expect to generate much more with so many cars
Profit should lower if you increase volume and quality. He is probably cycling these are and the overhead for the inhouse mechanic and that sweet office.
That’s was gross revenue …
If average car cost is $25k then total investment is $3.7 million.
@@HoneyDooDoo i think most of his cars are less than $10k they dont buy new cars
hes grossing more then 200,000 a month , thats just too low , i think he did not want to say the real amount smart
Not the #2 in the nation but is in the top. I know 4 other hosts with more. Not a bad side hustle. Way to write off all your taxes.
Mechanic fixing 150 cars AND making lunch!
Haha!
Why would he stay on Turo he’s losing out on a lot of money if he would have had a private rental business instead he already has the inventory and clientele
We’re filming a Part 2 today and I’ll be asking this question!
turo hustle thats right ... but his far away from 2nd biggest lol just in los angeles are 150-300 car turo host
Can I do the flippin simple
Beautiful place! Yes you can do flippinsimple to wholesale properties virtually in the US
Obviously a great businessman - STILL - ANYONE WHO CAN BUILD HIM A BETTER WEBSITE - CALL HIM
At this point, Why not just open his own rental company and cut out Turo?
I should ask him!
Does that guy shave his legs?? WTF>
Stan Wu has more cars than him on Turo
Have you thought about the poor ?
You have to improve your interview techniques. You take too much control. You dont let the guy speak but just blast your own agenda. That is anniying to watch.
200 000k gross revenue per month for the best month doesn't look like a really profitable business for someone owning 150 cars.
Look more like a rats race than something else.
Exactly. Most of these comments are bots though.
It certainly doesn’t look profitable but what do you mean by rats race?
@@joesm3873 Too easy to understand so the ammount of competition seem like infinite
That's an average of $1,333 per car before expenses which I'd say is pretty accurate.
Dumbest question ever goes to... You have a full time mechanic. What does he do on the day to day? LMFAO WOW 😅
If you have that many cars for rent why do you need Turo most people I know with 40 plus cars have their own company
WHY BUY IF YOU CAN HAVE PEOPLE PARK THEIR OWN CARS THERE FOR RENTALS?
He recently started co hosting
WHY ARE YOU SCREAMING