If you can pay cash for the cars and not have debt it 'might' be a viable gig... Right now, I do uber on the side with a fully paid off car and put a lot of miles on my car and it is worth it when it is busy (holidays, summer tourist season). In 2020 I made like 20k in two months of doing Uber full time in the area I live. The country was closed due to COVID but in northwest Florida we were open and a lot of people were coming here to vacation. It's all about the timing and watching the market for when it's a good time to do the job. These folks didn't do that... Rental companies has caught up with demand and used car prices finally went back down somewhat.
And it sounds like they didn't understand how the insurance works. If you have a personal auto policy (which it sounds like she did) your insurance won't cover you for renting out your vehicle for someone else to use because that is in the policy terms. You have to hope the renter has insurance or buys the damage coverage from El Turo.
Taking out loans to buy three cars you can't afford in hopes strangers will rent them from you on a scam app isn't a "business", it's being a gullible rube for the people at Turo and your local car dealership.
@@myyt3824 my car is over 10 years old, it’s still worth about $9k. That’s less than what I paid for it. But an asset is anything you can sell for money. This one just gets less valuable over time, i.e. bad investment
They watched a RUclips video about being financially independent by renting out your extra car. The video only highlights the positives and leaves out the possible risks. At no point did the think “ what if a renter drinks drives and wrecks the car”. Do we still have to pay the loan while the car spends weeks in the shop ?
They made this too difficult. Sell the two cars that’s paid for. Now you have three left. Pay off one of the cars. Now you have two people and two cars left. Save enough money to cover the most depreciation vehicle. Sell it. Do the same with the other vehicle. Now buy two beaters.
This is why Dave Ramsey says to start your business slowly and with cash. This couple could have realized after purchasing the first car that this Turo car rental plan wasn't going to work as expected. And if they paid in cash, they wouldn't have to worry on how to get out from this car rental business.
This issue is apparent...they said they were doing great at first, but then one little hiccup and they are putting everything on credit cards...it sounds like the spent all the money they were making to YOLO, instead of putting it back into reserves...
I was in this same situation back in 2022, except I had 5 luxury vehicles (2 BMWs and 3 Mercedes-Benz) for Turo that came out to over $250,000 in auto loan debt. When I tell you that was the WORST financial decision I ever made (Luckily, it worked itself out at the end) I would definitely never encourage anybody to "finance" or leverage a credit-based vehicle for Turo, especially since the market is incredibly oversaturated in a-lot of the main cities around the US and you don't really make any real financial gain at the end (since it has to be reinvested back for repairs, car-notes, maintenance, etc)
This one is such as easy fix. Sell his or her car. Use that money to cover the difference in 2 of the rentals to get them gone. Drive the 3rd rental until you can get out from under it, to sell it too.
People running these little Turo side hustles on $90,000 in debt and calling it “their businesses” is one of the new hottest trends on personal finance RUclips! Love it, it’s so obviously not a good idea.
I own and manage a Turo Rental Company, these people have no background in buying, fixing, cleaning, or managing vehicles and decided to get into this, to be successful in Turo you need to check at least 3 of these 4 boxes.
When you hear people bragging about how they make money. Don’t listen. Most people don’t tell other people how they make their money. When we had an import business. We had someone want us to explain to them and walk them through how we imported. Why would we teach you so you become our competition. We where importing food and had loads of regulations to follow and paper work to do. We stopped when the pandemic hit and the cost to ship tripled removing profit or driving up the price so it would be harder to sell. My wife was able to be the first to bring in a never imported fruit. That took almost a year of work and a few thousand in tests, tests for shipping. So when you hear all this I made this much and it was so easy. They are bragging sure they could be making it but they started early before the industry became saturated.
They way she talks, its as if they are the victims. All this happened to them. Instead of owning that she and her husband signed up for it, wracking up debt and risk and guess what? The risk bit them in the butt, as it does in these get rich easy schemes. smh
as it does in these get rich easy schemes. ????? In 2009, $250K homes in my neighborhood were sold for ~$50-$80K, people bought in bundles of 5, They are now selling for $400K+.
What’s done is done. Calling for advice is an incredibly brave first step when feeling defeated. As she moves forward with her husband to recover, they will continue to regain their confidence as they get closer to their next debt scream. We’ve been in a similar situation years ago, you win this as a team, rely on the Lord and believe there is a light at the end of the tunnel when you stick with the plan even when it’s hard.
oof, this happened to me when i started my business. I took out a loan and it ended up costing me ALOT of money because the cashflow wasn't working. It's best to use a much cash as possible until you NEED a loan. NEVER start off leveraging. I had to pick up a third job to cover the payments. There is light at the end of the tunnel though. I paid off the debt (10K). There are plenty of businesses that you can start without a loan. They tend to be service based business (lawn care, graphic design, tutoring etc) and time consuming. However, their great for beginners and you can save the money to start a bigger business. Good luck to this couple! I believe in them and they WILL get out of this ditch.
Wonder what all the “Dave is dumb” people have to say about this…all I see on Dave posts outside of his RUclips channel is how”Dave wants to keep people poor” and “You have to leverage good debt to get rich”…Well here is the “good debt” they refer to that has wrecked this couple’s finances
@@jimmymcgill6778 ok 😂..I never said he was, but I do know he has helped millions of people and I’d trust his advice over the advice of the instagram “good debt gurus”…But you do you Jimmy..
Lenders will NOT finance cars for Turo. It specifically says on the contract its for personal use and cannot be used as a rental, unless they did business loans which they didnt. To obtain these autos they had to mislead the lender intentionally. They are not victims.
LOL daycares pay $12 an hour and they have no admin assistants. Usually, only the first kid is free. In some markets, none of the kids are free, they are just discounted.
My EX bf financed 3 porches for turo, intimidated a customer for leaving a dent and was kicked off the platform. Now has to pay for all of the car notes out of pocket. It’s a risky business when you do it that way.
Id be curious what their 2 personal vehicles are worth. She's a stay at home mom, part of her "administration assistant" title for her husband just became making sure he gets to and from work and they're sharing a hooptie if there's any way that could clear out the three.
Yup, the 3 car loans total 87k and their value is 52k so underwater by 35k. Would be nice if this Ramsey show lived up to its supposed image of helping people get out of debt and they would actually ask how much the two personal cars are worth. But surely selling those should certainly be a good first step to getting rid of at least one or two of the turo car loans. This show has to be preachy instead. @Minimalist-Lifestyle
The absolute last thing I'd ever do is start a car rental business - have you seen how people treat rental cars?! You're not exactly going to avoid potholes to save someone else's suspension in the long term...
Turo is good for the customer, the company turo itself, but not for the ppl with the cars. A year before covid, there were a ton of RUclipsrs that were starting to get into it, but they werent using $20k cars like these ppl. Even then, those videos aren't offered too me anymore. It was obvious that the market was going to be saturated with people trying to loan out their cars. Kind of like with airbnb where ppl were just buying houses to rent out. Manufacturing all the fees, and before you know it it's better to just rent from a hotel.
I almost did this last year. I saw a minivan for sale and thought it be a good way to swing some extra money. But I had to finance the van. Thankfully for me, the transmission was bad and the dealership canceled the sale. The amount of work needed to bring the cars to people and clean them is not worth the money.
That's not true. But if it was as easy to make money as tiktok would suggest, everyone would be doing it. I know folks doing it as a profession, It's a hustle
I got a van and thought I would make money moving people. After doing this a few times I new this was a wrong thing to do I did pay cash for the van. I sold it 4 years later and now drive a small car.
I have a few cars that I paid around $6000 each for. I have grossed more than $20000 on each in less than 2 years. Only 1 had a major repair. You can make money but you have to do it right. If you run 20 cars with this kind of margin and no debt, you can do fairly well. I keep the cars parked near my home and I do on the spot quick detail and 10000 mile oil changes. Turn and burn. It’s ruthless.
She didn’t say how young her kids are. She also can’t stop working whenever she needs to, to take care of kids, if she is working for a different employer. She’s in a tough position with 3 kids and no help.
Just like air b and b Touro is a joke. There is a reason other car rentals companies buy basic cars. A lot of folks thought they could have exotic cars for free.
Taking all the risk for someone else business isn’t starting a business. You a an independent worker taking all the risk with none of the control. This is just Uber for those that too lazy to work but make 60k. Wife is lazy needs a at home job. 3/4 moms work part or full time. Anytime you try to be lazy it will cost you. If rental cars where such a great business hertz would have locations their lol.
Can’t they sell their paid off cars and use the money to cover the difference of one of the bad car loans and sell that one plus a little more to knock out a few credit cards? Then just drive the leveraged cars until they’re paid off.
Having only one car with a family of 5 is not a good idea. If one car breaks down or is in an accident and has to go into a shop, they’d be stuck and paying for a rental car. I work in Auto claims. No one expects to be in an accident and the prices for repairs and the time it takes to get the claim approved and wait for repairs to be completed is much longer now than most people expect. We have a lot more people running out of their 30 day max of rental coverage. You only have 7 days of rental coverage once your vehicle is deemed a total loss by Insurance. Also the rental car prices are not always fully covered under a policy.
This is why you should always use LLC or some other corporation to go into business. When the business fails, chapter 7 it and walk away. Business is risk and bankruptcy is the counter to that risk. Put money into the business to get it started but always be ready to pull the plug when it’s not working.
@@Fred2-123 The lender will want some form of collateral, usually in the form of business assets. Yeah, by the time you are able to get a loan through a bank you have run your business for a while and shown profitability or have a business that has a piece of collateral. The mistake most people make in business is using their own money to keep it afloat when it becomes pretty clear the business is failing. Hopium is a powerful thing.
4:22 - What?!!! 😲 I give their DFS a 0/10!!! This is why I factor in Backstory, Enthusiasm, and Volume in my scoring system. When the scream doesn't align with ALL factors, THIS is bound to happen! 🤦♂️
A car is a depreciating asset so I have no idea why anybody would bank on this being there get rich quick plan. It's going to depreciate in value as well as get dings and scrapes and possibly get wrecked in an accident. Mileage is going to pile up on it and it could break down needing costly repairs. When you factor in all the insurances, registration fees, inspection fees, repairs, depreciation and entrusting the vehicle to any stranger with a credit card who may trash the interior or crash it you start to see why this is a bad idea. I only have one car a 2020 Corolla and I paid it off in 14 months at a furious pace so that I own it outright and have the title.
I rented from Turo on a recent trip. Worked out well and we got a cool car for a few days to explore Colorado. The owner had like 3-4 financed 2022+ vehicles. Not sure how we was affording them and keeping up with payments. Seems risky. You're out financing these newer cars and allowing people to borderline abuse them. Ours was a 2022 with 25k miles, tons of scratches and chips, etc. You have upkeep and maintenance, insurance on all, financed payments. There doesn't seem to be enough margin in what you shell out vs your expenses to make any real money off Turo financing newer cars and renting on Turbo IMO.
If your doing a Turo business you want to buy the absolute cheapest clunkers in cash Turo will accept so you don't have debt or depreciation on the cars since they are already junk.
Using reimbursement for car payments is reeeetarded. They would be better off letting them get-go delinquent then racking up the credit card debt and working more to get caught up.
I like the idea of selling one of the paid off cars, to cover shortage on 2 of the loans. Keep one loan car as the second car, and attach that. Not a fan of taking a personal loan to cover the shortages, just get out of the business. if they were smart and set up everything under an LLC, they could walk, and let the company file bankruptcy, but I doubt that is the case. They still need to deal with the CCards, they dug them selves out before, they can do it again.
Consequence meet actions. I want out. "We vs. I". Wonder what she'll want out of next. If the husband loses his job or struggles she'll want out of the marriage. Accountability is the problem here. No way she does any of this including that job.
With only $1,000 on hand, a husband who is maxed out income-wise, and a wife who isn't working because of kids, and given they're not going to be able to negotiate a gap loan for THREE underwater cars, it's probably too late for them. They should just hand in the keys to the cars or otherwise they're going to be repossessed. Their credit score will be wrecked for years and they will be on the line for the negative equity.
Or they can just keep renting the cars even if it's at a loss? Let's say their car payment combined is 1,200 a month and they can continue to net 900 a month renting them they're only losing 300 a month which is probably less than any kind of loan they'd get on the difference by selling. Plus maybe they'd get lucky and have a couple good months where they profit. A lot of businesses lose money until they're actually profitable that's just how it works sometimes especially if you're leveraging debt.
@@dedalliance1 So they continue losing money instead of stop losing money, on a hope and a wish that the business miraculously comes back as the economy heads into a recession? It's that kind of thinking that gets people into these types of situations. Sunk cost fallacy.
@@Julian-zc9vm I added up the numbers. They owe $87,000 in vehicle debt, and those vehicles are worth $51,000 so that means if they liquidate now they're already losing $36,000. Lets say the 87k they owe is all on 5 year terms to make math simple, at 7% interest that means monthly payments are gonna be about $1,700. Lets say they can get $1,400 a month net renting them out still, so they'd have to personally cover the 300 extra. They'd get out in 5 years and end up paying $18,000 in those 5 years at 300 a month. Which means losing half as much as liquidating them at a $36,000 dollar loss. Now obviously there's risks doing that with maintenance stuff. But they'd also get the learning experience and if they're smart they'd actually probably be able to turn a profit down the road, if nothing else maybe a couple peak months they'd make some money to pay off the debts faster and spend less than the 18k of their own money.
Maybe daycare for three kids would eat up all of the income she would make. My sister pays $850 a month for three days a week of daycare for her one year old.
@@VS-fo9pyIf the kids are in school and there is subsidized after school care ("Boys and Girls Clubs") she can meet the income threshhold by qualifying with her income alone. A lot of working moms I knew when my son was in elementary school filled out the forms with only their income(s) listed so that their kids would qualify for the free program (California).
The real estate "crash" will happen when the same thing happens with Airbnb and Vrbo. People will have to start selling the real estate...at the same time as everyone else. The only more positive thing is if people didn't super-leverage the properties, they are less likely to upside down in them.
No it won’t it is hardly any homes most will become rentals. The percent of homes bought to airbnb at high leverage is very small. Instead of blame politicians who don’t allow building and have too many regulations they get the media to shift the blame. Maybe in a few over saturated markets but it is not much. Tik tol isn’t real.
An RE crash isn’t happening. 40% of all homes are paid off, and the vast majority of other have record low rates…paying $4.3k/M for a $1,00,000 home. Real estate won’t have inventory unless rates drop to record low agains…and even then buyers will be in mass over sellers. People even thought 2020/21 was a gonna be bad time for RE because prices were high and rates were low, causing a LOT of inventory since everyone could sell over asking.
@@mr.isaiah1275 Just ignore everything that's right in front of your face. Go pull up Airbnb in your area and see how many there are. Now go pull up Zillow and see how many houses are for sale. When the Airbnb bubble pops it will be a glorious crash.
Probably won't crash, unlike Turro with Airbnb the underlying asset increases in value giving owners flexibility when they don't rent, there's also a scarcity of houses compared to an abundance of cars.
Hehehe i got sad when she said 3 kids. Debt is a curse word with my parents. Times were tough some years but now I don’t have to worry for a moment about their financial situation. Just their health.
What are their personal paid off cars worth? Why can't the husband sell his car, or then sell their most valuable paid off car? Then, they get to pay off and sell the most valuable car of the financed cars. He can drive one of the "turo" financed cars when he really needs an extra set of wheels....
With their current income to debt ratio, it seems doubtful they would qualify. Selling the cars, "closing" the "business," and taking a reduced loss seems like a better idea. 😕
Let’s go into competition with major car rental companies that have been operating for over 1/2 Century
Which one of the biggest went bankrupt not that long ago
If you can pay cash for the cars and not have debt it 'might' be a viable gig... Right now, I do uber on the side with a fully paid off car and put a lot of miles on my car and it is worth it when it is busy (holidays, summer tourist season). In 2020 I made like 20k in two months of doing Uber full time in the area I live. The country was closed due to COVID but in northwest Florida we were open and a lot of people were coming here to vacation. It's all about the timing and watching the market for when it's a good time to do the job. These folks didn't do that... Rental companies has caught up with demand and used car prices finally went back down somewhat.
Worked well for Uber. I rarely see taxi cabs anymore except downtown and the airports
turo is best for people not wanting to put a deposit down or get hassled with a bunch of additional services from a big box company
@@bangladeshirealtor
Do you mean customers flying under the radar?
...you didn't start a business...
...you bought 3 cars...
And it sounds like they didn't understand how the insurance works. If you have a personal auto policy (which it sounds like she did) your insurance won't cover you for renting out your vehicle for someone else to use because that is in the policy terms. You have to hope the renter has insurance or buys the damage coverage from El Turo.
So what you're saying is Uber drivers are not employed? 🤯
@@kratostomatoes8587 nope, they’re independent contractors.
Exactly, Toro owns the business, you're just lending them a car. 😆🤦
@@kratostomatoes8587 ...self employed...that's just owning a job...quite different from an independently functional business entity...
When you're out of debt, STAY out of debt!!
So they started with 3 cars instead of 1. Wow.
Took out 3 car loans 😮
Taking out loans to buy three cars you can't afford in hopes strangers will rent them from you on a scam app isn't a "business", it's being a gullible rube for the people at Turo and your local car dealership.
Wow they did the debt-free scream and a few years later went right back into debt. Amazing.
It’s rough to take the AirBnB business model to a depreciating asset. At least real estate goes up
@@drtij_dzienzliability. There’s nothing about cars that make them assets unless they’re highly collectible.
@@myyt3824 my car is over 10 years old, it’s still worth about $9k. That’s less than what I paid for it. But an asset is anything you can sell for money. This one just gets less valuable over time, i.e. bad investment
this is why i stay away from credit cards
Like an alcoholic or addict relapsing
They watched a RUclips video about being financially independent by renting out your extra car. The video only highlights the positives and leaves out the possible risks. At no point did the think “ what if a renter drinks drives and wrecks the car”. Do we still have to pay the loan while the car spends weeks in the shop ?
you can put anything on RUclips for views and not be held accountable when idiots follow it. Crazy!
@@ChrisMFlorida the Donald Trump playbook!
@@ChrisMFloridawhy is that crazy? It's nothing new. People also need to be accountable for their own actions.
@@cutehumor What a stupid comment
no , they just have to learn how to file a claim properly with Turo . they will pay off the loan for a wrecked vehicle .
TURO is really only a suitable business venture for the higher end of the upper class, not the middle class
For people with a paid off car, house & stable. So net worth millionaires, yes.
I love using Turo but my cars are paid off.
They made this too difficult. Sell the two cars that’s paid for. Now you have three left. Pay off one of the cars. Now you have two people and two cars left. Save enough money to cover the most depreciation vehicle. Sell it. Do the same with the other vehicle. Now buy two beaters.
When she said she did a debt free scream previously, I just shook my damn head.
This is why Dave Ramsey says to start your business slowly and with cash. This couple could have realized after purchasing the first car that this Turo car rental plan wasn't going to work as expected. And if they paid in cash, they wouldn't have to worry on how to get out from this car rental business.
He's a bum if everyone followed his rules then no businesses would grow
Exactly… I use Turo and my cars are paid off. Loans are risky and can get people into bankruptcy real quick.
This issue is apparent...they said they were doing great at first, but then one little hiccup and they are putting everything on credit cards...it sounds like the spent all the money they were making to YOLO, instead of putting it back into reserves...
John Baloney always pours fuel on a fire that doesn’t exist…
I was in this same situation back in 2022, except I had 5 luxury vehicles (2 BMWs and 3 Mercedes-Benz) for Turo that came out to over $250,000 in auto loan debt. When I tell you that was the WORST financial decision I ever made (Luckily, it worked itself out at the end) I would definitely never encourage anybody to "finance" or leverage a credit-based vehicle for Turo, especially since the market is incredibly oversaturated in a-lot of the main cities around the US and you don't really make any real financial gain at the end (since it has to be reinvested back for repairs, car-notes, maintenance, etc)
Reason Uber doesn’t own a single car, minimizing their risks attached to depreciating asset
This one is such as easy fix. Sell his or her car. Use that money to cover the difference in 2 of the rentals to get them gone. Drive the 3rd rental until you can get out from under it, to sell it too.
Because people renting cars are always safe and always treat the cars as their own😅Crazy people starting risky business with little ones at home 🤦♂
Staring business on loans are generally a bad idea, especially when you over leverage and worst when its based on depreciating assets.
People running these little Turo side hustles on $90,000 in debt and calling it “their businesses” is one of the new hottest trends on personal finance RUclips! Love it, it’s so obviously not a good idea.
Upside down on these cars by $35,000. Ouch!
Here's an idea -- don't start a business with no capital and one that revolves on RENTING DEPRECIATING ASSETS
I own and manage a Turo Rental Company, these people have no background in buying, fixing, cleaning, or managing vehicles and decided to get into this, to be successful in Turo you need to check at least 3 of these 4 boxes.
“I deliberately fell for a get-rich-quick scheme. If it panned out I’d be considered a genius, but now that I’ve failed I want out.”
When you hear people bragging about how they make money. Don’t listen. Most people don’t tell other people how they make their money. When we had an import business. We had someone want us to explain to them and walk them through how we imported. Why would we teach you so you become our competition. We where importing food and had loads of regulations to follow and paper work to do. We stopped when the pandemic hit and the cost to ship tripled removing profit or driving up the price so it would be harder to sell. My wife was able to be the first to bring in a never imported fruit. That took almost a year of work and a few thousand in tests, tests for shipping. So when you hear all this I made this much and it was so easy. They are bragging sure they could be making it but they started early before the industry became saturated.
They way she talks, its as if they are the victims. All this happened to them. Instead of owning that she and her husband signed up for it, wracking up debt and risk and guess what? The risk bit them in the butt, as it does in these get rich easy schemes. smh
Ah ha, commented after her story before John confronted her on it.
as it does in these get rich easy schemes. ?????
In 2009, $250K homes in my neighborhood were sold for ~$50-$80K,
people bought in bundles of 5,
They are now selling for $400K+.
@@aolvaar8792 14 years later
This is classic psychology. It’s called distancing
All I hear is there's finally some deals on some cars for people that didn't buy into the madness.
What’s done is done. Calling for advice is an incredibly brave first step when feeling defeated. As she moves forward with her husband to recover, they will continue to regain their confidence as they get closer to their next debt scream. We’ve been in a similar situation years ago, you win this as a team, rely on the Lord and believe there is a light at the end of the tunnel when you stick with the plan even when it’s hard.
Love you, Vicki! Great comment
oof, this happened to me when i started my business. I took out a loan and it ended up costing me ALOT of money because the cashflow wasn't working. It's best to use a much cash as possible until you NEED a loan. NEVER start off leveraging. I had to pick up a third job to cover the payments. There is light at the end of the tunnel though. I paid off the debt (10K).
There are plenty of businesses that you can start without a loan. They tend to be service based business (lawn care, graphic design, tutoring etc) and time consuming. However, their great for beginners and you can save the money to start a bigger business.
Good luck to this couple! I believe in them and they WILL get out of this ditch.
there are people who do the same shit with Airbnb
RIGHT?! This isn’t shocking at all
Wonder what all the “Dave is dumb” people have to say about this…all I see on Dave posts outside of his RUclips channel is how”Dave wants to keep people poor” and “You have to leverage good debt to get rich”…Well here is the “good debt” they refer to that has wrecked this couple’s finances
Easiest way is to not open up that risk. John had it right. They put it all on black and it popped up red.
When the interest rates rise the music stops.
SO what. He is not right all the time.
This is an example of sample bias. Obviously the successful ones don't call the show. If you ask a cancer doctor, 100% of their patients have cancer.
@@jimmymcgill6778 ok 😂..I never said he was, but I do know he has helped millions of people and I’d trust his advice over the advice of the instagram “good debt gurus”…But you do you Jimmy..
The time to end a side hustle is when you have to dig into your cc's.
Lenders will NOT finance cars for Turo. It specifically says on the contract its for personal use and cannot be used as a rental, unless they did business loans which they didnt. To obtain these autos they had to mislead the lender intentionally. They are not victims.
same when your rent your second house....your not suppose to legally rent it out.... you have to live thier!
If they financed through an auto dealership, they (dealership) may have had a program for Turo buyers.
This story is enough to scare anyone straight.
😂😂 I looked up and read the pros and cons of Turo and vowed to never rent through them.
LOL daycares pay $12 an hour and they have no admin assistants. Usually, only the first kid is free. In some markets, none of the kids are free, they are just discounted.
Kindercare does have admins . My kids would never step foot in one but they absolutely do
Say it with me “Nobody could have seen this coming”
My EX bf financed 3 porches for turo, intimidated a customer for leaving a dent and was kicked off the platform. Now has to pay for all of the car notes out of pocket. It’s a risky business when you do it that way.
Id be curious what their 2 personal vehicles are worth. She's a stay at home mom, part of her "administration assistant" title for her husband just became making sure he gets to and from work and they're sharing a hooptie if there's any way that could clear out the three.
Ya, they can't afford 2 personal cars anymore. They need to balance sharing one vehicle between them until this debt is cleared.
Yup, the 3 car loans total 87k and their value is 52k so underwater by 35k. Would be nice if this Ramsey show lived up to its supposed image of helping people get out of debt and they would actually ask how much the two personal cars are worth. But surely selling those should certainly be a good first step to getting rid of at least one or two of the turo car loans. This show has to be preachy instead. @Minimalist-Lifestyle
Play with fire constantly and you’re eventually going to get burned!
George “not the debt free alum” lollll Jade is rubbing off! 😂😂😂
Perfect example of learning how to business first before you actually business.
“This business” LOL
Man, tough situation. Imagine how different it would be if they hadn’t taken on those cars
3 newer cars? That's a long time of renting just to break even. That's with everything going right too. Not a smart decision with 3.
This is very popular here in the Dallas area. I honestly don’t see how they make enough money to pay these car notes and profit on top of that.
The absolute last thing I'd ever do is start a car rental business - have you seen how people treat rental cars?!
You're not exactly going to avoid potholes to save someone else's suspension in the long term...
They are way over leveraged on their "rental" vehicles. They deserve their stupid tax.
Turo is good for the customer, the company turo itself, but not for the ppl with the cars.
A year before covid, there were a ton of RUclipsrs that were starting to get into it, but they werent using $20k cars like these ppl. Even then, those videos aren't offered too me anymore.
It was obvious that the market was going to be saturated with people trying to loan out their cars. Kind of like with airbnb where ppl were just buying houses to rent out. Manufacturing all the fees, and before you know it it's better to just rent from a hotel.
I almost did this last year. I saw a minivan for sale and thought it be a good way to swing some extra money. But I had to finance the van. Thankfully for me, the transmission was bad and the dealership canceled the sale. The amount of work needed to bring the cars to people and clean them is not worth the money.
That's not true. But if it was as easy to make money as tiktok would suggest, everyone would be doing it. I know folks doing it as a profession, It's a hustle
I got a van and thought I would make money moving people. After doing this a few times I new this was a wrong thing to do I did pay cash for the van. I sold it 4 years later and now drive a small car.
How in the world would this type of business show a profit?
I have a few cars that I paid around $6000 each for. I have grossed more than $20000 on each in less than 2 years. Only 1 had a major repair. You can make money but you have to do it right. If you run 20 cars with this kind of margin and no debt, you can do fairly well. I keep the cars parked near my home and I do on the spot quick detail and 10000 mile oil changes. Turn and burn. It’s ruthless.
She can still do remote admin work and make way more money
She didn’t say how young her kids are. She also can’t stop working whenever she needs to, to take care of kids, if she is working for a different employer.
She’s in a tough position with 3 kids and no help.
@@taras4352 good point
She needs to go get herself another job so she can make more money!
When? Husband is out of town regularly and she has 3 young children
@@donc6781good opportunity for a side hustle. Switch from Turo to Uber on occasion when Dad is home.
Just like air b and b Touro is a joke. There is a reason other car rentals companies buy basic cars. A lot of folks thought they could have exotic cars for free.
Well look at that a tiktok hustler idea didn't work out 😂
Taking all the risk for someone else business isn’t starting a business. You a an independent worker taking all the risk with none of the control. This is just Uber for those that too lazy to work but make 60k. Wife is lazy needs a at home job. 3/4 moms work part or full time. Anytime you try to be lazy it will cost you. If rental cars where such a great business hertz would have locations their lol.
Can’t they sell their paid off cars and use the money to cover the difference of one of the bad car loans and sell that one plus a little more to knock out a few credit cards? Then just drive the leveraged cars until they’re paid off.
Having only one car with a family of 5 is not a good idea. If one car breaks down or is in an accident and has to go into a shop, they’d be stuck and paying for a rental car.
I work in Auto claims. No one expects to be in an accident and the prices for repairs and the time it takes to get the claim approved and wait for repairs to be completed is much longer now than most people expect. We have a lot more people running out of their 30 day max of rental coverage. You only have 7 days of rental coverage once your vehicle is deemed a total loss by Insurance.
Also the rental car prices are not always fully covered under a policy.
This is why you should always use LLC or some other corporation to go into business. When the business fails, chapter 7 it and walk away. Business is risk and bankruptcy is the counter to that risk. Put money into the business to get it started but always be ready to pull the plug when it’s not working.
A lender will require you to personally guarantee the note. Lenders are not stupid.
@@Fred2-123 The lender will want some form of collateral, usually in the form of business assets. Yeah, by the time you are able to get a loan through a bank you have run your business for a while and shown profitability or have a business that has a piece of collateral. The mistake most people make in business is using their own money to keep it afloat when it becomes pretty clear the business is failing. Hopium is a powerful thing.
4:22 - What?!!! 😲
I give their DFS a 0/10!!!
This is why I factor in Backstory, Enthusiasm, and Volume in my scoring system. When the scream doesn't align with ALL factors, THIS is bound to happen! 🤦♂️
Dave will always be the 🐐 to me
The grass is not always greener on the business side.
Ppl wanna get rich quick
A car is a depreciating asset so I have no idea why anybody would bank on this being there get rich quick plan. It's going to depreciate in value as well as get dings and scrapes and possibly get wrecked in an accident. Mileage is going to pile up on it and it could break down needing costly repairs. When you factor in all the insurances, registration fees, inspection fees, repairs, depreciation and entrusting the vehicle to any stranger with a credit card who may trash the interior or crash it you start to see why this is a bad idea. I only have one car a 2020 Corolla and I paid it off in 14 months at a furious pace so that I own it outright and have the title.
As a father I always would help my boys only after they admitted their mistake.
Man I thought Baloney was for sure going to ask her if she was safe 😂😂😂
She can’t breathe
🤣
Me too! Lol😂
LOL
I did too!!!
bUtTtTtTTt tIK TaK sAiDDDDDDDDDDDDD!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!
😂😂😂😂😂 I’m cracking up
A rental car business is a TERRIBLE idea.
They were debt free. Why would they do this, I just don't get it.
I rented from Turo on a recent trip. Worked out well and we got a cool car for a few days to explore Colorado. The owner had like 3-4 financed 2022+ vehicles. Not sure how we was affording them and keeping up with payments. Seems risky. You're out financing these newer cars and allowing people to borderline abuse them. Ours was a 2022 with 25k miles, tons of scratches and chips, etc. You have upkeep and maintenance, insurance on all, financed payments. There doesn't seem to be enough margin in what you shell out vs your expenses to make any real money off Turo financing newer cars and renting on Turbo IMO.
If your doing a Turo business you want to buy the absolute cheapest clunkers in cash Turo will accept so you don't have debt or depreciation on the cars since they are already junk.
I've thought about doing Touro but renting out beat paid for pickup trucks for people doing landscaping or apartment moves.
This is a fantastic idea!
They just learned a major rule of business. They way over extended themselves and miscalculated overhead and revenue. Dumb.
Not everyone is capable of being a business owner
People are silly! People will never learn, NEVER.
Sell your paid off cars keep the rental cars as your own vehicles now. And pay them off as quickly as you can…
I mean, who told her to do this!? Dang.
Shouldn't have let Johnny Knoxville rent
Using reimbursement for car payments is reeeetarded. They would be better off letting them get-go delinquent then racking up the credit card debt and working more to get caught up.
I like the idea of selling one of the paid off cars, to cover shortage on 2 of the loans. Keep one loan car as the second car, and attach that. Not a fan of taking a personal loan to cover the shortages, just get out of the business. if they were smart and set up everything under an LLC, they could walk, and let the company file bankruptcy, but I doubt that is the case. They still need to deal with the CCards, they dug them selves out before, they can do it again.
A chef would sell all the cars and drive beaters, an 'executive chef', not so much...
Consequence meet actions. I want out. "We vs. I". Wonder what she'll want out of next. If the husband loses his job or struggles she'll want out of the marriage. Accountability is the problem here. No way she does any of this including that job.
Sounds like something to share with your therapist.
I noticed she kept saying “I “, as well
Only way out is default on cars
"My husband and I...we started a rental car business..." No you did not. Sorry but that isn't exactly "starting" anything.
With only $1,000 on hand, a husband who is maxed out income-wise, and a wife who isn't working because of kids, and given they're not going to be able to negotiate a gap loan for THREE underwater cars, it's probably too late for them. They should just hand in the keys to the cars or otherwise they're going to be repossessed. Their credit score will be wrecked for years and they will be on the line for the negative equity.
Or they can just keep renting the cars even if it's at a loss? Let's say their car payment combined is 1,200 a month and they can continue to net 900 a month renting them they're only losing 300 a month which is probably less than any kind of loan they'd get on the difference by selling. Plus maybe they'd get lucky and have a couple good months where they profit. A lot of businesses lose money until they're actually profitable that's just how it works sometimes especially if you're leveraging debt.
@@dedalliance1 So they continue losing money instead of stop losing money, on a hope and a wish that the business miraculously comes back as the economy heads into a recession? It's that kind of thinking that gets people into these types of situations. Sunk cost fallacy.
@@Julian-zc9vm I added up the numbers. They owe $87,000 in vehicle debt, and those vehicles are worth $51,000 so that means if they liquidate now they're already losing $36,000. Lets say the 87k they owe is all on 5 year terms to make math simple, at 7% interest that means monthly payments are gonna be about $1,700. Lets say they can get $1,400 a month net renting them out still, so they'd have to personally cover the 300 extra. They'd get out in 5 years and end up paying $18,000 in those 5 years at 300 a month. Which means losing half as much as liquidating them at a $36,000 dollar loss. Now obviously there's risks doing that with maintenance stuff. But they'd also get the learning experience and if they're smart they'd actually probably be able to turn a profit down the road, if nothing else maybe a couple peak months they'd make some money to pay off the debts faster and spend less than the 18k of their own money.
So the husband is working multiple jobs and shes "working" under him and she "can't " work more.....yeah She can work more and make more than $16k
Maybe daycare for three kids would eat up all of the income she would make. My sister pays $850 a month for three days a week of daycare for her one year old.
@@VS-fo9py I guarantee the person you were responding to is single with no kids or has a child that doesn’t live with him.
@@VS-fo9py Lots of remote jobs out there.
@@VS-fo9pyIf the kids are in school and there is subsidized after school care ("Boys and Girls Clubs") she can meet the income threshhold by qualifying with her income alone. A lot of working moms I knew when my son was in elementary school filled out the forms with only their income(s) listed so that their kids would qualify for the free program (California).
@ 0:36 dude is smiling like we have another wannabe entrepreneur
The real estate "crash" will happen when the same thing happens with Airbnb and Vrbo. People will have to start selling the real estate...at the same time as everyone else. The only more positive thing is if people didn't super-leverage the properties, they are less likely to upside down in them.
They will be upside down on them when the market is flooded with inventory.
No it won’t it is hardly any homes most will become rentals. The percent of homes bought to airbnb at high leverage is very small. Instead of blame politicians who don’t allow building and have too many regulations they get the media to shift the blame. Maybe in a few over saturated markets but it is not much. Tik tol isn’t real.
An RE crash isn’t happening. 40% of all homes are paid off, and the vast majority of other have record low rates…paying $4.3k/M for a $1,00,000 home. Real estate won’t have inventory unless rates drop to record low agains…and even then buyers will be in mass over sellers. People even thought 2020/21 was a gonna be bad time for RE because prices were high and rates were low, causing a LOT of inventory since everyone could sell over asking.
@@mr.isaiah1275 Just ignore everything that's right in front of your face. Go pull up Airbnb in your area and see how many there are. Now go pull up Zillow and see how many houses are for sale. When the Airbnb bubble pops it will be a glorious crash.
Probably won't crash, unlike Turro with Airbnb the underlying asset increases in value giving owners flexibility when they don't rent, there's also a scarcity of houses compared to an abundance of cars.
I wonder how much those paid off cars are worth ? Doesn’t sound like they ride too cheap cars every car they bought for the business is 15k-20k
Such a bad idea… WHAT HAPPENED⁉️
I wish Dave wouldn't of listened to the call and aaid you guys watched a tictak video and here you are 110k in debt later😅
sell 2 kids first
😂
Hehehe i got sad when she said 3 kids. Debt is a curse word with my parents. Times were tough some years but now I don’t have to worry for a moment about their financial situation. Just their health.
They have 3 jobs and only make $90k total. If she makes $16k that means with 2 jobs he makes only $74 total.
Chef's don't make a lot, unless you own the business.
Not all jobs are the same. It could be 2 part time jobs he's working or one full time and a smaller job that's only 10 hrs extra per week.
Hey, at least they can write off the losses to off-set there income
It takes time.
Oh wow, yeah if he is an executive chef and has another job too, he's definitely already busy.
What are their personal paid off cars worth? Why can't the husband sell his car, or then sell their most valuable paid off car? Then, they get to pay off and sell the most valuable car of the financed cars. He can drive one of the "turo" financed cars when he really needs an extra set of wheels....
Take out a personal loan and sell all the cars and pay off the negative
With their current income to debt ratio, it seems doubtful they would qualify. Selling the cars, "closing" the "business," and taking a reduced loss seems like a better idea. 😕
This lady didn't sound like she was playing the victim smh Baloney always reaching lol
Right, the even smiles and laughs while she's talking about how financially screwed her life is right now...
At 0:30 mark; that’s what she gets for listening to Bandman Kevo 😂🤷♂️?
A get rich quick scheme with "passive" income went wrong? Shocker!
1. How old are the kids? I was home alone at 4 or 5.
2. Sell the damn cars!!!!!!
3. Get a better job!!!!!!
what if she worked at a daycare and took her kids there? discount and work many hours