Author Topic: Buying a car for work related purposes (side hustle)  (Read 1476 times)

zoochadookdook

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Buying a car for work related purposes (side hustle)
« on: August 05, 2018, 09:12:49 PM »
Hey all, I have a relatively cheap to fix 2004 Honda Civic. It gets 40+ mpg and runs me 50 bucks a month. It has 150k miles and a good amount of life left but is not worth anything trade in/resale (over 1000-1500 maybe) due to a reconstructed front end from getting hit years ago (I rattle canned it and patches everything in)

I have been purchasing gym equipment on classified sites (fb marketplace, craigslist) etc for resale. I have taken all the seats out of the civic and have managed to fit 700lbs of weight at once, rowers etc into it.

The problem is the profit margins on specialty and larger sets is high. There were 1600lbs of weights this weekend that had a potential margin of $600 or so. There's a large machine for 200 worth 400. etc. The local dealers can get there no issues. I can't transport it.

I have been given a massive single axle 18ft by 10ft trailer by the girlfriend of 7 years recently retired father. While it will need some re-welds it makes it much more feasible for me to make the jump to buying larger sets of equipment/going directly to gyms and making this a larger thing (granted I'll need a storage area/unit etc).

My questions is what kind of vehicle should I be looking at? Trucks are insanely expensive (although I'd consider leasing one if I used it for plowing in the winter). Suvs are all over the place with mpg and tow ratings and such. I'm thinking a smaller suv (rav 4 or similar?) but am unsure of the most mustachian way to approach this. It's an odd scenario in that I have my perfect cheap drive it til it dies car but for me to enter this field I will need something that allows me to transport larger weights, sizes and quantities of gear reliably.

Current financial situation
26
last school semester
net worth-
54500 cash/liquid in current tech assets
22000 roth ira
25-30k year (possibly 40 this year depending on this quarter)
assorted others (homegym, car, electronics in home, appliances)-8k?

liabilities
11k student loans (no interest due until next July, was going to pay them off with credit cards over the next 9 months and save 25% in rewards)
assorted credit cards (700? set to pay off full balance monthly)
mortgage (110k, home valued at 190)

monthly living
1300 gas, utilities, mortgage, insurance, prop taxes
480 roth ira contribution


thanks

RWD

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Re: Buying a car for work related purposes (side hustle)
« Reply #1 on: August 05, 2018, 10:00:53 PM »
Towing capacity can be pretty low on some CUVs. A 2009 RAV4 is only ~1000 lb (assuming I'm looking up the specs right, this might have to do with the hitch installed). If you are towing a trailer with 1600 lb, give or take, that'll be inadequate. Maybe different years are better? I don't have much time today to do in depth research. If you can find a vehicle in the compact SUV class with enough towing that would probably be a good choice. Or maybe a wagon.

I recall my 2005 Subaru Legacy GT wagon was rated at 2700 lb of towing, which would probably be enough. The Subarus don't tend to get great fuel economy though.

JLee

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Re: Buying a car for work related purposes (side hustle)
« Reply #2 on: August 05, 2018, 10:08:35 PM »
Have you considered renting a truck from Home Depot?  How many times a month/year would you anticipate needing a truck or trailer?

zoochadookdook

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Re: Buying a car for work related purposes (side hustle)
« Reply #3 on: August 05, 2018, 10:18:41 PM »
So that's the other thing. Mpg would be big. I have a search filter set to 100 miles right now. Renting wouldn't be feasible for that reason. It's more of a cash in hand whenever wherever scenario. Ideally I'd be using it weekly. Even using it for other odd jobs wouldn't be out of the question.

Ecky

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Re: Buying a car for work related purposes (side hustle)
« Reply #4 on: August 06, 2018, 05:27:14 AM »
Consider a minivan. If you gut the interior and cut weight as much as you can, you should be able to safely move 1600lbs of stuff. I'd go with a Sienna if you can find one for a reasonable price.

JLee

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Re: Buying a car for work related purposes (side hustle)
« Reply #5 on: August 06, 2018, 05:59:52 AM »
Consider a minivan. If you gut the interior and cut weight as much as you can, you should be able to safely move 1600lbs of stuff. I'd go with a Sienna if you can find one for a reasonable price.

For moving weight sets I'd want something heavier duty -- Ford E-series van, etc.

zoochadookdook

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Re: Buying a car for work related purposes (side hustle)
« Reply #6 on: August 06, 2018, 10:25:33 AM »
Yeah i'm not so much worried about the ability to pull it as the ability to brake. I don't believe the trailer has independent braking (single 3500lb axle with 10 ply tires), and in Michigan winter it's a concern

Car Jack

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Re: Buying a car for work related purposes (side hustle)
« Reply #7 on: August 06, 2018, 12:41:14 PM »
Sell the "given to you" trailer.  It's too big for your needs.  I've owned an 18' enclosed racecar trailer when I owned a racecar.  It was bigger than needed.

Anyways, sell the big trailer.  Take the proceeds and find a well built smaller trailer that you can pull with your present car.  2000 pounds of trailer and weight is fine for any car.  I pulled a snowmobile back in the 90's with my Honda CRX-Si with no problem.  2 sleds with my wifes Integra. 

zoochadookdook

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Re: Buying a car for work related purposes (side hustle)
« Reply #8 on: August 06, 2018, 01:49:40 PM »
after smelling the clutch with 700lbs loaded I don't think it's going to like more than that in a trailer. As far as selling it....due to maintaining family relations and such it's in my interest to keep it.

dhc

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Re: Buying a car for work related purposes (side hustle)
« Reply #9 on: August 06, 2018, 08:54:10 PM »
You're not thinking through all of your costs - buying a bigger vehicle for this side hustle is a bad idea.


For example: you mention $200 profit margin, but then 100 mile radius. Round trip at 54.5 cents/mile, you've potentially wiped out your whole profit there. Your Civic isn't costing you that much a mile, but something bigger will.


If you can't make the math work renting, you probably can't make it work buying something just for this.

zoochadookdook

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Re: Buying a car for work related purposes (side hustle)
« Reply #10 on: August 06, 2018, 10:30:40 PM »
53 cents a mile write off was considerable. 100 mile radius is an extreme situation (generally I'm only taking the smaller car ranges like that as 40mpg and a 53c write off makes it a time based cost which I dont mind on open weekends). There was 2000 profit within a 30 mile radius that could have been around a 2200 lb total  load just last weekend.

While renting could work there are times where it would be easier to get things cash in hand later in the evening/earlier,drop it etc. I'll have to math it out. My nearest home depot is 15 miles or so. I'll check their/uhaul rates but I believe it was 20 bucks 1.5 hours and 5$ every 15 minutes after. *edit just checked and lowes does a 90$ all day rental if I could prearrange multiples. The problem is they kind of just pop up and the first one there wins.


elliha

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Re: Buying a car for work related purposes (side hustle)
« Reply #11 on: August 07, 2018, 02:42:38 AM »
Sell the "given to you" trailer.  It's too big for your needs.  I've owned an 18' enclosed racecar trailer when I owned a racecar.  It was bigger than needed.

Anyways, sell the big trailer.  Take the proceeds and find a well built smaller trailer that you can pull with your present car.  2000 pounds of trailer and weight is fine for any car.  I pulled a snowmobile back in the 90's with my Honda CRX-Si with no problem.  2 sleds with my wifes Integra.

I think this is the best advice that I see here. I would do that or rent a bigger vehicle when it is necessary.

Ecky

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Re: Buying a car for work related purposes (side hustle)
« Reply #12 on: August 07, 2018, 04:40:18 AM »
Agreed.

I've pulled a 1500lb trailer across the country in my 2000 Honda Insight. Loaded properly, it handled fine even descending mountains. No idea what use an 18' trailer would have other than costing a lot of money.

zoochadookdook

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Re: Buying a car for work related purposes (side hustle)
« Reply #13 on: August 07, 2018, 06:49:29 AM »
after reading several of the civic forums recommendations it  looks like anything over a couple hundred pounds is ill advised.

zoochadookdook

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Re: Buying a car for work related purposes (side hustle)
« Reply #14 on: August 07, 2018, 07:00:00 AM »
I have no problem buying a smaller trailer (but i'll probably keep the big one as it's sort of frowned upon by the gfs family to sell a gift); but the max capacity WITH my 200 lb self in the drivers seat is 650lbs. Having loaded 700 in the car before and smoking the clutch/ coming close to overheating/suspension bottoming out I don't think it would tow (even with it loaded in the rear) 1500 with safe braking capability. It's a matter of me not wanting to die to save $20 a rental trip. My father will let me use his smaller 8' trailer whenever (I helped fabricate it) and has a Subaru outback I have some access to although obviously I don't want to take it most nights.

Dicey

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Re: Buying a car for work related purposes (side hustle)
« Reply #15 on: August 07, 2018, 07:22:40 AM »
Contrarian view here. You are right to consider your own safety, and also the safety of others. Being the cause of an accident that could harm innocents is not worth it. Do not deliberately overload a vehicle.

I suggest you figure out what a truck will cost you and then commit to using said truck to earn at least twice that on a monthly basis. If there's no gym equipment available, use the truck to earn money some other way. If youre absolutely willing to do that, the put the word out that you're looking for a great used truck and don't look back.

Also, consider the wear and tear on your body. If you're going to be moving a lot of heavy stuff, invest in the proper gear and study safe lifting, moving, and securing techniques. Your future self will thank you for your foresight.

zoochadookdook

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Re: Buying a car for work related purposes (side hustle)
« Reply #16 on: August 07, 2018, 07:36:05 AM »
Renting from lowes seems to be a decent choice. $20 for 90 minutes/80 a day with a potential 10% off. I mathed it as leasing would cost me roughly 550 a month after insurance, down payment, monthly payment and limiting to 12k a year. Granted I would have it whenever I needed it and not worry about maintenance as it'd get turned in. Not knowing if i'll be renting 6 full days a month is definitely a kicker though/knowing the times and real life ranges i'm required. 90 minutes should in theory be enough to get most items but i'll have to test it and adjust accordingly.

With regards to safety that was definitely a factor. Here we get a lot of snow so add that in to overloaded a small vehicle that the manual explicitly says "do not tow" with and it becomes a bit reckless to save a few bucks.

RWD

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Re: Buying a car for work related purposes (side hustle)
« Reply #17 on: August 07, 2018, 07:42:33 AM »
With regards to safety that was definitely a factor. Here we get a lot of snow so add that in to overloaded a small vehicle that the manual explicitly says "do not tow" with and it becomes a bit reckless to save a few bucks.

There's a liability concern too. If you get into an accident while ignoring your owner's manual your insurance might not be so happy.

JLee

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Re: Buying a car for work related purposes (side hustle)
« Reply #18 on: August 07, 2018, 08:28:26 AM »
Renting from lowes seems to be a decent choice. $20 for 90 minutes/80 a day with a potential 10% off. I mathed it as leasing would cost me roughly 550 a month after insurance, down payment, monthly payment and limiting to 12k a year. Granted I would have it whenever I needed it and not worry about maintenance as it'd get turned in. Not knowing if i'll be renting 6 full days a month is definitely a kicker though/knowing the times and real life ranges i'm required. 90 minutes should in theory be enough to get most items but i'll have to test it and adjust accordingly.

With regards to safety that was definitely a factor. Here we get a lot of snow so add that in to overloaded a small vehicle that the manual explicitly says "do not tow" with and it becomes a bit reckless to save a few bucks.

No oil changes, no tire changes, etc to worry about -- remember that, even if you put low miles on a vehicle, you should still do an oil change annually and tires will age out of their safe usage life.

zoochadookdook

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Re: Buying a car for work related purposes (side hustle)
« Reply #19 on: August 07, 2018, 09:46:28 AM »
I take it back about lowes, turns out they don't do it anymore. I'll have to call home depot and maybe hertz or other services and compare their rates

JLee

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Re: Buying a car for work related purposes (side hustle)
« Reply #20 on: August 07, 2018, 09:48:11 AM »
I take it back about lowes, turns out they don't do it anymore. I'll have to call home depot and maybe hertz or other services and compare their rates

https://www.homedepot.com/c/truck_rental#load

zoochadookdook

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Re: Buying a car for work related purposes (side hustle)
« Reply #21 on: August 07, 2018, 09:52:10 AM »
thanks! But I meant for the day; had a couple more I've seen slip today. Renting their van actually might be fine for most stuff and get better mpg