The Money Mustache Community
Learning, Sharing, and Teaching => Ask a Mustachian => Topic started by: Magic Mocha on January 25, 2018, 08:29:35 AM
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Edit: Was able to do some more research on this that I couldn't find before. Use this link (https://www.google.com/search?rlz=1C1GCEA_enUS776US776&biw=1600&bih=769&ei=xhtqWtDaMpKitQWc6rbABQ&q=site%3Aforum.mrmoneymustache.com+turo&oq=site%3Aforum.mrmoneymustache.com+turo&gs_l=psy-ab.3...6022.6264.0.6412.4.4.0.0.0.0.141.274.0j2.2.0....0...1c.1.64.psy-ab..2.0.0....0.DIDoaWxNdc4)if you're curious to read more.
Hey there, I'm a 27 y/o in DC considering using Getaround for my car. It's basically AirBnb for your car - set it up with a doohickey that allows remote access, and vetted strangers rent your car by the hour, sometimes for short trips, sometimes an entire weekend.
I've learned enough about it from other users that I trust its safety (and employ Outrageous Optimism (http://www.mrmoneymustache.com/2012/10/03/the-practical-benefits-of-outrageous-optimism/)), but I could use some spare Mustachian eyes to determine how to evaluate my actual profit vs. maintenance costs.
The car:
- 2008 Mini Cooper
- Miles: ~80,000 miles
- Status: Good condition, completely paid off.
- Value: $4.5 - 6k. (per KBB)
- Current Use: 1-2 days a week, roughly 5 - 8,000 miles a year
- Parking: Sits in a dedicated parking spot accessible 24/7 right behind my apartment
Me:
- Commute: Metro/bike to work most days, with weekly 1 grocery trips by car.
- Finances: Have plenty of cash available to replace car with another used vehicle if needed.
- Replacement: Don't care much about cars - whatever gets me from A to B efficiently without trouble is fine. Preferably an aux cable and heated seats if I'm feeling picky.
Getaround:
- Monthly Cost: $20/mo cost for a device they install to allow remote lock/unlock/tracking. (First 6 months are free.)
- Estimated Revenue: Comparable cars rent $5-7/hour depending on time of day/weekend, of which GetAround takes 40%, so $3-4.2/hr before taxes? Users report roughly ~$500-700/mo, though many cars are bigger/newer than mine
- Insurance: Anything that happens to the car while it's being rented is covered by Getaround. There are a variety of things that could go wrong, but I've done research and trust it enough.
- Gas: Renters either pay for gas (or I get reimbursed + $10 for my trouble)
- Availability: If I ever need a car while mine's out, I can rent Getaround at a 50% discount or Uber/Lyft.
- Taxes: I think they start at $600 profit - unclear, not sure how to calculate.
IRS mileage rate (0.54/mile) seems to be as good a metric as any. Maybe slightly increased for how finicky BMW/Minis can be?
So, Monthly Profit = Monthly Revenue - $20 - extra Uber/Getaround use - (Extra Miles * $0.54)?
Does this math look correct? Am I missing something obvious in Opportunity Cost or something else? Curious to hear anyone's thoughts.
I understand why this idea would skeeve out a lot of people, but I'm excited to try it out. I also imagine many people felt the same way about AirBNB at first.
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Insurance: Anything that happens to the car while it's being rented is covered by Getaround. There are a variety of things that could go wrong, but I've done research and trust it enough.
There are several threads on this forum about Turo and what happens when someone crashes your car. It's apparently a long, drawn out, time consuming, annoying pain in the rear end.
That'd be my main concern. Otherwise, first order calculations look correct. I'd be a bit hesitant to let people beat on a Mini based on friends who've owned one (loved them, complained endlessly about the maintenance).
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My mistake. I didn't get any results from the native MMM Forum Search, but forgot about Google's "site:forum.mrmoneymustache.com" trick. Now I'm definitely finding a few threads, thank you.
It's a good point about Mini's though. I didn't have issues for the first 6 years of ownership, but the last year or so has been a little rough. I'll definitely take it under advisement.
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It's a good point about Mini's though. I didn't have issues for the first 6 years of ownership, but the last year or so has been a little rough. I'll definitely take it under advisement.
Assume it will be "driven like a rental." It's fine for something bulletproof like a Civic or Camry, but I'd be really hesitant to put something a bit more exotic on a service like that.
For instance, while I don't have any now, I used to own RX-7s. They were kind of maintenance intensive, and you could really screw stuff up if you didn't let them warm up fully before getting on them hard (pull the engine apart to replace the coolant seals - a rather annoying job). I'd never rent one of those out.
I don't know how the Minis are, but a friend of mine with the supercharged version spent an awful lot of time complaining about maintenance costs. He eventually sold it, bought a boring car, and a motorcycle (for a good bit less than the Mini sold for, IIRC). He was spending truck-levels of cash on tires and stuff far too often.
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Can you share a link for info about Getaround (other than Getaround.com)?
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Sure. Most of my research came from the DC Subreddit here (https://www.reddit.com/r/washingtondc/comments/5x3f6z/getaround/) and here (https://www.reddit.com/r/washingtondc/comments/77141n/anyone_rent_their_car_out_on_getaround_turo_or/)
Additionally when I had partially set up an account (just to see what it was like), I got an email from them that included the following:
Getaround Connect™. Designed by our team to create a seamless carsharing experience, the Getaround Connect™ provides real-time GPS, Enhanced Security and allows renters to unlock your car, right from their phone. Easily installed under your car’s dash, the Connect™ will have no impact on your car’s warranty and can easily be removed if you no longer wish to share your car.
6 Month Free Trial.
Getaround is offering a 6 month free trial for new adopters.
Keep your car on during the full duration of the trial and we'll waive the $99 fee.
If you decide to keep the car on the service after 6 months, we'll start your $20/mo subscription at that time.
Installation and inspection. Once we pick up the car, we'll aim to keep the car for 48 hours. We want to ensure that every vehicle that enters the service is both comfortable and safe to drive. We'll provide a very comprehensive inspection for the vehicle if we feel that it's necessary. If our professional opinion determines that your car is in need of an update, we'll provide a complimentary estimate for necessary updates through a local mechanic.
Fuel. Renters are required to replace the fuel they use. If for any reason a renter does not replace the gas they use during a reservation, simply contact our Customer Happiness team to be reimbursed.
Predictive Pricing. Owners requested the ability to set independent prices for week days and weekends. We took this request one step further with predictive pricing by creating the ability intelligently identify optimal prices based on a number of variables.
Getaround's predictive pricing takes over 20 unique variables into account when determining the optimal price for each car. The algorithm looks at demand variables such as time of day and day of week as well as vehicle inputs including year, make, model, and the incremental costs of ownership as determined by AAA and other industry standards.
Tolls and tickets. All parking tickets and traffic violations are timestamped making it easy for our Customer Happiness Team to identify the responsible renter. Renters are responsible for any parking infractions or toll violations that occur during their reservations. If your car will be parked on the street, renters are also responsible to park the car in a location where it will not be ticketed or towed for at least 24 hours after the end of their trip.
Your calendar. Your car will have a calendar feature on the app to control when you'd like to have your car available for rent. Simply block off anytime you'd like to use your car yourself, and your customers will be able to book any other time and help themselves. You'll be notified with a push notification and a text. There is a weekly calendar to set a recurring schedule and a monthly calendar that will place blocks on the calendar one at a time. Need to use your car right away? No problem; any change you make to the calendar is immediately reflected on the search.
Insurance. We provide comprehensive insurance for the car that is completely distinct from your own personal insurance. The primary policy is $1M, with a $6M umbrella policy and it comes with Roadside assistance. It’s included in the cost of the reservation at 40 percent. The application check-in and out feature enables you and our customer service to actively monitor the condition of your vehicle.
Car branding. Every Getaround car is equipped with a visor organizer and vinyl lettering. You can see what this looks like here: 500px.com/Getaround
Peak rental demand. Demand for the service is exceptionally high on weekends from Friday to Sunday. Demand is typically lowest during the work week overnight and during business hours. It starts picking up on Friday and lasts until Sunday evening.
Next steps. I'll schedule a one-hour window to pick up the car and perform a full on-boarding. Once this is done, your Community Manager will reach out via email to launch the car on the service.
Hope that helps!