Author Topic: Sell the car or rent it out?  (Read 1692 times)

GrandioseMustachio

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Sell the car or rent it out?
« on: February 13, 2017, 01:20:17 PM »
Context:

-I mostly bike to work and the gym (15 minutes each, give or take).

-If it's snowy, I walk or take transit (paid for by employer).

-I own a 2011 Kia Soul Base (manual transmission), 88k miles. Paid for.

-I tried to sell it, but, at best, I might get 4000$ if I'm patient. More realistically, say 3500$.

-I have a street parking permit (40$/year). Street parking is pretty easy.

-Insurance is about 700$/year (maybe I'm over-insured).

-Looking at http://www.mrmoneymustache.com/2011/10/06/the-true-cost-of-commuting/ , my non-gas costs per mile are roughly 4 cents depreciation + 0.6 cents tires + 0.5 cents oil + 1 cent other = 7.1 cents per mile.

-I get about 35 MPG. At 2.5$/gallon, gas is also 7.1 cents per mile.

-I ride about 60 miles per month for things like driving friends around, going to Aldi (3 miles, I know, I could bike, but I'm a pampered Mr. Fancypants), going to the mountains, etc. That's a cost of about 800$ per year.

-Also, the occasional 2x300 miles to visit family. When I do this, I get carpoolers through the internet. I get between 150$ and 250$ through this. Thus I net (after about 90$ expense) between 60 and 160$ per trip. Say 4 per year (Thanksgiving + Christmas + Easter + Other). Say netting 400$ per year. (Instead of costing me 240$ or so of traveling monies if I were to take such a carpool/bus)

-I also rent out my car on Turo. I get 20$ per day or so. It gets rented 6 days a month or so. Mostly on the weekends. It gets used an average of 40 miles per day. Thus costs are about 3$ per day. I net 17$ per day (or 100$ per month; 1200$/year).

My impression is that this car is annually making me 100$ = 1200$ (Turo) + 400$ (Trips) - 700$ (insurance) - 800$ (going around town). Thus, it's essentially costing me nothing. Question: Is this math about right? It seems to me that I should simply keep this car and continue renting it out. Is that right?

Syonyk

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Re: Sell the car or rent it out?
« Reply #1 on: February 13, 2017, 01:36:48 PM »
You rent a manual? Have you factored clutch replacement into your figures?

frugaliknowit

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Re: Sell the car or rent it out?
« Reply #2 on: February 13, 2017, 01:43:33 PM »
Renting the car out is a pretty big risk.  I would dump it.

GrandioseMustachio

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Re: Sell the car or rent it out?
« Reply #3 on: February 13, 2017, 02:07:11 PM »
Thanks for the replies.

Syonyk
"You rent a manual? Have you factored clutch replacement into your figures?"

Good point. I should probably add 1 cent per km. I figure 1000$ clutch per 100 000 miles. Maybe 2 cents?

frugaliknowit
"Renting the car out is a pretty big risk.  I would dump it."
The rental website insures the vehicle (no deductible). In your opinion, is that enough risk reduction?

Syonyk

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Re: Sell the car or rent it out?
« Reply #4 on: February 13, 2017, 02:09:41 PM »
The problem is that someone who doesn't know how to drive manual properly can fry a clutch in a hundred miles and cook the flywheel in the process.

That's the risk I see.

lbmustache

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Re: Sell the car or rent it out?
« Reply #5 on: February 13, 2017, 05:43:37 PM »
The problem is that someone who doesn't know how to drive manual properly can fry a clutch in a hundred miles and cook the flywheel in the process.

That's the risk I see.

Turo is a site where you get to pick your car. I'm not sure why someone would rent a manual car and not know how to drive one properly... To be fair, I'm paranoid and would have the same concern as you, syonyk.

ShoulderThingThatGoesUp

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Re: Sell the car or rent it out?
« Reply #6 on: February 13, 2017, 07:41:29 PM »
An ignorant or selfish person could conceivably rent a manual to learn on.

Syonyk

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Re: Sell the car or rent it out?
« Reply #7 on: February 13, 2017, 07:58:13 PM »
I've seen some awful clutch abuse from people who "knew how to drive stick."