Private car rentals as investment

Interesting - looks like a business that wants to be a hire company without owning any of the cars.

Like the own your own ATM businesses that want to scoop up the per transcation fess without owning the underlying asset.
I know which side of the business I'd rather be on.
 
I recently tried it, from a customers perspective, not giving my car to a customer

the online system asked me litterally a million questions and at the end, says, sorry ,you dont qualify, I called up, they had no idea why?

but simply said, nothing we can do,

the cost was about $25-$30 for a older car, bigger, more power

i ended up renting a current shape small car for about $35 per day

so a thumbs down for me. unfortuantely,
 
Net cash Income Year 1 (95% utilisation) $3,300
Net cash Income Year 2 (90% utilisation) $2,800

This might mean that 1% corresponds to $100 with $7200 fixed costs. So if utilisation is 72%, you'll make no money and if it's below 72% it'll cost you money!

Definitely something I'd steer clear of!
 
What about the capital loss over the 2 years?

Would think at best you will end up even worse a big loss.

Cheers

They quote that on the website;
Holden Captiva
Approx. initial investment (and associated costs)..$16,000
Net cash Income Year 1 (95% utilisation)..............$6,600
Net cash Income Year 2 (90% utilisation)..............$5,900
Net cash from sale of vehicle (end of Year 2).......$11,900
Total profit over 2 years....................................$8,400
Annual Net Return on Capital (%).........................26.3%

I haven't checked these numbers, but the utilisation seems high, to me!
 
They quote that on the website;
Holden Captiva
Approx. initial investment (and associated costs)..$16,000
Net cash Income Year 1 (95% utilisation)..............$6,600
Net cash Income Year 2 (90% utilisation)..............$5,900
Net cash from sale of vehicle (end of Year 2).......$11,900
Total profit over 2 years....................................$8,400
Annual Net Return on Capital (%).........................26.3%

I haven't checked these numbers, but the utilisation seems high, to me!

The bit that I'm curious about is where I buy a Holden Captiva for $16,000. Presumably that's either a deemed value, or you buy one second hand.
 
i've looked into this model extensively. they completely under estimate financing costs. and to some extent tyres, servicing and depreciation and the assumed capital values are hopeful at best. it's surprising how expensive clapped out cars are.
 
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