Strategies for Buying Cars for Turo

Aug 27, 2024

Lecture Notes: Finding Cheap Cars for Turo

Introduction

  • Presenter: Aubry Janick
  • Topic: Strategies for buying cars below market value to rent on Turo platform.
  • Personal Background:
    • Owns and operates a fleet of 30 vehicles, with 27 used for Turo.
    • Business model focuses on buying reliable, low to mid-tier economy cars.

Business Model Overview

  • Core Strategy:
    • Buy cars 10-25% below market value.
    • Profit from rental revenue and resale or total loss claims.
  • Importance of buying below market value:
    • Increases profit margins.
    • Provides advantage in resale or insurance claims.

Car Sharing Masterclass

  • New iteration launching on August 1st.
  • Includes content on:
    • Buying cars.
    • Setting up Turo listings.
    • Automating operations.
    • Customer support navigation.
  • Offers additional resources: checklists, scripts, templates.
  • Access to a private Discord group and monthly Zoom Q&As.

Car Selection Process

Car Criteria

  • Avoid: Newer model Fords, BMWs, Jeeps, Nissans.
  • Select: 2011 Ford Focus, Hyundais (with engine warranty), Toyotas, Lexuses, Mazdas.
  • Importance of pre-purchase inspection (PPI):
    • Check for rust, accident history.
    • Ensure Turo's terms of service compliance.

Market Research

  • Use Turo's platform to assess demand:
    • Compare car availability on different dates.
    • Example: Denver, Colorado economy cars ($25-$35/day).
    • High demand indicated by low availability on current dates compared to future dates.

Finding Below Market Value Cars

Tools and Methods

  • Primary tool: Facebook Marketplace for buying cars.
  • Set search parameters:
    • Price range, year, mileage.
    • Example: 2011-2015 models, max 129,000 miles.

Examples and Strategy

  • Look for clean title and check KBB values.
  • Example cars:
    • 2012 Mazda 3, 2011 Hyundai Sonata.
  • Negotiation tactics:
    • Start negotiation via Messenger or in person.
    • Adjust offers based on in-person assessments.

Key Takeaways

  • Patience and regular searching are crucial.
  • Educate yourself on market prices.
  • Be diligent about checking titles and car conditions.
  • Use downtime to continually check for new listings.
  • A successful deal often depends on quick action upon listing publication.

Conclusion

  • Perseverance and knowledge are key to finding good deals.
  • Masterclass available for more in-depth strategies.
  • Engage with the community for support and advice.

Remember to sign up for the masterclass before the price increase.