Car Sharing Fleet Expenses and Cost Management

Introduction

• Expenses are a crucial part of running a car sharing fleet.
• The video discusses types of expenses, ways to reduce them, and avoidable expenses.
• Promotion for the "Car Sharing Masterclass" with a discount code is mentioned.

Insurance Costs

• Insurance is a mandatory expense for a car sharing fleet.
• Liability-only insurance costs $55 per car/per month; full coverage is $70-$80.
• Factors affecting insurance costs:
  • Type of cars owned
  • Personal driving record
  • Insurance carrier and coverage type
  • Payment method
• Tips to reduce insurance costs:
  • Pay premiums annually for discounts.
  • Shop around for different insurance rates.

Car Payments

• Car payments are common but can be expensive if mismanaged.
• It's advisable to minimize reliance on financed cars.
• Currently, only one out of 29 cars in the speaker's fleet is financed.

Maintenance and Repair Costs

• Categorized into routine maintenance and unpredictable repairs.
• Routine maintenance includes items like windshield wipers, brake pads, oil changes.
• Unpredictable repairs include major parts like AC, engine, and transmission.
• Tips to reduce maintenance costs:
  • Buy parts in bulk when on sale.
  • Set up corporate accounts with vendors for discounts.
  • Consider buying used tires for high-performance cars.

Tools and Operational Costs

• Essential tools and operational supplies are necessary.
• Strategy: Buy cheap tools first, upgrade if frequently used and they break.
• Invest in quality tools during sales events like Black Friday to reduce costs.

Keeping Track of Expenses

• Monitor spending on each vehicle to avoid excessive repair costs.
• Avoid the sunk cost fallacy by evaluating if further repairs are justified.

Business Absorption of Personal Expenses

• Certain personal expenses (e.g., internet, phone, laptop) can be absorbed by the business.
• Justifiable as business expenses and can be tax-deductible.
• Benefit of running a profitable business: more spendable income on wants rather than needs.

Conclusion

• The video offers strategies to manage expenses in a car sharing fleet effectively.
• Encourages feedback and engagement from viewers.