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Turo Business Concept
Methodology
Bozeman provides an opportunity in this vertical that does not exist to the same extent in larger more saturated markets. Certainly the daily price paid for vehicles is substantially higher than in (for example) Los Angeles.
By carefully researching and acquiring, more desirable and/or collectable vehicles, premium daily rates can be charged and achieved.
Acquisition costs of such vehicles can be substantially less. Yet older vehicles can still attain premium daily rental levels, while residual value can be retained. In some cases, certain more desirable or collectable vehicles may even appreciate.
Current Turo Business
2013 Volvo XC90 R Design Platinum Plus
Purchased 2017 @ 37,000 Miles for $27,851 Now @ 117,000 Miles.
45 All Time Trips – $18, 351 All Time Income – $3,769 Future Booked Income
Approximately $10,000 All Time Uber Income.
Future Business
2018 Alfa Romeo Stelvio ti Sport
The case for acquiring less obvious cars and the capacity to seek them out for below market prices. Therefore maintaining more residual value while capitalizing on their more rare appeal in the rental market.
Back Up Case Study 1: Cody – Bozeman
Back Up Case Study 2: Jeff – Bozeman
Back Up Case Study 3: Art – Bozeman. “The Tesla Man”
Case Study 4: The CARSANA Model
CARSANA – A shameless hijacking of CARVANA marketing in a effectively a sub-agency concept run off the Turo platform. Cars are generally owned by third parties and Carsana act as a broker for rentals. They probably own some cars that are housed at their facility but the majority are seemingly private cars from which they take a percentage of the rental commision.
The Market in May
So, what’s the angle? Takeaways, Queries and Thoughts.
Based on a search of available cars in Bozeman on fixed dates 05/11/23 – 05/15/23
- Challenge the conventional thinking. As in many things I have found, the conventional, sensible, or “obvious” thought process, doesn’t necessarily play out in reality. At least, not to the percentage return of other options.
- Find your Niche. Ditto above in many respects.
- Stand out – be different.
To Do:
Break Down approximate day rates for certain car types and ages to establish optimum return potential
What areas are over saturated and which under served.
Look for potential tie in’s.
Insurance and Maintenance Options.
| Cars of Interest – Lower Range |
| Subaru (Various) |
| Volkswagen Golf GTI 4 Door |
| Saab Late Models. |
| Mini Cooper S |
| Volvo XC90 – Pre 2016 |
| Cars of Interest – Mid Range |
| Alfa Romeo Giulia |
| Land Rover LR4 |
| Cars of Interest – Upper Range |
| Mercedes GLE |
| Range Rover |
| Collectable or Specialist |
| Audi S4/RS4 |
| Porsche various |