We’re going to be talking about the rental car recession, what’s going on in the current market, how we see things shaping up, and most importantly, how you can make money from all this going down. Never forget, and then if you please do me a favor if you are in the rental business or your internal hire car or something like that, please put in the comments section below what’s it like in your current market, because as we discussed this, it’s very important we get feedback from everybody because even some stuff reported today is some of the things I’ve seen from my students.
Other places we set up and also talking to colleagues,
and so I want to hear from you because there are hot pockets regarding rentals, like Vegas. It’s one of those cities where we’re always going to have rentals. We’re always going to be busy. But we’re not making the same money as we used to. We’re also going to be a huge favor, gently squeeze like what to do about rhythm as if I were amazing people like yourselves into automotive content, we grow. We are trying to post 3 times a week.
I’ve been a little slacking. lately, but we will do it and once again fall on Instagram at Lucky Lopez and let’s get started. So the rental car recession hit us about a month ago. I’ve talked to a lot of people that are doing turn-hire car stuff like that, and we’ve noticed that there is a consistent lower pricing every single week and especially here in Vegas. So one of the things to talk about is what happened. We got here now during the pandemic. Everyone and their grandma decided to jump onto Terra.
I was one of the first people that talked about doing that Terrel classes getting your rental car license everything else and so we saw so many people jumping on to 0 because a lot of people were working there making their stimulus money and their cars were just sitting in their driveway so that like when I make a few Bucks off it, you know, and so people are putting their cars up and we’re talking not fancy cars just those beat up pieces of junk. Everything here back in the day in Vegas was going for almost $100 a day, you know, so literally everybody jumped on their. What they saw was the gravy train, every person had access to money, people were traveling.
Things were good thanks for!
To today, stimulus money is gone, all the money is gone, travel is up, but regarding rentals and stuff like that, the prices are down about 25 percent. One of the main reasons is competitions, so we talked about her reading the grandma jumped into 0 during the pandemic. Well, now it’s basically become a race to the bottom alter cares about his people running cars. So 1 of the first things we noticed was that more expensive cars exotic highline cars, took the first hit. You know, they’re not running as much or less often, so people didn’t have the capital for that next thing, that it was a luxury market.
A lot of my students were there all over the country that had like CA Corvettes, some Mercedes SUV stuff like that. They noticed a significant decrease in years, and also now there are a lot of people that are lowering their prices. So that was the 1 thing, a comedy car, because the cars are always going to stay relatively busy just because even if people do travel for business, for work or even for pleasure, they still need a car to go somewhere. They just won’t be spending that excess amount of money they were used to seeing regarding people renting out these types of cars. Now 1 of the reasons I want to talk about what’s going on currently on tour and hire cars is like I said, it’s a race to the bottom.
Now what is going to happen, what I see happening as of right now, is there’s a lot of people that are not business owners that are running their cars on Turbo. These are just regular people that are putting the cars up. They’re not to make a profit not to make money not to scale their business. They’re putting their cars online just so they can pay the note. We see it all the time. You as a business owner are renting out. Let’s say you’re 2020 Cameron.
With insurance depreciation miles and everything else, I need to write this for 65 Bucks today. 70 Bucks today, but in the meantime, you got somebody that’s got maybe a $600 for a dollar car payment and running this car for $30 a day, and they don’t care. All they want to get is the money for their actual carpet, so don’t rack up the miles and beat the hell out of the car because all they care about.
Covering their payment because they don’t even want to go back to work.
Or like currently right now, there’s a lot of people getting laid off because the economy is slowing down, so they’re putting a curse upon Turrell. Not as he, like I said, money opportunity, but as something just to pay their bills, and this is what’s going to hurt the market. For the next 6 to 8 months we’re gonna get so many people who can’t afford their cars and air freight of losing him. They’re just gonna start piling them on like Turo Hire Car and some of these other applications and it’s just going to drive the price further down and down. Like I said, it’s going to become a race to the bottom now. If you’re currently in the business and you’re trying to grow and expand, be very patient. Don’t buy any new cars, just take your time.
What’s going to happen?
Race to the bottom for about 3 to 6 months and as it starts to fade out, a lot of these people, or it’s not worth the headache if they have to wash the car clean the car and then ran for $30 and then troll takes 30 percent of that, and then they’re still making, you know, 20 handful of dollars they’re not going to want to wash his cars every single day and drop off to people and deal with the headaches, so a lot of these people are going to fall by the wayside by default because they don’t want to continue with growing their business and flicked her on her car, so the good news is as you know the next 36 months you’re going to see a lot of these people leaving the platform because they don’t want to mess with, it the other thing.
I’ve seen basically a lot of our students, a lot of people decided to skip to row and skip hire cars, and they’re getting their dealers license in the rental car license, and they’re getting off the platform as well. So there’s going to be 2 things the next 3 to 6 months are going to show you, a decrease in pricing but also a decrease in competition that you could sustain during this time. I think you’ll be successful.
Once we come out of the other end of this, hopefully in 2023 things will get back to normal, and we’ll have our 2019 prices back, and we can structure everything up. But another thing that’s going to hit is right around that time you’re going to see your second wave of defaults for like auto loans and everything else and that’s where a lot of these people from through hire a car and everything else is gonna fall off because remember during the pandemic there were a lot of people that overpaid for cars so what’s going to happen is.
Let’s say during the pandemic they bought a Dodge Charger for 30 $5,000, and now that same charger in 2023 is going to be maybe, let’s say, 20 $5,000, so this person right here is at the bar. 23 can technically ready for maybe 50 Bucks a day and make profit and and and do okay where you are stuck at 30 5000 emails Rangers for 65 or $75 a day and so you’re going to be always over under priced from this other guy unless you drop your bottom dollar if you keep doing that eventually the more expensive cars going to cost too much to operate.
You’re going to lose money, and you wind up having to walk away from that vehicle because you’re going to be basically upside down, not make enough money for the payment not making up money for depreciation and just racking up those miles,so those are, the few waves or saying, trickle out in effect now 1 thing that I noticed too, is here in Vegas.
We’re getting a lot of people that are stepping up to hire a car. They’re doing more weekly rentals because they’re doing this as a job. So if you are in the rental car business, what I recommend is to get away from the dailies causing centrism slowly slowing down. But there’s a lot of people that don’t want to go back to an office job because of the whole, like you-need, no job resignation thing, and then also a lot of people who got laid off or looking for work start looking at things like Amazon Postmates Uber lift driver stuff like that.
Acess To Finance
Get a Dodge caravan and put him out there running out for, you know, whatever, 34 $500 a week, whatever you want to. It’s in your markets accessible, and they put that out there because there’s a lot of people right now who don’t qualify for traditional financing. Because, you know, when the pandemic happened, a lot of people got all the stimulus money. They released a lot of lending records regulations, and people were just buying cars. Really well, now all that stuff is gone so they want 6 months of job stability. They went down payment, they want credit, so a lot of these people have been up and down because of the pandemic.
Now a lot of people just lost their jobs because of, you know, the down economy, so they have nothing else to do so they have to rent a vehicle from somebody like you guys to put him out there and make money basically renting out vehicles to these people. That’s 1 thing that I’ve seen that is scaling currently right now in the market. That’s probably the only thing that I’ve noticed. Everything else has just been a slow steady decrease, but once again let me know in the comments section below if you’re in a small area for luxury cars, exotic cars hauling cars.
And you’re doing really well, you know,. Share with the group, let us know,. You know also it’s okay if we disagree. My opinion is different from your opinion and that’s okay. We can still be friends. I see people literally destroying each other in the comments section over each other’s comments. The whole purpose of this channel is to learn to navigate this path of basically going through this recession.
How to navigate this recession
And a downed economy and hopefully coming out on the end so we can grow our businesses and be more successful. Now how can we make money from a down economy, a shrinking market regarding the rental car business and lowering prices? Now we talked already about step one about going to her car and doing weekly rentals. That’s the first one. The second one is due. You guys are gonna laugh. I’m getting rid of your over-priced vehicles. We are at the peak and it’s starting to come down. I just sold the car to give me the vin.com just for fun, just to see what it was like.
Within 2 weeks, my price dropped by almost $7,000 on the vehicle I sold. So this is just letting me know that there are definitely changes in the market regarding Sony’s more expensive cars. So if you believe that you’re the over-priced vehicle right now, I would recommend. Taking that car. Selling it, get rid of it while the market is still hot, and then just wait a month or two even if you don’t have a car, even if you know the extra income.
Just the fact they didn’t open in about 3 months, now you can buy that car for maybe 567810, $0 cheaper than what you originally paid for. That would be the first 1 of decreasing your actual cost. The second thing is to start looking at different types of insurance options. I’m sure you guys know that Turner has their 3 different options and if your commercial you can use your own insurance, which I never recommend because like I said you claim once twice on your policy, they kick you off.
But constantly as a business looking for new insurance, I always hire multiple brokers with different companies to see what’s the best rate I can get. You know, there’s a lot of other insurance things we cover in our courses, but I can’t go into that on here. But there’s a lot of stuff that you could do while you’re growing your business and building a rental car business.
Get Your Rental Car License
If I were you guys, I would definitely start working on getting your rental car license. The reason is when you have a rental car license opens you up to much more possibilities. You can do several things you can rent by the day by the hour by the week. You can’t do monthly in every state you have to do weekly so you can do for a contract and they just have to come back and renegotiate but you can rent cars, trucks, motorcycles, boats jet skis, whatever you want. whatever you think it’ll make money or markets.
1 of the things I tell and some of my students is I have students doing different types of businesses regarding rentals, so what I did and I’m sure go see my videos, I did U.-haul trucks. People laugh and then think there is that much money in these old U. haul trucks, but any truck with a lift gate is $100 a day guaranteed and so we are getting these things for like 1015, $0. We’re cleaning him up, throwing them on there and doing deals. Construction companies are running for 306090 days 6 months and we were absolutely killing it.
Also, you can do commercial vehicles. I don’t ever see trucks. What utility beds, you can read those things out as well so this way you can capitalize on the market. Because , like, construction is booming, there’s a lot of people they’re still building. I’m sure it’s going to slow down, but they’re still needing work trucks to go out there. Also, another funny 1 is I have a student in Texas.
We got a dealer’s license we got real correlations, and he decided to get out of the actual car business. He started printing trailers because he would buy these trailers for 1000 Bucks and he would run about $400 a day and it was a genius idea.
Because there was nobody out there, so if you had to pick up what’s a jacuzzi or you bought like a really big table, you know, where do you buy or what do you run a trailer. You can’t you all. They have the car trailers where things just fall through the middle with this guy. He had flat bed trailers for $100 a day now. He’s got a little over 60 trailers. He does forklifts, trailers, 2 car hauler trailers, heavy equipment trailers,, even the semi, a big dumpster truck trailers does all that stuff.
Opportunities for you to grow your business
So once you get your license is going be much more opportunities for you to grow your business and the rental car market don’t get crushed into just believing that Turner was the only way natural is a good platform to get started but it’s not the way to grow your I guess your company and build volume because every time you make a step forward trails going to take a piece of that pie plus you run the risk of at any time we’ve done a few videos about this.
I’ve seen people get kicked off the platform for some B. S. reasons now they’re arguably kicked off for the jet reasons but they’re somewhere like if you’re driving a car and this is one of my students the the customer is driving the car could make it back on time said that the car was unsafe was shaking and vibrating and so he left there at the airport and took off so you didn’t have to bring it back to the customer not only did the customer get the money back
He got a bad mark against himself on Turo, and then you had to go prove that there’s nothing wrong with the car when you race he had 3 of these people come within one month and they basically kicked them off the platform, you know, and so that’s some of the stuff that you don’t want to run, put all your eggs in one basket if you’re doing Turow make sure you also do hire car put on the 2 cars on separate ones if you guys are worried about that their exclusivity contract that’s fine but one car one platform to another, and the other one just don’t put all your eggs in one. Get more, you’re building this and you’re becoming successful. Really think about getting your dealer’s license and rental car license. With this, we can expand and grow your business