How To Launch A 6-Figure Private Car Rental Business In 60 Days or Less!

Added: Aug 20, 2023

Mike begins by explaining the two major models in the car rental business: the car sharing model and the private rental model. The car sharing model, exemplified by platforms like Turo, is more customer-oriented and prices are constantly crashing due to competition. On the other hand, the private rental model, similar to traditional car rental companies like Avis and Enterprise, allows for higher prices and greater profitability. Mike gives an example of the pricing difference between the two models. For a Corvette C8, the speaker estimates that it could be rented out for $150-$199 per day on an app like Turo, but in the private rental world, it could be rented out for $599 per day minimum. This demonstrates the higher profit potential in the private rental model. In terms of profitability, Mike suggests that starting off, one should aim to make at least $10,000 per month in profit. This can be achieved with just three or four cars. The speaker emphasizes that it is possible to start a car rental business with no cash, no cars, and no credit. By forming an LLC and leveraging business credit or partnering with someone with good credit, it is possible to obtain financing and get started in the business. Mike addresses common concerns and misconceptions about starting a car rental business. He explains that age is not a barrier, as one can start as young as 18 years old. They also dispel the notion that a lot of money is needed to get started, as cars can be obtained with zero down payment. Additionally, he explains that perfect credit is not necessary, as business credit can be built up or joint ventures can be formed. One of the main obstacles people may have is the fear of liability. Mike acknowledges this concern but explains that there are controls in place to reduce, eliminate, or transfer risk. These controls include insurance coverage, vetting customers, and using tracking devices in the cars. Mike shares his own success in the car rental business, earning $567,000 in one year with just 12 cars. He also mentions that many of their mentees are making six figures in the business. The speaker believes that success can be achieved regardless of location, as long as there is a good niche and target audience. Mike also shares some interesting and funny stories from their experience in the car rental business. He mentions customers who are addicted to renting cars and rent them every Friday like clockwork. He also shares a story of a customer who rented a BMW I8 for 11 months, paying $4,700 per week, totaling $178,000. Mike stumbled upon the car rental business while searching for a way to generate passive income. He realized that there was a demand for private car rentals, especially in the gig economy space, where people needed cars for services like Uber and DoorDash. He saw an opportunity to provide these cars and make a profit. Mike emphasizes the importance of customer service in the car rental industry. He believes that providing a premium experience and convenience to customers is worth the higher price tag. Additionally, customers are more likely to take care of your car if they have a personal relationship with you as a neighborhood business owner. For those interested in starting their own side hustle or leaving their corporate job, Mike offers valuable advice. He encourages people to find passive income sources and stop trading their time for money. He suggests getting an LLC, cleaning up credit, and learning financial literacy as essential steps to pursue your dreams. In terms of the car rental business, Mike sees tremendous growth potential. The industry is projected to continue growing, especially with the rise of the gig economy. He believes that people like him, who provide cars for gig workers, play a crucial role in supplying the demand.