Start Learning!
How to Earn $1200 Per Car Renting to Rideshare Drivers!
Contents of this page are solely based off of investing your vehicle with a Carshare Platform.
For optimal results you should contact us or a trusted professional.
This is a simple road map to our success on the carshare rental journey.
CONTENTS
1. CARSHARE VS PRIVATE & LUXURY RENTALS
2. COST TO GET STARTED
3. CASH VS FINANCING
4. ESTABLISHING BUSINESS ENTITY AND LICENSE
5.COMMERCIAL INSURANCE, REGISTRATION, & GPS
6. FINDING YOUR CAR
7. WHAT TYPE OF CARS TO BUY
8. MAINTENANCE & REPAIRS
9. PLATFORMS
10. START RENTING THE CAR
11. HANDLING OPERATIONS; DAILY REPORT
12. FILING TAXES
CARSHARE VS PRIVATE & LUXURY RENTALS
CARSHARE
Carshare, you will be lending your vehicle to a technology platform (i.e getarpund, turo, ac2go, or join Carshare Payouts), & on these platforms your vehicle will be rented and you will earn a percentage - thus why its called CarShare.
Carshare Platforms:
AC2GO
TURO
GETAROUND
PRIVATE RENTAL
A Private rental business where vehicle, software, marketing & branding is solely owned by the organization who is renting the car, therefore so is the profit.
LUXURY
We specialize in economy vehicles due to its low requirements + max profitable startup stages to begin with for a sustainable stream of income.
However we have rented some sports premium vehicles such as Dodge Chargers/Challengers, Lexus RX & Jaguar with success tiered to a different crowed.
Here we will focus on economy vehicles.
COST TO GET STARTED
$100 LLC FORMATION
$100 GA LLC Formation
$250 Vehicle Purchase Assistance
Vehicle Purchase Assistance: Recommended budget starting amount $5000.
+250 Purchase Fee
+250 GPS Install
Total $5500
$5500 CASH CAR VS FINANCED
If Financing;
$1-2k down,
$300/month max,
4/yr loan max,
typically minimum 550 credit score needed.
Dont finance anything over $10k as to not let it cut into your profits.
01
UPSTART.COM -
You can apply for a personal loan and get funded under a week.
OR LINES OF CREDIT - you may pull from any existing lines of credit to fund your business or apply for new with your bank.
02
CASH -
If you have access to saved capital already then we recommend moving forward with starting your cash fleet to minimize risk and increase profits.
03
FINANCING -
if financing w/ dealership see previous page to see recommendations for loan terms.
04
JV -
Joint Venture is when you team up with someone who can qualify to either get the car or the capital.
I've done this with my aunt and cousin!
Establishing Business Entity & License
Some people will operate as a sole
propietor however we feel it is best to either establish an LLC or S- Corp.
We recommend this is so that any liability from your business is not tied to you personally. In the event something were to happen, only your business assets would be at risk and not personal.
Every city and state does not require a business license for your carshare business. Just contact your local city clerk to find out if its necessary for you obtain one. In most cities you do not need one unless you are at a physical building .
ONBOARDING
COMMERCIAL INSURANCE
Private Rental;
contact GMI - all cars must be registered under LLC and must have $2500 down payement to start with 2 car minimum.
For Carshare insurance;
seek ABI or Roamly carshare.
Tip: (OK to temporarily leave your liability only insurance on there but eventually you do want to switch as this is now your investment vehicle and not a personal one. )
On average commercial insurance is $200 down, $75-95 a month PER CAR, varies state to state.
$75-95/mo
REGISTRATION
Consult your county tag office and obtain registration and tag for your rental vehicle, preferably under your LLC
.
In the state of GA, tag renewals are annual but please consult your local tag office to find out about your city and state as it may not be needed.
$300-800+
GPS
The GPS will allow you to track your vehicle during time of rental and shut it down while parked if needed.
Passtime Oasis and GPSandTrack.us
$250
(device and install)
How Does The Insurance Work?
PRIMARY - Gig Services
Gig services typically offer insurance for the drivers while their online making deliveries.
In the event they get into an accident, the Platforms Insurance kicks in first.
SECONDARY - Platform Coverage or Customer Vendor
The platform you sign up with typically offers some type of coverage. Look into these options when choosing your packages as they further discuss coverage limits provided.
Most times platforms insurance kick in when the driver is still renting the vehicle but remain OFFLINE from their gig services.
When renting as Private Rental, your insurance vendor kicks in.
- Search RentalCover.com or Bonzah.com
THIRD - your commercial FLEET policy
The state of GA requires vehicle owners to carry minimum liability.
When starting, your liability fleet policy will allow you rent the vehicle out commercially, however it will only cover the interest of the vehicle.
No coverages are provided for the rental driver, especially while driving for gig services.
Claims here will primarily be filed if/when an employee is found at fault, while driving for business purposes (like dropping off to the shop or carwash).
Ways to get started!
FINDING YOUR CAR
Using Existing Vehicle
There are many owners that have left an extra vehicle sitting in their drive way. If this is you, that Camry, or Altima that is just sitting in your driveway could possibly be already earning you $1k a month.
Financing a Car
We are not big on financing vehicles, however we have many owners that do. We do recommend a cap of $300 a month on your car note, the reason being is because it keeps your expenses low.
One of the things to consider when having a rental business is that the car can get in an accident, so you want to minimize any recurring expenses as you wait for the car to be repaired or reimbursed.
Cash
We always recommend and prefer that you purchase vehicles with cash to increase profitability and minimize risk.
Keep 25% as savings for repairs, damages, and tows.
WHAT TYPE OF CARS TO BUY
In this purchase we are looking for an economy car at a specific price. Just enough for it to run for hours with minimal maintenance & reliable long term, with aim of making our money back within first 3-6 months.
We dont want to overspend on a vehicle when we can make the same amount of money from a car that is 2-3 years older and save $4-5k.
CRITERIA:
10 YRS or younger preferred;
DARK INTERIOR - DO NOT BUY LIGHT COLORED SEATS!
- EASY TO STAIN
lowest mileage that you can (no mileage limits, the lower the better).
Average Recommended price range
We've narrowed this list down to our top performing economy vehicles for long term performance and minimal expenses.
$4000-5000
VEHICLE BRANDS
Nissan Versa, Sentra, & Altima
Toyota Yaris, Corolla, & Camry
Chevrolet Impala & Malibu
Honda Civic, Accord, & CRV
MAINTENANCE & REPAIRS
Your average Rideshare driver can drive up to 50,000 miles in 1year.
This means you can expect to follow up on your vehicle monthly for regular check up;
oil change
brake pads
air filter
fluids
Recommended to purchase warranty for Engine/Transmissions as these may go out on you at any given time even if keeping up with regular maintenance. Average engine/transmissions can cost $3-5000.
But no biggie if you dont. I never did but some of my investors did and it worked wonders!
Ask your local auto parts store, mechanic and bodyshops for dealer rates when working with them.
Let them know you have a fleet and wonder if they offer Fleet Discount
PLATFORMS
CHOOSING YOUR PLATFORM
Take time to research platforms and see which split packages work for you. As an example, if you chose 80/20, you will retain 80% of the profit and your platform will keep the other 20%. So if you made a 1000 dollars, you're going to keep $800 and the platform that you're utilizing is going to keep $200.
Its also important to make note of what deductible your protection packages also determined.
Some items are covered based on your deductible like tows and cleanings!
So the more you keep, the more you pay, when something happens to your vehicle, typically.
HANDLING OPERATIONS AND DAILY REPORT
Payment Processor 1
Square.com
Payment Processor 2
PRO TIP:
Once the vehicle is returned be sure to inspect for
cleanliness, regular maintenance,
&
damages prior to re-renting.
Stripe.com
Maintenance to be followed up on monthly.
Payments must be caught up at all times to avoid repo.
Follow up daily on payment status to avoid unpaid days & theft by conversion.
Repo on day 2 of unpaid balance to minimize unpaid days and get it re-rented to a reliable renter.
If you COMMUNICATE this clearly ahead of time, THIS IS WHAT CREATES THE MAJORITY OF THE PASSIVE INCOME.
Example Txt sent to Customer:
"Per company protocol we cannot rent with unpaid balance past 24 hrs as they legally turn the vehicle to theft by posession.
We avoid by repo. Please confirm keys are in center console for staff pick up if not extending."
You're almost ready!
Putting all of this together means one sweet recipe for minimized losses/wasted time & smoother/accelerated operations!
With this formula every car you purchase will be specifically attracted to a gig driver who will need to rent for Rideshare purposes such as Uber, Lyft, Doordash, Amazon Flex, UPS ROADIE, you name it!
So much so that many private rental companies have resorted to posting on fascebook (so have we) to get leads!
As basic as this information may sound, it is truly the basic foundation to our bread and butter.
Your profitability come in how many discounts can you set up at your local auto parts, auto mechanic shops and bodyshops! As well how well do you timely clean, inspect and re-rent the cars.
Your biggest expense will primarily always be maintenance and damages under your deductible (typically $2500).
START RENTING!
Take the time to list your vehicles appropiately with the GPS installed.
*****DO NOT RENT WITHOUT GPS INSTALLED*****
With CarsharePayouts, we have laid out all the information needed for you to get started on your own in no time!
You could have your first renter soon as this week depending on your access to funds and time to act on the car puchasing, crm handling / platform you have selected!
To do it as a PRIVATE RENTAL get a CRM to handle your contracts, handle payment processing & customer vendor insurance.
- Must also get an office + business license depending on your county.
If joining a platform to receive payouts, skip this step as they come with automatic CRM and payment processors in them. No office needed.
CRM 1
https://fleetfinesse.com/ $97 /MO
CRM 2
https://booqable.com/ $27/mo
Filing Taxes
WHen opening your LLC, move foward with obtaining your EIN for bank account.
Use the account for business purposes ONLY.
Use the bank statements at the end of the year of to track your expenses until you get to the level that you need to categorize and use the quickbooks.com or equivalent.
Ready to Drive Success?
Take the first step towards financial freedom today!
Explore our innovative services and investment options to unlock a world of opportunities. Join Morales Drives and start your journey to wealth creation.
©Copyright. All rights reserved.
We need your consent to load the translations
We use a third-party service to translate the website content that may collect data about your activity. Please review the details in the privacy policy and accept the service to view the translations.