In August 2017, my friend Chad explained to me a concept that would later change how I viewed car ownership. He said that he had 2 Teslas (Model S and Model X) and that they were paying for themselves. How in the world does that work!?!? I decided to dig in…
First, I went to Tesla and test drove the car to ensure that I actually wanted it. Short story, it was AMAZING! (Obviously, I own one now!)
Second, I got on the phone with Chad and we talked through some questions I had. e.g. Why were people renting from him? How long was each trip? What happens when the renter damages or wrecks the car? How many times a month are you renting?
Chad and his wife, Min, were nothing but excellent mentors through the process. They were eventually featured on Business Insider shortly afterwards! Click here to view the article.
Third, I broke out my accounting skills and modeled out how this would work, what my market rate would be for the car, and how many times I would have to rent out to have the car pay for itself. Though this was risky to me, it was calculated risk and I was willing to bet on myself.
Fourth, I went to Tesla’s website, picked out my DREAM car and added every feature I wanted, including Auto-Pilot and Full Self-Driving Capabilities.
- In total, it cost me about $100K with $19K down
- Approved for an $80K loan at .99% (72 mo term)
- $2500 gets returned via the CA Clean Rebate Project
- $7500 federal tax credit
Fifth, the nerve-racking part began….having this car pay for itself! I quickly listed it on Turo shortly after receiving the car. Process as follows
- We first created our Turo account using a sign up code ($25 added credit) that Chad gave us (Thanks Chad!). You can do the same by clicking here to access ours.
- Before listing, we needed to set our rules and guidelines for renting our $100K car! We utilized advice and research to craft what is now our listing.
- We scheduled a free photoshoot (provided by Turo) to increase the attractiveness of the car.
- We made business cards to hand out to people who were wowed by our Tesla, that way we could produce our own customers without Turo being the sole network.
- We prepared checklists on how to properly pre-inspect and post-inspect the car’s condition. This has saved us as we had to file a claim on our 2nd rental!
- We prepared checklists for teaching the renters how to use the car, that way they have an incredible experience.
- Lastly, we learned. We listened to the customers and incorporated their feedback.
For those trying to take their first stab at a business, want to prepare for doing a similar business with property, or just want to own a Tesla, I’d highly recommend it. It is such a fun experience to coordinate with renters and it is a great bonding experience for my fiancee and I.
Our listing can be found here.
Buying a Tesla? Get $1,000 off AND free supercharging by using our code here.
Interested in getting help on this? Contact us!