Im interested in how this works on the dealer side. Most dealers don’t own their inventory, they’re financed through “floor planning” companies like AFC.
Dealers pay substantial fees for the short term credit required to keep these things on their lots.
It seems like bad business to pay a huge finance fee only to rent the car out and have it not be on your lot anymore.
I’m also pretty curious about the tax and registration implications here. Dealers currently enjoy very different insurance, tax, and registration modalities than consumers do. State regulatory bodies are really sensitive to fraud in this space (getting a dealers license so you don’t have to pay tax on your super car is a common structure). If you are now buying/financing vehicles for the purpose of renting them out, it seems like you’re in a different classification than an automotive dealer.
Seems to me that targeting consumers a la Turo is much smarter. Curious the rationale surrounding this model.
Dealers pay substantial fees for the short term credit required to keep these things on their lots.
It seems like bad business to pay a huge finance fee only to rent the car out and have it not be on your lot anymore.
I’m also pretty curious about the tax and registration implications here. Dealers currently enjoy very different insurance, tax, and registration modalities than consumers do. State regulatory bodies are really sensitive to fraud in this space (getting a dealers license so you don’t have to pay tax on your super car is a common structure). If you are now buying/financing vehicles for the purpose of renting them out, it seems like you’re in a different classification than an automotive dealer.
Seems to me that targeting consumers a la Turo is much smarter. Curious the rationale surrounding this model.