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Why buying cheap cash cars is a terrible idea
Main Post:
So, I started hosting on Turo a few months ago. I saw many people here suggesting that you should buy a few cars as cheaply as possible (around 4-5k$) and rent them out for low prices as well. Let me explain why I think this is not a good advice.
From my experience, guests don’t give a damn if they paid a very low price for your car; they still expect the best quality possible and they have no mercy when shit happens. Cheap cash cars that are around 4-5k$ often come with high mileage, say over 100,000 miles, and even with very diligent maintenance, they will eventually break down. This not only means spending a lot of time in the garage, but also alot of stress dealing with guest’s complains about issues like check engine lights, small noises here and there etc. These issues might not be severe but can be very annoying for customers that expect perfection for 35$/day.
As a result, you will receive a lot of four-star reviews, or even three-stars, which will lower your overall rating and your percentage of five-star reviews below 80%. This will lead to a warning from Turo and potentally the removal of your account. My 5-starts percentage is actually 78% (rating is 4.82) and I’ve just received a warning, despite putting a lot of effort into offering the best service possible, despite all my guests consistently praising my communication, prompt responses, friendliness, professionalism and the cleanliness of the cars. However, some of my cars still get four-star reviews simply because they’re not fancy or because minor issues arise, like the AC stopping during a trip, or a check-engine light popping up. I even had a car receive a three-star review where the guest said everything was in order, but they didn’t like that the car was “quite old and a bit rusty”. All this for little money.
This experience leads me to believe that Turo is a better platform for renting out cars that are in high demand, such as SUVs or minivans, or reliable economy cars like a 2018 Toyota Corolla (~10k$) rather than a 2012 Ford Focus (4k$). There also seems to be potential in renting out high end or entry-level luxury cars.
I’m currently working on improving my ratings by removing problematic cars and keeping the top three performing ones. I hope to correct this situation because I enjoy using Turo and plan to invest in more suitable cars in the future. I’m curious to know, what do you all think about this?
Top Comment:
Sounds like you chose the wrong cars and you're not mechanically inclined. I'm up to 6 cars, only hold up has been acquiring more space, but I've been hosting a while longer than you and my ratings are doing fine. You're right though, it's not for everyone. Especially if you thought you could just buy cars cash and then pay someone else to do all the work regarding maintenance and mechanical issues. That's something you should have planned for. Buying the right cars is also something you should have put more research in to. You don't need a 2018 corolla. You could find a 2012 Camry or Corolla and make just as much.
Turo is not for everyone.
Oh and if you bought a 2012 Focus, you got it cheap for a reason. Those transmissions are known to be problematic. As well as the CVT's in Nissan and Hyundai/ Kia are known to have bad motors on some models.. do more research
What's the cheapest way to get foreign cash ahead of a holiday these days? (plus a side question on the baffling economics of money exchange businesses)
Main Post:
Hi all, main question is in the title, am off somewhere where cash is still extensively used so need to get hold of some and am not clear on the cheapest method these days. Bureax de change? Cashpoint once I reach the country? Web-service? I assume not the rip-off rates at the airport unless a lot has changed.
My second question is on the economics of these businesses. Places like Tesco and the Post Office offer better rates for buying online or buying larger amounts of money on the basis of fewer overheads and economies of scale respectively.
However even with discounts both are consistently offering worse rates (even when Tesco did a special online "sale") than small indie exchange shops in central London who have physical stores in zone 1 that must cost a lot to rent and who surely don't have the extent of capital and hedging ability that corporate giants like Tesco do. They also have way more staff than any Tesco Bureaux De Change who work faster. What are those companies doing to beat the big guys so consistently? Pre-pandemic they were my go to for all currency exchanges and they always offered the best rates - checking online they still do now, I now work from home so getting a train into London no longer makes them a worthwhile option for me.
Even weirder I've had them offer even further discounts when they haven't had a currency in stock and I'd have to wait a day to prevent me walking down the road to a rival who has it in stock meaning they must have additional leeway on their already competitive rates where they can still make a profit. They don't offer any discounts by quantity either so getting £20s worth is the same as getting a few grand.
Top Comment: Cashpoint once I reach the country? This, with a debit card that doesn't charge for foreign withdrawls (Like Starling and, I think, Monzo)
Where in Europe is cash still the most common payment method?
Main Post: Where in Europe is cash still the most common payment method?
Top Comment: Wait until you are in a French supermarket and someone before you pays with a "checque." You wish they would pay with cash.