Thinking about buying a Bronco Sport....

[MaverickMan]

.... so we can buy a pay for our real Bronco. As some may know my wife went through a cancer battle and is coming out of the other end feeling like she shouldnt be carrying lumber up ladders in the hot sun any more. She is still a baddass but just doesnt want to do it for a living anymore. So recently she heard about someone making a good living renting their car on Turo. We did some research and the Bronco Sports are pulling in 200+ a day here on Maui. Even at the average monthly usages of 17 days at 70% take home and 25% taxes, then insurance and payments 1 Bronco Sport rental would pay for a nice Badlands non sas in monthly payments. 2 or 3 would give her a solid income rivalling or beating what she made before. With our Ford stock investments paying for our retirement and Bronco buying a Bronco then paying us to work with and maintain Broncos just feels right to a guy who has bled Ford blue since before the cut off the placenta.

Any thoughts?
Experience?
Haters?
Anyone curious if I will add more cup holders?
Should I just rent out MIC tops in Antimatter Black?

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[BreezyNVegas]

I just rented out my 2013 F-150 last Saturday on Turo for the first time. Made $37 dollars. But I was testing it out and used the Automatic Pricing and the 70% plan. I keep 70% Turo gets 30% and my deductible is only $250 if they wreck it. Try it with a car you currently own and see if you like it.

 

[Nickp]

For a comparison vehicle (not exactly the same but close) a JL wrangler in Nashville for last week was $650 total for 4 days. If the owner gets $300 of that? If you do that 6 times a month that’s $1800 a month, not too shabby for very little worth and the tax benefits of having a 1099 side hustle. And I assume in Hawaii that the numbers might be even better than that Nashville JL.

 

[Philly]

Could be an awesome plan if you have enough rentals! I started looking into it after you posted and I would totally do this if I knew for sure people would want to rent mine. I won't need a car until late August/September and even then it will only be about 3 days a week... very tempting!

 

[peta8368]

I think Hawaii have a special climate right now. The tourists are flooding the islands, and there are not enough cars to rent. Tourists are renting U-Hauls because they couldn't get a regular rental.

If this works out for the OP, more power to you!

https://www.travelandleisure.com/travel-news/hawaii-tourists-renting-uhaul-trucks
https://www.hawaiinewsnow.com/2021/04/22/why-are-visitors-cruising-around-u-hauls-blame-pandemic/

Peter

 

[MaverickMan]

Yeah I've seen plenty Uhauls and Lowes trucks lately plus alot of people renting their lifted jeeps and tacos, more than the ones who do it normally. The 3 Broncos on Turo now are between $220 and $280 a day. It sounds like it is alot of airport pickups and drop offs. Which is fine we are looking into eventually putting tow bars on em. Alot of cleaning in between trips, no big deal. The 17 day utilization was just from Turos website. Honestly now it looks like it could end up being rented nearly as much as possible. Even before covid and the car shortage new or newer car rental are all up around $120+ so it seems like It could be a good experiment.

We are gonna go try and take a test drive this week so we will see how it feels. We only ever drive our 96 Bronco, 93 ZJ, and 91 Comanche. So it will be a little different for us. Too bad we cant take it down our road and driveway to see how tough it is.

 

[Beach_Bum]

I've been clear in the past that the only viable Sport trims for ownership is the Badlands (and FE). But if you have no attachment to it for personal off-road use and are only looking to rent, then I would grab a Base or Big Bend Sport. They are terrible with the 1.5L, and you don't need to pay for leather roast that comes with the OBX. But with the lower trims, you can than slap some tint, new wheels/tires and provide the look and feel of a faux off-roader. Those that are daily renting are just looking for the experience and to tour the island. They aren't going off-road, but only want the look of being able to. You are selling an experience.

 

[cybersal]

Sounds like a good idea, hopefully no tourist will wipe out on the Road to Hana.

 

[Headsong]

Don't forget the tax aspects, and insurance costs for renting! Renting personal property (not real estate) is self employment income, so you have 15.3% on profit for SE/SS tax + your Fed and state rates. For most folks, you can easily be 50% tax on profit....

 

[MaverickMan]

Don't forget the tax aspects, and insurance costs for renting! Renting personal property (not real estate) is self employment income, so you have 15.3% on profit for SE/SS tax + your Fed and state rates. For most folks, you can easily be 50% tax on profit....

At these income levels I have been figuring about 25 to 30% for taxes. I will definitely check in on that though. 50% is a bit much. I pay 26 to 28% on my w2 and my wifes as a independent contractor usually pays 18 to 20% so I figure 30% was a safe. But I will check.

This is all good info everyone. Keep it coming if there is any more.

I do think we would get a lower trim to start and put mean tires on it later. I would also sell them the experience of a "trail day" and take them on some easy dirt roads to scenic spots behind our big Bronco. For the experience.

 

[Headsong]

At these income levels I have been figuring about 25 to 30% for taxes. I will definitely check in on that though. 50% is a bit much. I pay 26 to 28% on my w2 and my wifes as a independent contractor usually pays 18 to 20% so I figure 30% was a safe. But I will check.

This is all good info everyone. Keep it coming if there is any more.

I do think we would get a lower trim to start and put mean tires on it later. I would also sell them the experience of a "trail day" and take them on some easy dirt roads to scenic spots behind our big Bronco. For the experience.

And add the SE of 15.3. Again, that's on profit, so after depreciation, interest, insurance, r/m....

 

[Cheshire]

.... so we can buy a pay for our real Bronco. As some may know my wife went through a cancer battle and is coming out of the other end feeling like she shouldnt be carrying lumber up ladders in the hot sun any more. She is still a baddass but just doesnt want to do it for a living anymore. So recently she heard about someone making a good living renting their car on Turo. We did some research and the Bronco Sports are pulling in 200+ a day here on Maui. Even at the average monthly usages of 17 days at 70% take home and 25% taxes, then insurance and payments 1 Bronco Sport rental would pay for a nice Badlands non sas in monthly payments. 2 or 3 would give her a solid income rivalling or beating what she made before. With our Ford stock investments paying for our retirement and Bronco buying a Bronco then paying us to work with and maintain Broncos just feels right to a guy who has bled Ford blue since before the cut off the placenta.

Any thoughts?
Experience?
Haters?
Anyone curious if I will add more cup holders?
Should I just rent out MIC tops in Antimatter Black?

It is a good idea in Hawaii. My friend rents several vehicles here in Miami Beach on Turo and the rates are suprisingly high. Hawaii is even more as I've read. Most renters get a free 200 miles per day. In South Florida many drive from here to Key West or Orland and rack up the miles. Except maybe the Big Island renting a car in Hawaii benefits from renters putting on low mileage.

I'd be confident that you'll get high rents for at least two more years which should be enough time to pay for the second vehicle. Remember, someone's going to have to clean the vehicle after each rental whether it be you or someone you hire.

 

[MaverickMan]

And add the SE of 15.3. Again, that's on profit, so after depreciation, interest, insurance, r/m....

What is SE? Is that not part of income taxes?

 

[Headsong]

What is SE? Is that not part of income taxes?

Self employment.. Aka social security.

 

[MaverickMan]

Self employment.. Aka social security.

Oh ok. Im just a working stiff. Only did 1099 one time and it was a bit of pain in the ass. My wife is the opposite shes always been contract labor so she is up on the lingo a bit more. Shes got her regular taxes and he GE taxes. Not sure which is what but a 40k a year they never add up over 20% for her. Not sure where that leaves us but Im sure we will talk with her tax lady before we sign anything. Even if we only take home 50% thats about $120+ a day everybody stays for about a week. 3 trips a month thats over $2000 cut it in half for u surance and payments and upkeep. Run 1 car for a while, if we like it try 2 or 3. If she can beat her construction wages on 3 or 4 cars we are golden. Next they will move me up to fries, then assistant manager. Thats when the big bucks roll in.

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