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> She purchased a Prius last year specifically to rent on Getaround, using the money to cover both its monthly costs and those of her primary vehicle. That see
by bsg75 7y ago
> She purchased a Prius last year specifically to rent on Getaround, using the money to cover both its monthly costs and those of her primary vehicle.
That seems like a risky move, and an attempt to compete in the general car rental business without the protections of a well established business (compared to a startup).
While it may make sense for a car owner to assume some risk to recoup costs on a vehicle they already own, buying one for the sole purpose of renting it out seems less sensible.
- hkmurakami 7y agoI guess they were engaged in a form of carry trade and are trying to unwind their trade now, so to speak.
- JumpCrisscross 7y ago> they were engaged in a form of carry trade They bought a productive asset with credit and found it was less productive than it cost. This is simply capital expenditure. Not a carry trade.
- mdgrech23 7y agoThis. People don't think things out. She probably heard or knew someone who did this and "made a killing" and decided to follow suit. I can see the allure, buy the care you want even if you don't have the cash and use to one clever trick to make payments.
- refurb 7y agoIt sounds like it wasn't some sort of investment decision, but a setup that worked for this person. Say you live in a major city and need a car, but it would sit there parked 80% of the time. You can't justify the cost. But if you could rent it out that 80% of the time, you end up in a situation where you have a car to use, but it's either costing you nothing or making you a little bit of money.
- caseysoftware 7y agoBut that wasn't this situation: > She purchased a Prius last year specifically to rent on Getaround, using the money to cover both its monthly costs and those of her primary vehicle. She bought an investment vehicle (no pun intended) that worked for a while and then crashed (still no pun intended). She overextended herself and can't handle the downside.. this feels like a bit game of musical chairs and she was caught without a seat. :|
- Swenrekcah 7y agoSo after some consideration she gave the green light on an investment vehicle, but unfortunately as demand hit the brakes, it took a wrong turn and ultimately crashed? All puns intended, I apologise and will see myself out.
- caseysoftware 7y agoI thought you were going to swerve into a point but looks like you ran out of gas before then. Regardless, thanks for pumping the breaks and bailing out.
- refurb 7y agoI misread that statement the first time. I didn’t realize this was in addition to her primary vehicle.
- tgsovlerkhgsel 7y agoIf you do the math in theory, it sounds like an excellent idea, and the various startups tend to portray it as risk-free to attract providers. Of course, practice looks different, and many start-ups/gig-economy/P2P lending/... prey exactly on people who don't recognize the difference between theory and practice. Uber looks like a great thing if you only count gas money not depreciation of your car. That camera lending startup that made the front page a couple times ago looks like a great idea until you realize that despite their assurances which sound like you're covered, you're SOL if someone just steals your camera.
- nikanj 7y agoAlas, cars don’t operate on an artificially limited supply the way homes do, so plays like this work only for for AirBnB, not Getaround. Oversized rents like this don’t really work out if supply is able to meet demand properly.