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- เผยแพร่เมื่อ 10 เม.ย. 2018
- Ed has seen what it costs to buy, own, and operate exotic cars for years from the perspective of rentals and sales. In today's video he shares what goes into that honest calculation.
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I have it on good authority that a slight fire helps with the purchase price.
ahahah your videos are amazing tavarish keep up the good work
Hmmm.... 1: Scope out car you like. 2: set it on fire when no one is looking. 3: PROFIT! Or is that a bad business model?
Chris Gagnon hmm. Maybe I should try that. No no no that's a bad business model, or is it?
Modded01gt Cars wow ur cool
Tavarish I’m still waiting for this sl manual transmission. My cls55 is waiting
Someone said, "If you cannot afford 2 Ferraris you cannot afford 1"
Ram Mich yeah. Ppl spend anywhere around 100-200% of there yearly earning worth to buy a car
I don't know, there's some pretty cheap ferraris out there
Cheap? If you have to start your search by clicking "sort, price low to high", you can't afford a Ferrari.
@@timesink8947 that's not true
Ram Mich Who?
So much education happens here.
for sure.
More then any school would teach you
GOLD! pure gold, baby!
Spot on Ed. Most people are in love with the idea of owning an exotic but not thinking clearly about the overall cost of ownership--it more often than not, an expensive hobby/adventure. Still you only live once.
Please don't believe this hater. He is angry because he cant compete with people who dont need to pay location, storage, employees, business licenses, and taxes. Anyone who owns an exotic or two can make an easy 25 grand minimum a year after maintenance, tires, payments. And that is at 600 dollars a day, 10 rentals a month. At 75 miles a rental you would be at 9000 miles a year. So tires and oil change would be covered with 15 grand easy. If the car is making you 6000 a month, in a year thats 72000. Subtract payments and maintenance that 50 grand. Leaving you with 22 grand and thats only if your renting 10 days out of the month!
@@malourocha9211 Whats your cost of capital, wheres taxes, commercial insurance, business filling, random 40K mistakes, depreciation for every mile driven, etc etc. If you actually do the math like an accountant its going to cost moth then you think.
@@dstblj5222 40,000 dollar mistakes? If you make 40k mistakes then you shouldnt be in any type of business. As for taxes, capital and all that other stuff. Well you obviously didnt do the math. Thats 600 dollar a day price to rent. At 10 average rentals a month, thats 72000 dollars a year. In five years it pays itself off. Only do it with one or two vehicles. Only do it if you have good credit. Only do it if you can afford to. Why woulf you voluntarily pay more fees or taxes? Register the car in another state to avoid certain fees in a worst case scenario. Im just stating that this guy clearly has made plenty of cash renting cars and cant compete with these services that allow people to rent out there expensive cars out for a few days out of the month. that literally covers the payment. The benefits are no rent, No location, storage, employees, only cost are maintenance, insurance, and advertisement.
@@malourocha9211 Ed himself describes the customer who caused and engine to explode, you need to subtract 14,000 ish dollars from the income each year at a minimum for taxes, or you need to make sure you need you have an S corp or LLC and never never never pierce the corporate veil, we saw how the Montana license plate move worked. Your still not factoring in the depreciation of the car with every mile driven, and your standard insurance policy explicitly disclaims rental activity in 99% of cases so you need commercial insurance, which costs more, hence another cost. It might be profitable but you really need to see your realistic cost of ownership per month and per mile before you get into doing something like that.
dunno if the fun and new lifestyle is worth it
This channel has changed my viewpoint on my future careers.
Thanks everyone
Yeah, yeah, yeah...I still expect to own my dream car for free.
Brett Bilger And on magic. I was all like, “timing belt!? The timing is run by Golden unicorns, what is this timing belt pifflecock??”
1995 Nissan skyline R34
Dreams don't cost a thing buddy.
Exotic car hacks
@@neltondeleon8470 Just buy one, they are only like 40k
As a repo man, I can attest to the fact that a lot of people dont factor maintenance into ownership costs
I bet you get a good laugh at people. I'm sure you don't laugh at repoing Honda civics but Ferraris? You can't help but laugh at their dumb ass! Trying to impress people and not realizing that car payments are nothing compared to what comes with a Ferrari.
Definitely need to tell more informational videos like this. Keep up the great work Ed.
Chris Mckay informative?*
I've mentored a lot new small business owners and giving this same kind of talk regarding how much they charge hourly, project based or for something they create. People regularly have no clue what the "true" cost of operation is. I always get the "I can't charge that... no one is going to pay x", then I lay down their operating expenses, estimated business volume, etcetera and show them the bottom line of how much they have to charge just to break even. Then I explain the brutal truth, that you can't beat the cut rate world and you can't market to people looking for a "deal", you have to market to the person looking for a better experience, better product or what have you and ignore all the people crying about how expensive your 'x' is.
Now watch all the Turo prices increase
pls no
Not only is this true in the exotic car rental market, but its overwhelming how many many businesses are operating and have no idea of what their true cost is. Typically, you'll start to hear from vendors of how "Business A" has not paid them. Or how "Business B" just got shut down and is Chapter 11 or worse due to tax evasion. Being in the construction business, I see trades bid work and are awarded the contract and it is even less than my true operating costs! So....moral of the story, to all you people who are reading this and thinking of starting a business, do as Ed said and pay attention to your fixed overhead and your variable costs. This is a great lesson, Ed. Thanks for another great video
fyi, if an employee is paid $10.00 an hour, on average, the company is paying $13.60 an hour for that employee (taxes, work comp, etc.)
The honesty here is just amazing. Also, for anyone who is looking to buy an exotic, the spreadsheet Ed put in the video is incredibly useful - especially when looking at used cars. Excel for the win.
Tyler McCain yup, the one at 06:23
Please don't believe this hater. He is angry because he cant compete with people who dont need to pay location, storage, employees, business licenses, and taxes. Anyone who owns an exotic or two can make an easy 25 grand minimum a year after maintenance, tires, payments. And that is at 600 dollars a day, 10 rentals a month. At 75 miles a rental you would be at 9000 miles a year. So tires and oil change would be covered with 15 grand easy. If the car is making you 6000 a month, in a year thats 72000. Subtract payments and maintenance that 50 grand. Leaving you with 22 grand and thats only if your renting 10 days out of the month!
@@malourocha9211
So.. Honest question.. How many exotics on turo do you think actually get rented out at least 10 days every month?
I don't disagree with the notion that you would actually make money with that many rentals (not as much money as you think because IMO 9000 miles in let's say, a Ferrari would probably cost a bit more than 15k) but I don't think you'd get that many rentals and even if you don't rent out the car it'll still cost you at least 3-6k a year in maintenance.
@@definitelyfunatparties honestly the answer depends on your location, advertisement, price, and availability. But with a effort and relocation, i assume hitting a yearly 100 rentals is possible. And that does not mean living in major markets, im sure there are people in smaller cities dying to rent there first super car. Also, its going to take a little time at first. Consider...rap videos (underground artist need exotics for videos and self promotion) you got those in any city, college students, business and advertising, models, reunions, birthdays, anniversaries, reviews...etc its definately possible
@@malourocha9211 Maybe, but is it possible to get enough yield at those kind of load factors?
This is the video I've been waiting to see. Great information and now firmly closes the door on my previous thoughts on whether or not to rent out a vehicle (especially an exotic) on Turo. BUT it is also good to know that I could rent one from someone else for much less than it's actually worth.
ED NO! don't explain how people on turo are renting their cars for cheap. Once the secret is out I won't be able to rent them anymore.
exactly! pls noooo
anyone that rents their car out on Turo is an idiot. you're getting pennies for the cost of liability that some idiot won't do thousands of dollars of damage to it.
you really believe that it costs you 500$ to drive a supercar for a day in maintenance ? ofcourse it doesnt , not unless you are racing or doing 1000 miles a day to it .
sami hamouri He explains every factor and you still don't get it...
Step 1: Rent from Turo. Step 2: Drive for Uber Step 3: Profit?
I have a horror story for you all.... "One day.. Ed & Rabbit... are going to run out of stories to tell..."
We are a long way from any risk of that, particularly if industry commentary videos like this work for you.
Oh I definitely believe that I am speaking for everyone here when I say that these videos *absolutely* work for everybody !
can you make a playlist of all the vids that are with ed?
You shut your mouth.
What about Doug? Bottomless well of stories?
When you realise he's talking to nobody behind the camera, it starts to feel a bit weird. He raises good points though.
I recently started using Turo and I have the following to say: Turo seems like it's going to disrupt the rental car industry just like Uber and Lyft did to the taxi and transportation industry. Like said on this vidoes it's unbelievable how cheap some cars are renting for on Turo.
Vehicle Virals yea that’s never going to happen. Not that Turo isn’t a great app and concept, but the mega corporations that own all the rental car companies won’t allow turo to become the next uber. As soon as turo starts looking like it might affect the rental car market those companies are either going to find or create horror stories about personal cars being destroyed, stolen or worse and how ludicrous & insane people are to use the app, thanks to the media in the US being nothing but propaganda for hire turo will become a household name right along the lines of dumb, stupid, insane, dangerous and every other negative connotation. Agin great app that I personally use, but one that’s way to fragile for serious growth.
Also I should say that turo will continue succeed as a boutique, fun, quirky alternative to the traditional rental car conglomerates, but that’s where the line is drawn and they won’t cross it to join the likes of an uber or lyft. Also ill prematurely address the rebuttal that I see people saying that “people said the same thing about uber and lyft and that they would never succeed and look where they are”. And that’s because the taxi industry is such a massively wide spread industry that is ran/controlled/comprised by a massive amount of different governments/companies/people that there was no one, or anything preventing them from stopping something taking over their industry such as uber. There are only a few corporations that control the mass majority of the entire rental car market across the entire country top to bottom vs taxi companies that are a fraction of the size and very localized market so the little resources they have to prevent an uber only has a minuscule local effect against a massive nation wide company.
Long before uber. The thing that stopped a lot of taxis here in the UK were Pakistani taxi drivers, my mate had a brand new car whilst they ran cars that had just scrapped through the inspection. They also ran that cab 24/7 when one got out another got in ,the engine was never cold for 12 month's.
In Europe, you can rent cars from the big rental companies from 5€ a day. I doubt Turo could change things.
Michael Walker what’s wrong with the engine not being cooled down frequently? That’s actually the reason why taxis can be so reliable and cover hundreds of thousands of kilometres.
A lot of people in the car hobby in general do not realize the cost of ownership no matter what genre of car. Fav saying for people complaining about the high price of maintaining a hobby/Specialty car. It costs money to look like ya got it. lol - Great Vid
Rabbit?!
If your vehicle is your hobby, you shouldn't expect that return on it. I know the lowered suspension, custom wheels, random custom touches I've put on my truck will never come back to me but I view it as money well spent. If i spent that money on a different hobby, such as scuba diving, the cost of filling tanks, certifications, instructions, boat rentals are all lost money I will never get back also. For some reason, people are fine with that type loss but when they sink the money into vehicles, they feel entitled to it back. It's just the cost of playing the game if you are bitten by the "car bug".
In some cases true..... I think I get a vid in the works that may open your eyes to cars that damn near always will give ya a good return on your investment.
in the flesh lol
A former co-worker put it best, "you gotta pay to play". I've never seen or heard evidence to the contrary. It applies to everything form the increased cost of tires if you have a top of the line model with upgraded rims, to brakes being twice the price of a base model.
Years ago the sign outside the Kruse auction read "You can't do a burnout in a stock certificate". Exact reason why cars are a "good" investment if done properly.
I came across the first vinwiki video a few days ago and have been hooked ever since.
Ed is not a pretentious douchebag, unlike many car TH-camrs. Keep up the good work and informative videos!
Thanks!
This was a much needed realistic video, in a slew of optimistic, best-case-scenario stories. Thanks Ed! You're a smart man
Couldn’t agree more, the price of owning an exotic can be a lot higher than anticipated with how much the parts tend to cost. I have a buddy who has a 911 turbo and if it wasn’t for the maintenance package he would be in the hole for $30k+. That’s why I always recommend buying a maintenance package that $3k will save you a lot of time and money.
👍🏻
Saw this woman using a new Range Rover for Uber. Like there is no way in hell she is making profit, prob losing money in the long run
Heh, not probably- definitely. Even normal taxis don't make much profit
if she has a range rover i doubt she needs to use uber to make a profit. shes probably doing it for fun
if its new she probably isn't going to have it long enough to care and has warranty.
probably just wanna get fucked by some nice looking customers. I heard from a few guys down in California who only drive Uber to get phone numbers and they also use nice cars to do so, most of the time renting from some rich guy on a monthly basis. They lose money but as they say "still cheaper than filling up bitches every weekend"
She is doing it for the tax deduction. She isnt worried about making money.
I literally get happier when it's an Ed video!!!
Ed, your newest subscriber says "Hi". I stumbled onto your channel a few days ago and have been binging ever since. I like your really-been-there stories, the laid-back style you tell them in, and oh, did I mention just how insanely articulate you are? Thanks, brother, and keep the good times rolling!
Best EC Channel on YT, no BS or Crazy Acting....just true Tales from a Car Dude.
Very good, keep it up.
This guy is a great teacher in his information delivery and knowledge.
You can’t put a price on Smiles Per Hour though 😄
In most cases, you can!
Yes you can. That’s what this whole video is about
Smile per mile sounds better
Ed Bolian I know you can and that’s the problem. When you do the math and say, ok I’m spending $5-6 per mile it will take the enjoyment out of owning an exotic/boat/ airplane etc. i guess that’s why I don’t own any. Better to rent one or admire from a distance 😆 my BMW X 5 is probably the most exotic I’ll get 😂 although I have always loved the Ferrari 328!
And for how long do you lose your smile when you finally have to pay the bills?
These are among the most enjoyable videos on TH-cam.
We need a like++ button to rate these videos
Ed is such a great story teller, his voice makes these stories a joy to listen to.
I’ve watched several videos this morning and I have to smile/chuckle every time Ed says an A word like A-ppreciate. Keep up the fun stories Ed! We need A-nother one! 😜
I knew that the prices on Turo seemed cheap. I always assumed they were discounting/subsidizing them somehow.
Love the information! I’m nowhere near ready or able to buy an expensive car, but I love being informed on the matter.
The subjects you talk about can be applied to so many different businesses. That's why I like this channel.
Your knowledge is impeccable! I learned so much from this episode... Truly Ty!
Absolutely love , love, love Ed's stories and his insight to things like this. Please make more educational videos like this.
Thank you! I will.
Great video Ed, love the informational type videos. Didn't realize people on Turo were losing so much money.
Another great and very informative interview by my favorite story teller.
You are a great story teller. You area also very versed. Enjoy hearing and learning from you
Thumbs up and watched all the way to the end because I know you’ve got more diffs and other ancillary items to buy in the future for your exotic stable.
Excellent vlog..I really did enjoy listening to this vlog..Very heads up..
Damn ed, Not to sound like a absolute creep but I could listen to you speak all day!
@Mr Snuffleupagus Do it bro! You only live once!
Best car stories on youtube
I love the way you always end on a positive note, thumbs up 👍
Great information and I’m glad you were totally honest
Generating revenue vs making money. What a elegant way to summarize.
Been subscribed since 3000subs & I'm still learning valuable info that will help me buy my dream exotic car thanks Ed your a wealth of knowledge & passion. I love the spec on your LP-640 🔥
Thank you so much!
Thanks for this! Not easy to hear, and not a lot I didn't know, but I really like the balance of your explanation! Common sense never goes out of style!
When Ed's differential cost more then your car.😳
Even if you got an exotic for free, the maintenance and depreciation is a whole new story
Elongated Muskrat depreciation doesn't matter if you didn't pay the initial cost
ha-ha! you stupid
thats just wrong, maybe if you passed your test a day ago and have no experience
Furqan k Lol. 1 mil a year to insure a 2 or 300k car? I think you added a zero or 3.
Insurance is $100-250/mo.
I can see this being a big issue down the road if people start to buy cars they can only afford if they rent them out. This video is eye opening and one of my favorites though it is not a story. Keep it up Ed with videos like this, along with the stories you are giving a complete picture into the car world beyond the glitz and glam.
This was a great video. Very informative. Even on just regular cars.
super cool data from someone inside the business, thanks for making it clear
This guy is my favorite at vinwiki so much to be learned from this guy
Incredible and realistic insight. My dream of owning a Lamborghini hasn't been deterred by this. Just shows what I need to do before I step into that world of supercar ownership.
Thanks!!!
Ed , I've never listened to anybody explain things better than you , thanks
Ed, the brilliant businessman. What a legend.
Ed has a great vocabulary!
Borginator I was thinking the same thing
Great video. This logic applies to a lot of super sports cars too like corvettes and hellcats. People look at the sticker and gas per year and think they can afford it but then tires, brakes, and yearly maintenance catches them hard
Ed makes the best videos. all his videos are just more enjoyable to watch.
I love falling asleep to these stories! (Not saying they are boring)
Wow. Sorry to hear about the differential on the Murci. Hope it gets sorted out soon.
The house always wins. You can't beat that no matter how hard you try. I recently put over 5k in a truck worth maybe 1k, but in the end I still get to turn the key and blast it down the road. The house still won. And here I am checking the Goodyears, plugs, and oil every week, the house is winning. The trick is to be the house.
Good talk. Agree with everything said here. I know this quite well from buying hundreds of motorcycles.
The only person in the world I can listen to just ramble and be 100% content
As soon as I see Ed! In these videos I automatically hit the like button.
Really honest & informative as always.
Really good stuff here. I was not aware clutches on exotics had to be changed so frequently.
I agree totally but as someone commented "You can't price smiles per mile" it made me think of my Harley days and the expense of buying and maintenance at first it used to concern me but riding on long trips and stopping for gas or just to stretch often people would stop and talk,share experiences it made it all worth the cost of ownership.
Really interesting video. A year after purchasing a Porsche 993, I did the maths on what I'd spent. Registration, fuel, taxes, interest payments(not including the cost of the money), servicing, repairs and a few upgrades came to about 14% of the cars value - or double what I could sell my daily driver for. Very sobering.
I didn't bother calculating it the second year. Takes the fun away from driving it :)
Every now and then you'll come across a person so knowledgeable in a particular field that you'll be in awe of them. This was one of those times.
Hello from Ireland, Ed. Spot on regarding costs, I'm a taxi driver in Dublin, essential to understand all costs no matter a Toyota or Ferrari.
Great educational video mate! Cheers
Thanks for the info
Extremely valuable info. that most don’t understand or ignore. You can apply the same exact process to Real Estate. The upfront time value of money versus what u can invest in good stocks is often overlooked. You’re already way behind when u put down that downpayment, closing cost and repairs before u collect one dime in rent.
Ah I’m so happy whenever I see an ed story.
Does Ed teach classes on how to talk so eloquently or how to tell stories? Between his facial gestures and his body language... Ed could talk about milking cows and I would listen.
Awesome video, very informative
Good info. It's not as easy and profitable as it looks from the outside.
Very I interesting and as always thank you for all the time and effort Ed.
I fucking love this guy. When he said " The house does win, but the next day you get to put it in gear and blast it down the highway" made my day. It made it all seem worth it in the end. What we call life is very short. It's all about Experiences.
The set is looking amazing guys!
Thanks!
"SOMEONE who can't do math" Says It ALL Ed!
The best way to get your value from a vehicle, is to enjoy the time you spend with it. I enjoy the time spent driving and maintaining. It doesn't matter if it is a $2,000 dirt bike, or a $200,000 car, your use costs you, and your non-use costs you. Stock investments don't need garage space, fluid changes, etc. Thank you for the helping me explain this.
not to be totally off topic... but I absolutely love the trance music for the ads at the end of every episode... Does anyone have any good songs/stations they could suggest?
Ed... new fan here from Ontario, Canada. Love watching the new episodes that come out... keep up the great work!
"they're not making money, they're just generating revenue." As a young entrepreneur that made so much sense, thanks for the enlightening!
So true that there are unforseen parts you'll need to buy. Case in point - my car required a new harmonic balancer during the major service. Mechanic pulled the old one off, was worn more than expected so I coughed up $400 for a new one. I hadn't budgeted for it, but that's part of the cost of ownership.
Great info... thanks guys
Thanks for sharing Ed!
Value is the key to victory
3:50 this is exactly what I keep telling people that think of buying a car just as an investment.
Hey, if they enjoy it and understand that their returns won't be as much as other options, more power to them.
What a great way to start the day
I could swear that I was already subscribed to this channel...
I've learned more from Ed than all my years in school
I thought I did the responsible thing buying my wife a VW Touareg. New tires recently cost me 2k. It's reassuring to know responsibility cost me the same amount as my friend did for tires on his Ferrari.
Great information as always Ed. I feel this also is true with buying and renting a home, especially short term beach rentals. People don’t account for all of the expenses and maintenance. The first thing you mentioned about lost income on investments is probably the number 1 thing people forget about, especially when the market is doing well, like it did last year. I will say it’s hard to put a price on happiness though.
Wise advice . Thank you. New sub.
Well spoken. Exactly why I am not interested in exotic car ownership. I just live vicariously through VinWiki.
holy crap Ed! how did you rattle off that information with such ease. i couldn't have dictated that even if i had read it from a prompter