https://turo.com/gb/en/car-rental/united-kingdom/carculator
Examples from the page above.
1 | Fiat Punto | 204.7% Annualised ROI
Estimated vehicle value: £5,750.00
Annual vehicle loan payments: £1,274.08
Average annual earnings: £3,881.95
8 | Dacia Sandero | 111.1% Annualised ROI
Estimated vehicle value: £7,397.00
Annual vehicle loan payments: £1,639.02
Average annual earnings: £3,459.83
My Rough Business Plan
Vauxhall Astra (Automatic) £9k
£7500 cash purchase (0% finance)
8 hours work needed a month – (administration cost) – £40 (with 2 cars £80 a month)
aim is to return some of the capital invested after 2 years – £187 a month
£84 reserve per month to cover unexpected costs (need a formula) – MOT, service etc
target 15 days rental a month on average needed to cover minimum financial targets – £21 a day (187+40+84)/15
Average revenue over year needs to be £315 a month
2 year exit – car needs to be renewed at 2 year point assumming 50% depreciation on the car
Revenue (315*24) = 7560
Return from car sale = 3780
Total Revenue = 11340
Servicing + other expenses = £750
Administration costs = 960
cost of car =7500 (capital returned)
Pre Tax Profit = 2130
if assumed 3 people are investing and 1 is managing director managing director makes = £710 + 960 = 1670 and silent investor makes = 710
Return is 28% ROI over 2 years making 14% a year profit.
Potentials: