Startup Idea: Used Car Leasing
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Startup Idea: Used Car Leasing
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Re: Startup Idea: Used Car Leasing
#2Anyone interested in exploring car sales ideas in SF/Bay-Area? I have one for which I did a bunch of market research and it looks promising. Happy to explore more.
Re: Startup Idea: Used Car Leasing
#3That's a good idea. I'm not the one to take it on, but could see myself being a customer.
Especially the month-to-month thing, I'd be all over that just because I don't like the commitment of owning a car although it's basically required where I live
Re: Startup Idea: Used Car Leasing
#4Duh, Mercedes Finance will happily lease you a nice, clean used Mercedes. Especially if it meets their Star Certified criteria. My first MB was leased from new for three 3-year lease terms; obviously terms 2 and 3 were a used car. My next MB was used and leased for three years. In all cases the lease terms were clear and fair, and the interest rate very competitive. Right now my car loan is with them and under 1%.
I'm sure that other reputable brands have similar programs.
Re: Startup Idea: Used Car Leasing
#5A local company comes to mind, Lej et Lig (translated from Danish): http://translate.google.dk/translate?sl=auto&tl=en&js=n&prev...
Literal translation: rent-a-corpse. You pay about $50 a day, choose your type (van, personal, etc.).
They're mainly used when people move by themselves, have to take stuff to the junkyard and such.
The down-side is, typically, that you can get a lousy car (playground for lemons).
On the plus side, they have a thriving business, and been in business since 1995, so it's not a dead-end idea.
Re: Startup Idea: Used Car Leasing
#6Seems to me the real obstacle would be financing the operation. Finance shies away from used vehicles because they are much more difficult to accurately appraise, and without accurate appraisals you are assuming another (large) dimension of risk.
Re: Startup Idea: Used Car Leasing
#7[deleted]
Re: Startup Idea: Used Car Leasing
#8Seems to me the real obstacle would be financing the operation. Finance shies away from used vehicles because they are much more difficult to accurately appraise, and without accurate appraisals you are assuming another (large) dimension of risk.
Yeah, I'm not sure there is a large underutilized fleet of cheap, high value vehicles out there.
(High value meaning predictable/reliable/etc, not necessarily sticker price)
Re: Startup Idea: Used Car Leasing
#9IIRC (at least in California) it is illegal to lease a used vehicle - it must be purchased. I don't know what the reason for this is, or if I even remember that correctly but I'm pretty sure its a law because when I purchased my car I checked into this. You can transfer your lease (i.e. swapalease.com), but in order to do it legally the swapper typically has to have their credit approved and fill out paperwork for the dealership. Another factor is that most sellers won't be interested in leasing a used vehicle because there is so little financial incentive -- leasing distributes that value of the car over a period of time and based on mileage used -- if a used car is only worth (say) $5-10k, it couldn't be leased for very much.
Re: Startup Idea: Used Car Leasing
#10IIRC (at least in California) it is illegal to lease a used vehicle - it must be purchased. I don't know what the reason for this is, or if I even remember that correctly but I'm pretty sure its a law because when I purchased my car I checked into this. You can transfer your lease (i.e. swapalease.com), but in order to do it legally the swapper typically has to have their credit approved and fill out paperwork for th…
If anyone has a link, that'd be helpful. Start in a state without such regulations. Or just ignore them until you're big enough to matter to regulators.