When he was doing a master’s degree in economics at the Sorbonne, Ayman showed himself in finance. He found himself working in compliance banking for a large company. Since then, his plans have changed. In March 2020, while he was in master 1, he bought a second-hand Renault Modus for 5,000 euros to rent it out. Others will follow. And what should have been additional income has become … a full-time professional activity.
The 24-year-old young man devoted himself to the adventure with Pierre, a friend then working at a real estate agency. The duo has rented its vehicles on Getaround (formerly Drivy) and OuiCar, two leading car rental platforms among individuals in the French market. Drivers can rent vehicles there for hours, days or weeks. Of the owners registered on these sites, two profiles: those who rent their personal vehicles that they do not use every day to pay for the cost of acquisition and maintenance, and others, such as Ayman and Pierre , who buys cars without driving. to them, to earn.
They are established in several cities. Very quickly, they realize that there is a strong need and increase their fleet. Today, they have at least 22 vehicles (city vehicles, equipment and station wagons) and aim for 34 during the summer. “We never thought it could have such a success”, smiled Pierre, 28, who went on to study work-study in real estate development. To support them, they used a part-time administrative assistant.
Connected boxes for simplified management
Their vehicles are parked in Brest, Quimper, Limoges, Poitiers, Orléans, Dijon, Besançon… If this logistics is possible, it is thanks to the connected boxes offered by the platforms. It allows tenants to unlock the vehicle using their smartphone, collect the keys and return them at the end of the rental without encountering anyone. Enough to offer great flexibility, which traditional leasing agencies don’t necessarily have.
Of course, this service has a price. The Getaround connected box costs 19 euros per month per vehicle – costs to be borne by the owners. To benefit from this, the vehicle must, among other things, be less than 10 years old and less than 150,000 kilometers on the odometer. With OuiCar, count 29.90 euros per month for a box.
If these boxes cut their revenue, the duo will see its account there. “It allows us a relatively passive management”, encourage Pierre and Ayman, who still have to travel all over France to clean their cars once a week. They can now count on the help of Ayman’s brother Mehdi, a civil servant, who joined them.
Luke, 34, prefers to be without the box and hand over the keys. He can afford it because his 15 vehicles are concentrated in the Toulouse conurbation, close to his home.
He is also dedicated to his rental business. When he started in 2019, he was a project manager in aeronautics and wanted to have additional income. Dismissed from work in the summer of 2020 in the midst of a pandemic, he decided to devote himself to it with his wife, who quit his job as a switchboard operator.
Their vehicles are rented at OuiCar, Getaround, and a site made by the couple. “We earn enough income to live decently, Luke explains. I earn pretty much the same as my previous job, and my husband, a little more. » And add: “With the difference that now we manage our time, our investments that we have a better quality of life. »
To achieve this, they buried their savings and reinvested all their income in acquiring new vehicles. But not everyone who rents vehicles on the platforms owns them.
Emile, a 27 -year -old developer based in Paris, doesn’t have enough savings to buy the five cars he wants. So he finds a leasing company where he rents cars to … sublease them.
He pays 250 euros per month for each of the five Volkswagen Polos rented. Added to this are 100 euros for parking in Paris and in the suburbs and 150 euros for insurance per vehicle. That costs approximately 500 euros per month and per vehicle. “I rent them 50 euros a day. After 11e rental day, so the money goes in my pocket. » Over a year, he aims to earn 15,000 euros on five cars, or 3,000 euros per car. He aims to increase his fleet and become its owner, with a purpose “earn enough income to hire someone to take care of it”.
Taxation and barriers
Of course, taxation is detrimental to profitability. Owners who rent vehicles must declare the income they derive from them for tax purposes. From 8,227 euros per year, they must register their activity (under the status of the general procedure, as a micro-entrepreneur or as a self-employed worker) and pay social security contributions.
And this activity requires some logistics. Emile vacuums each of his vehicles at least once a week. He must also transfer to motorists the fines he receives and regularly go to the garage, in case the bodywork is broken or damaged. Getaround and OuiCar’s insurance policies, which include the 10% commission they deduct from the price indicated by the rental companies, usually allow him to fix his vehicles without incident.
In the event of a serious accident, vehicles may not be returned to circulation and may be scrapped. This happened to some of Luke’s vehicles, whose tenants were in an accident. “In these cases, we have to buy a car right away with our savings and wait for the insurance to reimburse-which takes a month and a half on average. But if we don’t have cash, we give up on cash inflows in a few weeks … “ Another element to keep in mind: unlike real estate where the seller of a property can earn on resale, cars see its value decrease.
Some people are saved from buying vehicles that they will use very little
Tom, owner of three vehicles
Despite these hurdles, this method of investing is attractive. Tom, a 22-year-old salesman, surrendered in the summer of 2021. He owns three vehicles purchased for a total of 28,000 euros and rented in Vaucluse. “I don’t have enough investment in real estate and it turned out to be a great investment! » It generates approximately 600 euros in income per month. In addition to the pecuniary stake, he stressed the fact that this investment seemed sacred to him: “We prevent some people from buying cars that they will use very little. »
What reassures him in this business: the ability to easily backtrack if profitability falls. “All you have to do is remove the vehicles from the platforms in a few clicks and resell them.» But it is not topical. For now, the young man hopes to increase his fleet … for him too, why not make a living.