Seeking advice on buying multiple cars under a business
- Thread starter bennew11
- Start date
Seamus
Well-Known Member
Commercial Insurance any broker can help you with. It's more expensive but if the cars you get are registered to a business you will have probably have no choice but to get it.
The more difficult question is your first one because it is greatly dependent on what type of business you are and what size, how much you want to finance so there isn't any one answer. The questions your going to get right away are:
1) What type of business are you? (i.e. C corp, S corp, LLC etc.etc..) And will ask for the appropriate documentation.
2) What size business ( 2-5 year P/L's)
3) How long you have been in business.
Same questions will apply if you decide to lease instead.
There are a lot of other factors but those are the most basic. If you're new or small you are certainly going to have to have the owner(s) sign a personal guarantee.
The more difficult question is your first one because it is greatly dependent on what type of business you are and what size, how much you want to finance so there isn't any one answer. The questions your going to get right away are:
1) What type of business are you? (i.e. C corp, S corp, LLC etc.etc..) And will ask for the appropriate documentation.
2) What size business ( 2-5 year P/L's)
3) How long you have been in business.
Same questions will apply if you decide to lease instead.
There are a lot of other factors but those are the most basic. If you're new or small you are certainly going to have to have the owner(s) sign a personal guarantee.
I want to do the same thing but rather than financing I plan to buy the second car with money made from the first one and the third with profits from the first two. Slow growth, no financing
Contact this guy
Rideshareprofessor.com
He has multiple Chevy suburbans and leases them out
He has utube videos and sells Uber training courses
I called him, he sounds for real and I got some good free advice
Good luck
Contact this guy
Rideshareprofessor.com
He has multiple Chevy suburbans and leases them out
He has utube videos and sells Uber training courses
I called him, he sounds for real and I got some good free advice
Good luck
Stevie The magic Unicorn
Well-Known Member
Nope
Sorry,
Doesn't exist
A single car single driver policy cost me almost $500 a MONTH for good commercial passenger carrying insurance. Start adding more drivers and that number SKYROCKETS
Most banks make commercial loans but banks only lend to people that don’t need the money
There are up and running businesses like these for sale. I was looking in the San Diego market and found this
https://m.bizben.com/business-for-s...rs-transportation-service-for-sale-244850.php
There are up and running businesses like these for sale. I was looking in the San Diego market and found this
https://m.bizben.com/business-for-s...rs-transportation-service-for-sale-244850.php
NOXDriver
Well-Known Member
Do you have a business plan?
A new corp with no assets is NOT getting a loan. You'll have to put up collateral or be the personal guarantor. Just making a corp (C, S, LLC) doesn't make banks throw money at you.
Either visit your local SBA office or pay an accountant to run some numbers so you have and idea how bad your idea is. Honestly... you can't offer decent wages with Uber payouts unless you are in a some VERY select markets. Are you in those markets?
Current stats show that only 40% of transportation start ups make it to the 5 year mark.
A new corp with no assets is NOT getting a loan. You'll have to put up collateral or be the personal guarantor. Just making a corp (C, S, LLC) doesn't make banks throw money at you.
Either visit your local SBA office or pay an accountant to run some numbers so you have and idea how bad your idea is. Honestly... you can't offer decent wages with Uber payouts unless you are in a some VERY select markets. Are you in those markets?
Current stats show that only 40% of transportation start ups make it to the 5 year mark.
40% is better than for restaurants
Part of my plan is to extract ever penny of the cars’ value and then sell them for scrap. Or give them to my drivers The idea is to own nothing more than a customer list
NOXDriver
Well-Known Member
That's not the same thing as buying new cars, hiring drivers and still trying to make a profit. I'm sure in the top 5 markets that's doable... but the majority of places will not support 3x loans, full coverage insurance with ride share coverage, and minimum wage to the employee, PLUS car expenses.
That's why you run financials and not just throw ideas into the air... those are the 60% that don't make it 5 years.
That's why you run financials and not just throw ideas into the air... those are the 60% that don't make it 5 years.
Exactly right you have to do your market research and run the numbers. But it all starts with an idea. I wouldn’t jump into it. I’d grow into it. Buy one and you be the driver, buy the second with the profits from the first. And do it again. Make your first trip to the bank be when you are selling (to help your buyer get a loan)
There are small markets where it’s possible too. Look for a town where there is a successful Rolls Royce dealership.