FlyerTalk Forums - View Single Post - How are inexpensive rentals profitable?
View Single Post
Old Jul 28, 2012, 7:02 am
  #3  
Jorgen
 
Join Date: Jun 2011
Location: MEL
Programs: VAG
Posts: 1,865
I think dtremit is right, when you get a cheap rate you're basically being paid to park the car for the weekend. Nice work if you can get it.

Rental cars depreciate with miles, not age, since they do so many more miles per month on average than a private vehicle. If the company buys a car for $20,000 and then offloads it after 35,000 miles for $13,000 then you're depreciating it at twenty cents per mile, so your $15 a day becomes drastically uneconomical if you start doing more than 75 miles a day.
Jorgen is offline