10 Comments

This was a well written article. But as I just started I am renting a 2019 Nissan Altima (base model) for $459 without insurance which I will get for an additional $25 for a $99 deductible. And you've made far point for the fleet.

Now if I was able to have my own plates, I could have gotten same year, same model on Autotempest for 13.9k with a fair to above fair down payment and my monthly fee for the car itself would be well below $459. And of course I would definitely shop for the best price for insurance. I just believer Buggy and fleets like Buggy saw an opportunity to make a killing without regard to it may hurt which mostly the drives. I've there and talked to them they don't like it but nothing else they(we) can do until TLC lossens their grip on plates.

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author

Thanks! You have to understand TLC has to limit plates to protect driver earnings fundamentally & also for congestion considerations. Too many plates, no one will earn money - drivers & fleets alike.

In terms of the math you’re doing, the $459 includes commercial liability insurance (generally costs $400 to $500 per month & there are basically two companies that offer TLC insurance outside of large self-insured fleets). The additional $25 per month is likely just related to physical damage coverage (ie Comp & Collision). So, in your example between the 2019 Altima payment, insurance, maintenance, TLC/DMV admin you would likely be at between $1,250 to $1,500 per month ($300ish per week, assuming no major maintenance or accidents). For example, we’ve heard bad things about Altima transmissions - that might set you back a few thousand dollars at once, so that has to be included in the math. Buggy is definitely making a profit, it’s probably not as high as people think it is, but they are making money (probably not gouging - I would say $550+ for your 2019 Altima would get into a gouging discussion).

Essentially, if a yellow cab driver said “if I got my taxi medallion for free, I would earn a lot more money”. That’s a true statement, but that’s also not an intellectually honest statement, given a medallion has a cost & everyone understands the limited supply dynamic. That all being said, to prevent abuse from leasing companies, given the TLC plate supply constraint, some “Lease Cap” rules (similar to medallion industry) should be implemented.

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Jan 15, 2023Liked by AutoMarketplace

Very well written.

Thank you for taking the time and putting together an in depth analysis.

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author

Thank you for reading!

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Jan 14, 2023Liked by AutoMarketplace

They should be lease caps. These leasing companies charge very high. I like a 2021 Toyota wav cost $750 a week.

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author

Is that a lease-to-own arrangement or just a lease? Is vehicle maintenance fully covered? $750 per week, if for a straight lease, does seem quite high. Is this from one of the large leasing companies mentioned above?

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Rent. Not lease to own. Yes fully covered. It’s from one of the big three leading companies. It was a Toyota 2021 WAV.

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author

Given it’s a WAV, have you thought about buying your own & plating it? The WAV exemption still exists

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I do own my wav vehicle and plates. This is a driver I met in jfk parking lot. I rented the first few months. The rental companies are scammers.

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Jan 14, 2023Liked by AutoMarketplace

These problems need to solve. Now is the best time. Now or never

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