tatest wrote:
The rental company or dealer is doing it most likely for tax benefits, i.e. cost of having the rental fleet becomes an expense rather than an asset that has to be depreciated over an unrealistic lifetime.
A great many yacht charter companies use the owner/ leaseback arrangement - mainly to avoid tying up their capital. They use the capital of the various owners.
Most of the small airplanes used at many flying schools are under a similar program.
wildtoad wrote:
So you're buying an RV, placing in in a rental fleet where anybody from anywhere can rent it when you're not using it.
I know a half dozen folks who have their RVs in such an arrangement in Dallas. They are all high end diesel pushers, and frankly the owners almost never use them.
The most critical factor is how the rental operator screens their rental customers.
I likely wouldn't do it with a 60-90,000 class C unless I was real sure about the rental company. It would probably be alright with a 300-400,000 class A.
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See how well the company screens their renters.
Drop in unannounced and ask to look at some of the other units they rent on similar arrangements. Are minor problems fixed promptly?
Does the lease agreement make you or the rental company responsible for repairing damage?
Who pays for the extra insurance as a renter vehicle?
What is the level of the replacement insurance if the unit is destroyed while rented?
