Used cars sit on dealership lots depreciating, while some drivers need a car for a few months without the cost of buying. MyMonthlyCar, a Florida-based startup, tries to match those two sides with an online platform for month-to-month rentals of used cars from local dealerships.
Dealerships can list cars for free; MyMonthlyCar takes 10% of each transaction, and the customer pays a separate 10% fee. Rentals are month-to-month only, but dealers can offer a rent-to-own option, meaning renters may end up buying the car.
The company is bootstrapped and has signed seven dealerships for testing. It is working with an insurance broker to finalize its own insurance program, which founder Igor Dobrianskyi says is the key question from dealers. MyMonthlyCar was selected for TechCrunch's Startup Battlefield 200 at Disrupt in October. The founders project 100 dealerships, 2,000 monthly rentals, and $300,000 in revenue in the first year, and $42 million over five years.