RedAuto, for investors

A four-car membership club in Amsterdam. What it is, what it costs, what it returns.

What RedAuto is

A four-car fleet in Amsterdam, run as a membership club. Members pay monthly for credits and book cars ahead. Day rentals fill the days members leave empty.

The 911 is half the capital and the reason people join. The other three are cheap to buy, cheap to insure and cheap to run, so they can be driven every day.

Membership is capped at 20. Four cars serve four people at once. A bigger club fails on Saturdays.

Summary of the club
Item	Detail
Fleet	4 cars, all rear-wheel drive
Garage	One location in Amsterdam
Members	20, capped
Membership	€300 or €600 per month
Day rental	€119 to €395, open to non-members
Before any car is bought	15 deposits of €49, refundable

The raise

What the raise is spent on
Use	€
Fleet	212,150
Working capital (rental insurance, garage deposits, booking software, launch marketing, buffer)	26,000
Total	238,150

Tickets: €25k and €50k.

Terms are not settled. The instrument, the split and the investor rights will be confirmed before anything is signed. Ask and you get them in writing as soon as they exist.

Request the term sheet

Fleet purchase

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Fleet purchase prices, spot rates, expected 24-month depreciation and the role of each car
Car	Purchase	Spot/day	24-mo depreciation	Role
Porsche 911 (992 Carrera, 2020)	€106,950	€395	~€10,000	Main draw. Holds value.
BMW Z4 sDrive20i High Executive	€39,900	€185	~€6,000	Summer volume
BMW i4 eDrive40 M Sport	€41,900	€175	~€9,000	Weekday volume
Tesla Model 3 Standard RWD Plus	€23,400	€119	~€4,500	Cheapest to run
Total	€212,150		~€29,500

The four cars are specific

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What each listing says
Car	Listing
Porsche 911	2020. 21,837 km. Dealer maintained. Sports exhaust. Listed in Indisch Rood.
BMW Z4	High Executive. Leather, CarPlay, keyless.
BMW i4	M Sport. Heated seats. Battery health 99%.
Tesla Model 3	Standard RWD Plus. LFP battery, Autopilot, 60 kWh.

These are four cars listed for sale today. Prices are asking prices.
Depreciation is estimated from live Dutch listings. Spot rates are estimates.
992 Carreras from 2019 to 2021 sit between €107k and €130k with little spread by year. This one is at the bottom of that range on 21,837 km.
i4 eDrive40s run from €28k to €46k. This one is near the top because its battery health is 99%.

VAT

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The two open VAT questions and what they are worth
Side	Question	Worth	Status
Buying	BTW-auto or marge-auto?	Up to €36,819 reclaimable. Raise drops to €201k.	0 of 4 checked
Selling	Are member prices VAT-inclusive?	€300 inclusive gives €248 of revenue.	Undecided

A Dutch used car is sold as a BTW-auto or as a marge-auto. VAT is reclaimable on the first one only. Every listing states which.
Car rental is a VAT-taxable activity, so a rental company can normally deduct input VAT on a BTW-auto.
Deduction requires taxable business use. Private use by the founder triggers a correction.
Insurance is VAT-exempt. The largest cost line carries no reclaim.
Every figure on this page is stated ex-VAT. Consumer prices need VAT on top.
Reading four listings settles the first question. Ask an accountant before the raise closes. None of this is tax advice.

Monthly costs, whole fleet

Monthly operating costs for the whole fleet
Item	€ per month
Garage, 4 spaces	800
Road tax (two EVs, so lower than a petrol fleet)	250
Commercial rental insurance	1,450
Maintenance and tyres	600
Cleaning (4 wash subscriptions and a quarterly deep clean)	280
Depreciation (~€15k per year)	1,250
Software, payments, marketing	300
Total	4,930

Depreciation sits inside this table. The net figures below are cash-adjacent profit before income tax and founder time.

Cleaning

Cleaning cost under the club rule and under full outsourcing
Approach	€ per month
Members return cars clean. Club pays €30 per car for unlimited washes. Deep clean every quarter at €120 per car.	280
Valet every changeover at €25, across 80 driving days	2,000

The difference is €1,720 a month. It depends on members complying.

Revenue model

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What the club sells and at what price
Product	Price	Includes
Club	€300 per month	4 credits. Booked ahead.
Club Flex	€600 per month	Club, plus any car that is free on a weekday with no booking.
Day rental	€119 to €395	One car, one day. No membership.

Capacity is 80 to 90 rentable car-days a month across 4 cars.
A weekday costs 1 credit. Friday to Sunday costs 2. The 911 costs 2 every day.
That is how 20 members share 4 cars.

Three scenarios

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Monthly revenue, costs and net in three scenarios, with annual net and return on the raise
	Slow	Base	Full club
Club members, €300	8	12	14
Flex members, €600	2	4	6
Subscription revenue	3,600	6,000	7,800
Spot rental days	6	8	10
Spot revenue (~€190 avg)	1,140	1,520	1,900
Total revenue	4,740	7,520	9,700
Costs	4,930	4,930	4,930
Net per month	-190	2,590	4,770
Net per year	-2,280	31,080	57,240
Return on €238k	-1%	13%	24%

Slow. Loses money. Close the club if this lasts past month 6.
Base. The plan.
Full club. The ceiling. Four cars cannot serve more.

Rollout

Capital goes in as members arrive. The club sells memberships before it owns a car, then buys one car at a time.

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Ten-step rollout, showing members, cars, fleet value, annual net, investor return and operational margin at each step
Step	What happens	Members	Cars	Fleet €	Net €/yr	Investor ROI	Op. margin
1	Deposits only. No car bought.	0	0	0	0	0%	0%
2	Buy the Z4.	5	1	39,900	8,220	18%	35%
3	Buy the Model 3.	8	2	63,300	15,348	22%	38%
4	Fill the two cars.	11	2	63,300	26,148	37%	51%
5	Buy the i4.	14	3	105,200	30,468	26%	45%
6	Fill the three cars.	17	3	105,200	41,268	35%	53%
7	Buy the 911. Club is full.	20	4	212,150	57,240	24%	49%
8	Add three cars. A second garage.	35	7	371,263	102,864	25%	50%
9	Add four cars.	55	11	583,413	163,704	25%	51%
10	Add eight cars. Fleet passes one million.	95	19	1,007,713	285,384	25%	52%

Step 1 buys nothing. 15 refundable deposits of €49 come first.
Step 2 puts €39,900 at risk. The full four-car fleet costs €212,150.
The 911 is bought last, at step 7. It is the largest cheque and it needs the most members behind it.
Steps 4 and 6 buy nothing. Cars fill up before the next one is bought.
Members per car holds at about 5 the whole way. That ratio is what keeps weekends bookable.
Step 7 is the club described on this page. Its revenue, costs, net and 24% ROI all match the Full club scenario above, and its capital deployed equals the €238k raise.
Investor ROI is annual net divided by capital deployed: the cars plus working capital, held at the same ratio to fleet value as the raise itself.
Operational margin is net divided by revenue. It runs higher than ROI throughout, because the cars are an asset that gets sold at the end rather than a cost.
ROI dips whenever a car is bought and climbs as members fill it. Steps 4 and 6 are the climbs.
Steps 8 to 10 are illustrative. They keep the fleet mix constant: cars are added at the average price of the first 4, and members at the same 5 per car the club is built on. Buying a pricier mix instead would grow the capital faster than the revenue and dilute the return.
Step 10 is 19 cars worth €1,007,713, 95 members, €285,384 net per year, 25% ROI on €1,131,213 of capital, and a 52% operational margin.

24-month exit

Fleet purchase price, expected resale and cumulative net after 24 months
At 24 months	€
Fleet bought	212,150
Expected resale	~182,650
Cumulative net, base case	~62,160

Most of the capital sits in the 911. Its two-year loss comes from kilometres, because 992 prices barely move by model year.
All four are common models. They sell in weeks.
The exposure over two years is €30k of depreciation on a €212k fleet.

Key insights

The 911 is half the capital and the reason members join.
The other three keep the weekdays full and the running costs low.
Weekend days cost 2 credits. That is what lets 20 members share 4 cars.
One Flex member is worth two Club members.
If the club fails, the loss is €30k of depreciation on a €212k fleet.
Members clean the cars. That saves €1,720 a month.
Deposits come before cars.

Risks

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Risks and how each one is mitigated
Risk	Mitigation
A renter damages the 911. It is half the fleet, so one event hits capital, resale and demand together.	Booking only, 2 credits. Never on the Flex tier. Drivers 30 or older. Highest deposit and excess of the 4.
Rental kilometres cut the 911’s resale value.	200 km included per driving day, then a charge per kilometre. Heavy use pays for itself.
Used electric values keep falling. The i4 and the Model 3 are €65k of the fleet.	€9,000 and €4,500 already sit in the cost table. Neither car needs a spot margin to earn its place.
Z4 demand is seasonal. It earns March to September and sits in January.	Priced at a blended rate in the base case. Winter weekdays go to the i4 and the Model 3.
Insurance premiums rise after a claim. It is the largest cost line.	Screen age, licence length and record before anyone drives. Telematics on all 4 cars. The line is already carried at the top of the quoted range.
Founder time. Handovers, cleaning and damage disputes do not scale.	Keyless pickup from day one. Cleaning done by members. Hard cap at 20 members.

Contact

Base case: €2,590 net per month on a €238k raise.
Fleet resells for about €183k after 24 months.
Ask for the numbers in full.

Request the term sheet