This startup wants to turn idle user car inventory into rental revenue

Your used car can now generate monthly income instead of just depreciating on a lot.

MyMonthlyCar, a startup founded by Igor Dobrianskyi, Kostiantyn Gitko, and Vadym Zotov, is launching an online platform to connect car dealerships with individuals seeking flexible, month-to-month car rentals. The service focuses exclusively on used cars, aiming to monetize idle inventory on dealership lots. A unique offering is the potential for a rent-to-own option, converting renters into potential buyers. MyMonthlyCar earns revenue by charging dealerships a 10% transaction fee and customers an additional 10% fee. The company has secured seven dealerships for testing and is developing its own insurance program, which is considered critical for operations. MyMonthlyCar plans to expand to 100 dealerships in its first year, projecting $300,000 in revenue, and aims for $42 million within five years. The bootstrapped startup intends to raise a seed round to fund further platform development, including an AI tool for dealers.

MyMonthlyCar's model addresses a significant gap in the automotive market by transforming idle dealership inventory into a revenue stream. By focusing on month-to-month rentals of used cars, the platform offers an alternative to traditional, longer-term leases or expensive short-term rentals. This strategy not only provides dealerships with new income opportunities but also caters to consumers needing temporary vehicle access, with an added potential path to ownership.

The startup's success hinges on its ability to navigate insurance complexities and build trust with both dealers and consumers. If MyMonthlyCar can provide seamless insurance solutions and a reliable platform, it could set a new standard for how dealerships manage used car inventory and how consumers access vehicles for medium-term needs.