If you’re looking for some money-making idea with Turo, here is a detailed guide with all the answers.
Turo and other peer-to-peer car rental websites have gained popularity in recent years, but many people still wonder if they can make money with Turo and similar sites. Can you make money with Turo? The short answer is yes!
While the money you can make with Turo will vary by location, condition of your car, and other factors, there are plenty of examples of both everyday people and professional car owners who have made money with Turo in the past.
In this article, we’ll talk about how to make money with Turo, how much you can expect to earn, and what to do next to get started!
What is Turo?
If you’ve heard of peer-to-peer car-sharing (also known as carpooling) but you don’t know what it is or how it works? Well, there are a few companies who have done it before and done quite well for themselves.
One such company is Turo and today we’re going to take a look at them. We’ll learn about their model and do some back-of-the-napkin math on how much money you can make renting out your car through them.
How Does Turo Work?
The average Turo renter drives less than 18 miles a day, but you can make as much money in one month renting out your car on Turo as you do drive it yourself for an entire year.
That’s because it’s not actually about how much time your car is driven — it’s about how many people rent it.
Imagine if someone rented your car once every two weeks and paid $25 each time; that would add up to $100/month or $1,200/year in potential earnings from your vehicle alone (not counting any money made from its actual use).
The more you drive and keep up maintenance on your vehicle, the more likely you are to be frequently available for rent.
The Pros and Cons of Working on Turo
- Great source of passive income.
- Insurance protection.
- Lots of bookings.
- Easy to use.
- Free to register and earn.
- Wear and tear not covered.
- 24 hours to report any damage.
- Some Terms and Conditions.
- High rate of commission fee.
- Poor customer support.
Once you’ve signed up for an account on Turo, you’ll need to verify your identity by providing a license plate number from one of your cars and a current photo ID.
If you’re renting a car as part of your business (and not just using it for personal use), be sure to choose business when creating your profile.
For other car owners using their vehicle as an extension of their business or who want extra protection against damage or loss, you can add optional liability coverage (between $1 million and $5 million) and gap insurance.
While it’s not required for listings to include price comparisons, experts suggest that including them makes potential renters more likely to go with your listing than one without pricing information.
Pricing Your Car Correctly
When you first sign up to rent out your car on Turo, your car will be given a pricing tier: common, premium, or luxury. The most rented cars are in the premium and luxury tiers because they can make more money for you—and they get more renters too.
Your car is placed in one of these two categories based on its year, make and model. Once you’ve decided which tier is right for your vehicle, it’s time to decide how much you want to charge per day.
Pricing your car correctly is key to maximizing both rental earnings and exposure.
If you price too low then someone could easily pay a few dollars less than what it cost them to rent out your car; if you price too high people may look elsewhere for similar vehicles that are cheaper.
It’s important to be aware of how you drive when renting your car on Turo. Most accidents are caused by human error—like tailgating or failing to pay attention while changing lanes—and they can cause hundreds of dollars in damage.
If your driving record is clean (you don’t have any speeding tickets or major accidents), there’s a good chance you won’t need to provide a credit card deposit when you first sign up for Turo business.
However, if there is some type of blemish on your record and it affects your insurance premiums (or puts you at risk of an auto-insurance cancellation), expect to pay more for insurance and put down a deposit as a result.
Offering an Amazing Customer Experience
The number one reason people give for renting through Turo is a lack of car ownership. But most drivers want to own a car and use it more often than they currently do.
The secret to success on Turo isn’t finding a car that is perfectly suited to your current needs. It’s offering an amazing customer experience from beginning to end.
That way you can make sure people don’t just rent your car once—they tell their friends about you and come back for more.
Identifying Top Travelers to Work With
If you’re just getting started with Turo, it can be tough to know where to start. Ideally, you want to focus on working with travellers who are:
1) easygoing and will provide positive reviews;
2) renters who will consistently choose your car;
3) eager to rent in locations that fit your needs.
However, as a first-time host, it can be difficult to know which travellers meet these criteria—so use our criteria below to help you identify top travellers.
Gathering Reviews from Other Drivers
One of the biggest benefits of using Turo is that you don’t have to deal with your customers. The platform connects you to other drivers and renters, so there’s no need to take time out of your day to wait on customers or respond to their inquiries.
All you have to do is clean up your car and make sure it’s available when someone wants it. With that in mind, a good way to make some extra money on Turo is by gathering reviews from other drivers.
The service allows users who rent cars through its site to leave feedback on both hosts and guests in a forum-like setting.
Utilizing Social Media to Promote Yourself and Earn Extra Income
Utilizing social media like Facebook, Twitter, Instagram, etc. and other internet tools is a great way to market yourself as a professional driver.
Using social media not only helps you reach your clients (or customers), but it also creates an authentic impression of you as an individual that could be different from others in your field.
Also Read: How to make money on Facebook group?
This is important because personal branding can help set you apart from all of your competitors who are doing what you’re doing. Social media can also help keep potential customers up-to-date on special promotions or discounts that will let them rent your car for even less money than they initially thought possible.
Turo Profit Calculator
Since prices vary from city to city and depend on several factors, it’s hard to predict exactly how much money you can make on Turo. That said, we’ve built a handy little tool that will let you figure out just how much money you can make renting your car.
Enter in your anticipated expenses for car ownership (insurance, gas, etc.), and we’ll tell you approximately how much you could potentially earn. Read more here.
What Percentage Does Turo Take?
This can be a confusing question for many new users. It depends on several factors: your car, where you live, and what kind of car it is. But even if your vehicle is in high demand, you’ll want to ensure that you’re getting enough rental requests to make renting your car worth it.
Generally speaking—and keep in mind there are exceptions here—Turo takes 20% of all rental earnings (before costs). That’s in line with what other platforms take too, including Airbnb and HomeAway. So if you’re making $1,000 per month from renting out your vehicle on Turo, then you’ll net $800 after fees.
Most Rented Cars On Turo- Best Cars For Turo
1. Cadillac Escalade
- $16,000 average monthly earnings
- Average rental price: $85.20
- Rental volume: 16.7%
2. BMW 5 Series Sedan
- $15,000 average monthly earnings
- Average rental price: $57.05
- Rental volume: 13.3%
3. Chevrolet Corvette Convertible
- $14,000 average monthly earnings
- Average rental price: $53.02
- Rental volume: 12%
4. Audi A8 L Sedan
- $13,000 average monthly earnings
- Average rental price: $61
- Rental volume: 11%
How Often Do Cars Get Rented On Turo?
If you’re considering renting out your car on Turo, there are a few things to consider: If you’re renting it out all year long, chances are high that your car will be rented out for more than six months in any given year.
That means that you’ll need to do your taxes as an independent contractor (so you’ll have to keep track of expenses), and there will be some tax implications based on what percent of your annual earnings came from Airbnb hosting.
However, if you rent it out for just a few months a year—say three or four—you don’t have to report anything on your taxes at all; they’re completely nontaxable.
How Much Money Can You Make In Turo?
How much money do people make on Turo? Well, for most vehicle owners, sharing your car through Turo is a way to offset some of your costs without all of that stress.
However, if you’re looking to make money off your extra car(s), there are ways to do it.
If you have time and want to put in a little extra effort, you can rent out vehicles during peak seasons like summer or ski weekends.
Or even better — if your neighbour just went on vacation and asked if they could park their car at your house while they’re gone — you can get paid for storing cars when they’re not in use.
That’s right — storage fees are extra income for some owners on Turo!
Making money on Turo FAQ
How to get approval from Turo?
Turo accepts hosts having a car of less than 12 years. Vintage cars are the exceptions though. The next step is to register online. For that keep ready some documents like (1) Driver’s license (2) Social Security Number (3) Address and Location. Now, on Turo’s website fill in all the details. Turo will give you the approval after some validation on their side.
Is Turo legit?
Yes, Turo is a legit platform for renting a car. However, we recommend you go through the pros and cons mentioned above before making the first move.
Where is Turo available?
Across the globe, Turo has its presence and currently provides services in more than 5,000 cities. It is easily available in the US, Canada and the United Kingdom. Renters can sometimes drive cross-country, such as from the US to Canada and vice versa.
Can you make good money on Turo?
Yes and no. Turo makes a passive income for you so you can’t make tons of money out of it. However, you can make enough extra money in your pocket.
Great question but it really depends on location. A Lambo will do pretty good in the Los Angeles market but it won’t in Raleigh, NC market. Sharelytics helps you easily check what kind of monthly revenue and utilization a car makes in different cities/markets and based on season.
Turo’s website says hosts with a fleet of nine cars can earn an average of over $90,000 a year. Compared with Airbnb, a small business on Turo seems more achievable.
And on whether Turo itself is profitable:
The third quarter of last year marked Turo’s first profitable quarter and, while the company is currently in a quiet period ahead of its initial public offering, it has previously forecast achieving full-year profitability before interest and taxes next year. As of the beginning of January, Turo had been expecting to finish 2020 with record revenue of over $150 million.
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