Is Turo Worth It? Make Money Renting Out Your Car

Reading Time: 7 minutes

Have you ever wondered if being a Turo host is worth your time and effort? Are you intrigued by the idea of making money by renting out your car but hesitant about the potential challenges?

We get it. As more and more people consider becoming Turo hosts, the question on everyone’s mind is, “Is Turo worth it?”

You’re not alone in your curiosity. Many people are weighing the pros and cons, trying to figure out if the benefits outweigh the drawbacks.

Is the extra income worth the responsibility? Can you trust strangers with your vehicle? These questions can make the decision-making process overwhelming.

Fear not!

In this article, we’ll break down the Turo hosting experience, providing the insights you need to make an informed decision. No fluff, just the nitty-gritty details.

Let’s dive into the key factors determining whether being a Turo host is worth your time and resources.

What is Turo?

Think of Turo as the Airbnb equivalent for cars, a platform where individuals can rent cars directly from other people rather than relying on big rental companies.

The average Turo host rakes in about $545 per month, emphasizing Turo’s commitment to making your car an earning asset.

Turo’s mission is simple: “Let your car work for you.” However, it’s crucial to recognize that while Turo car rentals offer a compelling alternative to conventional options, they may not always be the superior choice. Let’s delve into when booking with Turo might be advantageous and what factors to consider.

How Does Turo Work?

If you’re in search of a car rental experience, Turo operates on a concept very similar to Airbnb but for vehicles. The process is straightforward: hop on the website, select your destination, choose a car that suits your needs, and have the car owner deliver it to you at the airport, ready to roll when you arrive.

Much like traditional car rentals, you have the flexibility to use your insurance or opt for theirs. When you’re done with your trip, simply drop off the car back at the airport.

What sets Turo apart for renters is the ability to skip the rental counter line, potentially enjoying superior service and the chance to drive a more unique vehicle.

Forget the randomness of being assigned an “economy” or “full-size” car – with Turo, you get to pick the exact car you want.

The perks don’t stop there. Turo offers a hassle-free cancellation policy, allowing you to cancel for free up to 24 hours before your reservation. Even if you need to cancel last minute, it’s a reasonable $50 fee.

Now, for those considering listing their car on Turo, it opens up opportunities for a side gig, a second job, or a cash-flowing investment – it all depends on how you choose to view it. Whether you’re looking for extra income or a unique way to utilize your vehicle, becoming a Turo host provides a flexible and potentially lucrative option.

How to Get Started on Turo

Setting up your Turo account is a breeze, taking just about 10 minutes of your time.

Once you’ve created your account, input your vehicle details, and upload some images. Turo also guides you through setting availability and pricing. They offer an automatic pricing feature, providing a solid estimate of what you should charge guests.

Once all your information is in order, you’re essentially good to go. Turo meticulously vets all potential guests before allowing them on the platform, ensuring that anyone requesting to book your car has a reputable driving record.

What makes Turo particularly appealing to guests is its customer service orientation. Regular interactions with guests happen through the Turo app. Top-notch hosts boast quick response times and offer detailed instructions for pick-up.

For added convenience, you can even choose to drop off the vehicle wherever the guest is located – you determine the range and price for this optional service.

To be a standout host, focus on delivering a great customer experience. Turo guests aren’t solely seeking the most economical solution; they crave an immersive experience. Turo ensures transparency, letting guests know precisely which vehicle they’ll be getting. It’s advisable to snap several photos of your vehicle before each guest takes off; these serve as evidence in case any issues arise.

Turo places a premium on the safety of both hosts and guests. Through Intact, hosts receive up to $2 million in liability coverage and physical damage coverage up to the car’s full value, with no deductible. Residents of British Columbia benefit from coverage by ICBC.

As if that’s not enough, Turo offers 24/7 roadside assistance and customer support accessible every day of the week for both hosts and guests.

What Fees Does Turo Charge?

While joining Turo as a host is free, you’ll need to share a portion of your earnings with the company. The exact percentage you pay depends on your chosen plan, and you can switch plans within your profile whenever you wish.

The standard plan is the preferred choice for most hosts. It’s important to note that Turo doesn’t charge any monthly or annual fees; you only pay when you secure a booking. Your earnings are transferred directly to your bank account via Stripe, typically within 1-5 business days after a guest’s booking concludes.

While some may find the 30% cut from the standard plan relatively high, it’s crucial to consider that Turo provides a comprehensive insurance package (protection plan) with no deductible. This inclusion could be seen as a reasonable trade-off for the percentage Turo takes.

Comparatively, ride-sharing services like Uber and Lyft also deduct approximately a third of your earnings, and you’re responsible for covering your fuel expenses. Turo, on the other hand, puts the onus on guests to pay for gas, potentially making it a more budget-friendly option for small business owners. Moreover, Turo allows for easy scalability, as you can effortlessly expand your fleet by adding more cars.

It’s worth mentioning that, as this income is taxable, hosts must fulfill their tax obligations. Keeping detailed records of expenses is advisable, as you may qualify to claim certain expenses when it’s time to file your taxes.

What Are the Best Cars to Rent on Turo

Turo provides a helpful guide detailing top-performing car models, categorized as those earning more than double their estimated monthly payments on average. While Jeep Wranglers claim the title of Turo’s best-performing model.

Extra Ways to Make Money on Turo

If you’re curious about maximizing your earnings with Turo, incorporating add-ons is a smart strategy. Including extras boosts your earnings to 90% of the total trip cost.

Guests have the choice to purchase these extras or not. Turo recommends keeping a record of their selections to ensure you don’t submit ineligible reimbursements.

What About Insurance Coverage?

Turo safeguards both you and your vehicle through a comprehensive $1 million liability insurance policy provided by Liberty Mutual.

This policy serves as a crucial protective measure in cases of damage or theft. In addition to this coverage, Turo extends support to renters by offering 24/7 roadside assistance and dedicated customer support.

If delving deeper into the specifics of Turo’s insurance policy piques your interest, you can explore further details by reading through the policy document available here. This ensures you have a comprehensive understanding of the insurance protection Turo provides for both hosts and renters alike.

Is Turo Worth It?

Turo might not be the ideal choice for everyone, and that’s perfectly acceptable. Making a profit on Turo can be challenging, especially if your main vehicle is your everyday commuter.

For some individuals, the potential wear and tear on their car might outweigh the benefits, posing risks such as interior damage.

However, if your car doesn’t get frequently used, Turo provides a straightforward way to generate passive income from your vehicle. This additional income can be utilized to offset your car payment, contribute to a new car fund, build an emergency fund, pay off debt, and more.

It’s essential to acknowledge that renting your car on Turo comes with responsibilities. Regular maintenance, including oil changes, new tires, and brakes, is crucial to ensure the safety of both you and any potential renters.

Moreover, keeping your car in pristine condition for guests is a key aspect of managing the associated risks and other potential issues.

Wrapping Up

So is Turo with it? For most people, Turo rentals present an opportunity for easy money.

Listing your car takes just 10 minutes with the user-friendly Turo app. As cars depreciate over time, Turo becomes a sensible choice for car owners seeking extra income through rental car services. However, it’s essential to be mindful of Turo fees to ensure a balanced and profitable experience.

If the notion of turning your car into a source of additional revenue appeals to you, exploring Turo could be a worthwhile endeavor.

Questions? We Have Answers