This guide will show you how to make money with Turo car sharing.
Residual income and passive income are more prevalent every day to reach financial freedom.
How many cars do you currently own?
On average, hosts on Turo make an extra $500-$1000 per month per car. You can easily earn $10k+ annually per car!
One of the great aspects of Turo is that it doesn’t require buying a piece of expensive real estate to start renting it out. Instead, you can probably use what you already own.
You’re probably wondering if the car you drive around would make you money. Most likely the answer is yes! The great news is that it doesn’t take very long at all to start renting out your car.
This guide will tell you everything you need to know, the good and the bad, about car sharing on Turo.
What Is Turo and How Does It Work?
Turo launched in 2009 as RelayRides and only a year after the startup of Airbnb. It’s been around 13 years already!
Two Harvard Business classmates started Turo, eventually bought other small startups, received some funding, and then rebranded as Turo in 2015.
Its goal to offer cheaper car rentals to consumers and spread internationally has both come true. Here’s how you can take advantage of this exciting new car-sharing company.
In short, Turo is Airbnb for car sharing.
How Do I Start?
Signing up for Turo is easy. The most important part of becoming a Turo host is market research for cars that would do best in your area.
But it’s easy.
Here are some questions to ask yourself:
Am I close to an airport?
What vehicle would do well in my area?
1) If you are close to an airport (especially one of the busy airports), you will most likely be having a lot more people staying over the weekends or someone needing a car for their trip. For example, a good gas mileage car such as a Toyota Corolla may be just what someone needs for their weekend trip. A pickup truck may not be the go-to vehicle during these record-high gas prices.
2) Are you in an area where people may want a convertible? If the weather is nice all year you will want to look at convertibles.
After asking yourself those two questions, head over to Turo, select your city, fill in a few different dates, and select search.
What vehicles are showing up first? How many trips are the vehicles getting?
What kind of vehicle is getting lots of trips?
With gas prices being so high, Teslas are renting out a lot along with smaller cars that get great gas mileage.
The good news is that if your personal car meets the criteria above, you’re off to a great start!
If your car is more unique, like a two-door truck, or a smart car, it may not do as well but you have nothing to lose. Most hosts start their Turo experience with their own personal car and it’s a great way to get your feet wet.
For me, I bought a car with a specific focus to rent it out on Turo. It’s a Vanderhall Venice GT which is a convertible for down here in St. George, Utah where we have great weather. It’s been doing well! I’ve had to block off days each week because I wasn’t getting to enjoy it myself (lol!).
There are several convertibles where I live, but luckily there isn’t another Vanderhall Venice so I have some competitive advantage….except for when it’s 110 degrees every day. Bookings slowed down a little bit.
Now that you’ve done some research or are planning on listing your car, let’s look at coverage.
Turo insurance coverage
Renting out my brand 2022 Vanderhall Venice GT for car sharing scared me since I had car ownership. However, after some research and chatting with Turo support about the process, I felt a bit better.
As long as you follow the proper documentation process, you should have zero problems getting coverage if anything happens to your vehicle while rented out.
Keep in mind that your vehicle will probably get a door ding or two while being rented out. But again, if you follow proper documentation, Turo should take care of and protect your car.
Turo has their own insurance coverage through Travelers. When signing up to be a host, you have several plans to choose from:
Most hosts, according to a FB group, seem to be on the 75 plan. I am on the 60 plan where Turo takes a 40% cut, but then I get a zero deductible and it covers scratches and dents even smaller than 3 inches.
Just a couple of weeks ago a vehicle returned from a one-day rental from a super nice guest. However, after a couple of days, I realized there was some curb rash on the passenger side rim!
After looking back at my before and after pictures, I found out which trip it happened on and submitted a claim. Within a few days, there was a payment of $137.90 in my bank!
Turo will walk you through all the required documentation processes. As long as you follow protocol, Turo will have you back.
Always do these things:
1) Take at LEAST 40 before-trip pictures and another 40 for post-trip pictures
2) Remind them to upload two pictures within 24 hours before their trip starts: 1) A close-up picture of their driver’s license and 2) A selfie of them holding their driver’s license next to their face that is clearly visible.
3) Make sure they have a valid driver’s license that is not expired and matches their birthday
If I wouldn’t have taken lots of before pictures, I wouldn’t have had proof to submit the claim about the curb rash.
If I had a used car, I would do the 75 or 80 plan since I would be less worried about it getting dinged.
Tools For a Successful Turo Business
There are several tools, software, and physical items that will make your life so much easier.
- The Turo app – this one is a no-brainer. I rarely use the online website since everything can be done in the app. You can accept reservation bookings, manage guest communication, request fees, and anything else needed!
- A GPS tracker – this one is crucial. In a very small occurrence and one that hopefully never happens to you, you will be able to track your car. This is a huge peace of mind. I recommend Samsara for a GPS.
- Lockbox and RF bag – contactless pickups and dropoffs are so convenient. When a guest comes and grabs my Vanderhall, I put the keys in a lockbox and don’t give the combination until they submit their two pictures.
- If you have a key fob, you’ll need an RF bag otherwise the lockbox may not block the signal. I put the key fob in the RF bag, and put that in the lockbox.
- A Credit Card with good rewards – I recommend the Amex Gold Business card or Amex Blue Cash card for your business
- High-quality car washing products
- Powerful small vacuum
Vehicle Maintenance
Now that you have some tools to use for your new Turo car (congrats!), what are some money-saving tips to reduce cost?
Vehicle maintenance is the most expensive overhead for Turo car sharing. Here are a couple of tips to reduce some costs:
Tip #1: Do your own oil changes and car washes.
There are a TON of videos on youtube on how to do an oil change. Plan for an hour maybe more if it’s your first time.
Doing your own oil changes can save you hundreds of dollars a year. I also buy the synthetic oil since it’s just a few bucks more when doing it myself.
Car washes can also be a huge expense. If you do it yourself you can save yourself $50+ every time! Alternatively, you can buy one of those unlimited car washes and keep running your car through!
Tip #2 Submit every eligible claim possible.
Depending on what plan you are on, make sure to take plenty of pictures and submit any claim necessary.
It’s easy to take the easy route and not submit any claim, but if there’s any damage that wasn’t there before the guest rented your vehicle, then submit a claim!
Pro Tip: If you are on the 60 plan, Turo is taking a larger percentage of your earnings instead of more coverage. If you aren’t submitting claims, you might as well be on the 75 or 80 plan.
Turo Support
Every time I’ve needed to chat with support, I usually never wait more than a couple of minutes and they are always ready to help.
Just this morning I needed to contact Turo support. Within 30 seconds I was connected with an employee to help.
If one of your renters gets a flat tire and you aren’t sure what to do, Turo support is always there!
Whether you get a four-wheel drive Jurassic World Dominion inspired Jeep Wrangler, or a minivan, this guide above will help you succeed in your car-sharing ventures on Turo.
FAQ
Turo hosts can make more than $1,000 per month by renting out their own car.
Similar to other rental car companies, risks are always involved when renting cars. However, Turo offers customer support 24/7 for guests and hosts along with different insurance protection plans when you book your car. Turo has over 400k users since being launched in 2009 and plans on an IPO in 2022.
Car sharing, or otherwise known as Airbnb for cars, allows renters to rent people’s cars on an app called Turo for affordable prices. It also allows hosts to rent out their own available cars to earn some extra passive income. Turo offers different insurance plans for both the renter and the host to ensure liability coverage for both ends.
