Is Turo Worth it? | Airbnb for cars - Money We Have (2023)

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Is Turo worth it? If you’re asking yourself this, you’re probably wondering how you can use your vehicle to generate some income. Here’s the thing, Turo is known as the Airbnb of cars, but many people wonder if it’s a legit business opportunity. The short answer is that it can be very lucrative for aspiring entrepreneurs since it’s accessible, flexible, and scalable. In other words, you have control over how you run things. Keep reading now to find out how Turo works for hosts and is Turo worth it?

Is Turo Worth it? | Airbnb for cars - Money We Have (1)

What is Turo?

Before I get into the details of being Turo hosts, let’s take a quick look at what isTuro. Since Turo is a peer-to-peer car sharing service, it’s often referred to as Airbnb for cars. Hosts can put their vehicle (or fleet) on the Turo platform, allowing guests to book them.

It doesn’t matter if you have a traditional car or a Tesla model. You can put your car up in Turo.

The company was founded in the United States but has operated in Canada since 2016. When they originally arrived, they were only available in Ontario, Alberta, and Quebec, but you can now host as a British Columbia and Nova Scotia resident. Although the company has been around for just five years, more than 1 million Canadians have signed up with Turo, and more than 44,000 cars are available in the country. Currently, Turo is available in about 370 Canadian cities, and you can also find Turo vehicles in the USA and United Kingdom.

(Video) Should I Buy a Car to Rent Out on Turo?

Why host on Turo?

There are so many reasons why you may want to become a host onTuro, but here are some of the most obvious ones:

  • You’re looking to earn some passive income
  • Your vehicle mostly sits in your garage, so it’s available for guests
  • You want to be an entrepreneur
  • You want the flexibility to scale up or down your business as needed

For many people, Turo is a great way to test their small business skills. If you already own a vehicle, you can get it listed in less than 10 minutes. Managing your bookings and dealing with guests is done entirely through the platform, so you’re set up with tools to succeed right from the start.

Car owners can basically use their vehicle as a rental car. Renters are attracted to Turo because it’s often cheaper than car rental companies. In addition, hosts can offer some additional services, such as airport pickup.

Some hosts will scale up their fleet as they get more bookings, while others will be more than happy to just make their vehicle bookable when they don’t need it. How much time you devote to Turo is entirely up to you. That means you can be a full-time host, or you can run things as a side hustle. The flexibility is what many people love about Turo, as you can manage things on your terms. Oh, the extra income is nice too.

How much can you make from Turo?

If you want to know, is Turo worth it, the odds are you want to know about the financial benefits. Your potential income is dependent on how many bookings you get, but the Turo website lists the average annual earnings among all Canada-based hosts with at least ten trip days per month as follows:

(Video) Our first 3 months starting a Turo Rental Car business we made $2424 | The Bamboo Project

  • $9,337 – 1 car
  • $28,010 – 3 cars
  • $46,684 – 5 cars
  • $65,358 – 7 cars
  • $84,031 – 9 cars

For the average host with a single vehicle, they’re generating an average income of $778 a month which isn’t bad at all for a self owned car rental service. As you can see, scaling up your business could potentially give you higher returns, but you’ll likely need to devote more time.

How you run your business is up to you. Some hosts will offer specific vehicles such as electric cars, convertibles, dog-friendly cars, or even cars with a bike rack on the platform. This is a simple way to make your vehicle/s stand out. There are also practical approaches, such as trucks, that are useful for people who want to move.

How to get set up on Turo

Getting set up on Turois easy, as it only takes about 10 minutes. Once you create an account, you’ll provide your vehicle details and upload some images. You’ll also be prompted on availability and pricing. Turo does have an automatic pricing feature which gives you a good estimate of what you should be charging guests. There is one catch, your vehicles can’t be older than 12 years.

Once all your info is up, you’re pretty much good to go. Turo vets all your guests before they’re accepted on the platform, so you’ll know that anyone requesting to book your car has a solid driving record. You can set up your account to approve drivers, but many hosts set it to auto-approve to make the process quicker.

What makes Turo appealing to guests is the customer service aspect. You’ll be interacting with guests via the Turo app regularly. The best hosts have quick response times and provide detailed instructions for pick up. You even have the option to drop off wherever the guest is located (you set the range and price for this optional service).

(Video) I Rented My Tesla To A Stranger on Turo... Here's What Happened

Being a great host requires you to focus on the customer. Guests who use Turo aren’t always looking for the cheapest solution possible, they want an experience. With Turo, guests know exactly which vehicle they’re getting. It’s recommended you take a bunch of photos of your vehicle before each guest departs with your car as there will be evidence to support both sides if an issue arises.

Turo prioritizes thesafety of hosts and guests. Through Intact, you get up to $2 million in liability coverage and physical damage coverage up to the car’s full value with no deductible for hosts. Residents of British Columbia are covered by ICBC. If that wasn’t good enough, Turo also provides 24/7 roadside assistance and has customer support available every day of the week for both hosts and guests.

What are the Turo fees?

Although signing up for Turo as a host is free, you do need to pay a cut of your profits to the company. How much you’ll pay depends on your chosen plan (which can be changed within your profile at any time). In Canada, plans breakdown as follows with your percentage of the cut.

  • Standard plan – 70% (Turo takes 30%)
  • Commercial host plan – 90% (Turo takes 10%)

The standard plan is what most people go with. It’s also worth mentioning that Turo has no monthly or annual fees. You only pay if you get a booking. Your cut is paid out via Stripe directly to your bank account, and it usually shows up within 1-5 business days after a guest booking ends.

Admittedly, some people will find the 30% cut that Turo takes from the standard plan to be high. You do get a comprehensive insurance package (protection plan) with no deductible, so you could argue that the cut Turo takes is reasonable.

(Video) Lessons Learned from a FAILING TURO Rental Car Business

To be fair, Uber and Lyft take a fee of roughly a thirdof your earnings, and you need to pay for gas out of your pocket. With Turo, guests pay for the gas, so you could argue Turo is better on your wallet as a comparable small business option. Also, you can scale up easily with Turo since you could add more cars to your fleet.

Note that since this is income, hosts are responsible for paying taxes on their earnings. You’ll also want to keep detailed records of your expenses, as you may be able to claim some when you’re ready to file.

Pros and cons of Turo

Is renting your car on Turo worth it? That’s really up to each individual to decide, but you can look at the pros and cons of Turo to help you reach your conclusion.

Pros of Turo

  • Earn additional income –You can take your depreciating asset and generate some income.
  • Flexible –You can scale your business up or down depending on your needs.
  • Accessible –It only takes a few minutes to get signed up.
  • Helps reduce car payments –Putting your vehicle on Turo will generate income that can help pay down your auto loan.
  • Security deposit –Turo will charge guests under the age of 30 a CA$1,500 deposit to book a Deluxe Class car

Cons of Turo

  • Not all cars available –Your car must be no older than 12 years to be listed on Turo.
  • Not all areas are in demand –Vehicles available where there are a lot of tourists get booked more often than those located in the suburbs.
  • Fees– The standard plan where Turo takes a 30% cut may be a lot to some people.
  • Guests can be unpredictable –Although Turo vets guests, you may still encounter ones that don’t treat your vehicle respectfully or have unrealistic expectations.

Is Turo worth it?

So is Turo worth it? For many people, the answer will be yes. Turo can be the perfect way for many Canadians to start a side hustle with little effort. Earning extra income is rarely a bad thing and you can choose how active you’ll be on the platform. It’s also significantly less labour-intensive compared to other similar side gigs, such as being a rideshare driver or delivering food.Signing up for Turoas a host could be a smart financial move.

Is Turo Worth it? | Airbnb for cars - Money We Have (2)

(Video) HOW I MADE 60K WITH MY TURO BUSINESS/ Tips to start a Turo rental car business and make money!

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FAQs

Is putting my car on Turo worth it? ›

Overall, Turo is a great platform to use whether you're a driver or a host. Drivers can save money on rental cars and have more flexibility regarding rental terms. Hosts can earn extra money each month by listing their vehicles on the platform.

Is it profitable to rent your car on Turo? ›

Yes, renting on Turo can be profitable. The key is using strategies that help you get more bookings and earn consistent income. There are many, but a big one is to acquire one of the best cars on Turo, and optimize for popularity and utility.

Is the Turo car calculator accurate? ›

Turo's Automatic Pricing algorithm is probably the most reliable way to find a reasonable price for your vehicle. The Turo Calculator will do a pretty good job of estimating costs. It constantly adjusts the price to meet the demand in your area so you take home the most money.

Is Turo a good side hustle? ›

Ultimately, the best side hustles are low-stress and help you earn passive income. Listing your car for rent on Turo is a side hustle that could check both of those boxes.

What happens if you scratch a Turo car? ›

Turo will investigate to verify that the damage occurred during the trip and that it is eligible damage. If it is, you're responsible for the damage and related costs, regardless of whether you caused the damage.

Why do people rent their cars on Turo? ›

Any form of property, your car, for instance, can be rented to generate extra income, and with the current financial challenging times the world is facing, more people search for additional income streams. So, if you own a vehicle or two, you may consider renting them on Turo.

How much of a cut does Turo take? ›

While Turo does take 15% to 40% of the rental cost, that cut covers insurance for your vehicle and advertising on the site, which gets you customers. Is my car eligible for Turo? To list your car for rental, your vehicle's model year must be within the past 12 years. Plus, the car should have fewer than 130,000 miles.

Is Turo good 2022? ›

The short answer is yes - but there are a lot of factors that go into determining whether or not Turo is worth it for you as a host or renter. In this blog post, we will break down those factors and help you make the decision on whether or not Turo is right for you.

How many cars can I list on Turo? ›

While guests can only rent one vehicle at a time per profile, hosts can list multiple cars on their profile. Renting out more than one vehicle is an excellent way of making money, provided all the cars meet the Turo standards and requirements.

Where is Turo most popular? ›

The peer-to-peer renting service is lucrative across popular holiday destinations in the U.S. According to Turo, Los Angeles, California, is the best-performing hosting city.

How do I price my car on Turo? ›

Setting your vehicle price
  1. Open Vehicles page.
  2. Find vehicle and tap “Edit listing”
  3. Choose “Pricing and discounts” from list of options. ...
  4. Set minimum and/and or maximum daily price. ...
  5. Set a price boost for same-day trips to earn more on last-minute bookings (optional)

How does Turo get paid? ›

On the owner's side, you get paid through either Stripe or PayPal via direct deposit. After your first trip, the payment is submitted after three business days. It can then take another 3-5 business days for it to show up in your account.

How often does your car get rented on Turo? ›

A more realistic price for a car like that is $30-$40/day. If you're able to obtain a vehicle and rent for that amount, chances are your car will be rented around 22+ days a month.

Is car sharing profitable? ›

Car sharing can be profitable, but there are factors that vehicle owners need to consider and account for. Maintenance costs will be higher due to the added mileage from renters. Additionally, insurance costs are likely to increase.

How do I become a Turo host? ›

Turo Commercial Host Requirements
  1. The car must be no more than 12 years old.
  2. The vehicle must maintain an “available” status on other rental platforms.
  3. You must have your own commercial rental insurance policy.
  4. Your vehicles must pass an inspection by Turo.
  5. Each vehicle must maintain a clean title.
Feb 22, 2022

What happens if someone crashes my Turo car? ›

All automobiles in California – including Turo cars – are under the state's “fault-based” accident system. This means that the party who caused the accident is liable to pay for resulting injuries and losses. Typically, you would file a claim with the at-fault driver's auto insurance company to get compensated.

Do you have to wash the car Turo? ›

You aren't expected to clean or disinfect a car before returning it to your host. However, you do have the following responsibilities for documenting and maintaining vehicle cleanliness. Take and upload to Trip photos multiple interior and exterior photos of the vehicle at check-in and checkout to document cleanliness.

Does Turo insurance cover windshield crack? ›

It includes, but isn't limited to rims, wheels, hubcaps, any painted or textured area for the body of the vehicle, and moldings. It does not include cracked glass or chipped glass caused by rocks or other debris.

How does car insurance work with Turo? ›

Turo takes part of your trip price, or the earnings you make each time someone rents your car, to pay for your selected protection plan and operating costs. The more expensive the plan, the less you earn, but the more benefits you receive. All plans include $750,000 of third-party liability insurance.

Does Turo have a competitor? ›

Turo's top competitors include BlaBlaCar, Flexcar, and Getaround.

How does Turo work at airport? ›

Turo has pickup agreements at certain airports that specify where guests and hosts can pick up and return vehicles. If you're meeting in person, use Turo messaging to confirm how, where, and when you'll meet. Hosts aren't permitted to ask guests for a ride home after dropping off their vehicle.

Whats the oldest car for Turo? ›

  • Be 25 years or older (special considerations for vehicles more than 12 years old but less than 25 years old)
  • Have a fair market value up to $85,000.
  • Be in excellent mechanical and physical condition.
  • Have all seat belts in safe, working condition.
  • Be subject to additional review.

What's the oldest car you can list on Turo? ›

Turo uses an exclusivity policy when listing vehicles in the United States. Do not list your vehicle for rent that you list on any other car sharing platform. You can't list a vehicle older than 12 years.

Does Turo have a mileage limit? ›

If you want to set a daily distance limit, Turo will determine the minimum distance per day based on your vehicle's value. Most vehicles have a minimum distance of 200 miles or 300 kilometres per day — you can't adjust the distance limit lower than the minimum.

What is a Turo side hustle? ›

Share your car on Turo a couple days a week

The average Turo host makes about $1,000 per month. Sharing your car on Turo can help you offset the cost of owning your car, for your car payment, insurance costs, and maintenance — sometimes you could even make a little something extra to stash in savings.

How old is Turo? ›

Are Airbnbs profitable? ›

An Airbnb short-term rental that has a steady queue of occupants may be more profitable than leasing the same property to someone on a long-term basis. The reason is that Airbnb nightly rates are usually higher. For example, according to a recent analysis, Airbnb hosts have an average monthly income of $924.

Does Turo allow salvage cars? ›

Prohibited branded titles include, but aren't limited to: Salvaged (even if “salvage” does not appear in the title itself due to regional difference) Written off. Lemon/Buyback.

How do I remove a car from Turo? ›

Snooze or unlist your car to make it unavailable for an extended or unknown time: Choose Vehicles from Host menu. Select listing. Change vehicle status to “Snooze” or “Unlisted”

What percent does Turo take? ›

How much does Turo take from my fees? While Turo does take 15% to 40% of the rental cost, that cut covers insurance for your vehicle and advertising on the site, which gets you customers. Is my car eligible for Turo? To list your car for rental, your vehicle's model year must be within the past 12 years.

How does car insurance work with Turo? ›

You don't need personal insurance coverage if you book a trip with a protection plan made available via Turo. If you do have insurance, our liability insurance provider* will supplement your personal coverage. Depending on the protection plan you select, liability coverage is up to $750,000 in the US.

How do I price my car on Turo? ›

Setting your vehicle price
  1. Open Vehicles page.
  2. Find vehicle and tap “Edit listing”
  3. Choose “Pricing and discounts” from list of options. ...
  4. Set minimum and/and or maximum daily price. ...
  5. Set a price boost for same-day trips to earn more on last-minute bookings (optional)

How does Turo pay? ›

On the owner's side, you get paid through either Stripe or PayPal via direct deposit. After your first trip, the payment is submitted after three business days. It can then take another 3-5 business days for it to show up in your account.

What happens if you crash a Turo car? ›

All automobiles in California – including Turo cars – are under the state's “fault-based” accident system. This means that the party who caused the accident is liable to pay for resulting injuries and losses. Typically, you would file a claim with the at-fault driver's auto insurance company to get compensated.

How do I avoid trip fees on Turo? ›

To reduce the trip fee of your Turo booking, you can select a cheaper vehicle to rent. With countless vehicles to choose from, there might be a similar vehicle available with a lower trip fee. By choosing a vehicle with a lower value, you can drastically reduce your trip fee and overall rental price.

Where is Turo most popular? ›

The peer-to-peer renting service is lucrative across popular holiday destinations in the U.S. According to Turo, Los Angeles, California, is the best-performing hosting city.

Do I need insurance to host on Turo? ›

Yes, you still need your own insurance for your vehicle to cover the financial responsibility laws in your state. Because the vehicle protection plans offered on Turo only apply to trips booked on Turo, you are still required by law to register and insure your vehicle when it's not being shared on Turo.

How does Turo work at airport? ›

Turo has pickup agreements at certain airports that specify where guests and hosts can pick up and return vehicles. If you're meeting in person, use Turo messaging to confirm how, where, and when you'll meet. Hosts aren't permitted to ask guests for a ride home after dropping off their vehicle.

What is Turo and how does it work? ›

Vehicle owners list their cars with Turo, a company based in San Francisco, and renters can search the available vehicles in their area and rent them for daily prices set by the owners. Rentals can be booked online or through a phone app that allows direct communication between owners and renters.

Who sets the rental price on Turo? ›

Because the car owners set the price, the cost of a Turo rental depends a lot on where you're going, what type of car you're renting, and how long you're going to be keeping it. In general, you'll probably pay half of what you would to rent a car through one of the traditional car rental businesses.

Is Turo profitable 2022? ›

The short answer is yes - but there are a lot of factors that go into determining whether or not Turo is worth it for you as a host or renter. In this blog post, we will break down those factors and help you make the decision on whether or not Turo is right for you.

How many cars can I list on Turo? ›

While guests can only rent one vehicle at a time per profile, hosts can list multiple cars on their profile. Renting out more than one vehicle is an excellent way of making money, provided all the cars meet the Turo standards and requirements.

Does Turo report to IRS? ›

Turo will issue a Form 1099-K only to hosts who submit a W-9 and meet ALL the following criteria: US person. Earned at least $20,000 in unadjusted gross sales* Had more than 200 transactions in 2021.

Is Turo a reputable company? ›

Ultimately, Turo is a safe and legitimate way to rent a car from a local host. Since 2010, Turo has grown into a popular service with more than 332K total app ratings and an “Excellent” ranking on Trustpilot from consumers. To get started, you can download the app for iPhone or Android or visit the company's website.

Can you rent Turo with a debit card? ›

Verifying your payment card

To book a car on Turo, you must have a current, eligible payment card listed on your account. We accept credit and debit cards but don't accept prepaids cards, except for Revolut. When you request to book a trip, we send your payment card information to your bank.

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