If you are making money online like me, your car is sitting in the driveway all the time.
My friends suggest renting the car on Turo to earn more passive income.
Since I am not driving the car every day, why not rents it out to make some money.
As I’m reading online Turo car rental reviews from hosts, I am not sure about listing my car on Turo.
No, Turo is legit. I am talking about the making money part.
The number doesn’t add up. Renting my car on Turo is not profitable.
Most Turo reviews do not provide a completed profit analysis. They only tell you how much you can charge renting the car on Turo.
What about Turo fees?
What about the hidden costs?
After analyzing the profitability of renting my car on Turo, I decided to leave it in the driveway.
You will do the same. Here’s why.
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Turo Car Rental Review Summary
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What Is Turo Car Rental?
Turo is a per-to-per platform allowing you to share your car with other drivers to collect rental fees.
People call Turo an Airbnb for cars.
However, renting a car is not the same as renting out a house or an apartment.
There are more expenses to pay when renting your car on Turo. I’ll discuss more later in this review.
Turo begins its per-to-per car rental services in 2009 as RelayRides.
RelayRides ran into legal trouble with the New York State Department of Financial Services and was fined $200,000.
The company stops operating in New York State after paying the fine.
RelayRides changed its name to Turo in November 2015.
According to the company, the rebranding reflects the company’s business strategy, shifting away from short-term to long-term rentals.
Turo is operating in over 56 countries with more than 350,000 vehicles listed for rent.
You can partner Turo as a host to make a few bucks renting out your car.
But don’t expect to get rich with this new gig.
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How Does Turo Work For Car Owner?
Turo offers car rental to both drivers and car owners.
I am writing this Turo review for car owners.
There are a lot of Turo reviews online for drivers looking to rent a car. You can search for them on Google.
However, you can read on to learn how Turo works for car owners.
There are Turo requirements that car owners must meet to become a host.
Turo Host Requirements
The first requirement is you must be the owner of the car, or the owner has authorized you to rent it on Turo.
You must agree to share the car only on Turo.
For US hosts, you must be at least 21 years of age.
Meeting these requirements allows you to register for a Host Account with Turo.
However, there are also Turo car requirements that your car must satisfy to list on the platform.
Turo Car Requirements
Turo car requirements are less strict for commercial hosts comparing to car owners.
Your car must meet these specific requirements to be eligible for listing on Turo.
- The car must have a valid registration in the US, except New York State.
- It cannot be more than 12 years old unless it’s a classic vehicle.
- Your personal car insurance doesn’t prohibit the car from being booked on a peer-to-peer car-sharing platform.
- The car fair market value is less than $150,000.
- The odometer reads fewer than 130,000 miles.
- The title is clean, not branded, salvage, or declared a total loss.
- The car must pass an ASE-certified maintenance examination. Car owners pay for this test.
It is your responsibility to make sure your car satisfies all Turo requirements.
Car owners cannot use Turo liability insurance to meet the personal insurance requirement. These are two different policies which you have to pay.
Turo Insurance Cost Review
Turo car rental liability insurance offers up to $750,000 of coverage. The policy is written through Liberty Mutual.
You have five plans, the 60 plan, 70 plan, 75 plan, 80 plan, and 85 plan to choose from.
The car owner must purchase one of the Turo insurance plans unless you have your own commercial car rental insurance.
The cost for Turo insurance is taking out from the rental income.
Here are your costs to purchase Turo insurance:
- 40% of the rental income for the 60 plan.
- 30% of the rental income for the 70 plan.
- 25% of the rental income for the 75 plan.
- 20% of the rental income for the 80 plan.
- 15% of the rental income for the 85 plan.
The 85 plan is the cheapest at 15% of rental income. However, this plan will cost you $2,500 in deductible.
Besides the Turo insurance costs, there are other fees that Turo can charge a host.
Turo Fee For Hosts
These are additional fees that Turo can charge you:
- 50% of rental income for providing an unclean car.
- $150 processing fee plus liquidated damages of $5,500 for accepting payments outside Turo.
- $150 for late delivery or failure to show up for a booking trip.
- $25 for frivolous damage claims or claims without pre and post-trip photos documenting the car condition.
- $25 – $50 for canceling a booking.
- $100 fee plus a $200 roadside assistance for maintenance violation
As a host, you are responsible for managing your listing, answering renter questions, and approving bookings.
You must arrange with the renter for delivery and return of the car, and your car must be cleaned to avoid fees.
Is Turo Profitable?
As you can see, it’s not free for car owners to rent their cars on Turo.
Most people use the Turo calculator to determine the rental rate. But you are not taking home 100% of this rental income.
You must take out the expenses from the rental income to determine Turo profits.
After completing my profit analysis, It’s not worth renting my car on Turo.
Here’s my Turo profit analysis for a Lexus CT 200h 2015:
Using the Turo calculator, my estimated monthly rental income is $682.
If I choose the 60 plan Turo insurance, Turo shares from this rental income $272.80, leaving me with $409.20.
I am responsible to deliver and recover the car from renters. It’s cheaper for me to pay someone $15 per rental for this task. At 19 rentals per month, this costs me $285. Now, my rental income reduces to $124.20.
I have to pay $10 to clean the car for each rental. This costs me $190 for 19 bookings. With this expense, I have to pay $65.80 to rent my car on Turo.
I did not include all the expenses in this Turo profit analysis.
Some car owners say they deliver and clean the car by themselves. You have to spend time doing the work. It cost money.
But for someone who makes over $100 per hour, it smarts to pay $15 per hour for someone else to do these jobs.
I don’t see how you can make money with Turo.
What about the cost of maintenance?
Cars will break down, and drivers will get into accidents.
These are major hidden costs that many Turo car owners ignore in their reviews.
Turo Hidden Fees
Just like driving for Uber, Lyft, or any rideshare gigs, repair and maintenance are the biggest hidden expenses that can wipe out your earnings. I call them hidden fees.
The repair and maintenance costs will go up because the car is driving on the road more.
You spend more money on oil changes and other services to keep your car meeting Turo requirements.
Often car owners forget to add these hidden fees into their expense budget until the car breakdown.
A completed Turo profit analysis must take into account these hidden fees.
I include this Turo host review to prove this point:
My name is Lance Davis my wife and I live in Las Vegas, NV. We chose to be a host, we listed our E550, Mercedes. On the second trip booking, we received a message from the Customer the day before their last rental date saying the passenger seat wouldn’t go all the way back. After the customer returned the car, we took the car to the dealership they scheduled us an appointment for the car deep into the following week. We went to another repair shop who told us the seat track was bent and the repair would be $683.00. Once we got the estimate we followed Turo”s claim submittal process and gave documentation and images of the damaged seat. 24 hours later we received a call from the Turo Claims associate who notified us they were denying our claim due to we did not provide enough proof that the customer damaged the power seat track. My response to the Turo associate was simple when the customer took my car they did not complain nor make any mention of the passenger seat being a problem. Matter of fact Sir, the first thing anyone does when they get into the car is to adjust their seat. As I stated the customer made no mention of any problem when they drove off in my car until they bought it back. Now that you all know what happened let me give you the numbers:
Money earned on Turo Trip $297
3-day discount -$29.50
Turo fees $106.92
Total from Turo Davis earned $160.38
Repair Guy Inspection $150.00
Repair to Power Seat $683.97
Total Out of Pocket to Us – $823.97
So here is an unseen problem that we came across that Turo has no solution because it does not exist in their online matrix when making a claim. Turo does not take into account these out-pocket fees we the host will be charged when damage occurs to our vehicles.
Bottom-line customers do not take great care of other folks’ cars like they would do their own!
In this car rental gig, Turo is the one making all the money.
Is Turo legit?
Turo is a legit per-to-per car rental platform for you to make money.
Similar to other rideshare companies, car owners make little or no profit.
The earnings from renting your car on Turo are low, but the risks are high.
You need to budget for repairs and regular maintenance, or replacing the vehicle if it gets totaled.
According to hosts, getting compensation for a totaled car is a nightmare.
Turo pays less than the KBB value for a totaled car leaving car owners with a huge loss.
You could end up making loan payments on a car that has been totaled by a renter.
Is Renting Your Car On Turo Worth It?
Turo presents an interesting opportunity for car owners to earn passive income with their unused cars.
I lost all interest in Turo after conducting the profit analysis of renting my car on the platform.
You might earn a few bucks, but not enough to cover the costs and damages to your car.
With the times required to vet renters, delivery and pick up cars, check and clean cars, and scheduling maintenance, it’s not worth it to rent your car on Turo.
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I understand you are here to read this review of Turo Car Rental.
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I hope this Turo Car Rental review answers your question, is Turo legit?
Until next time.
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