Technology changes every aspect of our lives. One that many people take for granted is services such as those of Uber and Lyft. You can book a ride with your phone and expect high-quality service at a low price. Airbnb allows you to rent a room in someone’s home or rent out your place to tourists. Turo offers a spin on the services that Uber and Airbnb provide. You can make money off Turo without even having to touch the steering wheel.
You can make money on Turo by renting your vehicle to others. Using the Turo app connects you to renters on the network. All you have to do is register and wait for requests. How much you can make with Turo depends on the insurance plans you subscribe to and the vehicle itself.
So is this a viable source of passive income? Read on to find out.
Can You Make Money with Turo?
You can, but how much money you make with Turo depends on many factors. Two of the most important ones are your efforts in maintaining your vehicles and how many you have. It goes without saying that if you happen to have a fleet of vehicles, you can rake in a lot more money than if you only have one ride.
Setting up an account on Turo is straightforward. It takes about 10 minutes or so to list your car on the platform. You might get a lot of bookings soon after your registration is complete depending on your location and vehicle.
You can sign up with Turo via your email or Facebook, Apple, or Google account. In the top right corner, you should see a button that says “List Your Car” so click that. You will then need to enter information about your vehicle such as the license plate number, photos of the car, make and model, and whether it has an automatic transmission.
From there, Turo will give you a recommendation for the rental rate, but it is just a suggestion. You can set your fee manually. Turo charges money daily, but you can get more bang for the buck if you go for weekly or even monthly rentals. Renters, on the other hand, pay a full day’s rate even if they only need the ride for an hour.
You also need to pick an insurance plan, of which there are five to choose from. You can get anywhere from 60% to 85% of the rental fee depending on the plan you choose.
To sweeten the deal, you can also decide how the car gets to the renter. You can charge an additional fee if you want to bring the car to the renter at the airport or a set location. Alternatively, you can just park the car in a parking lot and let renters pick it up on their own. Customers would know which method you prefer just by looking at your listing. Another additional fee covers both pickup and return.
If that is not enough flexibility for you, it gets better. You can also choose how much mileage customers can put on your car. That way, you can rest well knowing that the renter cannot drive your car so hard it exceeds 130,000 miles and invalidate it from the listing. For instance, you can set the daily driving limit to 50 miles. So long as they do not go over that, they are fine. If they do, they will have to pay some more fee per mile and you get 100% of that extra payment.
Finally, you can limit your car’s availability. You determine when other people can rent your car. That also means you can make it unavailable for certain dates in the future.
How to Make Money on Turo
You must consider the fact that making money on Turo is going to be more difficult than renting an apartment on Airbnb. Cars just need certain things that an apartment does not. For instance, you need a safe place to park your rides when they are not in use and to keep them in good shape. Other unfortunate circumstances could happen to your vehicles when you rent them out as well.
This does mean that turning hefty profits on Turo can be a challenge, but it is more accessible than Airbnb. It is relatively cheaper to own multiple cars than apartments. You will probably not make a lot of money, especially when starting out, but that is the point of a passive income. It is there to supplement your main source of income so you have some budget to buy something nice for yourself or save up for that vacation. With that in mind, there are some ways you can maximize your income on Turo.
1. Offer a Reasonable Price
People will usually pick a cheaper alternative if they have the chance. Sometimes, the best chance to score booking is to offer a more competitive price. This is especially true if there are many Turo users in your area. If the price is too steep, it will be difficult to find people who want to rent your vehicles. On the flip side, if it is too low, you might be renting at a loss.
There is no clear amount as the market fluctuates. So, it is worth doing some research to find the best price. You want to at least break even while also getting renters constantly.
When you put your vehicle on the listing, Turo will give you their price recommendation. It depends on your car type and location, among other factors. You can turn this off and set your price.
Pro tip: Set up discounts to encourage renters to come back and charge for excess distance and delivery fees.
2. Provide More Car Listings
While Turo does not allow you to list your vehicles on their websites and other ride-sharing platforms simultaneously, they do allow you to list more than one vehicle on their platform. That way, you can double or triple your earnings depending on how many vehicles you have. This is a great way to increase your earnings if you happen to live in an area where there is a great need for ride-sharing services.
3. Capture Great Photographs
Renters want to know exactly what vehicle they are getting. So, to maximize your chance of scoring booking, make sure to take great photos of your ride. Professional photography enhances the look of your ride, increasing the likelihood of getting someone to rent your car. After all, it shows people that you are serious about all of this and they know exactly what they are paying for. Blurry photos look dodgy and will deter people from renting your ride.
Acquiring professional photographs of your vehicle is easy. Turo offers support and can connect you with professional photographers to take good photos of your ride. What you are getting is showroom-ready photos for your listing, which goes a long way in attracting more bookings.
4. Keep the Car in Good Condition
Maintain your car well and you can bet that bookings will continue to flow in. No one wants to rent a car only to have it break down mid-trip. It heavily and negatively impacts the customer’s experience. Not to mention, it also increases the life expectancy of your car and can save you a lot of money on repairs in the future. Everybody loves to drive a car that looks and runs like new, after all.
5. Provide More Features
Customers also like it when you offer them something more than just the car. Consider adding accessories that can enhance the driving experience, such as a built-in GPS or satellite radio. They are nice-to-haves, and they can increase your chance of getting a booking.
Speaking of features, you have the option of writing a description. Use that space to mention features of your vehicles, such as the dimension of the trunk or its towing capacity. Some people want to rent a car for a certain purpose, and they will look for such information. Also, consider adding information about how to use your vehicle’s features to enhance their driving experience.
How Much Can You Make on Turo?
According to Turo, owners make about $706 in monthly income, with the highest at around $1,365 a month. Your actual income from Turo depends on your vehicle and type of insurance. At the moment of writing, the Porsche Boxter is the highest earner on the platform.
Your vehicle is one of the biggest factors in scoring a booking and earning. Turo also pointed out the difference in earnings between car types. For instance, a Fiat 500 earns around $474 a month. A Chevy Camaros can earn $755 a month on average, or $73 a day.
It might not seem like a lot, but you have an alternate source of income. If you only have one car and need to use it every day, you would make significantly less money than the average. On the other hand, if you have a fleet of vehicles, it is better to rent them out than to let them collect dust in the garage.
3 Things to Know Before Starting With Turo
Before you start putting your vehicles up on Turo, there are a few things you need to know
1. Turo Calculator
Turo offers an online tool they call “Carculator” that helps you get a rough estimate of how much money you can make with your vehicle. Just punch in your car’s year, model, make, and location. You will get a rough estimation of income for that vehicle. Of course, this is largely guesswork as your earnings on Turo depend on a variety of factors.
2. Top Rented Cars on Turo
Turo hosts thousands of vehicles on their platform, and they have all the data on all the vehicle exchanges. Fortunately, they use it in their car rental calculator, and they shared their findings. Of course, high-end luxurious vehicles will fetch a high price, but not everybody has them. So, Turo went ahead and gave us their findings on top-earning cars in 3 categories depending on the MSRP (manufacturer’s suggested retail price): economy, mid-range, and upscale.
First, let’s talk about the economy class. Its MSRP range is $10,000 to $30,000. Here, the most popular rental vehicles are:
- Fiat 500: A charming, small city car that is efficient and user-friendly. Its average annual earnings are $7,009 and its annual loan cost sits at $2,519.
- Chrysler Voyager: This minivan is basically an economy variant of the Chrysler Pacifica. Its average annual earnings sit at $10,438 and its annual loan cost is $4,174.
- Kia Rio: A compact vehicle that is also a good value. Its average annual earnings are $7,177 and its annual loan cost is $3,009.
Next up, there are mid-range vehicles with their MSRPs from $30,000 to $50,000. In this category, the most popular rental vehicles are:
- Audi S5 Cabriolet: A convertible variant of the two-door Audi A5 with an average annual earning of $17,764 and an annual loan cost of $9,154.
- Alfa Romeo Stelvio: Its average annual earnings are $11,442 and its annual loan cost sits at $6,371.
- Cadillac CT5: Another beautiful ride that came into the market recently. Its average annual earning is $11,065 and its annual loan cost is $6,382.
Finally, let’s talk about top-of-the-line upscale class vehicles with an MSRP ranging from $50,000 to $75,000. Here, the most popular rental vehicles are:
- Porsche Panamera: One reason why it is among the most profitable Turo cars is the fact that it is the only Porsche that is a sedan. For this experience, owners can bring in an average of $29,741 annually. The annual loan cost is $12,953.
- Porsche 718 Boxster: An exciting high-octane sports car that is incredibly popular on Turo. Its average annual earnings are $17,738 and its annual loan cost is $10,280.
- Lincoln Navigator L: This is a popular choice among travelers who need a lot of seats and cargo space for a fun and comfortable road trip. Its average annual earnings are $23,598 and its annual loan cost is $13,841.
3. Turo Requirements to Rent Your Car
Make sure that your vehicle is eligible, meaning that you cannot list your passenger vans, motorcycles, or other vehicles that are not suitable on the highway. That includes passenger vans, cargo vans, motorcycles, and off-road vehicles. Other than that, your vehicle needs to meet the following criteria:
- Its model year must be within the last 12 years; and
- It should have fewer than 130,000 miles
What about rental cars? You can also list those on Turo, but make sure it does not violate the terms of your agreement. Vintage cars are also eligible. You just need to submit your driver’s license numbers, part of your social security number, home address, and location. From there, it is just a matter of waiting until Turo approves your registration.
Frequently Asked Questions
You may still have some other questions about Turo, so we will go over those in this section. These are some of the most frequently asked questions people have about the platform.
Is Turo Legit?
Turo makes it so that you can rent a car with ease. The best part? Turo handles all the paperwork for you and your customers. So the service is convenient without compromising trust. To that end, Turo has to put up some rules and regulations just to cover all the potential legal liabilities that may occur in the future.
Is Turo a Good Way to Make Money?
Yes, you can make some extra cash on the side with Turo. It is a source of passive income, meaning that you do not need to put in much effort to make money. With that in mind, you stand to make a hefty profit if you put in the effort and own multiple cars. It is a great way to make money passively since Turo’s insurance covers your vehicles, allowing for safer vehicle exchanges. If the business is booming for you, it might just cover the cost of your ride.
Prospects are looking great. According to Statista, the number of car-sharing users will go from 7 million to 60.5 million around 2026. Now would be a good time to start renting your car on Turo. You might not make much from the start, but with time and experience, it might be enough to cover the bills.
What Percentage Does Turo Take?
Turo commission ranges from 15% to 40%, but this depends on what insurance plan you opt for. The money Turo makes from you also goes into advertising, so it is safe to say that it is in everybody’s best interest. Yes, they are taking a chunk out of your income, but they also use it to bring in more users to the platform, which means better chances of getting bookings for you.
Conclusion
Thanks to the advancement of technology, there are many ways to make money. Turo offers everybody a chance to earn some money with their car when it is not in use. While you would make a lot more money if you own multiple cars, it is at least very accessible to everybody who usually does not need to drive as often. With the number of ride-sharing users on the rise, it is a good time to get into the industry. Registration is short and simple, so start your car rental business on Turo now!
