Turo allows people to rent out their cars | CTV News

Image Credit: Turo

Turo is more popular than ever, and many car owners make thousands of dollars per year from Turo.

The average Turo hosts make around $500 to $1,000 per month, according to our research. However, earnings vary based on location, vehicle type, and other factors. 

Keep reading to find out everything you need to know about how much you can make on Turo.

The Average Turo Hosts Make $500 to $1,000 Per Month

Turo makes it easy to calculate potential earnings from your vehicle. The company has an online calculator

Turo’s online calculator considers annual loan payments for your vehicle, average rental rates for your vehicle on Turo, and the estimated value of your vehicle, among other factors.

Based on Turo’s calculations, the average vehicle owner in the United States with a $10K to $30K vehicle can earn $6,200 to $11,000 per year, or around $500 to $1,000 per month. 

However, if you have a higher value ($30K to $50K) or premium value ($50K to $75K) vehicle, then you could earn even more. According to Turo’s online calculator, vehicles in the $30K to $50K range have average annual earnings of $10,000 to $17,800 per year, for example, or $800 to $1,500 per month. Meanwhile, vehicles in the $50K to $75K range generate $17,000 to $30,000 per year, or $1,400 to $2,500 per month.

Turo’s calculator also considers Turo’s in-house fees. Turo charges a booking fee of 15% to 40% from each trip, with fees varying based on vehicle type and rental period. The estimated profits above include these fees.  

Turo’s calculator does not, however, consider car payments, maintenance costs, and other expenses. If you earned $1,000 in one month with Turo and have a $500 car payment and $100 of maintenance fees, then you earned $400 profit that month.  

Overall, most vehicle owners are successfully able to earn extra income using Turo. If you have an extra vehicle you are not using and want to make money from that vehicle, then you could earn a profit through Turo.

Average Earnings by Vehicle Value

Turo’s online calculator features average earnings based on vehicle value and location. You can input your vehicle type and location, then get an estimated annualized ROI for your vehicle.

Here are Turo’s estimated earnings based on nationwide averages and different vehicle values:

Vehicle Budget Range: $10K to $30K

Vehicles in this budget range include the Fiat 500, Chrysler Voyager, Kia Rio, Toyota Yaris, and Mitsubishi Eclipse Cross, among others. According to Turo’s online calculator, vehicles in this range can earn the following:

  • Average annual earnings of $6,201 to $10,438
  • Annualized ROIs of 115.1% to 178.2%

Vehicle Budget Range: $30K to $50K

Vehicles in this budget range include the Audi S5 Cabriolet, Alfa Romeo Stelvio, Cadillac CT5, and Jeep Wrangler Unlimited, among other options. These vehicles tend to have a lower annualized ROI for owners, although owners can earn higher monthly income:

  • Average annual earnings of $10,857 to $15,723
  • Annualized ROIs of 79.6% to 51.1%

Vehicle Budget Range: $50K to $75K

Vehicles in this budget range include the Porsche Panamera, Porsche 718 Boxster, Lincoln Navigator L, Chevrolet Corvette, and Land Rover Defender, among others. ROIs and monthly earnings vary widely in this tier:

  • Average annual earnings of $17,738 to $29,741
  • Average annualized ROIs of 55.9% to 129.6%

How Turo Calculates Average Earnings

Turo Car Rental Review: Why Turo Is Quickly Becoming My Favorite Way to Get  Out of Town | Condé Nast Traveler

Image Credit: Turo

Turo calculates average earnings based on past data. They also consider things like annual vehicle loan payments, your location, your vehicle value, and other factors. 

Here are some of the things Turo considers in its average earnings calculations:

Region & Metro Area: Turo’s online calculator lets you view average earnings based on the national average across the United States. Or, you can look at average earnings by specific cities and metro areas, including New York, Boston, Atlanta, and Miami.

Estimated Vehicle Value: Turo considers the estimated value of your vehicle in its calculator. Vehicles have different budget ranges (from $10K to $75K). Some low-value vehicles have high annualized ROIs, while some high-value vehicles have high monthly earnings but low ROIs.

Annual Vehicle Loan Payments: Turo considers total monthly car loan payments over the course of a year in its online calculator. Turo assumes you pay 10% down with a 4.5% APR loan over a 60 month term. If you have better lending terms, then you could have higher average earnings than listed above. Turo lists your annual estimated vehicle loan payments on its online calculator, but it does not automatically deduct these payments from your estimated earnings. 

Turo Fees: Turo charges fees of 15% to 40% based on the vehicle rental period, vehicle type, and other factors. Turo considers its fee in its average annual earnings calculations. 

Annual Earnings: Turo uses past rental data to calculate average annual earnings. This figure does not include vehicle maintenance, car payments, business expenses, cleaning, depreciation, or other costs. It’s the amount you could receive each month by renting your vehicle through Turo. 

By checking the Turo calculator, you can view your estimated vehicle value, estimated annual vehicle loan payments, and average annual earnings. Then, you can decide if it’s worth it to rent your vehicle via Turo.

What Are the Best Vehicles for Turo?

Some vehicles consistently earn strong returns on Turo, while other vehicles don’t fare as well.

According to Turo’s research, the Fiat 500 is one of the most profitable cars for owners, delivering average annualized returns of 178.2% with average annual earnings of around $7,000. The Fiat 500 scores well because of its low vehicle value (around $12,000). In comparison, some higher-value vehicles have higher annual earnings but have higher monthly payments, lowering your annualized ROI.

Some of the best vehicles for Turo, according to Turo’s online calculator, include:

Fiat 500: 178.2% annualized ROI

Chrysler Voyager: 150.1% annualized ROI

Kia Rio: 138.5% annualized ROI

Porsche Panamera: 129.6% annualized ROI

Toyota Yaris: 126.1% annualized ROI

Audi S5 Cabriolet: 94.1% annualized ROI

Turo Car Requirements

Your vehicle must meet certain requirements to be listed on Turo, including:

  • Less than 12 years old
  • Fewer than 130,000 miles
  • Good condition
  • Clean title with no history of total losses on the vehicle
  • No salvage title or branded title

Turo also requires owners to meet specific registration and car insurance requirements based on your state. You must keep registration and insurance information with the vehicle when renting it out via Turo. 

If your car meets Turo’s requirements, then register on Turo.com, select a Turo insurance plan (Turo offers five plans, and you pay a different booking fee based on your insurance plan). Then, list your car and wait for a rental.

How to Make More Money with Turo

Case study: Turo increases car sharing with Smartcar · Smartcar blog

Image Credit: Turo

Some vehicle owners make under $500 per month with Turo, while others make over $2,000. Here are some of the strategies Turo users use to make consistent income with the platform:

Consider Setting or Removing Distance Limits: Turo gives you the option to set distance limits for renters. You can give guests unlimited mileage. Or, you can set a maximum distance as low as 200 miles, then charge guests a fee for exceeding this mileage. Distance limits may be helpful for Deluxe Class or Super Deluxe Class vehicles, but they’re less important for lower-end vehicles. Turo vehicles with unlimited distance get more bookings.

Let Turo Calculate Fees: You can set your own fees on Turo. Or, you can let Turo set fees via its Automatic Pricing system, which considers various factors. Turo considers the type of vehicle, your location, changes in supply and demand, the day of the week, local events, and trip history when calculating fees. Sometimes, you’re better to set your own fee; in other cases, it’s better to let Turo calculate fees to capitalize on high demand. 

Let Guests Book with Short Notice: Many Turo users need cars on short notice. Turo may charge more for short notice rentals because of a lack of supply. If you’re able to consistently let guests book with short notice, then you could earn more money with Turo.

Accept Early Morning and Late Night Pickups: Turo may charge guests more when picking up vehicles early in the morning or late at night. Turo may also have less supply for unusual hours, making your listing stand out. If you don’t mind early wakeups or late nights, then you could make more money with Turo.

Accept Weekend Rentals: Many Turo members reserve their car for personal use on weekends, restricting Turo users to midweek rentals. Accept weekend rentals to increase Turo income.

Consider Vehicle Value: Use the Turo calculator to play around with vehicle values. If you’re buying a vehicle specifically to make money with Turo, then multiple lower-value economy vehicles could earn more income than a single higher-value luxury vehicle. Consider your location, why people rent cars in your area, and other factors to determine optimal vehicle value and earnings. 

List Multiple Vehicles: Some Turo members list multiple vehicles to maximize earnings. The more vehicles you list, the more money you can make with Turo. 

Final Word: Is Turo Worth It?

Turo can be a good way to earn passive income from a vehicle you own. 

The average Turo user earns $500 to $1,000 per month, according to our research, or around $6,000 to $12,000 per year. Some of the most successful Turo users earn $1,500 per month per vehicle or more.

Turo’s earning estimates, however, do not include vehicle maintenance, depreciation, storage, car payments, and other factors. 

Visit the official Turo calculator online today at Turo.com to find out how much you can make on Turo. 

Published by HOLR Magazine.