With the growing popularity of ridesharing programs like Uber and Lyft, along with sharing your home via AirBnb, it should come as no surprise that people may want to rent out your car as well allowing you to earn some extra money.
This can be done safely and effectively through a company called Turo.
What is Turo?
Turo is the nation’s largest peer-to-peer car rental marketplace. It allows car owners the option to earn extra money by renting out their cars to pre-screened and approved renters and it also helps connect renters with the right vehicle for their needs and timeframe. Turo covers your car with $1 million in liability insurance and 24/7 roadside assistance when someone requests to use your car.
How it Works
Listing your car on Turo is pretty easy. You’ll sign up for an account, and create a free listing by describing your car and uploading some good photos. Turo will develop a listing price based on your car’s market value, location, current time of the year and other related data.
You’ll get notified when someone requests to use your car and you can choose whether you’d like to confirm their request or not. The traveler can either pick up your car at a set location or you can drop it off to them within a set radius.
Turo pays you direct deposit within five days of the rental and you’ll earn anywhere from 65% to 85% of the trip’s price. Turo has a mobile app where you can rate your experience they currently have rental cars across the country.
Pros of Using Turo
Since I’m discussing this company as a side hustle opportunity, I’m going to focus mainly on the pros and cons from a seller’s perspective. The main benefit I see from using Turo is the opportunity to earn extra money and put your car to use when you’re not using it. Earning 65%-85% of the total rental price is a generous amount.
Turo has done research to help estimate how much you could potentially earn from renting your car out. For example, if your car is worth about $18,000 and you rent it out for 12 days per month, you could earn around $5,153 per year. While an $18k car sounds like quite a bit for frugal me, I performed a realistic estimate on my car valued at about $8,000 if I were to rent it out for 10 days per month and it’s estimated I can earn up to $4,147 per year.
That’s not bad for doing practically nothing. I actually depend heavily on my car to get me to and from work throughout the week. But since I have a two-car household, I could just share my husband’s car on the weekends and on his off day and rent mine out if I wanted to.
I also like how Turo insures your vehicle while someone else is driving it. You never know what can happen when you or someone is driving your car so insurance is a must. The fact that Turo allows you to choose who can use your car also appeals to me. They give the vehicle owner lots of options and full control over who can rent their car. If you don’t feel like renting your car one day or you think the intended renter is traveling too far, you can always deny their request.
Bonus: For a limited time, Turo has a current offer that allows vehicle owners a $100 bonus by listing and renting their car as a new host. To earn the bonus, Turo will calculate 25% of your earnings for trips you approve during the first $60 days up to $100. In order to reach the maximum bonus amount, you’d need to approve trips that total $400 which isn’t hard since even the most basic cars on Turo rent for $30-40 per day.
Possible Cons of Using Turo
If you’re looking for consistent side income, you may find that utilizing Turo may not be the best option for you since you won’t have a clear idea of who will want to rent your car and when requests will come in so making the income you earn unreliable. However, if you are simply interested in establishing an extra stream of income that you don’t actually need each month to get by, you may have an easier time overlooking this.
Sharing your car may also come with a few liabilities. While the $1 million liability insurance policy is great, in super rare cases it might not cover serious damages to others. The insurance policy is tiered so if you choose the basic policy, there is a deductible but the standard and premium insurance plans have no deductible. If in the unfortunate case that your car needs repairs due to damage during a rental, if you have the premium plan Turo will reimburse you for loss of rental income and even provide you with a temporary vehicle. These benefits are not available with the basic plan however, so it sounds best to obtain more coverage for your vehicle if you fear the worst could happen.
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