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With over 450,000 vehicle listings across Canada and the US, Turo is seen as the Airbnb of cars, and its platform is available in most major cities. Many people may find Turo car sharing more affordable than booking through other car rental companies, but is it worth it, or is it a bad idea?
6 Reasons Why Turo Can Be A Bad Idea:
- Turo's Rewards Don't Outweigh The Risks
- Turo Takes A Hefty Commission Fee
- There Is Uncertainty About Turo's Damages And Insurance
- Turo Lacks Transparency
- Turo Has Many Reports About Car Theft
- Turo Has Bad Customer Service
1. Turo's Rewards Don't Outweigh The Risks
Sometimes, the numbers don't add up when you need to estimate how much you can rent your car out and for how many days each month minus the cost of insurance it will cost you. the insurance will either be your own or Turo will cover it.
It might also be good to consider your car's worth when selling it. If buyers become aware that you have rented your vehicle, the profit you may make during its time on Turo may affect the price you'd be able to sell it for.
If you are attached to your car, and it's your main form of transport, you need to understand the risk of theft, damage, and the usual wear and tear that comes with renting your vehicle.
For some, their car's overall worth depletes so much that the risks are not worth the rewards at the end of the day.
2. Turo Takes A Hefty Commission Fee
Turo takes between 15% and 40% of each booking, although it will depend on your type of protection plan.
And, if you decide not to use any of their protection plans and provide your own, they will take 8.5% of each booking.
If you need to compare this, Airbnb only takes a 3% commission fee from their hosts, which is much lower than Turo.
Turo didn't always take such a large commission fee, but over the years, the company has gained more and more success, and the fee structure has progressively increased in larger and larger splits favoring Turo. This means that the host is getting less and less.
For example, in 2016, Turo took 25% of the commission on their Premium plan, and now with the same plan, they take 40% of the commission.
3. There Is Uncertainty About Turo's Damages And Insurance
Unfortunately, some people are just not good drivers. You may wonder what will happen to your car as the host when somebody rents and damages it.
When the damage is minor, where no police report is taken, and no other party witnessed it, things could become significantly more complicated with Turo.
If the renter returns your vehicle and you discover a scratch or dent, they may try to tell you it is not their fault and they didn't do anything to damage your car, and it must have been there before they rented it out.
Luckily, Turo does offer a protection plan to car owners, but it comes at an additional cost. In this case, you need to be covered by Turo anyways.
The reason behind this is that even though you may have commercial insurance, they won't cover any damages or loss you or another driver has caused if they find out you have been renting your vehicle out.
This means you might spend more on insurance than you usually would, eating away from your profits.
4. Turo Lacks Transparency
When it comes to transparency, Turo becomes sketchy. Many hosts listing their cars on Turo have reported that Turo is not their partner, no matter how much they claim to be.
Turo always tries their best to escape bills, and they have trouble sticking with its policies and finding loopholes.
This is where it becomes incredibly sticky because you, as the host, will not realize this or see this side of them until the time comes to step up and support you as the client.
Because of this reason, it could become stressful working with them, as you can never completely trust them.
5. Turo Has Many Reports Of Theft
Have you ever heard the popular saying, “drive it like you stole it.”? Well, in the case of Turo, it can sometimes be true. Theft is not uncommon and unheard of on Turo. And, it's not as clear-cut as regular car theft.
Usually, when you know your car is missing and somebody has stolen it, you know the protocol is to call the police immediately.
On Turo, a renter may stay in constant contact with you as the host but continue to give excuses for the delay in returning your vehicle. If this is the case, Turo leaves you to fend for yourself.
In most cases, Turo will simply tell you to keep trying to reach and make contact with the renter, and you have to wait for them to get back to you to return the car.
This means you cannot call the police right away. Luckily, some car owners have GPS to track their car and find the exact location to look for it themselves.
Although this could be thrilling or exciting, it could quickly become hostile and dangerous if you are not careful or handle things the right way with the renter.
Also, if you take too long to report the theft to the police, you may be put in a line, and it would not be their priority to locate and bring your car safely back to you.
6. Turo Has Bad Customer Service
When it comes to minor damages, such as a late pickup or return, it could be easy to get Turo on the phone, as they have phone support around the clock.
However, if the situation is on a more serious level, such as legal questions or damage claims, they are not reliable at all.
You will have to open a claim ticket and then wait for them to contact you with their response via email only. This could prolong the situation, and it's never a guarantee that they will help you.
