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You might have heard about Uber, a transportation company with a downloadable app that allows passengers to request a ride, and drivers charge fees. More specifically, Uber can be seen as a ride sharing company hiring independent contractors as drivers. Turo is a car sharing company. Can you use Turo for Uber, and should you?
As an Uber driver, you cannot use one of these vehicles to drive for Lyft, but you can use it for your personal needs if your car is getting repaired. You can use your Turo car for Uber, along with other delivery services, but according to Turo's terms of service, it may not always be allowed.
You may now be wondering whether you can use Turo for Uber and if it would be a good idea to do so. Continue reading with us as I discuss how you can use Turo for Uber, and what it could mean as a form of income.
Advantages Of Renting Your Turo Car For Uber
You will be reaping quite a few benefits if you decide to rent your car for Uber. These benefits have the possibility of making it well worth your while. Let's take a look at each of these advantages in turn:
You Will Make Tax Free Money
As of January 1, 2020, the IRS's standard mileage rates are anywhere around $.57 per mile. Suppose you drive for business use.
This means you can write off $.57 for every mile you have driven on your car, and this includes when your vehicle is being rented out on Turo.
If you're wondering how exactly this will work, it would be good to note that rental cars will typically earn around 0.40 and 0.45c per mile. However, this depends on how many allowable miles you have provided the renter with, including the daily rental cost.
You can use the IRS's standard mileage rate to write off $.57 per business mile. Since the depreciation write-off is more than the actual money you will earn, it could be seen as tax-free money in theory.
It would be good to know that you can only do this for the first four vehicles, and the fifth vehicle has to be the Actual Expense Method. It is advised that you make an appointment with your tax accountant before you decide to do anything, as it would give you some good ideas for going forward.
Your Car Will Pay Itself Off
According to Uber's website, the typical, everyday Uber host makes around $706 per month by simply using their car on Uber.
Of course, this amount may vary depending on how often your vehicle is made available, the rental price, the price for gas, etc.
You can easily estimate how much your specific car will earn based on the year, make, and model of your car, as well as the city you will be working in.
You Will Be Turning A Liability Into A Valuable Asset
Renting your car out is overall a great way you can turn your personal car into a form of income.
This works in the same way as it would when you decide to use your home's extra rooms for an air BnB.
Disadvantages Of Renting Your Turo Car For Uber
Along with the benefits that come along with renting out your car for Uber, some disadvantages are definitely worth noting. These advantages can make or break your decision on whether you should or should not rent your Turo car for Uber. Let's take a look at them:
Your Car Will Get A Lot Of Wear And Tear
When you decide to rent your car for any delivery services, such as Uber, you will need to know that your car will drive anywhere between 200 and 1000 miles each week.
This can, however, eventually take a toll on your car and shorten its lifespan and cause problems much earlier.
You Will Be Renting Your Car To Strangers
Whether or not it is safe to rent your personal car to strangers is a question that will never be able to be accurately answered. However, luckily, the ever-growing demand for car rental businesses has measures to protect their owners.
For example, people can't rent a car with cash, as only a credit card is allowed. However, even if this avoids the potential and biggest risk of not getting paid, you will still have to trust your renter to be respectful of your car.
Unfortunately, it is a reality that some drivers will damage your car, or you can have issues with tickets, impound fees, tolls, or even severe accidents.
How Can You Be A Turo Renter And A Uber Driver?
You will be happy to hear that the era of only taking part in a single task is over. In today's digital, technologically driven world, it enables us to do a lot of things at once.
This means we can have more than one job, earn more money, and save more money, all to live the life of our dreams!
When you rent out your Turo car for Uber, you can do more on top of your Turo trips. You can do this without having to sacrifice your other jobs. For example, renting your car on Turo is a clean job, and you can do it for a living.
However, when you combine this with using your car for Uber as well, it would be a big plus. You can become a Turo renter and an Uber driver at the same time by simply managing your time!
After you have looked at both the pros and cons of using your Turo car for Uber, it's all up to your whether you should or should not. Many people see it as far too risky, as their cars are their primary source of income.
However, you will be increasing your overall earnings, which means your income will increase, and your quality of life will be better off than if you only had one job. It all depends on your commitment, efforts, and determination!