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More people tend to look for additional income streams during economically challenging times.
Some people consider renting their properties on BnB, while others consider Turo car sharing to supplement their income. If you are considering renting your car, the question is, is it worth renting it on Turo?
Renting your car on Turo could help if you need to earn extra money or as a part-time venture.
Weighing up the pros and cons should give you a good indication of the positive gains and possible pitfalls of using Turo. Research indicates that the cons outweigh the pros when renting your car on Turo.
Any property, your car, for instance, can be rented to generate extra income, and with the current financial challenges the world is facing, more people search for additional income streams. So, if you own a vehicle or two, you may consider renting them on Turo. However, before deciding on renting your car on Turo, there are several things to consider.
The Positives And Negatives Of Renting Your Car On Turo
There is a saying in business circles, “the higher the risk, the higher the reward,” which proves to be accurate for some investors. Still, if you are under financial strain and are looking for an additional income stream, the last thing you should consider is a high-risk solution. If you consider renting your car on Turo as a side hustle and can afford to take risks, then go for it.
Owning a single vehicle or more may entice you to sign up and rent your cars on Turo, but there are serious pros and cons to consider. Weighing up the pros against the negatives will indicate what you can afford to do. Being cautious is a great attribute when investigating opportunities. “Caution is the parent of safety” is a genuinely relevant proverb.
The Pros Of Renting Your Car On Turo
It is essential to consider the following pros before renting your car on Turo.
- Easy and fast registration. The Turo app makes it easy for people to register their cars for rent on Turo, making it possible to earn a passive income within a brief period. Renters can easily register via Email, Apple, Google, or Facebook accounts.
- High-income potential. Turo claims that renters can earn up to $750 per month.
- Advertising and insurance. The 15%-40% that Turo takes off the rental fees covers advertising your vehicle on the Turo App. It also covers the insurance needed for your rented car.
- Turo Car Calculator. Turo provides a convenient feature named Turo Car Calculator.
- By entering the car, you wish to rent on Turo; The Turo Carculator can calculate what type of income you can expect.
- Full control. Vehicle owners have complete control over the terms and conditions of renting their vehicles. For example, the vehicle owner determines the duration, the distance it may travel, special rates for long rent or extra mileage, and what insurance to get to protect their asset.
- Insurance options. Vehicle owners have different insurance options when renting cars on Turo. They all differ in price, and depending on the choice of insurance option, the vehicle owner can pocket 60%-80% of the rental.
- Delivery options. Vehicle owners can decide which delivery options best suit their needs and add a delivery or collection fee.
Adding a collection and delivery fee further adds to the income.
- Turo support. Turo will support vehicle owners by keeping the renters responsible for any damage to the vehicle, such as an accident, cars left dirty and in need of cleaning, or any other negligence from the renter.
The Cons Of Renting Your Car On Turo
As with so many things in life, where there are pros, there are also cons. So before making any final decision on renting your car on Turo, familiarize yourself with all the possible negatives.
- Liability claims. If an accident occurs, the vehicle owner could face liability claims despite following the correct procedures. Therefore, it may be good to consider additional insurance for such events. Additional insurance will add to expenses that affect income.
- Turo Terms And Conditions. It is essential to check the terms and conditions of Turo regularly. They may change minute details in their renting policies, which can have a detrimental effect. If, for instance, Turo should do away with daily or monthly limits, it may have a significant impact on potential income.
- Questionable users. Even with all the security protocols in place when renting your car on Turo, there are no guarantees against suspicious users that could find loopholes to misuse the system. Misconduct ranges from false identities, non-licensed drivers, and even vehicle theft.
- High Insurance Costs. Additional insurance may be necessary to protect against damage, loss, or theft. However, the cost of additional insurance will lower profit margins.
- No Transparency. Turo tells you they are your partner, but when you need them to back you, they somehow always find a way to distance themselves from a situation. They tend to find loopholes that enable them not to honor their policies. Unfortunately, this trait becomes apparent when vehicle owners need backing and assistance.
- Large commission fees. Turo claims between 15% and 40% rental commission depending on which protection plan you choose. Even if you find a different protection plan, they are, at 8,5%, still charging much more than, for example, BnB, which charges 3% rental commission fees.
- Regular commission increases. Turo tends to raise their rental commission regularly for their benefit, which means less money in the pocket of vehicle owners.
- Bad customer service. They are dependable when overseeing the easy problems that may arise. Turo’s 24/7 service when dealing with late collection or delivery is beneficial. Unfortunately, one cannot rely on them for prompt customer service for accidents, legal, or damage claims.
Vehicle Owners Should Keep Vehicle Depreciation In Mind
In simple terms, depreciation is when an asset you own loses value over time due to deterioration or normal wear and tear. For example, vehicle depreciation affects your future income because you will not be able to rent your car on Turo at higher rates next year than you do now, seeing your vehicle will be older. Therefore, vehicle owners should always consider depreciation as a colossal con.
After collecting all the pros and cons of renting your car on Turo, the cons outweigh the pros, making this an unsafe option for the more cautious among us. Therefore, unless you enjoy high risks, this may not be an option for you. It feels like people use Turo for Uber, it's just not wise.