Is renting your car on Turo worth it? Are you on Turo already but want to learn how to make more money out of it? Do you just learn about Turo and you are thinking of renting your car on it?
While this article is about Turo, I feel it is necessary to let you know that people use a lease or buy a car quiz to help them determine if they should buy or rent a car. These are the people that would eventually lease your car, so take some time too, to find out what they are like.
Is the Turo really making money with its revenue model? If you have these same questions in mind, then follow me as I’m on the verge of providing definite answers to them.
In other not to be judgemental and before delving into the question of whether renting your car on Turo worth it, it’s very important to consider its pros and cons.
Remember that this article is not a general information on renting out your car on Turo. It’s just an analysis of the Turo Business Model.
Pros of Renting Out Your Car On Turo
As a frequent Turo user, if anyone should ask you that, ‘is renting your car on Turo worth it? Kindly answer them with the following advantages:
1. Lots of Bookings
It’s a known fact that Turo is very popular and as such, if you reside in or live near an airport or any major city, then you are in money.
People patronize the platform very often hence, if your car is efficiently priced and available for service, you will be booked by clients more often.
That means only one thing, your revenue at the end of the day will be huge and you will have a cause to wear a happy face while retiring home in the evening.
2. User-friendly website and app
The Turo online marketplace for car rentals has a very user-friendly interface, making it very easy to navigate.
The mobile app on the other hand is designed a way that a first timer will be able to book, send and receive messages, edit listings, receive payment, etc.
3. 24/7 Phone Support
Another major advantage of the Turo Company is that it has a reliable 24/7 phone support for simple things like late returns, billing questions, etc.
Cons of Renting Out Your Car On Turo
Unfortunately, there is nothing with advantages that has no disadvantages, even if it is as little as little can be.
The following are the other side of Turo:
1. Lack of Transparency
All car rentals on Turo knows that things often gets sketchy with the platform when it comes to transparency. The company is lacking behind in this regard.
Turo hardly stick to their own policies, most especially if it’s against them, they will make sure to find an escape route instead of paying the bill.
2. Huge commission for
Another cons of partnering with Turo is that they take a high rate of commission off the car owners.
Turo charges 15% to 40% off each booking you received depending on the protection package you choose.
And if you feel like passing off their protection packages altogether by proposing your own, the company will still charge 8.5%.
In the recent past, the Turos’ fee structure just sprung up into larger splits thereby favoring Turo while the host is getting less.
3. Bad Customer Service
As stated earlier that Turo have 24/7 phone support for minor and trivia issues for problems like a late pick up or return.
But if the issue is something more serious that demands urgent attention like a legal question or damage claim, you’ll have to join the queue.
To resolve such problem, you will need to open a support or claims “ticket”, after which you will have to wait for their response via email. It takes days before they respond sometimes.
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Is renting your car on Turo Worth It?
Having highlighted the basic pros and cons of Turo, it is very clear that the risks of partnering with Turo as a host outweigh the rewards.
Although we may see things differently and you may still want to try it out putting the pros discussed above in mind. But personally, I would pass on Turo.
Becoming a registered member of the platform is just too risky. Turo and Airbnb business model are similar and the same.
The two operates a peer-to-peer rental concept but Airbnb has a better revenue structure compare to Turo. They stay glue to their policies, even if it’s against them.
In addition, unlike Turo, Airbnb takes a 3% commission fee compare to 15% to 40% (depending on the protection package) that Turo charges its hosts.
How to make more money out of Turo
Truth be told, renting car out on Turo can be profitable but it’s too risky. But if you are willing to take that risk in exchange for profits, that is a total different story.
Personally, Turo itself is making more money, and the host who rent out his own personal car(s) is earning a small too.
So, if you want to make more money out of Turo, I will suggest that you start with a car that you already have and not the one you also rent.
After seeing how it goes, you can then add to your fleet to make more money out of this Turo business model. The return on two or more cars can’t be compared with a single ride.
Doing that will immensely help you to get a better idea of how much money you would need to invest in other to grow.
And how much money you will be making from the business in return. Put differently, having many cars that are always open for business will yeild better result on Turo.
Turo is the leading platform in the online car rental business hub not because they are so brilliant and exceptional but because there are no competitors.
There’s no other peer-to-peer car rental company that has scaled through the hurdle of turbulent time as long as them and really don’t have much competition right now.