How Much Can You Make On Turo In 2023?

How Much Can You Make on Turo in 2024?

The average Turo host can typically make an extra $500 to $1,000 per month. This number is influenced by various factors, including the type of vehicle you list, the frequency of its rental, and the geographical location.

It’s important to note that Turo takes a cut of each booking, ranging from 15% to 40%, which varies based on the car type and rental duration. This number can significantly eat into a host’s profit.

With the right strategies to increase bookings and maintain a consistent income, such as listing popular and utilitarian vehicles, renting your car out on this platform can be worth it – and even profitable.

Are These Earnings Figures Accurate?

Turo boasts on their website that the average annual income for one vehicle is $10,516. This comes out to around $876 per month.

We have to remember that this number can be misleading! It’s an ‘average,’ not a guarantee. As such, some hosts might be making a lot more and some a lot less.

If we run the numbers in a broader sense, the average host can expect to earn between $500 – $1,000 a month, as mentioned above. Of course, this depends on how much your car gets booked and what price you list it for.

The amount you make will likely vary from month to month. For example, cars that are in demand when first listed might drop in demand after being on the market for a few months.

Your earnings might also change based on the time of the year. If you live in a holiday town, you might have more luck during the busier summer season than throughout the rest of the year! This will mean that your earnings might be down for a few months.

One way you can combat a dip in earnings is to list more than one car. On their website, Turo claims that the average income of five cars listed on their site is $52,579. This works out to be around $4,381 a month!

However, if you’re struggling to attract customers, you can also simply lower the rental price of your car. Yes, this will earn you less in the short term – but it’s better than not having any bookings at all!

Other Real-World Earnings Examples From Gig Workers Renting on Turo

Plenty of people discuss how much they make from Turo online.

On Reddit, most people agree that it’s generally a long-term investment. Many users claim that they bought cars explicitly to list on Turo, and used the earnings to pay off the monthly loan payments.

One user claims that he bought the car for Turo intending to pay it off after three years and have a “free” car.

He says he earned around $500 a month which he put toward the loan. To save money, he washed the car himself and also offered a lot of extras like beach chair rentals since he lives in a tourist area.

Other users claim that using the earnings from Turo to pay off the car loan isn’t enough.

They say that there’s too much risk involved in buying a car expecting to pay it off with Turo. Your best bet may be to buy using cash for under-market value, then list the car and make a profit.

Another user says that in good months he would make $800 after expenses from renting his Honda SUV in Denver. However, most months he would make less than that, though the good made up for the bad a lot of the time!

It seems like users who lived closer to airports and in tourist hotspots earned the most from Turo.

A lot of users gave up after a few months, saying that the money wasn’t worth it for the time consumption.

One user says he rented out his 2014 Jeep Cherokee which was already paid off. It brought in around $1000 a month after cleaning and Turo fees. He says he lived in Florida near airports and that it made a nice side gig.

Finally, there are also plenty of people who rent out more than one car. Another user claims he’s on track to make $3800 a month before expenses on three luxury cars.

To better understand how renting multiple vehicles on Turo, check out this guide to becoming a commercial host!

Understanding Turo’s Earnings Model

Turo offers considerable flexibility, allowing owners to choose when their cars are available for rent and to set variable pricing based on demand. For instance, prices can be increased during high-demand periods like public holidays.

Upon creating a Turo account and listing, owners can set their rental rates. They may assess local market rates for similar vehicles to determine their prices. Turo also offers an automated pricing tool that adjusts rates based on supply and demand, vehicle type, usage history, and location.

Owners can enhance their earnings by providing additional services or amenities, such as airport pick-up/drop-off, unlimited mileage, child seats, prepaid fuel, or bike racks.

Typically, owners retain about 80% of the rental income, with Turo collecting a 15-40% commission on booking fees and a percentage of other charges.

This model allows owners to profit from their vehicles while maintaining control over their availability and pricing.

Factors That Influence Earnings

The amount of money you can make on Turo typically depends on a few different factors.

Firstly, there’s the type of car you’re listing. Luxury cars tend to earn more as they’re in higher demand. This means you can set higher rental prices.

However, that’s not to say that more basic cars aren’t as valuable!

This is where we come into the second factor: location. Where you’re renting the car from is equally as important as the car itself.

For example, rental cars will be in higher demand in touristy areas. This is especially relevant if you live close to an airport. Places that tend to get a lot of business travelers are also a hotspot for rental cars.

It all depends on what’s popular in your area. For example, certain brands might be in higher demand where you’re living than they would be in other places.

If you’re looking to purchase a specific car to use for Turo, it can be a good idea to shop around first to see what’s already available. Check out popular Turo vehicles to help make your decision!

Another factor that can influence how much you make is how available you make your car.

When listing your car, you have the option to choose what dates to have it available for. Having it available for longer dates might sway customers to rent it for longer!

Also, consider seasonal trends. For example, rental cars will be in higher demand around the holiday season.

Tourists will want a car they can drive around the city and park at the beach, and during winter, they might want something that can drive them through snowy conditions.

What Cars Make the Most Money on Turo?

The key to making the most on Turo is to buy, and rent out, the best cars on Turo.

Cars that stay in high demand tend to do the best. Popular rental cars include luxury vehicles, SUVs, and convertibles.

So if you have a vehicle like this, it’s likely to do well on the platform.

You can also do well with an economy vehicle priced in the $10,000 to $30,000 range. Turo lists the Fiat 500 as one of the most profitable Turo cars on its website.

Turo also lists these vehicles as profitable.

• Chrysler Voyager
• Toyota Yaris
• Kia Rio
• Kia Forte
• Nissan Versa
• Volkswagen Jetta

These vehicles work well on Tora because they’re affordable to own and maintain. In addition, they include lower daily rental costs for renters.

However, these options will typically get booked more frequently for longer trips. Don’t worry if you own a more luxurious car or an SUV. You can become a profitable Turo host with these options.

For cars more expensive than $30,000, you can expect to make money on Turo with the Jeep Wrangler Unlimited, a Cadillac CT5, an Audi S5 Cabriolet, and the Dodge Challenger. In addition, larger SUVs like the Hyundai Palisade or Chevy Suburban perform well on Turo.

Do you own an upscale car such as a Porsche Panamera? If so, you can charge higher rental prices and make money on Turo. Other profitable vehicles in this category include the following.

• Lincoln Navigator L
• Porsche 718 Boxster
• Cadillac Escalade ESV
• Chevy Corvette
• Land Rover Defender

Estimate Your Income Using the Turo Carculator

The Turo calculator is a tool that helps hosts price their rental. The tool considers how much the host wants to make on each trip, how much Turo users will pay, and the platform’s fees.

How Does the Turo Calculator Work?

To use the Turo calculator, enter the make and model of your car. Then, add the model year, and the calculator goes to work. It will provide you with a projection of how much you can make on each trip.

The calculator also gives you a clear idea of how many days you can expect your vehicle to get booked each month. It takes your city into account and bases the projection on how busy your city gets with Turo renters.

You’ll see how much you can expect to earn per day and month.

Turo uses a proprietary automatic pricing model to set daily prices inside the calculator. It’s this model that produces the price projection inside the calculator.

How Turo Calculates Trip Fees

Turo bases each rental fee on the total trip price. The Turo system calculates fees based on a percentage of the total trip cost at checkout.

Here are the factors the system uses to calculate the fees.

• Vehicle value
• Time of booking (booking a trip ahead of time will incur a lesser trip fee than last-minute decisions)
• Trip duration

Alternative Ways to Price Your Turo Rental

Turo recommends using its Automatic Pricing model when figuring out what to charge your renters. The algorithm adjusts your price constantly based on current demand and other factors.

It also considers the following when setting the price.

• Type of vehicle
• Location
• Changes in supply and demand
• Day of the week
• Local events
• Trip history

You can opt-out of this method and set a custom rental price.

First, select “edit listing” on any car listing. Then, inside the “pricing” section, set your custom price.

Maximizing Your Earnings on Turo

Now that I’ve broken down how you can earn from Turo, here are a few tips on how you can maximize your earnings:

1. Customer service is key

Ultimately, you’re providing a customer experience by listing your car on Turo. When it comes to creating a good experience, ease and cleanliness are key.

Make sure your car is clean and tidy before each new rental. You have a few options here: you can either hire a cleaner or do it yourself. To save a few bucks, I’d say do it yourself.

2. Be flexible

Another way you can boost your earnings is to allow for more flexibility with your bookings. Your guests will appreciate the added flexible times.

One way you can do this is to allow for short-notice bookings. According to Turo, around 58% of trips get booked less than two days before the start time. Letting your guests enjoy on-demand trips might help you earn a bit more!

3. Offer Extras

Turo lets you add Extras to your rides so your customers can get the most out of your vehicle. Whether it’s a rentable ice cooler or a baby chair, your guests will appreciate the added Extras.

Having Extras is also a good way to make more cash. You get to keep 90% of what the guest pays, which is a lot more than the booking fee gets you.

4. Optimize price strategies

Finally, make sure your prices are always up-to-date! You can opt into Turo’s automatic pricing, which adjusts for changes in the market.

Another way you can do this is to monitor the price changes yourself. Do the research and reap the rewards.

5. Bonus – check out the competition

Don’t just stick to Turo. Leverage alternatives, look around, and see if you can find better deals on other apps.

Challenges and Practical Considerations

As a Turo host, there are a few clear challenges.

For one: unlike Airbnb where your asset is going to appreciate over time, cars generally tend to do the opposite.

This makes for a rocky start-out, as you have to consider what the end goal is for your car. Is it a source of passive income, or something you’re going to use yourself in the future?

It’s safe to say that your car will experience a bit of wear and tear. You’ll need to pay for insurance, which adds to the expenses of listing a car on Turo.

Even if you make a good amount of profit, there will be bills to pay at the end of the day.

Insurance might only take a small chunk out of it but also consider other costs like cleaning and replacements. Additionally, don’t forget the maintenance check-ups and tests!

You’ll also need to consider the market competition. Cars will be moved on and off Turo, which makes for a constantly changing market.

If you buy a car that was in demand when you’re just starting, it might become less in demand after a month or two.

Lastly, dealing with your guests is another aspect to be aware of. They’re the ones paying you, but you still have to deal with them and provide a good service.

You might get some truly insufferable customers and even some that might damage your car and not fix it!

These are all challenges you’ll need to take into consideration before putting your car on Turo.

Frequently Asked Questions

Wrapping Up

How much can you make on Turo? In this Turo review, you learned that It depends on several factors.

If you’re strategic about it, you earn extra income by providing car rental services. So list your car on Turo and start earning more money soon.