The Car Sharing Side Hustle
Joe DiDonato
Entrepreneur & AI Enthusiast | Creator of the Fastest L&D AI Agent and over 100 Chatbots | Passionate About The Customer Experience | Passionate About Art | Veteran Air Force Officer | Many CEO & Board Roles
Some Turo.com and Getaround.com entrepreneurs are making $500,000 to $1,000,000 per year operating a fleet of cars on these sites. To get to those numbers, you just have to think a little out of the box.
If you're looking for a way to make some extra money, you should consider renting out your car on Turo.com and/or Getaround.com. If you're looking to make a six to seven-figure income stream on these platforms, then you should be considering building a fleet of cars. We're going to focus on both of these avenues in this newsletter.
What are Turo and Getaround?
Both Turo and Getaround are websites where people can rent cars from private owners. It's the automobile equivalent of Airbnb. It's a great way to make some extra cash, and it's really easy to get started.
To save space in this guide, we'll walk you through the process of renting out your car on Turo, from creating an account to setting your rental price. We'll also give you some tips on how to make your car more appealing to renters, how to avoid unexpected losses, and where you can find financing. So whether you're just getting started with Turo or you're looking for ways to improve your rental business, this newsletter will help you get started as well as show you how some entrepreneurs have grown their car-sharing businesses into 6 and 7-figure income streams.
Creating Your Account
The first step to renting out your car on Turo is creating an account. You can do this by going to the Turo website and clicking on the "Sign Up" button. From there, you will need to provide your email address, create a password, and enter some basic information about yourself. Once you have an account, you can start creating your profile.
Adding Your Car
Once you have an account, you will need to add your first car to Turo. To do this, click on the "Add a car" button on your dashboard. From there, you will be prompted to enter some information about the car, such as its make, model, and year. You will also need to upload some photos of your car. Make sure to include pictures of the exterior, interior, and engine. Once you have added your car, you will need to set a rental price.
Setting Your Rental Price
When setting your rental price, you will need to consider a few factors. The first is the make and model of your car. Luxury cars will obviously fetch a higher price than economy cars. You will also need to consider the time of year. In general, prices are higher in the summer months than they are in the winter unless you live in places like Arizona or Florida. Finally, you will need to factor in your metropolitan or suburban location. Cars in major cities will usually rent for more than cars in rural areas.
One of the tips that I would recommend is to go in and open up two browser windows. In the first window, select today's date as the rental date, and see how many cars are available, as well as their make and model. In the second window, use a date that's 6 months out, and check to see how many are available. You should see a big difference. If it's over 200 vehicles in the 6-month window, that's a good indication of how big your particular market is going to be. If there are only 4-5 cars left to rent out today, then you will know how many rentals you should start to average.
This information will give you a good idea of what cars people are selecting or passing on. The ones that didn't rent may be a result of price, age, or some other factor, so those are also good indicators. Study the two results and you can see what cars are popular and the prices that are being charged. This will become increasingly important data if you decide to build a small or large fleet of vehicles. You don't want to "leave money on the table," but on the other hand, you don't what to price yourself out of the market.
Once you have considered all these factors, you can set your rental price. Turo offers a pricing tool that can help you determine a fair price for your car. Once you have set your rental price, you will need to add some additional information about your car. This includes the car's insurance information, as well as your personal contact information.
How Does Turo's Car Insurance Work?
This is a bear of a question to answer, but fortunately, Kristine Lee has kept this data up to date on The Zebra in this article: https://www.thezebra.com/auto-insurance/policies/turo-car-insurance/.
If you're new to Turo, you may be wondering about the company's auto insurance coverage. How does it work? What is covered? And what isn't? There are currently 5 tiers of coverage offered to hosts, costing from as much as 40% of the trip's price to as little as 10% of the trip's price. Each carries a different deductible from $0 up to $2500. Study Kristine Lee's charts in the above article and talk it over with your accountant as to the best strategy for approaching this problem. If it helps, one fleet owner who had 72 cars, said he had 5-6 damage claims per year and 5-6 cars that are 'totaled' per year (link).
Turo's insurance coverage is designed to protect both car owners and renters. All vehicles on the Turo platform are covered by a $1 million liability policy. This policy covers damage to third-party property and bodily injury caused by an accident while using a Turo car. In addition, every Turo rental comes with collision and comprehensive coverage at no extra cost to the renter. This means that if you damage your rental car, Turo will reimburse you for the repairs (up to the actual cash value of the vehicle).
There are some things that are not covered by Turo's insurance policy. For example, if you damage someone else's property with your rental car, you will be responsible for the repairs. Additionally, Turo's insurance does not cover personal belongings left in the rental car. If you need additional coverage, you can purchase it through Turo's Protection Plan at an additional cost.
Making Your Car More Appealing to Renters
There are a few things you can do to make your car more appealing to renters. The first is to keep it clean. Renters will appreciate a clean car, and it will make them more likely to rent from you again in the future. You should also consider adding some extras, such as a GPS system or a child seat. These extras will cost you money upfront, but they will make your car more attractive to renters. Finally, you should make sure that your car is in good working condition. Renters will not want to rent a car that is likely to break down, so make sure to have it serviced regularly.
Profits Per Rental Vehicle
How much you can make depends on the car you list, its location, and how often it's rented. Here's a look at the average profits made per rental vehicle on Turo (these are Turo's numbers using their calculator):
1??|??Fiat 500??|??386.3% Annualized ROI | Estimated vehicle value: $12,512 | Annual vehicle loan payments: $2,519 | Average annual earnings: $12,250?
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2??|??Chevrolet Spark??|??238.3% Annualized ROI | Estimated vehicle value: $12,981 | Annual vehicle loan payments: $2,614 | Average annual earnings: $8,841?
3??|??MINI Hardtop 2 Door??|??216.4% Annualized ROI | Estimated vehicle value: $24,205 | Annual vehicle loan payments: $4,874 | Average annual earnings: $15,421
4??|??Dodge Challenger??|??188.5% Annualized ROI | Estimated vehicle value: $29,972 | Annual vehicle loan payments: $6,035 | Average annual earnings: $17,413
5??|??Toyota Prius Prime??|??179.9% Annualized ROI | Estimated vehicle value: $19,739 | Annual vehicle loan payments: $3,974 | Average annual earnings: $11,124
6??|??Hyundai Accent??|??173.6% Annualized ROI | Estimated vehicle value: $14,356 | Annual vehicle loan payments: $2,891 | Average annual earnings: $7,909
7??|??Fiat 500X??|??166.8% Annualized ROI | Estimated vehicle value: $22,439 | Annual vehicle loan payments: $4,518 | Average annual earnings: $12,052
8??|??Ford Fiesta??|??153.6% Annualized ROI | Estimated vehicle value: $14,382 | Annual vehicle loan payments: $2,896 | Average annual earnings: $7,343
9??|??Volkswagen Jetta??|??153.3% Annualized ROI | Estimated vehicle value: $16,702 | Annual vehicle loan payments: $3,363 | Average annual earnings: $8,518
10??|??Mazda 6??|??152.9% Annualized ROI | Estimated vehicle value: $20,043 | Annual vehicle loan payments: $4,036 | Average annual earnings: $10,205
Total Investment: $187,331 | Total Revenue: $148,796 | Total Gross Profit after Loan Repayment: $111,076
One thing to keep in mind is that the above numbers don't consider depreciation and the maintenance of the cars. And the next issue is where you're going to store these 10 cars. The cost of renting a space to park them can be considerable or next to nothing - depending on your personal situation and creativity.
Depreciation works in your favor because that amount is subtracted from your earnings before taxes. Work with your tax attorney or CPA to take advantage of that number, but also recognize that it's telling you that you will lose that amount of money when you go to sell these vehicles. One tip comes from one of my other side hustles: in many states, buying a vehicle directly from an owner avoids sales tax. Of course, getting a dealer's license gives you the same advantage, plus you can buy your cars at the dealer auctions.
To get an idea of how much your specific car or fleet could earn, check out Turo's earnings calculator. To see what cars are the top earners on Turo, go to this link
Financing Your Car or Fleet
When you consider this a rental business, there is money available from the SBA loan programs as well as equipment purchase programs. And of course, most dealerships will have lease programs on new vehicles. And then there's family and friends. If you can come up with a unique twist, maybe there's even a way to crowdfund this.
One of the better programs for building out a fleet is offered by a Turo partner called Carputty, and you can get up to $250,000 in financing through this source. Here's the link to that program: LINK.
If you do a little research and consider your own financing situation, you'll figure it out. Start out with one vehicle and build from there. Just be careful to treat this as a business and buy the cars that are bringing in the most revenue per investment dollar.
Managing Larger Fleets Efficiently
As you grow your business into a fleet of cars, it's going to become increasingly important to keep track of them all. With Carsync.io, you can manage your entire fleet from one easy-to-use dashboard. Keep track of when each car is rented, and its current location, send automated messages, keep track of tolls, lock and unlock your cars remotely, check fuel and battery levels, charging status, and quite a bit more. Carsync.io also provides real-time updates, so you'll always be up-to-date on your fleet's status.
Conclusion
Renting out your car on Turo is a great way to make some extra money. It's easy to get started, and it can be very profitable. In this newsletter, we walked you through the process of creating an account and adding your car to Turo. We've also given you some tips on how to make your car more appealing to renters. But the most important part is how to grow this into a side hustle that generates a lot of income. So if you're ready to start making money with Turo, follow the steps in this newsletter and you'll be up and running in no time!
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