Side Hustles Explored: Make Money By Renting Your Car Out

I realize I haven’t mentioned any side hustle opportunities in a while. So I’m back with another interesting way to earn money – this time with your car! If you work from home, don’t use your car much, or are trying to downsize to become a one-car family, you may be interested in renting your car out for cash. Let me explain.

With the growing popularity of ridesharing programs like Uber and Lyft, along with sharing your home via AirBnb, it should come as no surprise that people may want to rent out your car as well allowing you to earn some extra money.

This can be done safely and effectively through a company called Turo.

What is Turo?

Turo is the nation’s largest peer-to-peer car rental marketplace. It allows car owners the option to earn extra money by renting out their cars.

They rent out too pre-screened and approved renters. It also helps connect renters with the right vehicle for their needs and timeframe. Turo covers your car with $1 million in liability insurance. The company also offers 24/7 roadside assistance when someone requests to use your car.

How it Works

Listing your car on Turo is pretty easy. You’ll sign up for an account, and create a free listing by describing your car and uploading some good photos. Turo will develop a listing price based on your car’s market value, location, and other related data.

You’ll get notified when someone requests to use your car. You can choose whether you’d like to confirm their request or not. The traveler can either pick up your car at a set location or you can drop it off to them within a set radius.

Turo pays you direct deposit within five days of the rental. You’ll earn anywhere from 65% to 85% of the trip’s price. Turo has a mobile app where you can rate your experience they currently have rental cars across the country.

Pros and Cons of Using Turo

Since I’m discussing this company as a side hustle opportunity, I’m going to focus mainly on the pros and cons from a seller’s perspective. The main benefit I see from using Turo is the opportunity to earn extra money and put your car to use when you’re not using it. Earning 65%-85% of the total rental price is a generous amount.

If you’re looking for consistent side income, you may find that utilizing Turo may not be the best option. You won’t have a clear idea of who will want to rent your car and when requests will come in. This makes the income you earn unreliable.

Pros

• You can earn money from something you may not be using as often as you could
• Fairly passive income
• You can get as much business as you can handle if you market correctly or live in a specific area

Cons

• Doesn’t provide a consistent income
• Liability insurance dropped from $1 million to $750k
• You are taking a chance of someone not taking care of your car (ie. smoking in it, racing it, etc)

How Turo Supports Hosts

First, Turo has done research to help estimate how much you could potentially earn from renting your car out.

For example, if your car is worth about $18,000 and you rent it out for 12 days per month, you could earn around $5,153 per year.

That’s not bad for doing practically nothing. I actually depend heavily on my car to get me to and from work throughout the week. But since I have a two-car household, I could just share my husband’s car on the weekends and on his off day and rent mine out if I wanted to.

I also like how Turo insures your vehicle while someone else is driving it. You never know what can happen when you or someone is driving your car so insurance is a must. The fact that Turo allows you to choose who can use your car also appeals to me.

They give the vehicle owner lots of options and full control over who can rent their car. If you don’t feel like renting your car one day or you think the intended renter is traveling too far, you can always deny their request.

While the $750,000 liability insurance policy is great, in super rare cases it might not cover serious damages to others. The insurance policy is tiered. So if you choose the basic policy, there is a deductible. But the standard and premium insurance plans have no deductible.

If you have the premium plan, Turo will reimburse you for loss of rental income and even provide you with a temporary vehicle. These benefits are not available with the basic plan. So it sounds best to obtain more coverage for your vehicle if you fear the worst could happen.

How Much Can You Earn?

So, how much could you earn, realistically, from Turo? Luckily, the website has its own calculator that makes it easy to see what you could make each month.

With that said, here are a few average earnings:

• Chevrolet Cruze ($10k-$25k budget car) – About $7,300 per year
• Dodge Grand Caravan ($10k-$25k budget car) – About $10,138 per year
• Honda Odyssey ($25k-$40k budget car) – About $12,782 per year
• Jeep Gladiator ($40k-$100k budget car) – About $13,021 per year

As you can see, it all varies by car and your location, but for the most part, you could earn upward of an extra $1,000 per month by renting out your car with Turo.

Tips to Boost Your Earnings With Turo

Of course, no one wants to start a side hustle and not make money. So how can you boost your earnings with Turo?

• Let renters book on short notice! Many renters book just two days in advance, so if you offer this, you could get a significant percentage of this clientele.
• Offer weekend bookings, since some renters need cars for weekend trips or getaways.
• Allow short term trips for three days or less.
• Keep your delivery fee low cost, especially if it’s within a certain area.
• Keep the car super clean, and use a car wash service if needed, that way all you have to do is pull up and get it clean!
• Offer certain rental items, like carseats, coolers, or anything you think a tourist or driver might need in your area.
• Have a mileage cap. This saves you money in two ways. First, it puts less wear and tear on your car. Second, if the renter goes over that cap, they have to pay extra. So it’s a win-win if you’re trying to keep your car in tip-top shape!

Your main earning potential will always be the type of car you’re renting as well as your location. Bigger/family cars can rent for more, and some renters prefer luxury vehicles (that you can charge more for). However, these tips are a great starting point to earn more money with what you already have!

FAQs

Who pays for gas on Turo?

The renter pays for gas. They can either fill the car up themselves, or they can pay a set fee to the host (plus a convenience fee) to get the car back to the original fuel starting point.

Can a Turo host ask for a driver’s license?

Yes! In fact, it’s required if the host meets the driver face to face. You’ll need to ask for a current and valid ID, and it must be the physical card.

What percentage does Turo take from rentals?

This depends. Turo takes their cut of anywhere from 15%-40%, depending on your vehicle type and location. However, they are transparent about their fees and you will see them on your host dashboard.

Can you use your own insurance for Turo?

Yes, you can. You can use the liability insurance that Turo provides hosts, but you can also decline and get your own insurance, or even get supplemental insurance. This is highly recommended if you have a specialty car, like a Tesla, or are still financing your car. We also recommend Gap insurance!

Now it’s time for your thoughts. Have you ever heard of Turo before? Would you consider renting your car out if you had an extra vehicle or didn’t use it often?