Are you wondering how much you can make on Turo? Before listing your car, check out my 2021 earnings breakdown to get a sense of not only the cash coming in but the expenses and time commitments as well.
My 2021 Turo Earnings Report
My Turo year got off to a slow start all thanks to my very first renter and the accident that they got into. This resulted in the car being blocked off until mid-April. On the positive, I managed to rack up 12 rentals over the remaining months. This included me blocking off the car for 2.5 months for my cross-Canada road trip.
In the end, I earned $5,010.06 on these 12 bookings.
Detailed Breakdown of Each Rental
Here’s a breakdown of those rentals and the total income including daily rates, discounts, EV charging chargeback, delivery fees, and Turo’s cut.
|RENTAL LENGTH||COST/DAY||DISCOUNTS||EV CHARGING||MILEAGE FEE||DELIVERY FEE||BILLED TO RENTER||TURO FEES||TOTAL TAKEAWAY|
|1 .5 DAYS||$151.50||$0.00||$0.00||$0.00||$0.00||$303.00||$90.90||$212.10|
Daily Rate, Discounts, and Reimbursements
As you can see from the above table, my daily rate and fees fluctuated. I largely relied on Turo’s automatic pricing which adjusts rates with demand. The exception was the summer months when I raised the rates as the demand was high.
Discounts are applied for early bookings and on bookings over a week long. I have since removed the latter as I prefer 3-5 day bookings. This helps keep the car relatively local and keeps mileage down. I also started offering delivery service late in the year and adjusted the price to compensate for time and costs getting to/from drop-off and pickup locations.
Reimbursements largely come in the form of EV charging fees and mileage overage.
As you can see, Turo takes a big cut. This is mainly to cover the included insurance rates negotiated with ICBC, my local provider. These fees vary between 15% and 40% depending on the region. As you can see, my area is on the top of that spectrum 🙁
My Turo Expenses
Although it may seem like passive income, there were some expenses incurred over the past year. Since I am renting out an EV, these expenses are low thanks to the minimal maintenance required.
The biggest cost associated with renting my car on Turo is the upkeep to ensure it’s kept clean and ready to rent. This means washing the car before and after guest use. Last year I spent ~$250 on car washes. This was largely at a self-wash location. I expect this cost to go down next year as I will be cleaning my car at home using the Chemical Guys car wash kit. I will list all products I use soon in a separate post so stay tuned for that!
With Covid cleaning protocols, I also had to thoroughly wipe down hot spots like the steering wheel and handles with Car Guys Interior Cleaner. This just became part of my pre-trip cleaning routine along with wiping down all the plastic trim and floor mats with Mothers Back to Black Cleaner. Seats and carpet get a wipe down with Mothers Carpet and Upholstery cleaner. I also purchased some scratch-free shammy towels to wipe down the car after cleaning.
I have yet to have to top up these cleaning products so will say that in total they cost me ~$100/year.
Surprisingly, ICBC, British Columbia’s provincial insurance provider, does not charge a premium to those renting their vehicles on Turo. This does come with a caveat in that you are capped at six days per month. If you want to extend beyond currently all you have to do is let your broker know. There is no extra charge so not sure why they ask this.
If you are considering renting your vehicle on Turo I suggest you reach out to your insurance provider to see if they require you to pay a premium for peer-to-peer services.
Charging at home is currently a flat $25/month through my Strata. I won’t include that cost in my expenses as I pay that regardless of renting out my Model Y. On top of that, I charge a $10 charge fee to guests so recoup some of my monthly fees with each rental.
As for guests using Tesla Supercharger’s during their rental period, I bill back the amount used. Since I have plenty of Supercharge credits I typically cap this at $10/charge. I will likely remove this fee going forward and offer free charging as an incentive to renters.
Drop off and Pick Up
Another fee that can add up quickly is getting to and from drop-off and pick-up locations. This service is optional and, as I pointed out in my post on lessons learned renting my car on Turo, something you need to think carefully about. Adding it certainly gets you more rentals but if you are like me and only want to rent a couple of times a month, it may not be needed.
In total, I spent ~$250 last year on Uber rides to/from pick-up and drop-off locations. This was over four trips. I do charge the renter for this service and have upped it significantly from $30 to $75 for pick up/drop off to better recoup these costs.
The biggest expense, really, is time. Again, this is minimal but still something to consider. Like my expenses, the bulk of my time was spent washing the car and preparing it for guests. Also, as noted, pick-up and drop-off service can be a bit of a time suck. Again factor this into your decision.
Another time drain is dealing with any damages that may occur. I had one renter fail to let me know he backed the car into something (or was rear-ended.) This took significant time for me to dig through Sentry Mode – footage, something I am so thankful to have! Then there was some painful time spent dealing with Turo to prove the damages that happened during the rental. After all that, there was the time spent driving the car to get repairs, waiting for the paint to dry, and getting PPF reinstalled. On the positive, all repair costs and even Uber rides to/from repair shops were reimbursed.
During this period I also had to delist the car for stretches. Again, something to consider.
So, How Much Can You Make on Turo?
My total payments from Turo after they take their ~40% was $5,010. Deducting my minimal expenses of $350 and I cleared $4,660 renting my Tesla Model Y 12 times over an 8-month period.
It’s important to note that I would consider myself a casual host on Turo. I am not interested in renting it out non-stop and am comfortable with 1-2 times a month. That said, for those that are looking to rent their vehicle on Turo more frequently, from these numbers you can get an idea of just how much you can make.
Lastly and as mentioned, it was a rough year and I definitely learned a thing or two along the way. For those key takeaways, check out the post below!
If you are thinking about placing a Model Y order, be sure to use my referral code and get 1,500 Supercharger kilometres!*
*As of Sept 2021, Tesla has put a pause on referrals 😞 I will update if/when they reinstate it.