It would’ve been nice to see the average amount of days that the car was rented out per month! If I’m breaking even with it only being rented 15/30 days, I have a free car to use for the other 15 days! Making it a lot more worth it. But if the car is rented out around 20/30 days, that’s already making a big difference !
For me; the car is rented at least 15 days out of the month as of right now. If not closer to 20. If you’re thinking about having it for the other 15 days to drive you can do that via the calendar in the TURO app and block out certain days. The only thing about having it as your main driver and on TURO is that you have to keep it extremely clean and ‘ready to go’ in a day’s notice (or less) depending on your preferences. There are definitely pro’s to having it on the platform as it can pay for itself but cons as well! Hope that helps!! 🙏
What's missing is you didn't subtract the taxes you owe. On top of that, building equity in a car is not a consideration when it's a depreciable asset. As I'm getting ready to sell my construction company after 20 years and I'm looking for my next business venture, this doesn't seem worth it. It's a great idea for offsetting your personal car payments probably, but as a business, you'd need 50 cars to make decent money, and then you'd need somewhere to store them which is going to be another huge expense. That said, thank you for posting this very informative video that cuts through the slick marketing bs that Turo promotes.
Hey Rusty, thank you! Yes, I didn’t consider taxes but because it’s under a business and I spend more money than earn (by buying another car, and other expenses) - I actually won’t pay any taxes… but not everyone will have that same outcome. In terms of building equity, I agree but Tesla’s don’t depreciate as greatly as most other cars. So I do count that. But I agree, to make this a viable business, you would need about 10-20 cars before it making you enough money to hire an employee (aka scaling this business) or getting a garage to store them in!
Subbing for how direct this is. Also with the appreciation of Teslas, those bottom years are definitely looking juicy now. Was thinking about buying a used Model S for my area and renting it out. Price is $52K, so it's not ridiculous amount like the 70-100k models. I get free charging and I'd do the same as getting a subscription car wash service. Was hoping to have Turo pay for the car or at LEAST make the payments smaller, so the car pays for itself. I'd keep my current car though since it's paid off and I really love it. Any other insights? Love the content and hope you blow up with your investing/entrepreneurial journey.
Thank you Dayo! I appreciate that and welcome to the channel 🙏 I love the idea of getting a used model S! Or any used Tesla for that matter (specifically the ones with free supercharging or if you have free charging available to you) I do think if it doesn’t pay for itself for the first year you could refinance it back to a 72 month loan and lower in the payments so it does end up paying for itself (Just an idea) I’m happy to hear that I was able to provide you with some value! Let me know if you have any questions or if there’s anything I can help with, look forward to hearing about your TURO journey - Ru
Any of the "equity" from vehicle sale exists as money in your pocket only after paying back depreciation taken in the business, unless the vehicle is fully depreciated. Check with your tax advisor.
Interesting video, Ru. One thing that would make it better is if you included how many days you DID NOT get to drive it each month. For every month of rental income, how often was the car in the possession of someone else? Did you every get to use it yourself, or what it in someone else's hands all the time? Just a thought.
Hey hey! Thank you so much! Yes, I did include that in a previous video update but I’ll be doing one very soon and I’ll be sure to include those numbers also 👌 I’m glad you enjoyed it and got value 😌
For context, my cars are out of my possession for anywhere between 15-20 days out of every month. With one or two months out of the year where somebody happens to rent for the entire month. There’s also been two or three months where the car sat in the garage for three weeks… But like I said it averages to around 15 to 20 days in someone else’s possession 👏 hope that helps!!
I provide face to face interaction on a small number of vehicles. I also don't want the extra liability of just about everyone getting automatically approved for every trip request.
Of course! I’d say it’s a bit of both but usually weekends. Some trips were as long as a couple weeks tho. But that you can limit, or even block out certain days if you need the car for some reason!
Hallo Ru, I rent my Tesla on Turo and it seems like everyone wants to charge it at 100% every single time. They were advised that charging to 100% or let the car go under 30 to 20 miles could damage the battery. What is your opinion and experience about this subject? Thank you.
Hey Kamila, that’s a great question!! Personally, I let them know in a message before the trip starts to please only charge it to 80 or 90% max or it will hurt the battery. Usually that deters people from doing so! Hope that helps!! 😇
Check out Tesla insurance, I would also look at Root or try Jerry to get some different quotes! Definitely shop around to get what’s great for your situation!!
I live in the Bay Area,there’s a few plaid s, I was thinking of leasing with a buy out i case any bad accidents happen it’s not a worry for resale. They rent from 5-700 a day, id just have to rent for 2 week to cover the note and that’s all I’d want to do nonprofit needed, so I say haha. Plaid s everyone wants to drive too. What are your thoughts?
Yeah, I mean it’s risky with those high payments. If you don’t already own a few cars that make excess it might be tough on some months (if people don’t book to cover the payment). The only other caveat is that as more model s plaid’s come on the market owners will pull down the price until it’s barely profitable to beat out the competition. But on paper it does look appealing. I mean, if you can cover the payment outside of Turo, (in case you needed to) why not try it. If not, it would be a bit risky in the long term but short term you could make a quick buck! Hope that helps
Depends, I’ve had 100 plus rides and only had the classic wear that anyone (including myself would do)… not all renters are like that tho, but my experience has been pretty good for the most part. There’s always a few petty people here and there but any customer facing business will have its ups and downs. But when it comes to the car/cars, it’s been great!!
Honestly, probably about half the time. But it was very sporadic. Usually I don’t have it for most weekends, holidays or sometimes I’ll have it for 3 weeks straight and then not at all for 3 weeks. It’s very random. I’d consider having 1 and renting it out like a part time job. Hope that helps!
Hi , that’s an awesome spreadsheet. Surprised no one has asked for a link to it. Could you be so kind to share it? Would help an excel challenged person like me a lot.
I'm here because I am thinking of renting my tesla out. 🤔 I just totaled my current tesla and I am looking to buy another under this inflation. It looks like I will be in a much higher payment and I wanted to offset that Bala, if not more. Really not looking forward to a payment Iverson $1000 a month for 72 months with a 8.49 interest rate because it's used. I am getting the car for a auction price because I am a licensed dealer.
Hey Myron! Hope this helps but you may look to lenders with lower rates or a 84 month loan as well. In terms of TURO, feel free to reach out with any questions, im always happy to help!!
What about excise tax? Don't know if you have that where you live, but here in MA we have to pay it once a year. It's $25 per every $1,000 of the car's valuation. I see you're not renting full time tho so I guess it makes sense to leave it out of the expenses calculation since you'd be paying that regardless since you use it yourself.
Do you have your Tesla set up through an LLC? Trying to figure out which is the best way to be able to write off the car as a depreciating asset. I'm only going to have 1 turo vehicle. Thanks!
Yes but it’s not required. You could look into sole proprietorship which doesn’t require any licenses (in some states). If you can do a sole proprietor ship and right off the car as a depreciation asset at the same time, I personally wouldn’t waste the money on an LLC.
Yeah, it used to be around $56 a month... With the 2 cars I have now, it's about double! But I have very basic coverage since my Turo insurance is FULL COVERAGE.
Just watched a handful of your videos which has great content so thanks! Was it much of a hassle and late nights getting the car ready for the next guest? Also did you meet everyone to hand off keys and to get them back? Seems like a lot of extra time for that. Thanks!
Glad to hear that TJ! Honestly, yes and no. It really depends on the customer. But I had times where I would need to get up at 4am for a pickup or clean the car @ 10pm. When it comes to meeting everyone, no, not always but there is a to do list for every pre and post trip regardless whether I meet them or not that takes up a lot of my time. Some people that I meet with can take 30 minutes but most are between 30-1.5 hours (especially if I have to meet them at their location and show them around the car). All in all, It’s not terrible if you’re not looking to scale the business but I’m sure if I had 5-10 cars it would take up many hours every single day. (Pretty much a full time job at that level) Hope that helps!!
4 years in and it’s worth about that now - estimations were based on the market at the time. If it wasn’t an EV, I’d agree that it would be only worth $15,000 but I’d say $20,000-$25,000 in 2 more years.
I don’t think it’s as important as it used to be, but it certainly does yield an extra 10-20% in profit. You also don’t want to get too old of a car because of the maintenance down the road. But a 2020 would do great!
Hey Raian, of course! I use Root insurance which is a completely online insurance company. I also chose to opt in for their most basic coverage since TURO covers drivers while they’re driving the car and most of the time when I have the car, it sits in the garage. Hope that helps!
@@1GSebastian yeah I’ve heard LA is a really tough market. High volume but low rental price, plus everything is more expensive including overall cost of living. I’ve heard Las Vegas is still hot since it’s an all year round market. Colorado I’m sure is great too since there’s a lot of visitors year round, but I’ve enjoyed the Salt Lake area 😌🤌
Been using Root insurance. They just increased everyone's prices since they need to increase their revenue so they don't go under, so I've switched to Tesla Insurance for the Tesla's. Got a prius on turo this year and that's through Progressive!
Yes, it is reimbursed after the trip via the reimbursement tool. The way it works is, the charge is sent as an I voice to the TURO client and they pay it at the end of the trip… hope that helps!
Great video and very informative :) I'm curious, how come you only owe $49,946 after Year 1 even though your 'car payments' total were $10,332. Shouldn't you still have $51,668 left to pay (i.e. earnings - car payments)? Also, can you include a 'cleaning fee' to Turo guests (similar to AirBnB)? If so, why don't you just outsource the cleaning (both interior and exterior) to someone else and reimburse it? Surely this would save you alot of time and money?
Cleaning fees are no longer allowed on TURO unless the car is left in terrible condition (such as spilled drinks etc) so not really an option unless I wanted to lose money. I believe the year 1 calculations included the upfront payment for taxes + registration that covered some of the cost of the car before listing it on TURO which is why the amount is a bit less Glad you enjoyed and hope that helps answer those questions! 😊
@@happytoberu So does that mean you don't get reimbursed for a car wash either? That seems unfair, but I guess you could try to incorporate it into your day rate.
Correct, yes and no. You can try to incorporate it but I’ve found it helpful to give renters my car in immaculate condition and let them know that they can take it to a local car wash (where I hold a unlimited pass) and they can clean it up for free (if they want)… about 33% of people actually do it!
No, I’m competitively priced. There has been a huge increase in total Tesla’s on TURO over the past couple of years. That increased supply has pushed the prices down in many markets unfortunately
Also, many owners may be using the TURO plan where they pay only a 5% fee to the platform per ride as I pay 25% to have decent coverage through their insurance. That could be why people are reporting higher numbers.. I’m just trying to be fully transparent here
Maybe but they usually do, the last 2 years we’ve had an increase in demand with a slump in production… I hope it doesn’t happen but I’m not betting on it staying the way it is, forever. That’s just an opinion though, who really knows 🤷♂️ fingers crossed 🤞😊
Also at 7:30 you say that you can use the depreciation of the car to make the income tax free pretty much. Do you need to have an LLC to be able to do that?
It helps, it depends on what your state requirements are. For example in Utah, you can be considered self employed and use your SSN as a way to do business but it helps to have one IMO regardless
@@happytoberu Ru, this is a great insight! Especially for me who's on the fence about Turoing my car to offset the loan payments. I do have a full-time job. Do you have any idea how that would play out? Lastly, what do you mean exactly by "it helps to have one." One what?
@@1GSebastian helps to have a LLC* If you work from home I think it’s a great way to offset your payments. If you have to drive to the office for work, it’ll definitely make it a little tougher getting around (unless you can use public transportation or a bike/scooter on those days that it’s rented) Personally, I’ve had my cars pay for themselves about 10 out of 12 months of the year
@@happytoberu That's awesome you've been able to make it work. I have 2 scooters and my work is like 1 mile away so I can do it! Do you have a good source for Turo and taxes? Ideally a video of someone like yourself, someone with actual first-hand experience. This area is still a little gray for me.
Great question! 1. Shopped around with a multitude of companies (when shopping make sure to ask for lowest rates and don't be afraid to confront the insurance agent with other companies rates - this CAN lower prices in many cases) 2. Look for a plan that makes sense for your situation and how often you drive the car 3. Don't get in a wreck or any citations
Yes, it is the most basic coverage but since I hardly drive it (mostly rented). That’s what works best for my situation! Although, Tesla insurance can have some sightly higher but still VERY COMPETITIVE rates. My wife has it and is paying $78 on her model 3
How many times per month were you renting the car out and what was your average rental price? I rarely drive. I’m wanting to have my car payment paid for.
Hey Tony, yeah, I mean it varies month to month! But here’s a video that might help with what 2 months worth of rentals looks like: ru-vid.com/video/%D0%B2%D0%B8%D0%B4%D0%B5%D0%BE-H6kCoEEwago.html As far as price, roughly $100-120 per day but TURO takes 25% of that. Hope that help!! Let me know if you have any other questions! Always happy to help 😊
Of course! It’s a bit of both but most of my trips are at the airport. Here’s another possible helpful video for you: ru-vid.com/video/%D0%B2%D0%B8%D0%B4%D0%B5%D0%BE-T7_dUJ3TA1Y.html Let me know if that helps 😊🤙
Most of the time I pick them up myself but I’ve had friends or family help from time to time as well! Automating the process wouldn’t be too tough after hiring your first employee!
Good question! I’ve never been in an accident, no speeding tickets and I use Root Insurance🤘 I also shopped around with over 10 different insurance companies
That is a lot of risk there if he has not been in an accident yet. He is still having other people driving HIS vehicle so his chances of NOT being in a accident are dramatically increasing as time goes on. Also, the lower your insurance cost, the lower your coverage is so be careful with what you pay for. I am sure his deductibles are very high so in the event there is an accident then his insurance will kick in to cover any damages after anything needed is over 1K or more. To me this idea of renting your vehicle is very challenging from the economics point of view. It only takes one bad accident to wipe out all those earnings that took about a year to create. leave the rental business for the big guys (Hertz, Budget, etc..) because they can afford to take hits and still make money in the long run since they have a model that works with economies of scale.
Incorrect on a small part here, other people are insured on the highest possible plan and with only a $250 deductible. The majority of the driving is done by other people. I have a high deductible for myself yes, but others don’t. Hope that helps clear things up
Hey Will, great question! I made sure to shop around as well as get limited coverage for myself but have full coverage for my renters through TURO insurance. Hope that helps!!
@@happytoberu I’m interested in knowing how many miles were added to your Tesla by Turo renters since you started? Do you or Turo keep track of mileage used? I noticed some Tesla owners offer unlimited miles with no caps. That’s crazy!
40K in 2 years. I track the mileage, TURO does it per trip as well! I do not allow unlimited miles unless they pay extra, but 200 miles a day is allowed! 😌
@@happytoberu gotcha. Thanks for the reply. I don't usually read comments. After I sent the message I saw that at least one other person already asked you, and you already answered 🙂
Yeah, free supercharging is definitely nice to have! Although, you will have to price it lower than most model X’s today since many people rent the new ones to see how the like them before they buy them. But, if you get it for a great price, then it might be worth it! Good luck on your TURO journey!
Who did you get insurance with? $56 / month is pretty good. Mine is $78 or so with Nationwide but I’m also married so it might be more because they are insuring two people instead of just one.
I used Jerry to find a bunch of quotes then called each company and settled with Root since they were able to get me a few discounts on top of a really low rate. It is a very basic coverage with a higher deductible but I hardly drive the car so it made the most sense to me. If I remember correctly Nationwide also had a really low quote. $78 for two people is insanely good!! 👏🙌
@@happytoberu yeah that’s the thing, I’m hardly driving it once I rent it out. I might look into root if they can get me a better rate then. I’m actually in Murray UT so I saw your listing around here. You’re the reason why I pulled the trigger on buying a Tesla. I didn’t know if it would make the car payment every month but after seeing your performance, I decided to get one 0% down
@@jonoescobar1231 oh nice, yeah I’d definitely check them out and just compare the policy side by side! Congrats on the purchase btw!! Which model did you end up getting?
@@happytoberu model Y. I just called them and they quoted me at like $950 every 6 months which is weird. Did you do the 30 day driving test before you decided to go with them?
@@jonoescobar1231 oh nice! Love the model Y. Yes I had to at the start to even get a quote. I think mine was a 7 day but they might’ve stopped doing 7 days of driving and upped it to 30
Fortunately for me Teslas don’t depreciate like regular cars. In fact, my car is still relatively worth what it was when I bought it because the price of Tesla’s actually have gone up by a few thousand dollars. I also did include the numbers with depreciation including how much money I have in equity in the car itself versus the amount of money I’ve put towards the loan. The main use of this is not to make heaps of money each and every month but to accrue free vehicles by the end of the loan that are still worth tens of thousands of dollars. Just like most people do with Airbnb rentals. Yes, unfortunately it’s not as profitable as a Airbnb’s because Turo takes a lot more off the top. But it is a fabulous way to generate some income, while creating, virtually free vehicles out of it. Hope that helps!
Forgot to mention, that if the cars were paid for in cash. It would roughly be over $1,400 per month in pure profit per car. I mean, 10 cars and you have yourself a $160K+ a year business… enough to fully automate by hiring an employee
@@happytoberu only thing is your vehicle is gonna take a significant beating being a rental. Even with the income generated to cover your car payments you're also spending quite a bit of time between rentals I bet cleaning, responding to messages, coordinating etc. How much time would you say with everything taken into consideration do you spend on average running this business?
@@happytoberu how much would the vehicle cost in cash upfront? And how long would it take to make that money back renting it out on turo? And what would it be worth after you made back that amount?
@@jamalallicock4114 honestly, it’s not for everyone. With my plans for the cars, it’s definitely worth it in the long run. Might not be for you 🤷♂️ as far as my cars taking a “beating” or maintaining them… it’s very minimal, sure scratches on the inside but any used car will have those. The thing with teslas is beside tire rotations and new tires. There is minimal or no other costs for 100K+ miles and after that, the only thing to worry about is brakes.
Besides tires, I haven’t had any maintenance costs. Although, you will likely need to replace the brake pads every 40-200K miles (depending on how often the brake pads are used instead of the regen braking which even at this point of 2 years of having the car - my brake pads are almost brand new, still. So maintenance, is very minimal
PLEASE READ - as somebody who has been a Turo host for a year. I HIGHLY advise again ever joining the platform. It may seem like it is a way to make money and even have some fun while doing it. What you are actually doing is playing a very dangerous game with your credit, and future. Turo is evil in many ways and recently left me broken and in danger after revealing my contact information to a convicted killer who was a disgruntled guest. Police are involved, CIVIL court is involved and I can attest that this business is something that will eventually crumble and warn any and everybody to stay the hell away from it. Do your research, read the horror stories. Dont listen to anybody promoting Turo for youtube fam or profit.
Hey Artie, that’s horrible to hear! I hope everything is alright with you and your family. I do wish there were background checks with turo to prevent something like this from happening. The thing is, every business has that risk. Your address is public information and if someone wanted to get a hold of where you live or any other public information, unfortunately that is very easy to do. As a person who’s been doing turo for 3 years now and know many other turo hosts, most people do not have something like this happen. And every customer facing business has inherent risk for damage or something like this. Every reward usually has some degree of risk unfortunately. But just because someone has a terrible experience, doesn’t mean every experience is going to be terrible. If that was the case then every business should stop operating on the risk that something terrible could happen. Again, it’s sad to see when it does happen and especially something as serious as a serial killer being able to rent on the platform, but that sounds like a flaw in our judicial system more so than a flaw of Turo. Again, I hope everything is okay and I wish you the very best in your court case. Much love - Ru 🙏
