Buying second car for Turo

[Inforthechase]

Hello all,

my situation is, my SO works from home. We went from 2 cars down to 1 so we could buy the MY (which we love). Lately, it seems like more and more we have conflicts where I am at work and my SO needs to go somewhere. We’ve used Uber to supplement and it’s worked fine and significantly cheaper than a 2nd car. I had an idea yesterday about buying a M3 to have as a 2nd car but renting it on Turo most of the month and only reserving it for conflicts (even know those can pop out of nowhere). I live in Orlando so I would imagine the demand for rentals is high and a quick look on Turo shows only about 12-15 Tesla’s and the average price is $100/day. Assuming 2 weekends a month it gets rented that’s about the car payment plus insurance. I guess my question is, does anyone have any experience renting on Turo and what are your reviews, suggestions?
Thanks in advance.

 

[angus[Y]oung]

@Inforthechase I have no experience to share, but did see a thread about this recently that you may find to be a helpful discussion:

Renting out your Tesla on Turo is a bad idea, did the math..

 

[Cory151]

Hello all,

my situation is, my SO works from home. We went from 2 cars down to 1 so we could buy the MY (which we love). Lately, it seems like more and more we have conflicts where I am at work and my SO needs to go somewhere. We’ve used Uber to supplement and it’s worked fine and significantly cheaper than a 2nd car. I had an idea yesterday about buying a M3 to have as a 2nd car but renting it on Turo most of the month and only reserving it for conflicts (even know those can pop out of nowhere). I love in Orlando so I would imagine the demand for rentals is high and a quick look on Turo shows only about 12-15 Tesla’s and the average price is $100/day. Assuming 2 weekends a month it gets rented that’s about the car payment plus insurance. I guess my question is, does anyone have any experience renting on Turo and what are your reviews, suggestions?
Thanks in advance.

At one point I was up to 11 cars all purchased outright without debt (Including Tesla's) on Turo before I went back to work a few years ago. Here's why I no longer do it;

-It's a bit heartbreaking to have somebody trash your car even if there is a robust liberty mutual insurance policy in place. Your time for cleaning up trash, cigarette smoke and vomit (yes vomit) is NEVER compensated. Not to mention your overall loss in faith of humanity you'll undoubtedly experience.

-The cheap cars like a Prius (less than $30 per day) rent 10x more than higher end stuff as these people want the absolute cheapest way to get from point A to B.

-You will never have peace when your car is rented. Last minute changes, middle of the night text messages when they can't figure out how to work something, trip extension request at 4AM when the trip is scheduled to end at 7AM. Then there's the time the guy just decided to not bring the car back and I had to report it stollen and 5 weeks later the Highway patrol found him living in the car. Had to show up for court twice as he was charged with GTA. Then there was the time Turo allowed a woman to rent my Volt with a suspended license and she decided to get a DUI in my car so the car was impounded for 4 days before I received a letter notifying me. Spent all day explaining the situation to law enforcement in an attempt to recover my property.

-Ive had a female renter blow the engine on a car while out of state and had to replace the engine entirely. Ive also had a car completely totaled in an accident and countless amounts of damage to my vehicles, some damage was reported by honest renters but usually it was hidden. One person even used bondo and spray paint to attempt to cover damage to the vehicle.


-The old adage that nobody ever waxes a rental and there usually a reason someone doesnt have a car have proved completely true in my experience. In conclusion, I learned a lot about how to run a small business but it just wasn't worth my hassle. I remember deciding to quit after my P85D came back sometime in the middle of the night on a flatbed because the guy just drove it until the battery died then jumped in an Uber and essentially said "not my problem." Same exact scenario actually happened with one of my Nissan Leafs as well. Even though the Tesla had free supercharging and attempts to route you when the battery become too low this guy just couldn't be bothered. When scenarios like this happen is a huge hassle you have little recourse what so ever as the customer is always right.

-There were of course good renters as well who wouldn't top your fuel tank with water so that you didn't charge them for not bring the car back with less fuel than given, but they just weren't as common or memorable.

 

[Inforthechase]

At one point I was up to 11 cars all purchased outright without debt (Including Tesla's) on Turo before I went back to work a few years ago. Here's why I no longer do it;

-It's a bit heartbreaking to have somebody trash your car even if there is a robust liberty mutual insurance policy in place. Your time for cleaning up trash, cigarette smoke and vomit (yes vomit) is NEVER compensated. Not to mention your overall loss in faith of humanity you'll undoubtedly experience.

-The cheap cars like a Prius (less than $30 per day) rent 10x more than higher end stuff as these people want the absolute cheapest way to get from point A to B.

-You will never have peace when your car is rented. Last minute changes, middle of the night text messages when they can't figure out how to work something, trip extension request at 4AM when the trip is scheduled to end at 7AM. Then there's the time the guy just decided to not bring the car back and I had to report it stollen and 5 weeks later the Highway patrol found him living in the car. Had to show up for court twice as he was charged with GTA. Then there was the time Turo allowed a woman to rent my Volt with a suspended license and she decided to get a DUI in my car so the car was impounded for 4 days before I received a letter notifying me. Spent all day explaining the situation to law enforcement in an attempt to recover my property.

-Ive had a female renter blow the engine on a car while out of state and had to replace the engine entirely. Ive also had a car completely totaled in an accident and countless amounts of damage to my vehicles, some damage was reported by honest renters but usually it was hidden. One person even used bondo and spray paint to attempt to cover damage to the vehicle.


-The old adage that nobody ever waxes a rental and there usually a reason someone doesnt have a car have proved completely true in my experience. In conclusion, I learned a lot about how to run a small business but it just wasn't worth my hassle. I remember deciding to quit after my P85D came back sometime in the middle of the night on a flatbed because the guy just drove it until the battery died then jumped in an Uber and essentially said "not my problem." Same exact scenario actually happened with one of my Nissan Leafs as well. Even though the Tesla had free supercharging and attempts to route you when the battery become too low this guy just couldn't be bothered. When scenarios like this happen is a huge hassle you have little recourse what so ever as the customer is always right.

-There were of course good renters as well who wouldn't top your fuel tank with water so that you didn't charge them for not bring the car back with less fuel than given, but they just weren't as common or memorable.

Wow, this is incredibly informative and very helpful. Sounds like its just not a good idea. I've always treated rentals as my own (except in rare occasion) but i suppose that's not as common or memorable as those who trash it. I figured paying $100/nt would illicit those renters who care more than those who just want to beat the hell out of the car. Thanks again!

 

[Gizmotoy]

That is a shocking list of stories.

top your fuel tank with water so that you didn't charge them for not bring the car back with less fuel than given

I want to believe this isn't really a thing, but given the rest of your comment I'm not so certain.

 

[caffeinated]

No idea what your needs or budget are, but you might want to consider a used EV like the Bolt for a second car. As a general rule, used EVs have depreciated significantly as the technology and range have improved (I realize this hasn't always applied to Tesla). I suspect you can get a 2017 model that recently came off of lease for a very good value.

 

[TLLMRRJ]

It absolutely boggles my mind that Turo is still in business. They are a perfect example of a company that depends on a sucker being born every minute.

 

[eyedub]

At one point I was up to 11 cars all purchased outright without debt (Including Tesla's) on Turo before I went back to work a few years ago. Here's why I no longer do it;

-It's a bit heartbreaking to have somebody trash your car even if there is a robust liberty mutual insurance policy in place. Your time for cleaning up trash, cigarette smoke and vomit (yes vomit) is NEVER compensated. Not to mention your overall loss in faith of humanity you'll undoubtedly experience.

-The cheap cars like a Prius (less than $30 per day) rent 10x more than higher end stuff as these people want the absolute cheapest way to get from point A to B.

-You will never have peace when your car is rented. Last minute changes, middle of the night text messages when they can't figure out how to work something, trip extension request at 4AM when the trip is scheduled to end at 7AM. Then there's the time the guy just decided to not bring the car back and I had to report it stollen and 5 weeks later the Highway patrol found him living in the car. Had to show up for court twice as he was charged with GTA. Then there was the time Turo allowed a woman to rent my Volt with a suspended license and she decided to get a DUI in my car so the car was impounded for 4 days before I received a letter notifying me. Spent all day explaining the situation to law enforcement in an attempt to recover my property.

-Ive had a female renter blow the engine on a car while out of state and had to replace the engine entirely. Ive also had a car completely totaled in an accident and countless amounts of damage to my vehicles, some damage was reported by honest renters but usually it was hidden. One person even used bondo and spray paint to attempt to cover damage to the vehicle.


-The old adage that nobody ever waxes a rental and there usually a reason someone doesnt have a car have proved completely true in my experience. In conclusion, I learned a lot about how to run a small business but it just wasn't worth my hassle. I remember deciding to quit after my P85D came back sometime in the middle of the night on a flatbed because the guy just drove it until the battery died then jumped in an Uber and essentially said "not my problem." Same exact scenario actually happened with one of my Nissan Leafs as well. Even though the Tesla had free supercharging and attempts to route you when the battery become too low this guy just couldn't be bothered. When scenarios like this happen is a huge hassle you have little recourse what so ever as the customer is always right.

-There were of course good renters as well who wouldn't top your fuel tank with water so that you didn't charge them for not bring the car back with less fuel than given, but they just weren't as common or memorable.

Wow - this is informative and insightful. Thank you for sharing these experiences. We have used Turo while on vacation and always treated the vehicle as our own. We used Turo to test drive Tesla vehicles. It was a lot of fun and allowed us the opportunity to really get a feel for the vehicle before making the purchase. You wouldnt have to worry about your Tesla getting topped off with water.

 

[Lonestar10]

It must be a millennial thing. There is no way I would rent out my M3 or any car for that matter to strangers. The same holds true for AirBnB. It’s just not in my DNA.

 

[acarney]

I absolutely wouldn't rent out a car on an app like that. It would be nice if those apps could have a private group "ownership" program where maybe you and a couple friends, coworkers, or neighbors could be in a private group and have access to the car and pay to use it. I might trust a couple coworkers that might be in the same situation, just need an extra car two or three times a month, to rent it out for $50 to $75/day and Turo could take a 20% cut of that or something. (Have I just come up with the next billion dollar app and IPO?!) I wouldn't just let the general public though.... even $100/night is in the range where a couple 19 years olds on a Friday could rent it and have fun on the town with friends or whatever. A sporty looking and fun/high tech car might attract that just as much as the business client that is in town for a couple days...

 

[kirkhilles]

I had actually gone as far as to actually place an order for a M3 with the intent to rent out a year ago but then cancelled the order.

The original thinking was that it'd only take a few days of rental to pay for the rental, but as I went through the math and then thought about all of the potential situations, I decided against it. The main reason was how different it seemed to me vs a car rental through a major rental company: in those situations the RENTER is responsible for everything. If you (renter) get in an accident, you have to get it fixed and you're on the hook for any charges and fees as well as potential loss of revenue, etc.

For Turo (at least from what I read/understood), it's the OWNER's responsibility to do everything. If you get the car back with a dent, you should be able to submit a report to Turo and have them charge the owner's credit card. It seemed like Turo just wanted to take this huge cut, then pass off any responsibilities to you to figure out with YOU having to file claims with Liberty Mutual and YOU having to figure out what to do.

I'm sure 90%+ of people are great, but if you have 10% of 100 renters that are awful, that's 10 renters that could almost ruin your life. I had big fears about the repair costs of a Tesla being a main deterrent as well.

 

[frankvb]

For Turo (at least from what I read/understood), it's the OWNER's responsibility to do everything. If you get the car back with a dent, you should be able to submit a report to Turo and have them charge the owner's credit card. It seemed like Turo just wanted to take this huge cut, then pass off any responsibilities to you to figure out with YOU having to file claims with Liberty Mutual and YOU having to figure out what to do.

Yes, it seems like the 'gig economy' user model where the big companies make money and move over liability to the worker (thinking of Uber and Lyft). Not directly related to Turo, but I will be voting no on CA prop 22.

 

[playoutside]

I’ve owned 9 Teslas and I used to rent them out on Turo. It was good a few years ago when Tesla rental prices were high ($200-$350/day) and you got an 85% cut and could set mileage limits to 100 miles per day.

Now prices are around $100/day, you get a 65% cut, the renter has to pay a trip fee of about 50% (so they pay $150/day PLUS insurance and you get $65), mileage is 200/day (and everyone uses the max), and Turo will auto decline all of your reimbursement requests and low ball you on the ones they approve.

Most of Turo’s biggest owners are leaving the platform. Search Facebook for Turo Owners to read about the nightmares.

 

[rexki]

Hello all,

my situation is, my SO works from home. We went from 2 cars down to 1 so we could buy the MY (which we love). Lately, it seems like more and more we have conflicts where I am at work and my SO needs to go somewhere. We’ve used Uber to supplement and it’s worked fine and significantly cheaper than a 2nd car. I had an idea yesterday about buying a M3 to have as a 2nd car but renting it on Turo most of the month and only reserving it for conflicts (even know those can pop out of nowhere). I live in Orlando so I would imagine the demand for rentals is high and a quick look on Turo shows only about 12-15 Tesla’s and the average price is $100/day. Assuming 2 weekends a month it gets rented that’s about the car payment plus insurance. I guess my question is, does anyone have any experience renting on Turo and what are your reviews, suggestions?
Thanks in advance.

Running those numbers:
1. CapEx M3 (not long range) - front wrapped - $42,277 - 3.75%APR 7 years monthly $573
2. Insurance - 1,500 annual - cumulative monthly out of pocket $698 or $8,376 annually
3. Rental avg/day $101 - 2 days rentals - 2 weekends per month - annual rental income on 85Plan - $4,113 or $343/month

You are in the hole $4,263 or $355/month
Conclusion: Not a good business model.

Breakeven on this car for rental at this price would be: all weekends rented and you have $528 profit against a $2,500 deductible risk - still not a good business model - IMHO.

Thinking 7 day rentals are the real business model - I am not a Turo Host for full disclosure - just running numbers for research.

 

[rexki]

I’ve owned 9 Teslas and I used to rent them out on Turo. It was good a few years ago when Tesla rental prices were high ($200-$350/day) and you got an 85% cut and could set mileage limits to 100 miles per day.

Now prices are around $100/day, you get a 65% cut, the renter has to pay a trip fee of about 50% (so they pay $150/day PLUS insurance and you get $65), mileage is 200/day (and everyone uses the max), and Turo will auto decline all of your reimbursement requests and low ball you on the ones they approve.

Most of Turo’s biggest owners are leaving the platform. Search Facebook for Turo Owners to read about the nightmares.

Post Covid things have changed - are you reconsidering with the 85 Plan? Model Y at CapeEx $111,774 breakeven at 7 day rentals 2 per month - 168 days rented annually at $155 average daily rental gross - $2,523 above water to cover 2,500 insurance deductible risk.

 

[rexki]

Yes, it seems like the 'gig economy' user model where the big companies make money and move over liability to the worker (thinking of Uber and Lyft). Not directly related to Turo, but I will be voting no on CA prop 22.

Uber and Lyft suck primarily because the riders will not tip and think this is the greatest bargain since sliced bread - tried it as a social experiment for 2 weeks - rave reviews - perfect score 25 rides and only 1 tip of $5. At 1/3 the cost of Taxi without tipping - people are delusional this is sustainable.

 

[rexki]

I absolutely wouldn't rent out a car on an app like that. It would be nice if those apps could have a private group "ownership" program where maybe you and a couple friends, coworkers, or neighbors could be in a private group and have access to the car and pay to use it. I might trust a couple coworkers that might be in the same situation, just need an extra car two or three times a month, to rent it out for $50 to $75/day and Turo could take a 20% cut of that or something. (Have I just come up with the next billion dollar app and IPO?!) I wouldn't just let the general public though.... even $100/night is in the range where a couple 19 years olds on a Friday could rent it and have fun on the town with friends or whatever. A sporty looking and fun/high tech car might attract that just as much as the business client that is in town for a couple days...

Turo has pretty much shutdown the below 30 crowd on the Tesla rentals as a first step remedy to this problem. Turo 85plan - Tesla Model 3 LR front wrapped - to be sustainable on a model needs the renter to pay $101/day for 2 day rentals at 168 days per year to basically breakeven.

 

[TLLMRRJ]

Uber and Lyft suck primarily because the riders will not tip and think this is the greatest bargain since sliced bread - tried it as a social experiment for 2 weeks - rave reviews - perfect score 25 rides and only 1 tip of $5. At 1/3 the cost of Taxi without tipping - people are delusional this is sustainable.

Now I feel stupid for always giving a generous tip.

 

[acarney]

Turo has pretty much shutdown the below 30 crowd on the Tesla rentals as a first step remedy to this problem. Turo 85plan - Tesla Model 3 LR front wrapped - to be sustainable on a model needs the renter to pay $101/day for 2 day rentals at 168 days per year to basically breakeven.

There may also be a limited time frame with major rental car companies jumping into the mix now with plans for Tesla. I'm sure the cars will carry a premium price with the big guys, but that will put pressure on Turo renters to keep their price low. If there was a $10/day difference between the big guys that I KNOW will have the car and not cancel on me and might be right at the airport vs someone that might bail the night before because they decide they need their car... well...

I think the delta would have to be like $30 to $40/day on a $120+ rental for me to pick the peer to peer option. That means Turo would need to be down near $80/day compared to $120 with the big guys. A model S from Enterprise in the LA area would have been $300/day just a couple months ago... Model 3 SR is half the price, we might see them offer it for about $150 day, maybe even a little less. Give it two years and we might see the prices drop even a little more, especially if there are any regulations on the rental guys to cut their average carbon values for the fleet... not saying that will happen, but all you need is a few big cities to say "hey, we're working hard to cut average carbon in the transportation sector and we have all these travelers with rental cars that are exempt from that, we want the rental guys to hit XYZ target."

 

[907XCP]

I rented out My Model 3 back in 2018 a couple times and NEVER did it again after it was trashed and was left with a foul odor that smelled like stinky feet. Countless cleans and washes could not take it out. So it was then that I realized that there is going to be a big chance that not very nice people will rent your car that you love and they will not treat it the way you would want it to be treated. It was not worth the heartache for me at all. I would just buy a cheaper hybrid to rent out or something.