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Folks renting out their cars in Turo - Please lower your price

Discussion in 'Model X' started by dmode, May 22, 2018.

  1. dmode

    dmode Member

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    I have an S, and I wanted to take the extended family on a road trip to Los Angeles next weekend. Wanted to rent an X from Turo, but the prices are out of control. $150-200/day with 200 miles of daily driving included. An SUV ICE rental costs $50/day with unlimited miles. I can't imagine a lot of people renting at that price point.
     
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  2. AEdennis

    AEdennis Active Member

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    The rental price that folks are asking for reflects what both the market will bear and what the owner requires to be comfortable with renting out their vehicle. I look at that price and it's still too low for me to consider renting out our S... and it's a 2013 with almost 100k miles on it.
     
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  3. commasign

    commasign Tesla Superfan

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    Also Turo takes a huge cut of it especially if you opt for their premium coverage option. It’s like a 35% cut. If I ever rented out my cars I’d probably go with premium coverage including wear and tear which would cover things like small scratches and curb rash.
     
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  4. jaguar36

    jaguar36 Active Member

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    While we asking for stuff, could we ask Tesla to just drop the price of an X to like $25k? That'd be super.

    I'd also like to ask the IRS to stop asking for so much taxes too. That'd be great!
     
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  5. jajabor

    jajabor Member

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    super funny :)
     
  6. dmode

    dmode Member

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    I really don't think those prices reflect what the market will bear. I check most weeks and most of those cars are available every week. And most Tesla cars have less than 10 reviews. There are Model 3s listed for $200/day, and not surprisingly those cars have no trips yet. I just calculated that renting a Model X from Turo for 4 days, with over 1000 miles of driving will cost me over $1000. Compare that to the Enterprise cost for Ford Explorer for the same 4 days is $250. I know Model X is a premium car, but that is 4x the cost.

    I understand most owners are listing their cars for extra cash and not really focused on Turo as a legitimate source of income. But it seems to me that a massive opportunity is missed here.
     
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  7. Uncle Paul

    Uncle Paul Active Member

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    Some have posted that they are only listing on Turo to help qualify their Model X for the significant Section 179 tax write offs.

    They do not really want to rent them off too often.

    A common, inexpensive SUV might rent for less, but any of the higher end exotics also cost about the same.

    Lots of celebrities rent the Model X so they can make a grand and elegant entrance, steping out through those magnificent Falcon Wing doors.
     
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  8. Peteybabes

    Peteybabes redneck drivin' a tesla...

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    my tesla cost 4 times as much as a Ford Explorer...and repairs take longer and cost more if it's damaged.

    Try comparing a like vehicle from any major rental company + fuel and you will be the same. Some examples: Mercedes G Wagon, Mercedes ML, etc...

    Rent Bahador’s 2014 Mercedes-Benz G-Class in Las Vegas, NV | Turo with 14MPG
    Rent Steven’s 2016 Mercedes-Benz GL-Class in Avon, CT | Turo with 15MPG

    the rates on Hertz for an Infiniti QX80 were likely $700/week but also only like 14 MPG...
     
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  9. outie

    outie Active Member

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    It would be funny if the sun was hot and the FWD failed to open due to excessive heat, or the valet was standing right in front of the FWD and it stopped after opening a tiny gap. Grand and elegant entrance indeed!
     
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  10. SSedan

    SSedan Member

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    My take on Turo is someone looking to OCCASIONALLY rent out their personal vehicle as in the vehicle they drive regularly, not a business where they want it rented full time. Car rental agencies want the car rented as much as possible. I think your comparison is deeply flawed.

    Heck I bet some people who list premium vehicles on Turo end up renting a cheaper car since they have to live their life.
     
  11. mattack4000

    mattack4000 Active Member

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    For you to make money on Turo, you really need to rent it out full time and not care about the car. One bad renter can basically put you in the negatives for a while, not worth it. Also remember the tires for the X are like $1500 a set and they only last 15K miles. It's not worth it
     
  12. SSedan

    SSedan Member

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    Expanding on that very good point, $200 a day likely prices out joy riders, still as you said a bad renter can put you in the negative in a hurry.
     
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  13. outie

    outie Active Member

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    Yep we are talking about the car being out of commission for 6 months for an accident. Of course the rental fee needs to have that risk baked in. Traditional ice rentals can be fixed in a day.
     
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  14. mattack4000

    mattack4000 Active Member

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    Good luck if someone uses autopilot and drives into a concrete pylon. I am sure you will end up on that lawsuit.
     
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  15. jgrgnt

    jgrgnt Member

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    Some owners are more flexible than others, so it doesn’t hurt to ask for additional miles when you request a car.
     
  16. skilly

    skilly Member

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    this is kinda funny....its actually pretty cheap at that rate. If were to rent a Range Rover from LAX Hertz it would put you back at the rate of $230.00 a day (all in) and of course you get the joy of paying for fuel. I wouldn't begin to consider renting out my P100DX to a stranger without at least that amount plus a deposit; even then, its not really worth it. In fact, if Tesla catches you, they can take away any free Supercharging Account status (taxis and rentals are excluded from this feature).

    Given the price/value of these cars, you should be comparing them to an exotic; not because I love the brand, but because thats the reality of any comparison. They cost more than a Ferrari Spyder 430, have better performance than, well, any exotic on the market, and they are next to free to operate (if you are planning on a hotel visit, usually the hotel will allow you to charge for free).
     
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  17. ninefiveone

    ninefiveone Member

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    What massive opportunity is being missed here? It would be helpful to have you lay out the business case you feel is being missed.
     
  18. Big Earl

    Big Earl Supporting Member

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    #18 Big Earl, May 23, 2018
    Last edited: May 23, 2018
    I’ve rented several Tesla’s on Turo over the past couple of years; always for road trips. I plan in advance and usually look for vehicles with unlimited (or otherwise generous) miles.

    Turo can be hit-and-miss for vehicle owners. Some renters care for the cars as their own, but others treat the cars like a typical rental that nobody cares about. Curb rash and rock chips on the paint are things an owner has to expect to have happen.

    Insurance, as mentioned, can be a significant expense to both parties. I have very high coverage through USAA, so as a renter, I always decline Turo’s insurance. As a host, I would want the premium insurance since it covers wear and tear.

    Finally, a Tesla can’t be compared to a $50/day ICE car. Many Teslas, especially performance versions, compete with exotics in terms of daily rental pricing.
     
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  19. dmode

    dmode Member

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    I work for a "sharing" economy company, and if my experience is anything to go by, then you will find a spectrum of people renting in Turo. Some are probably renting it for fun, while for others it is a legitimate business. For the second category, a key metric should be utilization of their asset. And it looks like utilization is extremely low
     
  20. dmode

    dmode Member

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    I don't think the rental fee should bake in risk. A Turo insurance policy should be baking in that risk. Rental price should only reflect the competitive clearing price for a car in that category.
     

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