How much will people pay for a Model 3 on Turo?

[Electric Joe]

I placed my order for a dual motor Model 3 this week and am seriously considering listing it on Turo to recover some of my cost. (Turo is a car rental service often compared to AirBnB.) People in my area list Models S and X for between $250 and $500 per day. I'm hoping to net around $200 per day for the rental, at least until the Model 3 is old news. That means listing it for about $267 per day. (Turo takes a 25% cut.)

My question to the community is whether you think I'll be able to find two or three renters per month at that price. What would you expect people to pay? What would you pay? I, personally, would pay no more than $150 per day to rent one, but I'm not sure it's worth the risk for me to list it that low. Thoughts?

 

[gaswalla]

In Southern Cal, it's just above a 100/day... Have you done your research on Turo?

 

[Kuhz]

You answered your own question. Anything under $150/day is the magic number which would leave you with about $100 profit. Now if you live in an area with little to no model 3s listed on Turo, you can raise your price some. However in an area like that there is also less interest.

 

[Trips]

Things to remember. Turo will not let someone under 25 rent a car with a value exceeding $55,000. For an extra 10% they will cover "Exterior wear & tear" that would cover scratches, door dings etc.

Right now $159 - $245 seems to be the going rate with some in California in that $100 range but with with 10-25 trips on them.

I would estimate that the most profitable car is one out of California @ $125/day with 25 trips. Based on1.5 days per trip and the 25% insurance they would have taken home $3,515.63

 

[RayK]

I'm in the middle of Silicon Valley and I paid $200/day for 3 days back in January 2018. It was about the going rate at the time and given that there was no chance of getting a test drive directly from Tesla, it seemed proper (at least to me). It's the typical case of supply vs. demand. I was at a local showroom yesterday and one of the sales advisors asked me if I was interested in an AWD test drive when they become available. Even though there's almost 0 chance of me getting one (picking up my RWD next Tuesday), I signed up. So figure that into your Turo income.

 

[eSpiritIV]

In Portland, OR the going rate is $150 for a Model S refresh with AP. I cant imagine anybody here would pay more than $150 for a Model 3. I was hoping to do the same on occasion but i guess $100-125 will be normal this next year till the market is flooded in 2 years, then it will be $75

 

[gambit48]

There's 3 in my part of NorCal. They go for about $130-140/day. My neighbor rented one for a few days.

One guy has two of the 3 for rent. It's his only income as he's between jobs right now, but if he can afford 2 Model 3's, he's got a lot of savings to fall back on. I really can't see relying on Turo income much. Especially on a Tesla, because if anything happens, even if the insurance company covers it, the parts likely won't be there and you may be out of a car if the repair goes beyond 30 days as Turo's insurance only covers a rental car for 30 days.

There's a guy who rented a Model S on Turo and a renter crashed it. It's basically a horror story for renting out Tesla's on Turo that doesn't apply to more mainstream cars.

 

[SageBrush]

I thought about renting a Model 3 earlier this year from Turo but the rare was close to $200 a day and Turo insurance is poor so I passed. Now that Tesla is gearing up for test drives I think the demand will shrink to low levels. Add to that owner worries and Turo looking after itself, and I just do not see the allure.

 

[Electric Joe]

Thanks for the input, guys. I know someone who lists about a dozen cars on Turo including a Model S and have picked his brain a bit. His advice is to not get too attached to the cars and expect to make some insurance claims. That said, his situation is very different from mine, where the Model 3 will be my only nice car, and I'd like to keep it nice and on the road without any in-the-shop time.

Another multi-car Turo owner gave some interesting advice: set the price on the high side of reasonable. In his experience when he priced his fun cars low, young people tend to rent and abuse them. When they cost more the renters tend to be a bit more mature and respectful. Sounds discriminatory, but I suppose it makes sense. (Expensive restaurants tend not to be full of noisy teenage jerks, for example.)

 

[gambit48]

Thanks for the input, guys. I know someone who lists about a dozen cars on Turo including a Model S and have picked his brain a bit. His advice is to not get too attached to the cars and expect to make some insurance claims. That said, his situation is very different from mine, where the Model 3 will be my only nice car, and I'd like to keep it nice and on the road without any in-the-shop time.

Another multi-car Turo owner gave some interesting advice: set the price on the high side of reasonable. In his experience when he priced his fun cars low, young people tend to rent and abuse them. When they cost more the renters tend to be a bit more mature and respectful. Sounds discriminatory, but I suppose it makes sense. (Expensive restaurants tend not to be full of noisy teenage jerks, for example.)

That's true, but you still need to focus on his first advice, which is to not get attached and expect to make some insurance claims.

I'm not considering it at all because Teslas and insurance don't mix. Between the lack of parts and difficulty in some repairs, fixing a Tesla goes way beyond the timeline insurance companies are used to. If you've got a multi-car fleet, it's ok. If it's your only car, I wouldn't advise it.

I'm considering Turo for the car the Model 3 is replacing. It's a common Lexus, shares parts with it's Toyota sibling, and is quite old despite it being in beautiful condition. It's not a sport model so setting it on the high side of reasonable should mean an older, more wealthy renter who doesn't want a newer, but less posh Accord or Maxima.

 

[Dana1]

Things to remember. Turo will not let someone under 25 rent a car with a value exceeding $55,000. For an extra 10% they will cover "Exterior wear & tear" that would cover scratches, door dings etc.

Right now $159 - $245 seems to be the going rate with some in California in that $100 range but with with 10-25 trips on them.

I would estimate that the most profitable car is one out of California @ $125/day with 25 trips. Based on1.5 days per trip and the 25% insurance they would have taken home $3,515.63

I’d be fairly terrified of someone driving it like they stole it. Even if Turo has insurance if they take out a storefront that doesn’t mean you can’t also be named in a suit. I’d get a lawyer’s opinion before doing something like this.

 

[Dovetaildoc]

Just had a patient in yesterday with shoulder pain... 19 year old, who was involved in a telephone and tree crash in a Turo rented Model S. ER and EMT notes state that he was the driver, with passenger friend.... Today he tells me that his grandmother was driving and he and his friend were passengers, and that the car accelerated by itself....and that they are "going to sue".

 

[RayK]

19 year old is not allowed to rent through Turo. Have to be at least 21. For higher-end cars the minimum age can be as high as 30.

Are there age restrictions for my vehicle?

 

[HeinrichJ729]

I’d be fairly terrified of someone driving it like they stole it. Even if Turo has insurance if they take out a storefront that doesn’t mean you can’t also be named in a suit. I’d get a lawyer’s opinion before doing something like this.

This is really good advice! I've thought about getting an extra Tesla just for Turo and the possibility of damage plus liability from a crazy incident really scares me.

My best advice is if you go the Turo route, please consult with a lawyer and transfer the car to a Limited Liability Company and have the contract with Turo be with the LLC. Also when someone rents, have them sign a document which states that they are responsible for the car, and that they are renting via Turo a car that belongs to a LLC.

This should add a layer of protection but I am not a lawyer and this is not legal advice so consult a lawyer to figure out the best approach.

You don't want to be named in a suit because someone drove the car through a daycare!

Also if you are renting from Turo, read the fine print. They will happily sell you CDW insurance but that's a borderline scam if you own a car and have insurance because their agreement states that the CDW insurance they sell is SECONDARY. Meaning god forbid something happens, it is on you and your own insurance. On the other hand for rending Getaround is better because their insurance is PRIMARY.

 

[malciv]

I rented a model 3 last month for $100 per day for the weekend (central NJ). I was the 2nd person to rent it from the guy. The 1st renter got into a fender bender. Not too bad, but the ding stopped autopilot from working when I picked it up the next day.

The guy said he thinks the woman who rented it did so for her son who got into the accident. The advice above (don't get too attached, expect claims) is spot on. Go into it with eyes open. You will have issues.

 

[tommyboy21]

I rented a Model 3 off Turo back in April, and was the 5th Turo rental for the owner. Out of the previous 4 renters, 2 of them had damage done to the vehicle. So he had a 50% rate of damage to his vehicle. One took out the driver door and front panel of the car, the other was wheel damage from curbs. Either way, he was rightfully cautious of his vehicle when I took it out. This owner previously had rented cars of his out on Turo, but specifically mentioned that for some reason the Tesla's were the ones that always got in accidents unfortunately. As others have stated, I wouldn't get too attached and be prepared for the headaches.