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

[Vision33r]

I see all these folks renting out their Tesla for like $100-400+ a day, I also thought about it but did the math and different situations. I can't do it unless I'm getting $2000 a month for my Model 3 LRDM. For Model S, it may have to be atleast $3k+ a month to be worth letting someone drag race your P90.

I currently have 2 cars on Turo that I rent out and I would not rent out my Model 3.

Here are a few reasons why it's a bad idea:

- Mileage, most likely you can only limit someone to driving it 500mi a day and they would have to charge it give it more juice. Frequently SC will degrade the battery quicker than slow charge.

- Damage, Teslas are actually very fragile. The weak paint, very easy to scratch body, and the wheels are very susceptible to damage.

- Because the performance is so much higher, someone renting it out is gonna drive it like they stole it. Puts a significant wear on the tires and brakes. The tires are very pricey. I'm sure the brake job won't be cheap either if they had to be changed out due to renters riding the brakes.

- Smoke, garbage, interior damage is very common for Turo rentals. You tell people not to smoke and people don't give a rats and will do so. Drinking coffee and spilling it on your carpeting or soaked through your eats. Starbucks Frappe spill is very difficult to clean.

The biggest problem is the depreciation. When you factor all these things if just a few of the things I mentioned happened then it will cost you in depreciation and Turo is very difficult to work with to get claims against bad customers. You'll likely eat the cost. It will take just 1 bad renter to cost you such as scratches on the seats or steering wheel and it's hard to get Turo to cough up the true cost of the repair job.

Your Tesla will likely have more battery degradation after a few months of renting it out. The depreciation hit will more than likely offset whatever money you've made.

Say you made $2k a month with your rent, if you were to sell the Tesla after the month you will likely lose out more than $2k in resale value when buyers look at the condition, battery life, and mileage.

 

[thedm96]

I wouldn't do it for all of the reasons you listed for any car, Tesla or otherwise.

 

[mattack4000]

The liability too. Cars are expensive to repair, one little damage and you are screwed.

 

[cwerdna]

Also, I don't remember what the owner liability situation (vs. personal insurance and what Getaround provides) was in the case below where the owner rented his car out on Getaround.

Tesla driver in San Francisco crash that killed man from Central Valley used Getaround app
Owner of Tesla involved in fatal crash in San Francisco says he activated every safety mode on his car before renting it out

Let's hope the owner didn't get hosed beyond his 3 getting wrecked.

 

[mattack4000]

As a user for the service, I think it is great people are letting others do it. Yet there are many bad apples who can absolutely destroy you. We live in America, you will easily be sued if something bad happens. I know there are many who can't really afford the car and are using it to get by, but as an attorney I would never recommend doing it unless you need the money. This is more crazy for people with assets and high income. After insurance, taxes, you are basically getting like $30 for the trouble. Is it really worth it?

I did rent a Ferrari for like $400 ($300 after coupon) for one day, a Model X before I bought mine and a Model 3 for free after coupon

 

[DarthPierce]

Say you made $2k a month with your rent, if you were to sell the Tesla after the month you will likely lose out more than $2k in resale value when buyers look at the condition, battery life, and mileage.

Yes, if you do it for a single month, you're definitely not going to come out ahead.... but once it's already got the scratches, dings, etc - doesn't it work pretty well? If you rented it out for 2k/month for 2 years, that's $48,000. Pretty sure the car would still be worth more than $0. If you can legitimately average 2k/month via Turo in your locality, it seems to me you should be buying a whole fleet....

I used to host a couple Airbnbs, and you're certainly in the red for a while since you've needed to put in furnishings and a lot more labor than with a traditional lease rental, but in the long run you can make good money (depending on the local rental and tourist markets, obviously).

 

[Vision33r]

Yes, if you do it for a single month, you're definitely not going to come out ahead.... but once it's already got the scratches, dings, etc - doesn't it work pretty well? If you rented it out for 2k/month for 2 years, that's $48,000. Pretty sure the car would still be worth more than $0. If you can legitimately average 2k/month via Turo in your locality, it seems to me you should be buying a whole fleet....

I used to host a couple Airbnbs, and you're certainly in the red for a while since you've needed to put in furnishings and a lot more labor than with a traditional lease rental, but in the long run you can make good money (depending on the local rental and tourist markets, obviously).

In order to make $2k a month you have to have a really desirable car. I don't think M3 can charge more than $150/day anymore. Too many people listing SR/SR+ M3 with Performance wheels for $70/day. Say you make $100/day and get about $600 a week, after the fees you keep about $450/week. If you are that popular on Turo getting your car rented out every week. Sooner enough you'll bump into joyriders and bad renters that will either hit something or dirty up the car.

I had someone drop Starbucks frappe on my carpeting in one of my rental and it was nearly impossible to clean the stain and syrup off since the carpet was tan. Never get a light color carpet for any car.

I can't imagine someone with white seats rent it out to people.

 

[Vision33r]

Also, I don't remember what the owner liability situation (vs. personal insurance and what Getaround provides) was in the case below where the owner rented his car out on Getaround.

Tesla driver in San Francisco crash that killed man from Central Valley used Getaround app
Owner of Tesla involved in fatal crash in San Francisco says he activated every safety mode on his car before renting it out

Let's hope the owner didn't get hosed beyond his 3 getting wrecked.

When you rent your car out, Turo offers insurance coverage for different fees if you chose to and have different levels of coverage. You can opt out and use your own insurance. I believe in an event of a car accident, the victims can sue you and Turo. Then it will depend on Turo and your own insurance to deal with it.

My main problem is that Turo doesn't screen customers very well, they don't do a credit check or insurance history check. Anyone renting could be a very bad driver with tons of points or can't afford their own insurance and are driving your car. You have to do a gut check to checkout the renter's ratings before you agree to the rent.

 

[CrayZ1]

Renting out your spouse is possible, but I don't suggest that either.

 

[cwerdna]

BTW, is there a reason why this in the Model Y area? Did I miss something?

 

[ElectricIAC]

Model Y will be a hot ticket to rent when it first comes out.

 

[entropyhouse]

it may have to be atl east $3k+ a month to be worth letting someone drag race your P90.

Can confirm, I was at a company event that rented out a Model S, and it was launched multiple times in an hour until it hit a pot hole and the tires popped.

 

[ThomasD]

Making payments on a car and paying for insurance then renting it out because you really can't afford it makes no sense.

 

[ElectricIAC]

Making payments on a car and paying for insurance then renting it out because you really can't afford it makes no sense.

Some people do it to increase exposure to the brand.

 

[wamsankas]

This poster is very wrong. I’ve rented my MX for 3 years on Turo to 100 people so far. Never had a single issue of someone misusing the car. On average people drive 60 miles a day (they are limited to 150 and pay extra is they go above). I have met great people and rent it out on average 10 days a month and it has paid for the car and my apartment rent for 3 years. Resale value on car is $50k now bought for 90k. Have made about $20k and had a free Tesla for 3 years if I sold today.

 

[ElectricIAC]

This poster is very wrong. I’ve rented my MX for 3 years on Turo to 100 people so far. Never had a single issue of someone misusing the car. On average people drive 60 miles a day (they are limited to 150 and pay extra is they go above). I have met great people and rent it out on average 10 days a month and it has paid for the car and my apartment rent for 3 years. Resale value on car is $50k now bought for 90k. Have made about $20k and had a free Tesla for 3 years if I sold today.

Model X still possible to turn a profit on turo as outside of CA they’re still rare and arguably exotic but Model 3 unless you’re in something of a Tesla desert it’s not really worth it as most major metros are especially full with listings for the time being.

 

[Spacep0d]

Interesting thread!

I agree with the OP, with some caveats. I could see having a 'fleet' of cars to rent on Turo that are just rental cars for income purposes. I don't know that I would rent my personal car for all of the reasons given. While I would expect to meet a lot of good people, it only takes a few inconsiderate or unethical people to sour the experience.

Turo is how I tried two vehicles, the Polaris Slingshot (ended up not liking it too much, but fun on canyon roads) and the Model 3 Long Range. This is how I came to fall in love with the Model 3 and decided I would have one as soon as I could afford it.

The nice man who rented the M3 to me was a retired rocket scientist of a sort who worked at a certain space agency that landed 12 men on the moon with six missions. He was patient, helpful, and enthusiastic. Renting the car of my dreams (on paper anyway) from someone who's connected to space-flight (one of my other passions) was pretty amazing in and of itself. In fact, the first person who ever loaned me an electric car (BMW Active-E) is also a rocket scientist for a different aerospace company. I sense a trend here. That fact that 2 out of 2 people from whom I was getting my first and second EV experience with happened to be rocket scientists did not hurt the marketing in my view. As you see in my 3D Art (in my avatar), I'm a bit of a space fan too.

I took delivery of the amazing Model 3 Long Range and I knew in short order that I had to have one. Not only that, I took impeccable care of it, going so far as to disallow a smoking coworker a ride not because he wanted to smoke in the car, but because he had just finished a cigarette. I explained why and he was very understanding, but I wasn't taking any chances with someone thinking I smoked in their vehicle (I don't smoke at all, and I do my best not to smoke secondhand either).

That test ride was amazing to me. When I got home my girlfriend got in and wept (aww, emotional creature)...happy tears. She loved the car, she saw how much I loved it, and she knew I wanted one and would probably be able to swing it. Plus, she gets the benefit of being a passenger in it too.

What I'm leading up to is this; despite the occasional jerk or careless person who rents a car on Turo, Turo has a way of selecting against this because of the personal touch. You meet the owner in many cases. This is someone's personal vehicle. This is not some faceless corporation renting out bland econoboxes that have been abused by too many renters....these are the personal vehicles, some still being paid-for, purchased by real people who work like any of us do to share their vehicles with the world.

Anyway, that test-drive changed my life, in a sense. I went on to buy a Nissan LEAF because I got a good deal and February 2019 turned in to the set of Waterworld 2 here in L.A. I sold the car fairly quickly (still had a motorcycle) but enjoyed having an EV. Once I knew I was serious about EVs, I resolve to go payment-free on a car and save some money for a Model 3 of my own.

Come March 2020, that's exactly what I'm buying...a Tesla Model 3 Long Range....and it all started because a couple kind people were willing to take a small risk to evangelize for EVs.

 

[evfeh]

The only car I would rent on Turo would be a paid off Honda Accord that I don't care about.

 

[Qbenjamin]

This poster is very wrong. I’ve rented my MX for 3 years on Turo to 100 people so far. Never had a single issue of someone misusing the car. On average people drive 60 miles a day (they are limited to 150 and pay extra is they go above). I have met great people and rent it out on average 10 days a month and it has paid for the car and my apartment rent for 3 years. Resale value on car is $50k now bought for 90k. Have made about $20k and had a free Tesla for 3 years if I sold today.

A couple of years ago I rented out my S60 on Turo, first user spilled coffee into the seat and carpet. I advertised the car with no liquids of any kind being permitted in the vehicle. Had to remove the seat cover, carpet and pad due to the coffee having milk in it. 2 months after the claim, Turo finally awarded me $100. It cost me around $400 to get it cleaned, but they have a max fee paid for interior concerns (they don't warrant anything typically on the interior). Needless to say, that was a one and done for me.

 

[Spacep0d]

A couple of years ago I rented out my S60 on Turo, first user spilled coffee into the seat and carpet. I advertised the car with no liquids of any kind being permitted in the vehicle. Had to remove the seat cover, carpet and pad due to the coffee having milk in it. 2 months after the claim, Turo finally awarded me $100. It cost me around $400 to get it cleaned, but they have a max fee paid for interior concerns (they don't warrant anything typically on the interior). Needless to say, that was a one and done for me.

Totally get it. I'm way too picky about cars and untrusting of people generally to rent out a car I care about. Ironically and per my last post, a Turo rental will be the reason I'm buying a Model 3 soon.

One huge issue for me would be smoking. Although I would insist that there be no smoking and reinforce this verbally, it would be a matter of time before someone smoked (something) in the car. Seeing as how difficult it is to get smoke smells out of cars, no pittance from Turo would cover the cleaning and aggravation that would result. It simply wouldn't be worth the money.