Author Topic: Turo - Is renting your car worth it?  (Read 1602 times)

teltic

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Turo - Is renting your car worth it?
« on: July 02, 2018, 11:59:43 PM »
Hello all! :)

I've just started renting out my car on Turo...  Was curious if anyone else has done this, and whether you think it is worth it.

2013 Hyundai Elantra
Bluebook value: $7200ish
Miles: 90k


First Rental: 6/29 - 7/2
Turo Revenue: $72 net of fees
Miles = 335
Cost of depreciation & maintenance (according to MMM) = 7.1 cents (.6 cents for tires, .5 cents for oil, 1 cent for misc expenses, 5 cents for depreciation) * 335 = $23.79
https://www.mrmoneymustache.com/2011/10/06/the-true-cost-of-commuting/

Net Profit = $48.21 for 3 days.


I have a second customer for this weekend (I'm getting the feeling most rentals will be on the weekends...).


$16.07 per day of rental doesn't seem like a lot.  Am I calculating this right?  I guess I will be able to get some tax write offs to include?  Quickly checking, looks like I can write off 53.5 cents per mile.  .535 * 335 = $179.23 to write off.. Which if I'm in the 25% tax bracket... I just saved $44.81 in taxes? 


This has been a good experiment to see if I can survive without a car.  I rode my bike 5 miles to do a meetup, rather than driving.

Does my math make sense?  Thank you in advance! :)

bakfiets

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Re: Turo - Is renting your car worth it?
« Reply #1 on: July 09, 2018, 08:18:00 PM »
I thought about doing this too.  I work at the airport and am gone for 4 days at a crack and like you I got an Elantra.  Keep us posted I'm curious to know how it works out.  Good on you for biking I know how LA can be on bike and it ain't always good.

ptwardi

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Re: Turo - Is renting your car worth it?
« Reply #2 on: November 23, 2018, 01:28:00 PM »
Hey,

I am a host on Turo with 2 cars and just completed a year of renting out my cars with them, my cars are mostly rented out on weekends and I have other ways to get around without relying on them. The business has been consistent all year and it has been a good experience.

I noticed you wrote putting your miles as a tax write off, unfortunately you cannot write off the miles driven by Turo because it is not you driving the car.  If you have any questions about the business feel free to ask. Good Luck


acepedro45

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Re: Turo - Is renting your car worth it?
« Reply #3 on: December 11, 2018, 05:47:35 PM »
Good thought exercise!

You should be aware that your profits/lack of profits are highly sensitive to the 7.1c per mile assumption. If that's higher or lower than actual, your profits balloon/disappear quickly.

If doing this for real, I'd suggest refining a few of MMM's assumptions. Rather than use his generic assumption of 5c/mile, I'd suggest looking at Kelley Blue Book to find your car's real marginal rate of depreciation. I looked up the market value of a 2013 elantra with 90k, then the same car with 110k. I got a difference of $716... or about 3.6c per mile (716/20,0000), quite a bit less than MMM's 5c. The idea here is to check what your car's actual market value loss is if you rented it out for a good stretch.

You are entering the sweet spot of the car's depreciation curve, where additional miles don't hurt the value too much.

In the opposite direction, replacing your tires every 50k miles means it only costs $300 for a set of 4 new ones @.6c/mile. I'd say $400-$500 might be more realistic for a new set of tires. Same comments could apply to the oil/misc expenses. Those figures definitely assume you are very parsimonious with maintenance. Not saying it couldn't be done. So maybe .9c for tires, .2c for oil, another 1.5c for misc?

In the end, 7.1c is probably pretty close as a an assumption. Maybe slightly high, even. The data supports this as a good rental propisition.

Ptwardi and others, I'm curious about the hassle factor in this little business. Do you sometimes end up with a filthy car or one with a few drops of gas when you get it back? I assume Turo makes you whole financially if somebody crashes, but you still have to deal with the stress of figuring out alternate arrangements.

EDIT: Teltic, I used the Elantra coup on KBB to get my depreciation figure of 716/20,000 miles. You will get a different result when you plug in your actual car with its options.

« Last Edit: December 11, 2018, 05:56:47 PM by acepedro45 »

Car Jack

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Re: Turo - Is renting your car worth it?
« Reply #4 on: January 04, 2019, 01:42:24 PM »
I looked into doing it a while ago.  We've got a 10 year old Ford Fusion that would be perfect because it would be cheap to rent out, is cheap to run and worth virtually nothing.  The problem that I always consider is insurance.  I don't know that I really trust Turo's paid for insurance and I'm not all that keen on my personal insurance becoming a problem.

I did the research on the Uber/Lyft side where essentially, if something happens, you are SOL.  Uber/Lyft really only protect themselves and their insurance is so full of holes, it's worthless.  On the personal side, if you have personal vehicle insurance, in most policies, it spells out (I read my policy) that if you are found to have driven for any Uber/Lyft kind of company, and make a claim, they only give you state minimum insurance.  So you think you have $500k liability and collision and comp and then you run into a Mercedes and hurt someone.  Your insurance says "Here's your $5,000 that the state requires for everything in that accident....the rest is on you".  It's why I won't drive for those companies.  The "right" way to do it is to buy a commercial insurance policy, fully disclosing what you're doing.  Of course then you end up driving for negative $$ per day.