Author Topic: Turo - Is renting your car worth it?  (Read 5007 times)

teltic

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Turo - Is renting your car worth it?
« on: July 03, 2018, 05:32:11 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! :)

the_fixer

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Re: Turo - Is renting your car worth it?
« Reply #1 on: July 03, 2018, 06:17:13 PM »
There was a good thread here on MMM where someone was renting and tracked it and came back a few years later I think the opinion was no it was not worth it especially after his car was in an accident and the issues that followed

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HipGnosis

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Re: Turo - Is renting your car worth it?
« Reply #2 on: July 03, 2018, 06:58:22 PM »
I'm not doing Turo, but I'm looking into it.

You will also have to file / pay self-employment taxes.
The depreciation is a tax deduction.

Know your insurance.

Get a GPS tracker for the car.  There are some that plug into the ODB port (that crooks know about and will disconnect) and some that are hard wired.
Note the monthly fee when choosing which to buy.

It is a business venture.  There may be set-backs, but losses are tax deductible.  Don't rent out a car you're emotionally attached to.


the_fixer

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Re: Turo - Is renting your car worth it?
« Reply #3 on: July 03, 2018, 07:08:44 PM »

teltic

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Re: Turo - Is renting your car worth it?
« Reply #4 on: July 04, 2018, 12:33:35 PM »
Found it

https://forum.mrmoneymustache.com/welcome-to-the-forum/turo-rent-out-your-car/

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Thanks for the link!  Cool to see others are making $8-10k from their cars.  I haven't told my current insurance company, which I see mixed answers.  Some say their insurance will drop them if they find out... Sounds like Turo will take care of all insurance related things, so I don't think Geico needs to know. :)

The 53.5 cents per mile of depreciation seems very favorable, especially if you're renting out an older car.

I'll keep renting it out for now!  Fun experiment so far.