Did you know that if you don’t plan to use your car for a day or more, you can rent it out to someone else and get paid to do it? Turo is a new on-demand peer-to-peer car rental service that allows you to do exactly that. Turo matches people who have available cars with people who need to rent a car, and it’s all handled online. It’s like AirBnB for cars: List your car for rent, have control over who rents it, and get paid to do it.
Want to rent your car out on Turo? Click here to list your car on Turo.
If you ever let your car sit for a few days at a time and you’re open to letting someone else use it, Turo could be a lucrative service for you. Below are the steps you need to take to make money renting your car out on Turo.
How to list your car on Turo
To list your car on Turo, head to Turo.com and click “List a Car” in the top navigation
Step 1. Enter details about your car and yourself
First, you’ll have to enter some basic information about your location and your car:
- Your country (Turo is currently only available in the US and Canada)
- Your vehicle make, model, and year
- Miles on your vehicle odometer
- Vehicle transmission: Automatic or manual. Both are acceptable
After you enter that information and click “Get Started,” you’ll be asked to sign into your account or create a new one. You can sign in with Facebook, Google Plus, or an email address. I signed up with Facebook and then verified my account with a mobile phone number confirmation.
Verify your identity
After you describe your car and create an account, you’ll need to verify your identity by entering some basic personal information. You can’t create an account on someone else’s behalf — the account must be for you.
- Enter driver’s license number, date of birth, and your name
- Enter your current address and the last four digits of your social security number
- Answer verification questions: Where your SSN was issued, info about past addresses, things like that
Step 2: Enter your car location
After you verify your identity, Turo asks you to enter your vehicle location and license plate number. Renters will only see that information after they confirm their trip.
Step 3: Enter your car availability
You can choose when you want to rent out your car. After you complete the initial application, you’ll be able use a calendar to set your availability however you’d like.
The initial options on the application are:
- Every day
- Weekends only
- Weekdays only
- Decide later
Step 4: Upload photos of your car
You’ll only need to upload one photo of your car to get started, but if you want your listing to be attractive to renters, you’ll need to upload several good pictures of your car that show the exterior from a few angles and the interior.
Step 5: Describe your car
Turo asks you to write a brief description of your car that will give potential renters information and attract them to your car. There is also a checklist of special features for things like hybrid, GPS, or convertible. I kept my description short, to the point, and friendly. Tell people what they need to know without making them read a book.
Those are all of the initial steps Turo wants you to take to create a basic listing. Once you complete steps 1 – 5, you’ll be taken to your vehicle dashboard where you can edit what you already entered, check how much your car will earn, update your availability, and explore other options like vehicle protection and the maximum distance that you allow your renters to go in your car.
Pricing: How much your car will earn when you rent it on Turo
The price that your car fetches seems to depend the most on the vehicle model and year, and your location. So if you have a new luxury car in a big city, you’ll earn a lot. If your car is more economical, you’ll earn less.
By default, you earn 75% of what renters pay for your car.
You can set a minimum price for your car. For my Mazda, the lowest allowed is $20/day and the highest is $130. That pricing range is affected by make, model, and year. A newer and nicer car will earn more. So if my car was a BMW, the minimum and maximum prices would be higher.
By default, Turo automatically prices your car for you based on their dynamic pricing system. I’m going to start by letting Turo handle the pricing. Turo wants to list my Mazda for around $25 – $30/day. Not bad for the days I don’t use my car at all.
Distance: How far can people go when they rent your car?
Turo allows you to set the maximum distance that renters can drive in your car. By default, Turo sets the maximum distance at 200 miles/day, 1000 miles/week, and 1500 miles/month. You can increase or decrease the maximum distance. If drivers exceed your maximum distance, they pay $0.75/mile.
How to respond to rental requests and hand off your car to a renter
You will receive rent requests through Turo, and you’ll be notified by email and SMS that you need to check your Turo account and either accept or decline a rental. You will be able to view the potential renter’s profile, and you’ll be told how long they want the car. You can contact the renter with questions.
To meet up with your renter, you will have to arrange a meeting spot and a time. Turo tells you that you should check their driver’s license, check the fuel level and mileage, then hand over the keys.
When the trip is over, your renter will return the car to you. All along the way, you’ll be able to communicate with them through Turo, so if you have special instructions about returning the car, you can message them.
What about safety? Insurance and protection plans
How can you be sure that you’re renting your car to a safe driver? Turo screens each driver by verifying their identity. You will also be able to view the renter’s profile before you accept their request.
Turo offers three insurance protection policies that each provide $1 million liability insurance that protects against theft and damage. If you select an upgraded protection plan, you earn a smaller percentage from each rental. If you downgrade your insurance plan, you’ll earn a higher percentage from each rental.
- Basic protection: Earn 85% of the trip price. $1 million liability, $3,000 maximum out-of-pocket cost for damage
- Standard protection: Earn 75% of the trip price. $1 million liability, no out-of-pocket costs to you for damage to your car, get a replacement car during repair
- Premium protection: Earn 65% of the trip price. $1 million liability, no out-of-pocket costs to you for damage to your car, get a replacement car during repair, covers exterior wear and tear and covers loss of income in the event of an accident
Turo is a relatively new service, so there hasn’t been much information published about how driver protections really work in the real world. I’ll update this article with any new information I discover.
There used to be a sign up bonus, but there isn’t anymore
Turo used to offer a sign up bonus up to $100 in select cities, but they recently cancelled it. I’ll update this article if Turo offers any new sign-up bonuses.
Want to try Turo?
If you’re the type of person who doesn’t use their car every single day of the week, Turo seems like a great way to put some extra money in your pocket and lower the cost of owning a car.