If you are looking for a different way of renting a car, you need to look at Turo. This article shows how Turo is different from conventional rent-a-car companies. But is Turo legit? Is Turo worth it?
As for legitimacy, Turo is very legitimate, and it’s also a safe way to rent a car. Turo started in 2010 and has become a popular car rental option for many people. It has already cornered over 200,000 app ratings. And based on consumers’ preferences, it has reached the ‘Excellent’ rank on Trustpilot.
However, if you are not careful in using Turo, you can get scammed. But that does not mean that Turo is the one that is doing the scamming.
Some people will use a non-Turo number and try to hook you into using their service. So be very careful. Turo is legit, but people other than Turo can make it un-legit.
Read on to learn more about Turo, whether it is legit, and if it is worth your consideration.
Is Turo Car Rental Legit?
Legitimate and Safe Way of Renting a Car
Looking at it objectively, Turo is a legitimate and safe way of renting a car. But not the same way as you usually rent a car from rent-a-car companies. The car you rent from Turo comes from a local host near you.
Has Over 200,000 Excellent Ratings on Trustpilot
And it seems it’s hitting the right chords with consumers since it has now grown into a popular car renting service. According to consumers, actual records indicate that Turo has over 200,000 app ratings with an ‘Excellent’ ranking on Trustpilot.
Deal Only with Authentic Providers
You have to be careful to avoid scams. Not by Turo itself, but other people who are illegitimately using Turo. These unscrupulous persons use non-Turo phone numbers to hook you and steal your money.
They will call you up and ask if you are still using your Turo account. And then they will follow that up by asking about the day that you last used Turo.
They hope you will give them your two-factor authentication code by asking these questions. So be very careful that you only deal with authentic providers.
Income or Revenue Projection Reached $153 million in 2020
It appears that Turo is a profitable business operation. In 2020, its income/revenue projection reached $153 million. For a 10-year old business, that is quite a record. It’s now 2022, and Turo is still growing its operations and income.
More About Turo
Largest Peer-to-peer Car-sharing Marketplace in the World
Turo claims that it is the largest peer-to-peer car-sharing marketplace in the world. If you are familiar with Airbnb, which rents out lodging for tourism and vacation, Turo operates with almost the same business model but only for cars.
Become a Turo Host If You Own a Car
If you are a car owner, you can become a Turo host and make your vehicle available for rent.
Turo is for people who have extra cars they can rent out. So, if you are going out of town and your car will just be sitting around in your garage doing nothing, you can enlist it with Turo and earn some money.
Founded in 2010
Founded in 2010, Turo has grown into a big business earning positive reviews and ratings from its users and hosts. It maintains an ‘Excellent’ rating at Trustpilot, getting 4.4 stars out of 5 stars.
Turo App’s Rating
The Turo app has a star rating of 4.8/5 out of 156,000 reviews on the App Store. On Google Play, it received 4.9/5 stars out of 54,200 reviews.
Less Positive Review on Better Business Bureau
However, on Better Business Bureau, Turo’s profile is less positive. BBB gave it an ‘F’ rating and only 2.76/5 stars out of 347 reviews from customers. There are complaints about the following:
- Charges for late returns,
- Rent cancellation issues, and
- Vehicle damage.
Is Turo Worth It?
Charges 25% Less Than the Rental Costs of Established Rent-a-car Companies
If you want to make extra money, you can have Turo rent out your car. This is a good idea for those with more than one car, where one of the cars is not their daily driver. The idea with Turo is that, instead of just letting the car sit idly in the garage, why not make money out of it.
It is a way to save up on the rental costs for those renting cars. Turo charges 25% less than the rental costs of established rent-a-car companies.
Offers a Wide Variety of Cars
Since Turo hosts offer a wide variety of cars, this opens a wide selection of cars to those who want to rent cars. People can choose from the following:
- Classic cars,
- Limousines, etc.
So, is Turo worth it? It depends. From the point of view of car renters, it is worth it because they can get lower rental prices than those offered at established rent-a-car companies. But in the point of view of car owners, offering your car for rent at Turo carries with it some risks.
Renter Can Damage or Abuse the Car
The renter can damage or abuse your car. And you have to maintain a regular preventive maintenance schedule for your car if you want it to always be in tip-top shape. Sure, you earn passive income by renting out your car to Turo. But is it worth all the risks?
Turo Takes a 15%-40% Commission
From the rental cost that the car renters pay for your car, Turo takes a commission that can range from 15% to 40%. You get to keep the rest which is 60% at the very least or 75% at the most.
In this kind of business, Turo is the only one left standing. Some of its competitors seem to be just going by and not attracting the same kind of crowd that patronizes Turo. The others are not as active as these two.
The Nature of Turo
Airbnb for Cars
Turo, as some people would say, is the Airbnb for cars. Instead of renting a car from established car rental companies, you can just rent a car from a host of Turo. On average, a Turo host earns around $545 per month.
Earn Money on the Side by Enlisting Your Vehicle with Turo
Turo’s business motto tells you everything about what this company is all about. Their motto says, “Let your car work for you.” So, if you want to earn money on the side, why not enlist your vehicle with Turo.
Advantageous If Your Car Has Mortgage
This is advantageous if you are still carrying a mortgage on your car. It could be a way to get part of your monthly installment for your new car. You will be able to create a passive way to earn money with very little work.
How Does Turo Work?
Turo Will Connect You to Customers
Turo’s business model will connect you to those looking for rental cars in your local area. Turo earns money by taking 15% to 40% of the rental price while you keep the rest. The actual arrangement will depend on the coverage plan of your car when you choose to be a Turo host.
Customers Can Visit Turo’s Website or App
Those looking to rent a car with Turo can visit Turo’s official website. They can also download their app on their Android or iPhone. When they already have the app running on their device, they can now search by vehicle make or destination.
More Than 350,000 Cars Listed on Turo
There are more than 350,000 cars listed on Turo. So, this is the most comprehensive car selection you can get in the car rental industry. Listing a car is free and very easy. It will only take about 10 minutes.
How to Earn Passive Income with Turo
If you have several cars in your garage and you only use one at a time, this is how you can earn passive income with Turo:
- Visit Turo’s official website and create your account.
- List your car. This is free. You can also get a free estimate on Turo’s daily rental price using their calculator. They need you to describe your vehicle, and you need to provide them with high-quality photos of your car showing its features.
- They will send you a notice when a person wants to rent your car.
- If you agree, they will arrange a meet-up with you and the potential car renter at a chosen location. You can check their license, and they can check your vehicle. They may ask you certain things about your car, like its fuel and gas mileage. If everything is okay, you hand over your car keys to the renter.
- After the trip, meet up with the renter to check your car and take it home.
- Turo will then give you the agreed rental amount.
Turo uses several payment modes to pay its hosts. For international hosts, Turo uses PayPal. For United States hosts, they use ACH payments.
Turo will pay you after the trip. You might have to wait 72 hours after the end of the trip. But if the trip lasts more than one week, Turo will start paying you after day seven and partial payments afterward.
Again, is Turo legit? Turo is a safe, convenient, and legitimate way of renting a car. Since the business started in 2010, Turo has grown. It has more than 200K app ratings and an Excellent rating on Trustpilot from its customers.
How Much Can I Earn With Turo?
Turo Checks the Car’s Current Value
Turo uses a calculator to show you what you can earn for every car rental agreement you enter with them. The amount will be per day. If you can’t find your city in Turo’s list, get the U.S. average earnings for the type and make of your car.
Turo’s calculator starts the computation by checking the current market value of your car from Edmunds. Then, Turo uses its Automatic Pricing to calculate how much a renter can rent your car.
Factors That Affect Turo’s Calculation
Below are the factors they consider in the said calculation:
- Age and condition of your vehicle
- Style, features, and trim of your vehicle
- Ease of pickup and dropoff
- Ease of parking
- Other Turo hosts cars in the area.
Be aware that this amount is just an estimate. You can still set your pricing, which is $10 per day minimum, and turn off the Automatic Pricing in the app.
Adjust Pricing According to Demand
However, Turo claims that you can increase your earnings by adjusting the price to match the demand. You may see price changes based on the day of the week, the time of the year, and the events in your local area.
Provide Weekly and Monthly Discounts
You can also attract potential renters to your car by giving weekly and monthly discounts. Inform them that you are also entertaining custom price requests, especially for those who are repeat customers.
Hosts Earn Around $545 per Month
What you can make by being a Turo car rental host is from 65% to 95% of your car’s rental price. Turo retains the remaining amount to cover customer support, roadside assistance, and insurance. According to Turo, their hosts earn around $545 per month.
If you offer extras, you can keep 90% of the rental price. You will also receive 100% of the reimbursements made by your renters, including cleaning and smoking fees, ticket tolls, and fuel replacement.
Pros and Cons of Turo
You also need to consider the pros and cons of being a Turo host before becoming one. What are the pros and cons of enlisting your car with Turo?
1. Get Bookings Often
Since Turo is very popular amongst car renters, you will often have bookings, especially if its rental price is very attractive and it has open availability.
2. Great Customer Support
Turo maintains dependable 24/7 phone support for you and the renters for late returns and billing issues.
3. Easy-to-use App
Turo’s app is very user-friendly. You won’t find any difficulty in navigating its website for editing listings, messages, getting paid, and bookings.
1. Turo’s Commission Is Quite Big
The commission that Turo takes from the rental price is quite large. It ranges from 15% to 40%. The actual rate will depend on the type of protection plan you choose. Turo will only take around 8.5% if you provide your car insurance protection.
Airbnb, in comparison, only takes around 3%. Some have noticed that Turo is taking more and more from their hosts through the years. The most Turo took about 35% in 2016. Now they are taking a maximum of 40%.
2. Lack of Transparency
Based on the actual experiences of Turo’s car hosts, they developed the impression that Turo is not their partner. Turo says that their hosts are their partners, but the hosts can’t feel it.
For instance, Turo will find a way to ignore a bill, even if it is clearly indicated in its policy. Hosts say that you will not see this side of Turo until it’s time for them to show their support.
3. Bad Customer Service
Turo car hosts find that the company is okay at giving customer support for little things like a late pickup or a late return. Their customer support is available 24/7 for these minor things. But when it comes to big things, you can’t count on Turo.
Things like legal questions or damage claims are treated differently. The host needs to file a claim ticket and is required to wait for Turo’s response through email. They find that Turo has long turnaround times.
Frequently Asked Questions
Here are some frequently asked questions that will give you more information about the worthiness and legitimacy of Turo:
Can You Trust Turo?
If you are renting a car, Turo is safe. It is also a legitimate car rental operation. Its big difference with large and established car rental companies is that the cars they rent come from local car owners whom they call hosts.
Turo was established in 2010 and has grown in popularity since then. Currently, it has over 200,000 total app ratings. On Trustpilot, it is ranked as “Excellent.”
How Does Turo Car Rental Works?
Turo enlists the car owners in a local area and calls them hosts. These vehicles are the ones being rented by Turo to their customers. The host earns from the rental price, and Turo keeps a commission on the deal.
How Much Can I Earn by Being a Turo Host?
The amount you will earn will depend on the type and make of your car and the kind of insurance coverage that you choose from Turo. A Turo host can earn $545 per month if they enlist their car with Turo.
How Much Commission Does Turo Take?
Turo takes from 15% to 40% commission from the car rental price. The actual amount depends on the type of coverage you choose for your vehicle. Some local Turo hosts find this amount of commission rather large.
Do Turo Cars Come with Insurance?
A Turo car rental does not automatically come with insurance for hosts and renters. You have to choose what kind of insurance protection you will get.
Turo offers its hosts and renters three kinds of insurance protection. Hosts and renters can also decline protection from Turo if they already have their protection.
Conclusion: Is Turo Legit?
Turo is as legitimate as it can be. As for safety, it’s as safe as any legitimate car rental operation. Turo started in the car rental business in 2010. Turo has become a popular option for renting cars based on consumer preference.
As proof of its legitimacy, Turo was able to get an ‘Excellent’ ranking based on consumer feedback from Trustpilot. Turo’s rental cars are provided by owners of vehicles in a local area. In Turo’s lingo, they are called hosts.