Reflecting on an 18-Month Turo Journey: Lessons from Renting Out Cars
It's been 18 months since I embarked on my journey with Turo, the car-sharing platform that allows individuals to rent their vehicles to others. My experience has been filled with challenges, insights, and a fair share of growth. As I recently sold my Porsche Macan, I thought it would be a good time to summarize what I've learned for anyone considering a similar side hustle or weighing their options.
The process of selling my Macan was straightforward, as I opted to use Carvana, which offered a seamless transaction. Despite some minor dents, the sale was quick, and I was relieved to receive a fair price for the vehicle. Now, my wife will primarily drive our Tesla Model Y, while I will be enjoying my Supra. We've downsized from four cars to two, having sold both the Mazda and the Macan without complications.
Selling the Macan also marked a pivotal point in my journey, signifying the conclusion of my Turo endeavor. But like any experience, it’s not all about the sales; there were notable challenges encountered along the way.
Despite generating $330,000 in revenue over 17 months, a sobering realization hit me when I considered the time invested in managing the Turo business. Initially, I believed it would only take a couple of hours per week to manage; however, over time, the demands increased. Rental cars were primarily rented out on weekends, and the logistics of dropping off or picking up cars became time-consuming. This led me to reflect that if I had dedicated that same time to a different job, I potentially could have earned more money. Yet, while the financial aspect was one consideration, the autonomy and the experience were invaluable in their own right.
One of the most pertinent negatives of the Turo experience was the fluctuating demand for rentals, especially luxury vehicles. My Macan, for example, required a daily rental rate of around $120 to make it financially viable. When Turo suggested lowering the weekend rate to $73 just to get it rented out, it was evident that the market had shifted dramatically, making profitability a challenge.
Additionally, cars lose value as they accumulate mileage, which is inevitable when renting them out. I encountered a situation where the car exceeded 50,000 miles, leading to a significant depreciation in its value, which compounded the losses incurred. Looking back, a more proactive approach might have been to sell the vehicle earlier, avoiding added service costs and depreciation.
Another important factor influencing my decision to part ways with Turo was the rising insurance costs associated with having to cover miles driven by guests since my previous insurance provider, Metromile, had ended its partnership with Turo. This necessitated paying a standard premium, which made maintaining the business less financially viable.
Overall, these unforeseen expenses combined with diminishing rental income made the Turo model unsustainable for my situation.
Managing rentals also came with lifestyle disruptions. Every time I needed to drop off a car at an airport, I had to balance it with my personal life. Invites to social events were often overshadowed by the need to deliver or pick up cars, and additional transportation costs—like Uber or bus rides—added stress and financial strain.
The responsibility became overwhelming at times, particularly with customer interactions and potential claims resulting from rentals. The hassle of managing logistics, dealing with claims, and ensuring customer satisfaction often felt like an added burden, consuming more time than I had anticipated.
As I reflect on the broader implications of my experience, it became clear that I needed to reassess my long-term vision. I always treated Turo as a side hustle rather than a primary business, and as life progresses, I find myself focusing on different priorities, including the anticipation of our first child.
My decision to depart from the Turo venture stemmed from a lack of sustainable growth and the desire for a more meaningful business direction, one that can adapt to changing life circumstances.
While my Turo experience had its hurdles, I recognize that opportunities still exist for those interested in this line of work. For instance, shifting to private rentals allows individuals to bypass Turo's commission structure, maximizing profits. Additionally, offering add-ons related to rental experiences can yield greater income by meeting niche market demands.
Creating a strong online presence and diversifying income streams through other channels like content creation or rentals can transform a basic rental operation into a thriving business model.
After nearly 18 months and around $30,000 in revenue, I can look back without regret. Turo offered a unique experience filled with growth and evolving insights about running a small business. While I won’t continue down this particular path, I look forward to exploring new avenues for passive income and cultivating side ventures that align better with my evolving lifestyle.
Should you have any questions regarding my experience or wish to connect, feel free to leave a comment. Thank you for following along on this journey, and I hope you find inspiration for your endeavors. Until next time!
Part 1/9:
Reflecting on an 18-Month Turo Journey: Lessons from Renting Out Cars
It's been 18 months since I embarked on my journey with Turo, the car-sharing platform that allows individuals to rent their vehicles to others. My experience has been filled with challenges, insights, and a fair share of growth. As I recently sold my Porsche Macan, I thought it would be a good time to summarize what I've learned for anyone considering a similar side hustle or weighing their options.
Initial Steps and Selling the Macan
Part 2/9:
The process of selling my Macan was straightforward, as I opted to use Carvana, which offered a seamless transaction. Despite some minor dents, the sale was quick, and I was relieved to receive a fair price for the vehicle. Now, my wife will primarily drive our Tesla Model Y, while I will be enjoying my Supra. We've downsized from four cars to two, having sold both the Mazda and the Macan without complications.
Selling the Macan also marked a pivotal point in my journey, signifying the conclusion of my Turo endeavor. But like any experience, it’s not all about the sales; there were notable challenges encountered along the way.
Revenue Versus Time Investment
Part 3/9:
Despite generating $330,000 in revenue over 17 months, a sobering realization hit me when I considered the time invested in managing the Turo business. Initially, I believed it would only take a couple of hours per week to manage; however, over time, the demands increased. Rental cars were primarily rented out on weekends, and the logistics of dropping off or picking up cars became time-consuming. This led me to reflect that if I had dedicated that same time to a different job, I potentially could have earned more money. Yet, while the financial aspect was one consideration, the autonomy and the experience were invaluable in their own right.
Challenges in the Rental Market
Part 4/9:
One of the most pertinent negatives of the Turo experience was the fluctuating demand for rentals, especially luxury vehicles. My Macan, for example, required a daily rental rate of around $120 to make it financially viable. When Turo suggested lowering the weekend rate to $73 just to get it rented out, it was evident that the market had shifted dramatically, making profitability a challenge.
Additionally, cars lose value as they accumulate mileage, which is inevitable when renting them out. I encountered a situation where the car exceeded 50,000 miles, leading to a significant depreciation in its value, which compounded the losses incurred. Looking back, a more proactive approach might have been to sell the vehicle earlier, avoiding added service costs and depreciation.
Part 5/9:
Rising Costs and Insurance Changes
Another important factor influencing my decision to part ways with Turo was the rising insurance costs associated with having to cover miles driven by guests since my previous insurance provider, Metromile, had ended its partnership with Turo. This necessitated paying a standard premium, which made maintaining the business less financially viable.
Overall, these unforeseen expenses combined with diminishing rental income made the Turo model unsustainable for my situation.
Time Commitment and Lifestyle Disruptions
Part 6/9:
Managing rentals also came with lifestyle disruptions. Every time I needed to drop off a car at an airport, I had to balance it with my personal life. Invites to social events were often overshadowed by the need to deliver or pick up cars, and additional transportation costs—like Uber or bus rides—added stress and financial strain.
The responsibility became overwhelming at times, particularly with customer interactions and potential claims resulting from rentals. The hassle of managing logistics, dealing with claims, and ensuring customer satisfaction often felt like an added burden, consuming more time than I had anticipated.
Long-term Vision and Future Plans
Part 7/9:
As I reflect on the broader implications of my experience, it became clear that I needed to reassess my long-term vision. I always treated Turo as a side hustle rather than a primary business, and as life progresses, I find myself focusing on different priorities, including the anticipation of our first child.
My decision to depart from the Turo venture stemmed from a lack of sustainable growth and the desire for a more meaningful business direction, one that can adapt to changing life circumstances.
Opportunities for Success
Part 8/9:
While my Turo experience had its hurdles, I recognize that opportunities still exist for those interested in this line of work. For instance, shifting to private rentals allows individuals to bypass Turo's commission structure, maximizing profits. Additionally, offering add-ons related to rental experiences can yield greater income by meeting niche market demands.
Creating a strong online presence and diversifying income streams through other channels like content creation or rentals can transform a basic rental operation into a thriving business model.
Conclusion: Reflecting on Lessons Learned
Part 9/9:
After nearly 18 months and around $30,000 in revenue, I can look back without regret. Turo offered a unique experience filled with growth and evolving insights about running a small business. While I won’t continue down this particular path, I look forward to exploring new avenues for passive income and cultivating side ventures that align better with my evolving lifestyle.
Should you have any questions regarding my experience or wish to connect, feel free to leave a comment. Thank you for following along on this journey, and I hope you find inspiration for your endeavors. Until next time!