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Exploring the World of Turo Car Rentals: My First 30 Days
Over the past month, I ventured into a new business model: renting out my 2018 Tesla Model 3 long-range on Turo. After 30 days, the results are in—a reported revenue of over $11,000. While that figure sounds impressive at first glance, it’s essential to delve deeper and evaluate the true costs associated with this venture, including maintenance, damage, and overall profitability.
Initial Investment and Setup Costs
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To prepare my Tesla for the Turo platform, I invested approximately $150. This expenditure covered essential equipment such as a hard drive for the dash cam, a lockbox for contactless delivery, a charging cable, and premium connectivity for added guest amenities—think Netflix, Spotify, and navigation features. Despite initial reservations due to my lack of reviews and experience as a host, I hoped that someone would take a chance on my listing. Luckily, that came to fruition with the first rental.
Breakdown of Rentals: The Good and the Bad
In total, I managed eight rentals over the first month. Here’s a summary:
- Trip 1: A three-day rental brought in $127. Costs were minimal; the guest drove about 300 miles.
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Trip 2: An eight-day rental saw earnings of $236, but the price was reduced for higher utilization. Unfortunately, this trip also inflicted about $800 in damages on my vehicle. After a claims process, I recouped $600.
Trip 3 and Trip 4: Both one-day rentals brought in just $34 each. While the first renter was impeccable, the latter left my car less than spotless.
Trip 5: Also a one-day rental where I netted another $34.
Trip 6: My first airport delivery—this one paid $114 over three days. The guest was experienced and returned the vehicle clean.
Trip 7: A more forgettable rental for $78 over two days, with another 327 miles traveled.
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- Trip 8: A long-term rental for 10 days netted $394, with the guest driving quite a distance to and from Florida for a wedding.
Financial Overview: Costs vs. Earnings
After accounting for those rentals, I reached a revenue tally of $1,051. However, expenses mounted quickly. I had to pay my car loan, insurance, windshield wipers, washing costs, and airport parking, amounting to over $1,200. This led to a negative profit for the month initially. Fortunately, the $600 claim reimbursement for damage proved instrumental in offsetting losses, resulting in an approximate profit of $400.
Considerations: Depreciation and Time Investment
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An essential aspect of this venture is vehicle depreciation. It’s estimated that cars lose value at a rate of 8-10 cents per mile driven, which aligns closely with the 9 cents per mile I earned. This made it clear that I primarily broke even on depreciation after 4,500 miles of driving.
In terms of time investment, I estimated spending around 12-16 hours throughout the month managing the rentals. A rough calculation translates this into an hourly earning of approximately $26-$34, which actually exceeds my Uber earnings.
The Bigger Picture: Long-term Viability and Equity
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Looking ahead, I find the model intriguing, albeit complex. With Turo, there’s a potential for not just immediate income, but also for building equity over time—much like real estate. My car payments, associated with renting it out, contribute toward eventual ownership, theoretically leading to a "free" Tesla in the future.
Moreover, by the end of 2025, I’ll benefit from a significant tax credit of $4,000 due to the vehicle's electric vehicle status. This could cushion the finances and genuinely make this Turo venture worthwhile.
Conclusion: Should I Continue?
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As I reflect on my first month with Turo, the experience has been both fun and educational. While risks and challenges present themselves—like potential damage and high expenses—the thrill of long-term rental and tax benefits offers a silver lining I’m eager to explore.
Despite mixed reactions from viewers about whether I should persist or quit, I’m energized by the unique opportunities this venture presents. For now, I plan to keep renting on Turo and to see how this journey unfolds in the coming months.
The reality of being a Turo host is undeniably multifaceted, but it also speaks to the evolving landscape of car ownership and rental. Going forward, I’m excited to see how my Tesla and this business venture will grow.