Get the expert answer to your question “How to start a turo business?” Starting a turo business is very profitable, its requirement is a lot like creating a turo business account, listing, renting your car, and many more. That’s why we had made a complete step-by-step guide to starting a Turo car rental business, by following which a teenager can also start a turo business.
Turo Car Rental Business Plan or Model
| Business Name | Turo Business |
| Investment Required | $5,000 – $15,000 per year (for a single car) |
| Time To Build | 1 month approx. |
| Trend | Growing |
| Profit | $5,000 – $15,000 |
| Income | $10k – $30k per year (in one car) |
| Team Member | 2-3 (initially) |
How To Start A Turo Business?
The complete step-by-step business plan with a checklist to start a turo business is as follows:
Steps to Starting a Turo Business in 2023
1. Get Complete Information:
Before Starting a turo business, you should have to ask the question, Is the turo business best for you? To start by knowing its definition, pros, and cons, Requirements everything.
What is Turo Business? & How Does It Work
Turo is a car-sharing platform through which a car owner can rent out their car to others. By creating account on the turo platform and listing your car over there, you will be connected with people who are willing to rent out a car for a short period. In this way, turo helps you in getting customers for your car.
How Turo Makes Money:
Turo makes money mostly in two ways:
- Charging commission: Turo charges a commission on each car rental. It is its major source of income.
- By providing Insurance: Turo company also provides coverage insurance for cars, by selling which it also earns money from insurance companies.
Turo business Pros And Cons:
Pros of turo business are:
| TURO BUSINESS | Pros |
|---|---|
| Flexibility: | It is flexible in choosing when and how often do you want to rent out your car. |
| Passive Income: | It is best to start a passive income if you have a rarely used car. |
| Control Of Price: | Turo allows you to have control on your rental price. |
| Insurance: | Turo provides liabilty insurance |
Cons Of Turo Business:
| Turo Rental Business | Cons |
|---|---|
| Availability: | turo is available in limited areas, so you can rent out only those places |
| Wear and tear: | Renting out your car on turo increases its wear and tear |
Turo car requirements:
The requirements for renting out your car in turo defends upon various local laws and regulations. some of the major requirements are:
Turo requirements to rent your car are:
- Age: Renters’ age must be more than 21 years (Above 18 years are allowed in special cases).
- Driving History: Renters must have a clean driving record.
- Insurance: Renters have their own auto insurance that covers rental cars. Turo also provides insurance for your rental car with some additional fees.
- Vehicle Inspection: Renters should have to inspect their cars before and after the rental period.
- Payment: Renters must have a valid credit card and debit card, to book the car.
other strategies involved to set up and running a turo business are:
2. Market Research
Before starting a turo business, you must do deep research on your targeted market. And have to know about your competitors and customers and you also should know about the type of vehicles mostly used for turo business.
3. Most Rented Cars On Turo
The best cars for turo business and the most rented cars on turo in the USA are:
1. Toyota Corolla
2. Ford Mustang
3. BMW Series
4. Jeep Wrangler
5. Ford Mustang
6. Tesla Model 3
7. Porsche 911
8. Chevrolet Camaro
9. Dodge Challenger
10. BMW M4
11. Audi A4
12. Mercedes-Benz C-Class
13. Volkswagen Jetta
4. Purchase a Car
After deciding the type of car, you just went to rent out or purchase it, but remember one thing your car should be suitable for your turo business. You can buy most rented cars on Turo, a sports car or a minivan, as per your choice. Few car Ideas for Turo are:
Best sports car for turo:
1. Porsche 911
2. Chevrolet Corvette
3. Ford Mustang
4. BMW M4
5. Audi R8
Best Minivan For Turo:
1. Toyota Sienna
2. Honda Odyssey
3. Kia Sedona
4. Chrysler Pacifica
5. Register on Turo
After purchasing your car, you just get them registered on Turo. Make a list of your cars on Turo and write a complete description of your cars which tells the features and benefits to the customers. which will definitely attract more customers.
6. Set the Price Of your car
Now, you have to set the price of your rental cars, Price them by analyzing your competitors and market. You just check the price of the same cars registered on Turo and price your car competitively.
7. Insurance For Turo
Do you need insurance for Turo? Yes, you need insurance for your rental cars. Turo Itself provides insurance for your rental cars, but if you need any additional insurance for your car safety you can take it.
How Does Turo Insurance Work For Renters?
Turo basically provides two types of insurance for renters, Basic and premium.
1. Basic insurance: Turo basic insurance provides coverage to another’s car or property after the accident by your rental car, but basic insurance does not provide coverage for your rental car itself.
2. Premium Insurance: It provides coverage for you rental cars, It provides liability coverage of $1 million, with physical damage protection.
How Much Does Turo insurance cost?
Cost of turo insurance depends upon various factor, which includes the type of insurance you selected, for example:
1. Basic insurance: Turo’s Basic insurance is included in the rental price, so it does not charge any additional cost.
2. premium insurance: Turo’s premium insurance is the upgraded version of insurance, so it charges between 25% to 35% of your rental price.
Best Insurance For Turo:
1. Turo’s Liability and physical damage insurance (premium insurance). It provides liability coverage of $1 million.
2. Personal Auto Insurance. some people prefer to have personal auto insurance to cover any damages during renting out.
3. Commercial Insurance. It provides more comprehensive coverage than others, but it is more expensive.
8. Marketing
Now you have to market your turo car, on social media, newspapers, and other platforms to attract more and more renters. You can provide offers and discounts to promote your rental cars.
Best ways to market your turo car:
1. Use high-quality photos
2. Write a detailed description
3. Price competitively
4. Offer extras
5. Share on social media
6. Get good reviews
9. Maintain your turo car
You have to maintain your rental car, by regular servicing, cleaning, and fixing its issues. It will increase the good customer reviews through which you will get more number of customers.
Best cities to start a turo business:
- Los Angeles, California
- San Francisco, California
- Miami, Florida
- New York City, New York
- Chicago, Illinois
- Atlanta, Georgia
- Houston, Texas
- Washington, D.C
- Denver, Colorado
- Austin, Texas
Conclusion:
Starting a turo business is a great way to start a new side income, by renting out your personal vehicles, to start a profitable turo business you need to have a complete turo business plan, which we had provided here.
By following it you can easily start your turo car rental business, and if you got any queries you can easily contact us, and we will definitely try to help you.
Frequently Asked Questions:
How much do turo owners make?
An Average turo owners make between $600 to $1200 per month in USA from a single vehicle. And it varies from place to place.
Do you need a turo business license for turo?
If you are renting out your personal vehicle on turo then, you don’t need to have a business license, but if you are planning to run a business by renting out multiple vehicles on turo, then you need to have a turo business license.
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