You’ve probably heard that Turo can be a great way to make extra money—renting out your cars and turning a profit sounds easy. But from what many people in the industry are saying, it might not be as smooth as it seems. If you’re considering Turo as a path to entrepreneurship, here’s why it might not be worth it in the long run.
1. Maintenance and Repair Costs Can Add Up Quickly
One of the biggest challenges with car rentals is keeping up with the wear and tear. Cars are expensive to maintain, and when they’re rented out regularly, the costs can spiral. Even minor repairs, like tire replacements or brake jobs, can eat into your profits. And then there’s the chance of more serious damage—accidents happen, and they can leave you with unexpected repair bills and downtime where the car isn’t earning any income.
If you’re managing a fleet, these maintenance costs quickly multiply. Many entrepreneurs discover that the income they’re earning from Turo barely covers the expenses, especially after factoring in repair costs and depreciation.
Key takeaway: Maintenance is a hidden cost that can cut deeply into your bottom line.
2. Financing Multiple Cars Can Lead to Negative Equity
Some entrepreneurs start with one car and then scale by buying more vehicles on loans, hoping the rental income will cover the payments. However, it’s important to remember that cars depreciate fast. This can lead to a situation where you owe more on the car than it’s worth—otherwise known as negative equity.
If you need to sell the car or reduce your fleet, you could be stuck owing thousands more than the vehicle’s resale value. This can be particularly risky if the market slows down or if you’re unable to rent the cars as frequently as you’d hoped.
Key takeaway: Expanding a fleet can result in a significant debt burden if the income doesn’t match the ongoing payments.
3. Insurance and Liability Concerns
While Turo does offer insurance options, they don’t always cover every situation as smoothly as you’d hope. If a renter damages your car or gets into an accident, navigating the claims process can be time-consuming and stressful. In some cases, hosts report delays in getting reimbursed, or finding out that certain damages aren’t covered as expected.
Additionally, there’s the issue of liability. If a renter gets into an accident, you could find yourself involved in legal proceedings, even though you weren’t behind the wheel. While this is a rare situation, it’s something to consider before diving into the Turo business.
Tip: Always read the fine print on insurance coverage and consider additional protections to safeguard yourself.
4. Lower Profit Margins Than Expected
Many new Turo hosts are drawn in by the potential for passive income. But when you break down the costs—insurance, maintenance, car washes, and cleaning fees—the actual profit can be slim. While some hosts make good money, others find that after all the expenses, the income isn’t worth the effort.
Managing a fleet involves more than just handing over keys. It means coordinating with renters, handling last-minute issues, and keeping your vehicles in top shape. The more cars you have, the more time you’ll spend on these tasks. For many entrepreneurs, the time commitment outweighs the financial benefits.
Pro tip: Make sure you factor in all the costs and consider how much time you’re willing to invest before starting a Turo business.
5. Dealing with Problematic Renters
Not everyone who rents your car will treat it with care. While most renters are responsible, there are always exceptions. Hosts sometimes deal with renters who bring back cars dirty, smoke in them, or even misuse the vehicles in ways that can lead to damage. Some hosts have reported that setting the wrong price can attract renters who are more likely to mistreat the car.
Turo does have policies in place for cleaning fees and damages, but enforcing these policies can sometimes be a hassle. Hosts may have to go back and forth with Turo to get reimbursed, and in some cases, it can take weeks or months to resolve.
Actionable tip: Price your car carefully and be prepared to deal with occasional issues that may require time and effort to resolve.
The Bottom Line: Is Turo Worth It?
Turo can work as a side hustle for some, but if you’re looking to build a long-term, sustainable business, it might not be the best option. The combination of unpredictable maintenance costs, negative equity risks, insurance complications, and time-consuming management tasks can make it difficult to turn a significant profit. Many hosts find themselves spending more time and energy on the business than expected, with slimmer margins than they had hoped for.
If you’re serious about entrepreneurship, there may be better opportunities out there that offer more scalability, less risk, and greater potential for long-term success.
In short: While Turo can bring in some extra income, it’s not the easy money-maker that it’s often made out to be. For many entrepreneurs, the risks and challenges outweigh the rewards. If you’re considering Turo, make sure you do thorough research and fully understand the commitment involved before jumping in.