Start this six-figure business with your car
your step-by-step guide to getting started
GM. This is Work "After" Work, the email that brings you side hustles on a silver platter. A 5 star Michelin newsletter if you will.
It’s Friday, let’s boogie:
🚙 Making money on Turo
😂 Meme of the day
BEEP BEEP! COMIN THROUGH!
You know Turo, the car sharing platform that lets you rent anything from a Lamborghini Huracan to a Toyota Corolla.
I used it once with my Tesla. I was skeptical at first. I thought my car was going to get damaged or worse, stink forever. But it was actually a great experience.
I gave the guy my keys, showed him how to use the Tesla, then a few days later got them back along with $500. Easy peasy.
I'm sure this experience can vary from customer to customer but I've heard about people turning this side gig into a huge six figure business so that's why today's side hustle is how you can do the same using Turo. 👊
WHY ONLY TURO?
There are other car sharing platforms out there. You have GetAround and HyreCar.
So why just Turo?
Well for one, it's the biggest. Turo has 11 million users and the more your car gets rented, the more money you'll make.
And two, I trust it the most. Sharing your car with someone else is scary and the reputation and insurance policies Turo offers allows me to sleep at night.
STEPS YOU CAN TAKE TO GET STARTED
1. Buy a used car
If you already own a car and don't use it much, instead of it sitting around, put it to work!
On average people make $500 to $1,000 a month from one car so if you're not using that bad boy, you might as well be making money off it.
If you don't have a car, that's totally fine, look for a used one. If you were thinking about a new one, I'd steer away from that (see what I did there).
Buying a new car for Turo doesn't make a whole lot of sense. Tons of miles are going to be put on your car and the value you'll lose from a new car will be a lot more than a used.
To show you what I mean, look at this depreciation chart 👀
See how 70% of the car's value is gone within the first 7 years? This makes 7 the sweet spot age you should be aiming for. Don't go too old though, Airbnb doesn't allow cars more than 12 years old.
I'd buy the 7 year old car, make money on it for 5 years, then sell it and repeat.
How to choose a car
It's really important to buy a car while keeping your target market in mind.
Do you live in a beach town? A top down convertible would make you a killing.
High in the mountains with lots of snow? I bet a Jeep Wrangler with 4WD would get rented everyday.
Take a look at this calculator Turo provides. You can select your city and your car budget. It will rank the best cars for your area and show you how much you can make a year. 👀
2. Chose your insurance plan
Just like with your own car, you'll need insurance on Turo as well. What if someone takes your Mustang for a joy ride and it gets totaled? You don't want to pay for this.
That's where Turo's insurance options come in and nice thing is, there's 5 plans you can choose from.
You can go on one end of the spectrum, less coverage more profit, or the other, 100% coverage less profit. There's risk and reward to both but the nice thing is in any plan you choose, Turo covers $750k of third party liability insurance.
3. List your car on Turo
Once you've chose your car, it's time to make some money!
Before you list your car, make it nice and shiny. Just like Mr. Miyagi taught us: wax on, wax off.
Before every rental, clean your car to get good ratings. The more 5 stars you get, the more rentals, and money.
Document your car
Before and after you rent your car out, take videos and pictures of it. This will protect you from the he said she said back and forth game customers like to play if they damage your car.
"That was already there." Oh really, this video says otherwise.
Once you're in the game for long enough, your car will most likely collect some dents and scratches. Nobody's perfect, so protect yourself by having proof.
After this, it's pretty straight forward. As long as you have it listed at a competitive price, it will get rented, it's just a matter of when.
RINSE AND REPEAT
The real money in the Turo business comes when you start to grow your fleet of cars.
Turo's website says hosts with a fleet of nine cars earn an average of over $90,000 a year. For a business that's not too complicated, this is a lot of money.
In general, the more cars you can add to your fleet, the more money you'll make.
Start with one and as you learn the business, add more and more and watch your wallet grow!
MEME OF THE DAY
2023 in a nutshell
— Evan Stewart (@heyecs)
Jun 1, 2023
That's a wrap folks! Have a great weekend!
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DISCLAIMER: None of this is financial advice. This newsletter is strictly educational and is not investment advice or a solicitation to buy or sell any assets or to make any financial decisions. Please be careful and do your own research.