Today, I am going to be talking about how a car I paid ,300 for has made over ,000 on Turo in the course of 2 years. Let’s begin!
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Turo is a peer to peer car sharing app, similar to Airbnb but for cars. I have been a host on the Turo platform for nearing 3 years now and I have over a dozen cars on the Turo platform. I am an All-Start Host, a Power host, and I was recently interviewed by the Turo team – you can check out that interview HERE: https://turo.com/blog/community/a-26-year-old-all-star-host-savvy-entrepreneur
I have been able to find my success with Turo through the lower end, affordable and reliable cars and one of the best examples of this is my 2009 Toyota Yaris, which has grossed over ,000 over the 2 years I have owned it. The best part is, it only cost me ,300 to buy this car.
But, that begs the question of why does this ,300 car does so well on Turo? I have a few theories as to why.
First is my market – I live in Dallas, Texas – so small, compact cars can be driven all year round. I would suspect that a car like a Yaris would not do as well in markets like Utah, Colorado, or any other place with a cold climate. The reason is, you have to have a car in the winter to accommodate winter elements, but in Dallas, the weather is very consistent so, there is never the issue of having to drive through sleet, snow, or ice.
Next is my customers – 95% of my customers are people looking for a cheap and reliable car to get them from point A to point B – these people don’t need something fancy, they don’t want something that is expensive in gas, they simply want something affordable and fuel efficient. In fact, I have in the past (when issues arise) offered to switch guests from my Toyota Yaris into my MUCH nicer 2011 Jeep Wrangler only to be denied this switch because the guest did not want to have to pay for the excess gas used in the 2011 Jeep Wrangler.
Price is the #1 factor when it comes to why people rent my cars, and the Yaris does a great job of providing a solid car at a cheap price, with amazing fuel economy.
Lastly is the customer service – 95% of my customers are people looking for cheap cars, but 100% of my customers are people looking for good customer service, reliability, and communication. Nearly 30% of all my renters are repeat renters, and this is the case because I make sure to provide a consistent and positive experience each and every time a renter rents from me.
The Toyota Yaris is also cheap to maintain and repair – the repair costs/parts on a Yaris compared to a Jeep Wrangler for example are often 50% of the price. Tires on a Yaris cost about 0 for tires, mounting, and balancing. While doing this same thing for the Jeep costs over 0.
There are definitely pros and cons to renting a Yaris – it certainly isn’t a sexy car and it’s not a particularly fun car to own. But it’s an extremely cost-effective way to get into Turo and start making a decent return on your investment in a short period of time.
It’s reliable, very rarely has severe issues and when it does it is always relatively easy to fix.
In my experience with Turo, it isn’t so much of the car that you provide, but the service you provide with it. If you provide a car that is clean, reliable and you provide good customer service along with that, you will always have customers to rent from you – even if your cars are basic.
With that being said you guys, I hope you enjoyed this video and I hope it gave you some insight into the Turo business model and how I’ve been able to make ,000 on Turo with a car that cost me just ,300 to purchase.
If you enjoyed this video make sure to hit that LIKE and SUBSCRIBE button and I will see y’all in the next one.
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I am not a CPA, attorney, lender, or financial advisor. The content in these videos should not be construed as tax, legal, or financial advice…etc, and may be outdated or inaccurate; it is your responsibility to verify all information yourself. This is a YouTube video for entertainment purposes ONLY. IF stocks or companies are mentioned, Aubrey may have an ownership interest in them – Please do not make buying or selling decisions based on Aubrey’s videos. If you need advice, please contact a qualified professional.
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