How to Start a PROFITABLE Turo Business in 2024

Summary

In this video, Alex Profits discusses the potential of starting a profitable Turo car rental business with little to no initial investment. He emphasizes the importance of choosing the right car, with a focus on low-cost vehicles to minimize depreciation and maximize profit. Alex advises against financing cars for the business, suggesting a 50/50 mix of cash-owned and business-financed vehicles to maintain control and reinvest profits effectively. He also offers a free guide on the most profitable cars for Turo and encourages viewers to engage for personalized advice.

Takeaways

• 🚗 The video discusses how to start a profitable Turo business, emphasizing that while a car can generate $1,500 in profit monthly for the speaker, it may not be suitable for everyone.
• 🏷️ Turo is described as the 'Airbnb for cars', allowing individuals to start a car rental business with no initial out-of-pocket costs if they already own a car.
• 📸 To list a car on Turo, it must be less than 12 years old and have less than 130,000 miles, and the process of preparing a car for rental involves cleaning, taking photos, logging gas and mileage, and securing the key in a lockbox.
• 🚫 The script warns that not every car is suitable for long-term rental due to increased wear and tear, which can lead to rapid depreciation.
• 📉 The importance of having an exit strategy for each car is highlighted to avoid negative equity, which many hosts may not realize they have.
• 💰 The video suggests starting with a car you already own to test the business model without initial investment, and then scaling up if it fits your situation.
• 🚙 It's recommended to avoid financing cars for the Turo business due to the high risk of negative equity and the inability to fully control the vehicle's future.
• 💵 The speaker advocates for using 'cheap cash cars', suggesting a price range of $8,000 to $11,500, with a specific exit strategy to sell the car within 8 to 18 months to minimize risk.
• 🔄 A 50/50 rule is proposed for the business structure, with half of the fleet being cash-owned vehicles for immediate profit and the other half financed to scale the business.
• 📈 The video offers a guide to the most profitable cars for Turo and suggests booking a one-on-one call with the speaker for personalized advice.

Q & A

How much profit can one expect to make from a car on Turo per month?

The script mentions that the speaker makes about $1,500 in profit every single month from one car on Turo.

What is Turo and how does it relate to car rentals?

Turo is described as the Airbnb for cars, allowing individuals to start their own car rental business using their own vehicles or cars they already have.

What are the requirements for a car to be listed on Turo?

A car must be within the last 12 years of age and have 130,000 miles or less to be eligible to be listed on Turo.

What is the process of preparing a car for a Turo trip according to the script?

The process includes ensuring the car is clean, taking 75 or more photos of the vehicle, logging the gas and miles, putting the lock box on the window with the key inside, and waiting for the guest to pick it up.

Why is starting a Turo business with a car you already own considered a low-risk strategy?

Starting with a car you already own is considered low-risk because it does not require any out-of-pocket expenses initially, allowing you to test the business model without additional financial investment.

What is the potential downside of using a financed car for Turo rentals?

Using a financed car can lead to negative equity because the car depreciates faster than the loan is paid off, and the wear and tear from rentals can further decrease its value.

What is the recommended strategy for managing a Turo fleet according to the speaker?

The recommended strategy is to have a mix of 50% cash-owned vehicles and 50% financed vehicles under the business name, with the goal of paying off the financed vehicles within 3 to 6 months.

Why is having an exit strategy for each car important in a Turo business?

An exit strategy is important to ensure that the car is sold or replaced before it loses too much value, thus minimizing the risk of negative equity and maximizing profit.

How long does the speaker recommend keeping a cash car in the Turo business?

The speaker recommends keeping a cash car for 8 to 18 months, aiming to buy and sell the car within the same depreciation range to minimize risk.

What is the speaker's advice for those who don't have a car eligible for Turo or the cash to buy one?

For those without an eligible car or the cash to buy one, the speaker advises against personal financing as a last resort and suggests targeting a car in the $10,000 range with the goal of paying it off as soon as possible.

What resource does the speaker offer for those interested in the most profitable cars for Turo?

The speaker offers a free guide listing the most profitable cars for the Turo business, which can be found in the description of the video.