Turo

[MissionE]

I rent out my son’s 2012 Subaru Outback on Turo while he's away at grad school and it rents like crazy and I frankly don't give a rat’s ass about that car. But I would never consider renting out my Taycan -- I just don’t think it's worth the risk. My reasoning is this: you're going to rent it out for at least $750/day. Now thinking like someone who’s spending that kind of money to rent a Taycan, I’d like to get a sense of how the car performs and I'd likely drive it pretty hard, which is precisely why I wouldn't rent it out on Turo or anywhere else.

I’d be less concerned about the car being driven hard than things like scratches and interior messes. Porsches are meant to be driven.

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[DerekS]

Giving your valuable assets over to unvetted internet randos is straight up insane.

 

[MissionE]

Giving your valuable assets over to unvetted internet randos is straight up insane.

So all those Ferrari, Porsche, Aston and Maclaren owners with cars on Turo are insane. Noted.

 

[DerekS]

So all those Ferrari, Porsche, Aston and Maclaren owners with cars on Turo are insane. Noted.

Absolutely they are.

 

[Torv]

I read a story the other day about a guy who put his brand-new 2022 Toyota Supra on Turo. He got a 3-day rental from a high school math teacher and he figured, the guys a math teacher, what could go wrong. Well, it turned out that the math teacher also had a Supra which he trashed while tracking the car and he needed another Supra for another track day. The Turo Supra was returned as scheduled needing an entirely new set of tires, as well as other related repairs due to the math teacher thrashing the car for a weekend on the track.

 

[MissionE]

I read a story the other day about a guy who put his brand-new 2022 Toyota Supra on Turo. He got a 3-day rental from a high school math teacher and he figured, the guys a math teacher, what could go wrong. Well, it turned out that the math teacher also had a Supra which he trashed while tracking the car and he needed another Supra for another track day. The Turo Supra was returned as scheduled needing an entirely new set of tires, as well as other related repairs due to the math teacher thrashing the car for a weekend on the track.

And I’m sure he was charged accordingly.

 

[Leawood CT]

So all those Ferrari, Porsche, Aston and Maclaren owners with cars on Turo are insane. Noted.

My guess would be that a lot of the folks renting out their Ferraris and Maclarens on Turo are desperate to make some money on it as they are coming to grips with the extremely high cost of owning a supercar. That desperation would lead to bad decisions. If you can comfortably afford the ongoing cost of ownership of a supercar, then you are not renting it out to, as Derek says, internet randos. As far as Porsches go, why would someone rent a Porsche from Turo when they can rent one from Porsche's official rental program? Although now that I have written that, I am sure Porsche charges an arm and a leg and maybe a first born for their rentals.

 

[mcdermottm]

There seems to be two trains of thought... if this would be a car you hope to enjoy when it's not being rented out (or to help offset the monthly payments), it's probably not a great idea. But if you are looking to buy one with no attachment to it and just make money, it may not be that crazy - similar to a non-local real estate investor. I'll point out, though, that I have no idea how much money can be made on Turo. I'm not sure I'd buy a new one to do it - maybe a 2021 or 2022 used one. But the idea of buying something less expensive to dip your toe in the Turo waters seems like a decent idea, too.

 

[WasserGKuehlt]

So all those Ferrari, Porsche, Aston and Maclaren owners with cars on Turo are insane. Noted.

You don't sound convinced.

There seems to be two trains of thought... if this would be a car you hope to enjoy when it's not being rented out (or to help offset the monthly payments), it's probably not a great idea. But if you are looking to buy one with no attachment to it and just make money, it may not be that crazy - similar to a non-local real estate investor. I'll point out, though, that I have no idea how much money can be made on Turo. I'm not sure I'd buy a new one to do it - maybe a 2021 or 2022 used one. But the idea of buying something less expensive to dip your toe in the Turo waters seems like a decent idea, too.

Before I decided to wade into this thread, I ran a simple calculation, hoping to find out there is no way this could be an "investment". 100k down, "income" of ~1k/day (let's be generous) and assuming a fully-booked, no-expenses schedule would actually return the initial investment in a few months. Adjusting for reality (say ~500/day, weekends only and some expenses) it would still come out to a couple of years - and you still have a car to use the rest of the time.

That is, as you say, it's not completely bonkers - just risky. The fact that an EV has all-but-0 maintenance costs also helps (maybe a set of tires?). I couldn't possibly deal with the hassle (and I see the car as a sunk cost) but for someone who is not averse to such interactions it may be an "easy" way to recoup that initial expense. I wonder, though, if the seller would be required to disclose the car's rental status at sale time (whether traded in or offered privately).

 

[Gfada008]

First rule wrt TURO is you rent a car for which you have little to no attachment. Notwithstanding, here's my fairly conservative forecast assuming you buy a used Taycan 4S:
Investment cost: $100K
Average annual Sales @800/wk: $42K
Annual estimated running costs: $5K
Contingent Exp @10% of sales: $4k
Net Annual Profit: $33K
Annual ROI: 33%

Assuming nothing crazy goes wrong, you recover your invested capital in 3 years which suggests this could be a reasonably good investment. Personally, I wouldn’t do it with a Taycan but with a Camry or a car I don't care too much about.

 

[MissionE]

My guess would be internet randos.

My guess would be that a lot of the folks renting out their Ferraris and Maclarens on Turo are desperate to make some money on it as they are coming to grips with the extremely high cost of owning a supercar. That desperation would lead to bad decisions. If you can comfortably afford the ongoing cost of ownership of a supercar, then you are not renting it out to, as Derek says, internet randos. As far as Porsches go, why would someone rent a Porsche from Turo when they can rent one from Porsche's official rental program? Although now that I have written that, I am sure Porsche charges an arm and a leg and maybe a first born for their rentals.

internet randos.

Maybe, but I do know some wealthy individuals who genuinely just want others to have the opportunity to drive cars like this.

As for Porsche rentals, wouldn’t the same apply as well? Renting to random people.

 

[MissionE]

Do you still want to drive it yourself from time to time?

Yes; I also have an Uber business.

 

[Leawood CT]

Maybe, but I do know some wealthy individuals who genuinely just want others to have the opportunity to drive cars like this.

As for Porsche rentals, wouldn’t the same apply as well? Renting to random people.

I agree that some folks would rent out so that others could enjoy, for at least a short time, an 812 Superfast for instance without having to part with $500k for to buy one. That is wonderful they do that! I still believe most are looking for money to try and pay for their supercar, which is fine and that is their deal.

I think Porsche renting out their cars and an individual renting out their Porsche is comparing apples and oranges. An individual renting is trying to make some money for themselves. Porsche is renting in hopes you like it and maybe order one. I guess you could make the argument they are both investments then.

 

[MissionE]

First rule wrt TURO is you rent a car for which you have little to no attachment. Notwithstanding, here's my fairly conservative forecast assuming you buy a used Taycan 4S:
Investment cost: $100K
Average annual Sales @800/wk: $42K
Annual estimated running costs: $5K
Contingent Exp @10% of sales: $4k
Net Annual Profit: $33K
Annual ROI: 33%

Assuming nothing crazy goes wrong, you recover your invested capital in 3 years which suggests this could be a reasonably good investment. Personally, I wouldn’t do it with a Taycan but with a Camry or a car I don't care too much about.

Yeah Camrys aren’t going for 800/week. Taycan seems a perfect fit for the luxsport segment while evading the ICE risks other cars face with renters.

But I appreciate the feedback.

 

[MissionE]

Giving your valuable assets over to unvetted internet randos is straight up insane.

Renters should have competency/reputation scores then. Almost like a club. People in the private club all know each other and are proven to be reliable.

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