Top 15 Most Profitable Cars on Turo
A question that many of you guys have is what cars are profitable for renting out on Turo. As a Power Host I am given information pertinent to my market and today I will be sharing the top 15 revenue making vehicles in the Los Angeles area. A lot of these cars are stereotypical rental cars – an easy comparison to the prices large rental agencies charge probably convince a lot of new Turo users to try the service. A few of the cars on this list will actually shock you – you wouldn’t expect many tourists to be looking for these cars. One thing that I noticed is that Turo allows customers to rent cars for longer terms at a reasonable price compared to traditional rental agencies. Many of these customers are basically taking cars on a “long test drive” and show interest in potentially purchasing the car when they go back home! Turo enables customers to try cars that are otherwise not available from rental agencies or too expensive. If you are interested in finding out how much you can make on Turo, be sure to check out my article on the matter! Let’s begin.
1. Ford Mustang
As you would expect, the Mustang is one of the most profitable cars to rent out on Turo. This car has become synonymous with the LA rental experience. Customers choose this car because of its sleek look, affordability, and “exotic-ness”. This American muscle car classic is one of the most searched vehicles in the LA market. This is a great option for new hosts to put in their fleet because of the high utilization rate of the vehicle. Due to high demand, even if you aren’t able to command market leader pricing you can easily turn a profit on the Mustang. New leases with competitive rebates can make the payment go under $425 per month! If you’re able to rent out a brand new 2018 for $60 per day, you would only need to have a 10/30 day utilization rate to be in the black.
2. Jeep Wrangler
The second highest revenue generating car on Turo is the Jeep Wrangler. This one actually really surprised me! In LA you can easily go to the beach and then make a pit stop in the mountains in the course of a day. The Wrangler allows you to experience all the natural sites due to its versatility. Not only can you go explore the mountains, but you can also drive this car down Rodeo drive without feeling too out of place. This car can be leased for around $300/month and command a $70 per day rental price.
3. Toyota Prius
Next up on our list is the Toyota Prius. This gas saving car is something that is on the minds of many customers that visit LA. Some visitors are shocked when they see that gas is over $4 per Gallon in some parts of LA. With a range of over 500 miles to the tank, many customers see the Prius as an economical option for their trip to LA. Rebates and discounts on this car enable new hosts to buy the car at under $450 per month. Assuming a utilization rate of 80% and a daily rate of $50 a host can expect to generate almost $1,000 each month.Something to consider: long term visitors really like this car. You can easily find a customer who rents the Prius for months at a time! Here’s my Prius that I rent out for $47/day.
4. Mercedes-Benz C-Class
This is the definition of entry level Luxury car. Everyone has heard of the German luxury brands. Many tourists want to fit in with the celebrities and choose to rent a C300 to experience entry level luxury. While many of you might think that all Mercedes are expensive I have found this car for under $300 per month for a 36 month 10k miles per year lease. Remember, a new Mercedes in great shape can command almost $80 PER DAY. Even if you don’t see as high of a utilization rate as more economical cars, you can easily turn a profit on a Mercedes C300. Another benefit that many hosts don’t see is that even if it generates slightly less profit that your most utilized vehicles, higher daily rent vehicles like the C300 will reduce your time investment and variable costs. You would be generating 2x the daily rent vs. a more economical option.
5. BMW 3-Series
The BMW 3-series is another entry level car that can command almost $80 per day. The 3 series is a car that has a level of prestige associated with it but in LA you can get a 330i for under $300! Given the price that you can acquire the car at, it’s a no-brainer decision if you are contemplating getting this vehicle for your fleet. You might think this price does not exist (sometimes you’re right you’ll need to qualify for loyalty incentives as well as college grad) but if you don’t have the mentioned incentives your payment will still be under $400 a month. Assuming a lower utilization rate of 65% at a daily rate of $80 per day you would be generating approximately $1200 after Turo’s fee. If you’re paying $500 per month for the vehicle ($100 for insurance) you would be netting almost $700 per month in profit from one car. Not bad!
6. Chevrolet Corvette
The Corvette. The true American muscle car experience can be had for under $150 per day on Turo! Ever since the last vehicle model refresh this car has caused people to turn heads wherever it goes. For a car that has an MSRP of under $60,000 it has a sleek, yet aggressive look that cause people to mistake it for a Ferrari. Well, that may be an exaggeration but many people tell me that the Corvette looks like a super car. With 455 HP and a 0 to 60 in under 4 seconds even the most seasoned car enthusiasts can appreciate this car. Assuming a host acquires this vehicle at $950/month over 72 month this is one of the most profitable cars on Turo. Daily average price for this vehicle fluctuate around $100-150 depending on the season. The rent it generates coupled with high resale value result in this being a excellent choice for your Turo fleet. I actually have 2 Corvettes in the LA area, check them out here!
7.Tesla Model S
The Model S is a car that has captured the interest of the world. This car was one of the first fully electric vehicles that hit the mainstream market. Given the early entry price of $100k+ for a new car this car was out of reach for the vast majority of car buyers. With the introduction of Turo, many people can quench their inquisitive nature and try one of the cars for under $300/day. From my experience most of the people who try this car are either out of town businessmen or residents around the area who are considering purchasing one for themselves. Even at a monthly payment well north of $1,000/month the rent that it generates can easily subsidize the cost of ownership. One thing to note: a lot of Tesla owners in the LA area have mentioned to me that the market has become saturated with Model S. Perhaps now would be a good time to consider waiting before adding this vehicle to your fleet.
8. Dodge Challenger
The 2018 Dodge Challenger is a car that has maintained its aggressive muscle car look but added a suite of luxurious features. I recently acquired a 2018 Challenger SXT Plus for $305/month sign and drive. I am generating over 1K per month from this vehicle. I would highly recommend new hosts consider this vehicle for their fleet. Some of the luxurious features the Challenger has: Apple Carplay, 20 inch Sport Wheels, Napa Alcantara leather seats, cooled seats. Those are just some of the features that will surprise you. Here’s my 2018 Challenger that I have listed on Turo.
9. Chevrolet Camaro
Another muscle car that makes the list is the Chevrolet Camaro. While it competes with Mustang and Challenger, this car is one that can be acquired extremely cheap. Chevrolet has a special “flex cash” for all of their vehicles and when it comes time to make a unit goal these cars can be had for under $300/month. Assuming a similar utilization rate and daily rent price this is another car that would diversify your fleet.
10. Tesla Model X
This high end Tesla was their first foray into mid size SUV’s. Customers can experience luxury while being environmentally friendly in the Model X. Again, while the revenue generated by this vehicle made this list, the cost of this car may not make sense for new Turo hosts. Yes, higher end cars can allow you to capture a wider customer base but this is the one car on the list that I would not recommend new hosts acquire. If you are willing to keep it as a daily drive and rent the car out then it can easily subsidize the cost but if you are looking to structure your fleet for maximum profitability there are other choices that are superior.
11. Mercedes Benz E-Class
The Mercedes E300 is a car that has transformed into a smaller S-class. You can experience the finest that Mercedes has to offer while having a car that is not the size of a small SUV. I actually rent one of these out myself! The multimedia and sound system are amazing. You can cruise around LA in style in the E300. Daily rate that the E300 commands average to $100/day. Given a monthly lease price of $600/month this is one of the most profitable cars on Turo. Over the course of 6 months I’ve had several months where my E300 generating over $2,000 in revenue. You can view my E300 on Turo here: Jerry’s E300 in LA
12. Toyota Corolla
The Toyota Corolla recently underwent a complete model refresh. The car now has become significantly more stylish. Given the new design, many customers are now considering the Corolla as an economical choice. This car is very reliable so new hosts who are afraid of unexpected maintenance costs can consider this as a low cost option for their fleet.
13. Maserati Ghibli
The Maserati Ghibli is a car that many consider competitors to the Ultra high end luxury cars. In fact, the Ghibli can be leased for under $800/month! Given such a high daily rate ($130+) one can easily experience the power of Maserati at an affordable price. As a new host this is a car that shows promise but I would advise against acquiring cars of this caliber until you know you are ready to commit to Turo for years. The risk/reward spread on this vehicle is high but if you provide good service and build a solid customer base you can easily make over $1,000 in profit on this car in a month.
14. BMW 4 Series
The BMW 4 Series is a car that has a more sporty feel than its sister the 3 series. The design of the 4 Series is significantly more aggressive than the 3 series so many tourists choose this car to have a stylish car to cruise around town with. A lease on a 4 series can be acquired for around $450/month. Given an average daily rental of $90/day the 4 Series proves to be one of the most profitable cars on Turo.
15. Toyota Camry
The last car that makes our list is the Toyota Camry. Another reliable Japanese car that is larger, yet still fuel efficient. Many tourists that come here with their families choose this car because not only is it familiar, but they also want to experience the latest model upgrade. The daily rent generated by the Camry averages out at $45/day with a monthly purchase cost of $450. This makes the Camry a conservative option for new Turo hosts that want to expand their fleet.
Whew! That was a long list! Now that you know what the 15 most profitable cars on Turo are you can be better equipped to expand your fleet. I will be posting tips and guides on how to negotiate with dealers and what tricks you need to know in order to obtain cars for a great price. I run an Auto Brokerage out of Los Angeles so if you ever need a car here I am always willing to help. If you are looking to expand your fleet and would like 1 on 1 consultation I am offering free sessions if you sign up on Turo using me as a referral. As always, thank you for reading.