Is Your Vehicle Eligible for Turo? A Guide to Ensuring Compliance and Maximizing Profit
A friend of mine, Sarah, recently purchased a 2019 Subaru Forester, excited to list it on Turo and start earning extra income. Unfortunately, while the car had a clean title, it had also been declared a total loss at some point—a strange and uncommon situation that made it ineligible for the platform. She hadn’t realized this because she didn’t check the Carfax report, which would have revealed the issue. Now she’s stuck with a car that she can’t list on Turo, and selling it would result in a loss. If only she had talked to me first, I could have helped her avoid this costly mistake.
If you’re planning to list a vehicle on Turo, you need to be aware of the platform’s eligibility criteria. While Turo has its own set of rules, there are other factors to consider to ensure that your vehicle not only qualifies but also generates a profit. Let’s walk through both Turo’s requirements and some additional tips to help you avoid mistakes like Sarah’s.
1. Turo’s Vehicle Eligibility Requirements
Before buying a car with the intention of listing it on Turo, make sure it meets these essential requirements. If the car doesn’t meet these criteria, like Sarah’s Subaru, you won’t be able to list it, regardless of how well it performs otherwise.
Here are the key guidelines for vehicle eligibility:
Vehicle Age and Mileage: The vehicle must be 12 years old or less and have fewer than 130,000 miles. If your vehicle surpasses these limits after being listed, Turo won’t remove it as long as it remains in good condition and isn’t receiving many guest complaints.
Vehicle Value: Your car must be valued at $200,000 or less. Turo does not insure vehicles valued above this amount, so make sure your car stays within this cap.
Clean Title and Total Loss Declarations: This is where Sarah ran into trouble. Turo requires a clean title, meaning no salvage or branded titles. However, just having a clean title isn’t enough. You also need to check the vehicle’s history for any total loss declarations. Sarah’s Forester had a clean title, but it had been declared a total loss at some point. This kind of information is typically found in the Carfax report. Always check the Carfax or a similar vehicle history report before purchasing a car to ensure it hasn’t been declared a total loss.
No Mileage Rollback: The vehicle must not have any history of a mileage rollback. Any evidence of tampered mileage will disqualify the car from being listed on Turo.
Before you purchase any vehicle for Turo, double-check these requirements on Turo’s website to make sure there haven’t been any recent changes. Staying up-to-date on the platform’s guidelines can save you from making a costly mistake.
2. Additional Criteria for a Successful Turo Vehicle
Meeting Turo’s basic eligibility requirements is just the first step. To make sure your vehicle is profitable, you’ll need to look at a few other factors beyond what Turo mandates. Here are the guidelines I follow to ensure every car I add to my fleet is a success.
a) Ensure Positive Cash Flow
First and foremost, make sure your vehicle’s projected monthly earnings exceed your car payment and related expenses like maintenance, insurance, and warranties. You’d be surprised how many people add cars to Turo only to find out that their expenses are higher than their earnings, leaving them with a net loss.
Even if your earnings are only slightly above costs, it might still be worth it because you’re building equity in the car over time. However, because managing a Turo car involves significant work, aim for a higher profit margin to make it worth your while.
b) Purchase Price vs. Earnings
The car’s purchase price—including taxes and fees—should be no more than twice the projected annual earnings calculated by Turo’s earnings calculator. For instance, if you purchase a car for $20,000, it should generate around $10,000 in annual revenue. If the numbers don’t work, look for a different car to maximize your return on investment (ROI).
c) Check Reliability Scores
Another critical factor is reliability. I use Consumer Reports, which rates cars on a 1-100 scale for reliability. I recommend only choosing cars with a score of 60 or higher. Anything lower, and you may find yourself dealing with constant repairs and guest complaints, both of which will hurt your bottom line.
3. Luxury Cars: Deluxe and Super Deluxe Vehicles
If you’re considering adding higher-end vehicles to Turo, the platform offers special categories for luxury cars. These cars come with their own rules and benefits.
a) Deluxe Vehicles
Deluxe vehicles are valued between $45,000 and $85,000. These cars offer the advantage of allowing you to limit guest mileage to 100 miles per day instead of the standard 200 miles, which helps reduce wear and tear. However, be cautious—limiting mileage may reduce your bookings, so you’ll need to find the right balance.
Deluxe vehicle renters must be at least 25 years old and pass additional security checks, including a security deposit.
b) Super Deluxe Vehicles
For cars valued at $85,000 or higher, Turo places them in the Super Deluxe category. Renters must be at least 30 years old, and you have the same option to limit the mileage to 100 miles per day. Super Deluxe vehicles also come with added security measures, giving you peace of mind when renting out these high-value cars.
4. Classic and Specialty Vehicles
Turo also accepts certain classic and specialty vehicles, but they come with additional conditions. A classic vehicle must be 25 years old or older, though cars between 12-25 years old can also be accepted with special consideration. The vehicle must be valued under $85,000, and Turo will pay close attention to both its mechanical condition and safety features, including seatbelts.
If you’re thinking of adding a classic car to Turo, contact Turo before making the purchase to confirm that the car will meet their standards.
Conclusion: Avoid Costly Mistakes by Doing Your Research
Sarah’s experience serves as a reminder of the importance of thoroughly researching a car’s eligibility before purchasing it for Turo. By checking both Turo’s requirements and the car’s history—particularly for clean titles and total loss declarations—you can avoid buying a vehicle that can’t be listed on the platform.
If you have any questions about listing your vehicle on Turo or want help making sure your car is a good fit, feel free to reach out to me. I’m always happy to assist fellow Turo hosts in avoiding mistakes and ensuring their fleet is profitable.
Comments