In the world of side hustles, car flipping has always been a tried-and-true method for making extra cash. But what if instead of flipping a car for resale, you could transform it into a consistent source of income? Welcome to Turo flipping—the innovative way to take a used car, fix it up, and rent it out on platforms like Turo, Getaround, or other rideshare apps.
By combining basic repair skills with an understanding of the rental market, you can create a steady cash flow that outpaces the one-time profits of traditional car flipping. In this guide, we’ll walk through the benefits of Turo flipping, provide a step-by-step strategy for purchasing and repairing vehicles, and show how you can scale your business to a fleet of 10 or 20 cars.
What is Turo Flipping?
Turo flipping involves buying used cars—often with cosmetic damage or minor mechanical issues—fixing them up affordably, and listing them on rental platforms like Turo. Instead of selling the car for a one-time profit, you turn it into an income-generating asset.
Why Turo Instead of Flipping?
- Recurring Revenue: A car rented for $50/day on Turo can earn $1,500/month, far surpassing the typical $2,000-$3,000 profit margin of flipping.
- Asset Retention: You still own the vehicle, which retains value over time.
- Tax Benefits: Expenses like repairs, maintenance, and even mileage are tax-deductible as business expenses.
- Scalability: With Turo, you can start small and expand to multiple vehicles without needing a dealership license.
Step-by-Step Guide to Turo Flipping
1. Identify Your Target Market
The type of car you choose will depend on your location and the needs of renters. Popular categories include:
- Economy Cars: Toyota Corolla, Honda Civic (ideal for budget-conscious renters).
- Luxury Cars: BMW 3 Series, Tesla Model 3 (perfect for weekend trips or special occasions).
- SUVs and Vans: Toyota RAV4, Honda Odyssey (for family trips or outdoor adventures).
2. Find the Right Car to Flip
To maximize profitability, you want a car that:
- Is in high demand: Research local rental trends on Turo to see what’s popular.
- Has cosmetic or light damage: Focus on cars with dents, wheel scuffs, or minor bumper damage that doesn’t affect drivability.
- Is priced below market value: Use platforms like Copart, Facebook Marketplace, or Craigslist to find deals.
3. Inspect and Buy the Vehicle
Once you’ve found a car, inspect it thoroughly to ensure you’re not taking on costly repairs. Key steps include:
- Check the History: Use services like Carfax to ensure the car doesn’t have a salvage title or hidden mechanical issues.
- Look for Cosmetic Damage: Dents, scratches, and curb-rashed wheels can often be fixed cheaply.
- Negotiate the Price: Highlight the car’s flaws to negotiate a lower price.
Example:
You find a 2015 Toyota Corolla listed for $5,500 due to a dented bumper and scratched alloy wheels. The seller initially wants $6,000, but you negotiate it down to $5,000.
4. Repair the Vehicle for Rental
Now comes the fun part: fixing up your car to make it rental-ready. Focus on affordable cosmetic and interior repairs. Any work you can do yourself is a plus (I do my own wheel repair, headlight buffing, touch up and hire out for everything else that’s needed)
A. Remove Dents, Scratches and Restore headlights
- DIY Kits: Headlight restoration ($20–$50).
- Touch-Up Paint: Match the car’s color for small scratches ($20–$50).
- Professional Help: For larger dents or scratches, hire a mobile dent repair service ($100–$300 per area).
B. Fix Curb-Rashed Wheels
- DIY Kits: Use a wheel repair kit to sand, fill, and paint damaged rims ($30–$50).
- Professional Refinishing: For deep damage, a professional refinisher can restore wheels for $75–$150 per wheel.
C. Repair the Bumper
- Replace vs. Repair: Order a used bumper online (e.g., eBay, car-part.com) for $200–$400 or repair cracks with a plastic welding kit ($50–$100).
D. Light Interior Repairs
- Deep Cleaning: Rent or buy a portable carpet cleaner for stains ($30–$50).
- Replace Minor Parts: Replace cracked trim, knobs, or seat covers with budget-friendly options from online stores ($100–$200).
Total Repair Cost Example:
- Dents/Scratches: $300
- Wheel Repair: $100
- Bumper Fix: $300
- Interior Cleaning: $50
Total Repairs: $750
5. List the Car on Turo
Now that your car looks great, it’s time to list it on Turo. Here’s how:
- Set a Competitive Price:
- Economy car: $30–$50/day.
- Luxury car: $80–$150/day.
- Take Professional Photos:
- Highlight the car’s clean interior, repaired exterior, and features like a touchscreen display or spacious trunk.
- Optimize Your Listing:
- Include details like mileage, fuel efficiency, and any added perks (e.g., phone chargers, child seats).
How Much Can You Earn with One Vehicle?
Earnings depend on your car type, location, and rental frequency.
Example Earnings:
- Car: 2015 Toyota Corolla
- Rental Price: $40/day
- Rental Frequency: 20 days/month (2/3 occupancy rate)
- Monthly Income: $800
- Annual Income: $9,600
After accounting for expenses (insurance, maintenance, and Turo fees), you could profit $6,000–$7,000 per year with just one car.
Scaling to 10 or 20 Cars
The beauty of Turo flipping is how easily it scales. Once you’ve mastered the process for one car, expanding to a fleet is straightforward.
1. Streamline Your Process
- Build Partnerships: Work with local repair shops or mobile technicians for discounted bulk repairs.
- Automate Cleaning: Hire a mobile detailing service to clean cars between rentals.
2. Secure Financing
- Use profits from your first car(s) to reinvest in additional vehicles.
- Consider business financing or lines of credit to grow your fleet faster.
3. Manage a Fleet
- Use Turo’s fleet management tools to track bookings, maintenance, and earnings.
- Create systems for key exchanges or install keyless entry devices for remote handoffs.
Example with 10 Cars:
- Average Net Profit per Car: $500/month.
- Fleet of 10 Cars: $5,000/month or $60,000/year.
With a well-managed fleet of 20 cars, you could scale to $120,000/year in profit.
Challenges to Consider
- Maintenance Costs:
- Scaling requires keeping all vehicles in top condition to maintain high reviews.
- Market Saturation:
- Research your local market to avoid oversupply.
- Time Commitment:
- Managing 10+ cars requires systems for cleaning, maintenance, and customer service.
Conclusion
Turo flipping is a powerful alternative to traditional car flipping, offering steady, recurring income and scalability. By focusing on affordable cosmetic repairs like dent removal, wheel refinishing, and interior cleaning, you can transform undervalued cars into income-generating assets. With just a few vehicles, you can earn thousands of dollars a month, and scaling to a fleet of 10 or 20 cars opens the door to six-figure profits.
So, why settle for one-time car flipping profits when you can turn each vehicle into a long-term business? Start small, perfect your process, and watch your income grow with Turo flipping!
