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Location, Price point and Vehicle type

If you are planning on renting out a car on Turo in Alberta, you have a few different options to consider. Here are a few factors to keep in mind as you make your decision:

Location: Where in Alberta are you planning on renting out the car? Different cities and regions have different demand for different types of vehicles. For example, a luxury SUV might be in high demand in the ski resort town of Banff, while a fuel-efficient compact car might be more popular in the bustling city of Calgary.
Price point: What price range are you aiming for with your rental car? Higher-priced vehicles will typically attract more experienced and higher-paying renters, but they also come with higher operating costs (such as insurance and maintenance). On the other hand, lower-priced vehicles may have lower demand and lower revenue potential, but they may also be easier to rent out consistently due to their lower price point.
Vehicle type: What type of vehicle are you interested in renting out? Turo offers a wide range of vehicle types, including sedans, SUVs, trucks, and even luxury and exotic vehicles. Consider what type of car would be most appealing to renters in your area, and what type of car you are comfortable maintaining and operating.

Why the Location matters

A good location is crucial for the success on the Turo plattform. If you are out in the woods and have to drive 1-2 hours for every delivery (to a close by airport) it will be very time consuming and propably not worth it, since you can charge a maxium fee of 120 CAD for a delivery and pickup on Turo. Having a location close to a major airport is a big advantage, since most of the tourists arrive by airplane from the US or other provinces. However, if you are in an area where there is a demand for rental cars from locals, you might be able to fill a niche.

Seasonal peaks

The most rental cars are needed during the summer months (June, July, August) when millions of people visit the popular Rocky mountain destinations like Canmore, Banff, Lake Louise and Jasper. There is also a higher demand in December and February/March for skiing.

For the winter season the SUVs are doing well in Calgary, since most of the snow enthusiasts arrive with lots of snow gear and need lots of storage space. Also the make of the car makes a difference - a lot of people prefeer cars that are safe and reliable, like Toyota.

Head over to https://carsync.io and check out the Turo demand index. With this helpful tool you can see which makes and models are most booked at a specific time of year. In the screenshot below you can see that in December in Calgary the top make with 14% was Toyota, followed by Ford and Doge.

The most booked models in December are:

Dodge Grand Caravan
Toyota Sienna
Toyota Highlander

Carsync.io - the Turo demand index gives you a good idea of which make and model does well in which season.

We have a Toyota Highlander and a Toyota RAV4 listed on Turo for over a year now and from experience we can say that these two car models are doing well in the summer and the winter.

What we can not recommend are red luxury sport cars, with does you only get the occasional ‘let’s drive a fancy car for a day’ renters. Which is ok if you put you car on Turo to just cover the costs of the car, but if you are looking for a car that makes you money year round we recommend an SUV or a solid daily driver (like the Toyota Corolla, Honda Civic or Hyundai Elantra).

How much profit can you make with a car on Turo in Calgary?

The answer is (as always): It depends.

On the car(s) you have, the time and effort you are able and willing to invest, the weather, the pandemics…

But there is for certain a high demand for rental cars in and around Calgary. When we listed our Toyota Highlander Hybrid by the end of 2021 it was the first Toyota Highlander Hybrid on Turo in Calgary besides about 3 regular Toyota Higlander. Now, a year later, there are 5 Toyota Highlander Hybrid and over 30 regular Highlanders listed. And during peak season most of these cars are rented out.

Which brings us to another way to find out which cars are doing well on Turo: Go to https://turo.com and check which cars (make/model) have a lot of trips in your region.

With our three cars that we have on Turo (Toyota Highlander, Toyota RAV4 and BMW X1) we made an average ROI (Return of Investment) of 10% in 2022. Which is not bad, considering the fact that we made a lot of beginners mistakes in our first year on Turo and that we had a lot of first time investments (like winter tires) - but if you wanna know all our beginner mistakes and how to avoid them - stay tuned and subscribe to our newsletter, the article with all the details is coming soon.

Factors to consider

First, consider the demand for different types of vehicles in your area. In Alberta, SUVs and pickup trucks are likely to be popular choices due to the region's rugged terrain and harsh winters. However, if you're in a city or urban area, smaller vehicles such as sedans or hatchbacks may be more in demand.

Another important factor is the age and condition of the car. While newer vehicles may be more appealing to renters, they can also be more expensive to maintain and may not generate as much income as an older, well-maintained vehicle. Additionally, keep in mind that Turo has certain requirements for the age and condition of the vehicles that can be listed on its platform.

It's also a good idea to think about the features and amenities that your car offers. Renters may be willing to pay more for a car with features such as leather seats, a sunroof, or a good sound system.

Finally, consider your own goals and needs. If you're looking to generate passive income, a car that is in high demand and has a good rental history may be a good choice. On the other hand, if you're just looking to offset the cost of owning a car that you don't use very often, a cheaper, older vehicle may be a better option.

In conclusion, the best car to rent out on Turo in Alberta will depend on a variety of factors, including local demand, the age and condition of the car, and its features and amenities. By considering these factors and aligning your choices with your own goals and needs, you can choose a car that is well-suited to the Turo platform and will be attractive to renters.

General tips on how to choose a car that will be successful on Turo:

Choose a car that is in high demand: Look for a car that is popular and in demand in your area. You can research this by looking at the types of cars that are frequently rented on Turo in your city.
Consider the size and type of car: Larger, more luxurious vehicles tend to be more profitable. However, smaller, more fuel-efficient cars may also do well if they are in high demand.
Keep the car well-maintained: A clean, well-maintained car will be more appealing to renters and help you earn more money.
Set competitive prices: Set your prices at a competitive rate to attract renters. You can research the going rates for similar cars in your area to help you determine the right price.
Be responsive to renter inquiries: Responding promptly to renter inquiries can help you get more bookings.

Conclusion

In conclusion, the best car to rent out on Turo in Alberta will depend on a variety of factors, including local demand, the age and condition of the car, and its features and amenities. By considering these factors and aligning your choices with your own goals and needs, you can choose a car that is well-suited to the Turo platform and will be attractive to renters.

Ultimately, the best car to rent out on Turo in Alberta will depend on your specific goals and circumstances. By considering factors such as location, price point, and vehicle type, you can make an informed decision that will help you succeed as a Turo host.

Most profitable cars to rent out on Turo in Alberta