By Peer to peer marketplaces are a common way to make money these days. From AirBnB and VRBO to Turo and towlos – there are plenty of opportunities for repurposing assets to generate cash! In this Blog we will compare Turo and towlos as a profitable side hustle.
Turo
Turo operates as a car-sharing network, similar to Airbnb but for cars, offering a wide range of over 800 makes and models. Renters can select various additional features such as car seats and pickup locations. Car owners also set their requirements, such as mileage limits and minimum renter age. With prices advertised as up to 35% less than traditional rental companies. Turo presents a cost-effective option for renters. Hosts on Turo can earn an average of $500 per month for one car, and the platform offers additional insurance options for both renters and owners. However, Turo’s service does have limitations, such as not supporting one-way trips and typically having mileage limitations set by car owners.
Towlos
In contrast, towlos focuses on trailer rentals, connecting trailer owners with renters. This niche market includes a diverse range of trailers, catering to specific needs like moving or transporting vehicles. The rental process is straightforward – finding trailers in the area, booking the right one, and then towing. For trailer owners, listing on towlos presents an opportunity to earn income from an otherwise idle asset. User feedback highlights the convenience and ease of the rental process, and the ability to make money from renting out trailers. Towlos targets a specific market segment, making it an attractive platform for those with trailers used for occasional purposes.
The gig economy is a popular way to earn money, whether you work a nine to five job, or you swap between various side hustles. Generating income through passive streams, like renting out an asset, is a great way to earn extra income.
As towlos grows in popularity, comparing it to a known entity like Turo is a helpful way to understand the rental process. Comparing also helps with what a potential host could expect from listing a Trailer with towlos.
When considering whether to invest in a trailer to become a Towlos host versus buying a car to host on Turo, several factors favor towlos:
Investment and Storage
Trailers generally require a lower initial investment than cars and take up less space, making them more accessible for potential hosts. It’s likely that you can find very cost effective storage options for a trailer outdoors (or in your yard or driveway!). Conversely, it’s hard to find cost effective car storage in convenient locations.
- Relatively new, used trailers can cost as little as $3000-5000. Try finding a decent running car for that!
- Rent that puppy out for $90/day, and you only have to do 16 – 33 days of rentals before you’ve completely paid for the trailer!
Maintenance and Usage
Trailers typically incur lower maintenance costs. Trailers are less frequently used than cars, leading to potentially lower ongoing expenses. You can easily maintain a trailer yourself with some help from YouTube and basic hand tools.
Market Niche
Towlos caters to a specific market need for trailers. It potentially offers less competition and more consistent demand, particularly in areas where trailer usage is common for activities like motorsports or moving. Do you live near a race track? Odds are there are people who could use your trailer in a pinch on any given weekend!
Flexibility and Predictability
Hosting a trailer can be more flexible, as trailers are often used for specific, occasional purposes, leading to more predictable rental patterns.
Unique Income Opportunity
Towlos serves a unique rental market, providing an opportunity to fill a gap in local rental options, especially if there’s a lack of trailer rental services in the area. In general, trailer rental is more common in more rural areas, and can be hard to find in suburban or urban environments.
- Personal Utilization: If a trailer is already needed for personal use, listing it on towlos when not in use can smartly offset the investment.
- Total loss/liability: When you rent a car you own, having it stolen or damaged is a time consuming and expensive problem to solve. If your trailer is stolen or damaged, odds are, it’s fairly simple and cost effective to repair. Additionally, you are less likely to need the trailer for every day projects and therefore its loss might incur less convenience on your lifestyle.
Turo vs. Towlos
In conclusion, while Turo offers a broader car rental service with its own set of benefits, investing in a trailer to become a towlos host presents a more accessible and potentially more profitable venture, especially if you are looking into a peer to peer marketplace as a side hustle, and therefore have not purchased the rental asset yet. If you already own a spare car, or a trailer, the math is a little different, but many of the benefits of towlos remain!
The lower initial investment, reduced maintenance costs, and unique market position make towlos an appealing option for those looking to monetize an asset in the peer-to-peer rental space.
Turo Return on Investment
| New Car | Purchase Price* | Daily Rental Rate** | Extra monthly income earned if rented 6 days/mo | If rented 73 days per year (20%), it pays for itself in (years) |
| 2022 Honda Accord Sport 2.0T | $33,660 | $49 | $294 | 9.5 |
| 2021 Jeep Wrangler Sport S 4D | $40,915 | $68 | $408 | 8.4 |
| 2021 Tesla Model Y Performance 4D | $61,190 | $89 | $534 | 9.5 |
| 2023 Chevy Tahoe LS | $54,200 | $104 | $624 | 7.2 |
Towlos Return on Investment
| New Trailer | Purchase Price* | Daily Rental Rate** | Extra monthly income earned if rented 6 days/mo | If rented 73 days per year (20%), it pays for itself in (years) |
| 2022 PJ Car Hauler (20’ x 102”) | $8,200 | $112 | $672 | 1.0 |
| 2021 Arising Enclosed Cargo Trailer (22’ x 102”) | $9,995 | $155 | $930 | 0.9 |
| 2023 14 LD Big Tex dump trailer (14’ x 83”) | $12,066 | $135 | $810 | 1.2 |
| 2021 Load Trailer Single Axle utility trailer (10’ x 60”) | $1,610 | $70 | $420 | 0.3 |
