by Turo

posted on October 28, 2020

Ranking models by potential ROI

With all sorts of deals and markdowns at dealerships, the winter holidays are typically one of the best times of the year to buy a car. So with the car-buying season coming up, we gathered up data about vehicle earnings on Turo to share some insights about the best cars to buy, ranked by potential return on investment.

Prices for new cars have been steadily rising for years — the average new car now goes for about $38,000. Those heftier price tags, combined with a shortage of new cars from coronavirus-related factory shutdowns and a general uneasiness about using public transportation, have led to customers snatching up used cars at the highest rate since the recession. Which in turn has increased used car prices — from just June to July of this year, the average value of used cars jumped more than 16%, according to Edmunds.com.

Many hosts share their vehicles on Turo to offset the cost of ownership, and they keep a keen eye out for ways to make their investments work harder. Our research has shown that the purchase price of a vehicle is one of the most important factors for increasing and expediting a Turo host’s ROI — paying just 15% below sticker price can help hosts earn as much as 27% more over a three-year period, according to our data analysis.

As part of our ongoing efforts to equip Turo hosts with tools and insights to help inform their business approaches, we’re excited to share additional insights with the whole community. Using data gathered from the Turo marketplace, leading car valuation sites, and reported directly from hosts, we’ve put together top 10 lists of the best cars to buy based on potential ROI.

Best cars to share on Turo, ranked by ROI

Top 10 budget models

  1. Chevrolet Camaro
  2. Hyundai Accent
  3. Dodge Charger
  4. Chevrolet Spark
  5. Subaru Legacy
  6. Dodge Challenger
  7. Jeep Wrangler
  8. Jeep Grand Cherokee
  9. GMC Sierra 1500
  10. Jeep Compass

Top 10 mid-range models

  1. Tesla Model 3
  2. Toyota 4Runner
  3. BMW Z4
  4. Porsche Macan
  5. Chevrolet Corvette
  6. Toyota Highlander Hybrid
  7. Chevrolet Tahoe
  8. Mercedes-Benz C-Class
  9. BMW 2 Series
  10. GMC Yukon

Top 10 high-end models

  1. Mercedes-Benz CLS-Class
  2. Mercedes-Benz G-Class
  3. Porsche 911
  4. Porsche Panamera
  5. Land Rover Range Rover
  6. Land Rover Range Rover Sport
  7. Tesla Model X
  8. Lexus LX 570
  9. Jaguar F-Type
  10. Audi R8

In this analysis, vehicles are separated into three broad groups using the base MSRP for 2020 models, and ranked by potential ROI on Turo, taking into account data on vehicle earnings, utilization rate, and ownership costs. In the most affordable group, it’s no surprise that muscle cars and Jeeps perform well. The Chevy Camaro, Dodge Charger, and Challenger start at affordable prices and are very popular with vacationers from both the US and abroad. Jeeps of all flavors are also favorites with guests on Turo and multiple Jeep vehicles have long been among the top-earning vehicles for hosts.

The Tesla Model 3 takes the top spot in the second group. Teslas are extremely popular on Turo, whether guests are taking an extended test drive or simply want to sample the Tesla experience. Family SUVs like the Toyota 4Runner and Highlander also rank high in this group, as well as some of the more accessible models from luxury brands.

When it comes to the priciest vehicles, most of the models with the highest potential ROI are simply the most sought-after sports cars and luxury vehicles among guests on Turo. Many gearheads and people with a taste for the finer things come to Turo looking to book recognizable cars like the Mercedes-Benz G-Class, Porsche 911, and Range Rover.

Choosing the right vehicle to share on Turo

For hosts, or any prospective car buyers, the Turo car buying guides are a useful resource to help customers consider different purchasing channels and find the right vehicles at the best prices possible.

The buying guides, available to download for free, take a deep dive into the different places car buyers can find the vehicles they’re looking for — new and used car dealerships, online marketplaces like Autotrader and TrueCar, online classifieds like Craigslist and eBay Motors, and even automotive auctions. If you’re in the market for a new car or are curious about how to score the best deals on something used, browse the guides for tips, tricks, and best practices for getting the most out of car shopping.

* Provided for general informational purposes only for audiences in the US and may not reflect the most up-to-date information. These guides contain links to third-party websites. Such links are provided for convenience only; Turo does not recommend or endorse the contents of the third-party sites. The contents of the guides are provided “as-is”; no representations are made that the content is complete or error-free. Turo disclaims all liability with respect to actions taken or not taken based on the contents of the guides.

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