When you buy a car, should you go with the lower entry cost of a reliable sedan, or should you pay the premium for a versatile small SUV?
Both classes—Sedans (like the Toyota Corolla) and Small SUVs (like the Honda CR-V)—make up the bulk of Turo’s bookings. They are the marketplace's backbone. The trick is figuring out which car will earn the most money relative to its cost—that's your true Annualized ROI.
Small SUVs pull in a higher daily rate because they offer more utility. Sedans, which are cheaper to buy, stay booked more often. This article breaks down the data, compares utilization rates, and tells you which vehicle class wins the war for profitability in your market.
The Sedan Advantage: Kings of ROI and Utilization
Sedans are the silent winners of the Turo financial game. They are perfect for hosts prioritizing simplicity and consistency.
Low Cost, High Percentage
The highest ROI percentage on Turo comes almost exclusively from Economy Sedans and Hatchbacks (like the Chevrolet Cruze or Kia Rio). Why? You buy a used sedan for a low price, which keeps your monthly loan payment tiny. That small investment makes your percentage return huge, netting you a reliable profit margin even with a low daily rate.
Utilization and Long Trips
Hosts report that their compact sedans and hatchbacks stay booked every single day of the month. These cars attract guests who prioritize value and fuel economy. They are the ideal choice for budget-conscious travelers and locals who need reliable, long-term transportation. Sedans secure both the most frequent bookings and the longest trips, reducing the host's turnover costs (cleaning, delivery).
Best For:
- Hosts building a fleet on a strict budget.
- Hosts operating in dense Urban Markets where parking and fuel economy are the primary concerns.
The Small SUV Advantage: Utility and Rate Premium
Small SUVs have carved out a space as the most sought-after vehicle class for families and adventure seekers. They command a higher daily price than sedans.
Higher Daily Rate
Guests are willing to pay a premium for utility. A small SUV (like the Nissan Rogue or Hyundai Tucson) rents for a higher rate than a comparable sedan. They offer higher seating capacity, more cargo room, and, critically, the perception of safety and capability.
Family Capacity and AWD Appeal
These cars cater directly to families and groups. An SUV is the required vehicle for airport runs with luggage or mountain trips. The availability of All-Wheel Drive (AWD) in nearly every small SUV model is a major search filter advantage. AWD capability allows you to target seasonal markets, ensuring your car stays rented throughout the winter.
The Acquisition Hurdle
The main drawback for the host is the cost. Small SUVs often cost about 20% more up front than a sedan of a similar age. That higher purchase price increases your monthly loan payment, which directly lowers your ROI percentage. It takes longer to recoup that initial investment.
Which Car Wins the Booking War?
To decide which class is better for your business, you must determine your primary goal: maximum utilization or maximum daily rate.
| Metric | Sedan (e.g., Civic, Cruze) | Small SUV (e.g., CR-V, Seltos) | Strategic Implication |
| Utilization Rate | Highest. Stays booked 75%+ of the time. | High, but slightly lower (65–70%) than sedans. | Sedans deliver the most consistent income stream. |
| Annualized ROI | Highest Percentage. Low cost makes the return percentage huge. | Lower Percentage. Higher acquisition cost cuts into the final percentage return. | Sedans are the most financially efficient asset. |
| Daily Rate | Lower. Attracts budget travelers. | Higher. Commands a premium for utility and capacity. | SUVs are necessary to boost your gross revenue total. |
| Niche Appeal | Fuel efficiency, long-term rentals. | Families, AWD/seasonal travel, capacity. | SUVs unlock higher-margin niche markets. |
Matching the Vehicle to Your Goal
The final decision hinges on your current fleet size and your market.
- For the Beginner Host (1–3 Cars): Start with the Sedan. Its low entry cost and proven high utilization are the safest ways to reach profitability quickly and earn positive reviews. You need that reliable cash flow first.
- For the Scaling Host (4+ Cars): Introduce the Small SUV. Once your baseline income is secure, add the SUV to capture the higher daily rates, appeal to the family demographic, and target seasonal needs (AWD in winter).
By understanding that sedans win the ROI war and SUVs win the daily rate war, you can build a balanced fleet that maximizes both consistent cash flow and high-margin seasonal opportunities.