{"id":1193,"date":"2025-07-08T02:52:50","date_gmt":"2025-07-08T02:52:50","guid":{"rendered":"https:\/\/ft365.org\/index.php\/2025\/07\/08\/this-turo-host-used-an-auto-line-of-credit-to-finance-his-fleet-bankrate\/"},"modified":"2025-07-08T02:52:50","modified_gmt":"2025-07-08T02:52:50","slug":"this-turo-host-used-an-auto-line-of-credit-to-finance-his-fleet-bankrate","status":"publish","type":"post","link":"http:\/\/ft365.org\/index.php\/2025\/07\/08\/this-turo-host-used-an-auto-line-of-credit-to-finance-his-fleet-bankrate\/","title":{"rendered":"This Turo Host Used an Auto Line of Credit to Finance His Fleet | Bankrate"},"content":{"rendered":"
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Stephen Carter isn\u2019t your typical car owner. Not only does he own five vehicles, but he rents them out on Turo (think Airbnb for cars<\/u>).<\/p>\n

But last fall, Carter didn\u2019t qualify for auto loan approval<\/u> for that fifth vehicle. The other four were on his personal credit report, which meant that his debt-to-income ratio<\/u> was out of whack.<\/p>\n

Eventually, Carter learned about a lender that offers a unique product: an auto line of credit.\u00a0<\/p>\n

\u201cWhen Carputty<\/u> came along, it was a godsend,\u201d says Carter, who\u2019s based on the Gulf Coast and financed a 2019 Mercedes-Benz Sprinter van last October. He adds: \u201cMy business year to date is almost twice what I did last year with just an additional vehicle.\u201d<\/p>\n

Whether you need a fleet for your business or prefer multiple sets of wheels for your personal life, Carter\u2019s journey might help you understand alternative financing options.<\/p>\n

An accidental small business<\/h2>\n

Before the COVID-19 pandemic arrived in 2020, Carter got into Turo \u201cby accident.\u201d His car was giving him problems, and a friend suggested he trade it in for a Mercedes Sprinter. The large vehicle could be used for his transportation and logistics gig for his government contractor work.<\/p>\n

\u201cThen, the pandemic hit, all government contracts kind of froze,\u201d says Carter, who also worked as a car salesperson for 10 years earlier in his career. \u201cAnd I was like, \u2018Now, what am I gonna do with this car note on the vehicle?\u201d<\/p>\n

A friend suggested that he list the vehicle for rent on Turo as a way to generate income.<\/p>\n

\u201cAnd 240,000 miles later, it\u2019s still \u2014 I think right now it\u2019s in Tennessee somewhere,\u201d Carter says. \u201cSo yeah, I just fell into it.\u201d<\/p>\n

\"Black
One of the vans in Carter\u2019s Turo fleet<\/em><\/figcaption><\/figure>\n

The Turo business has proven lucrative enough for Carter to keep at it, continually adding to his fleet of vans, which are routinely rented by large groups.<\/p>\n

\u201cThat typically is my clientele, the family that\u2019s going somewhere\u2026 the church group that\u2019s going to a baseball game or a football camp or a water park,\u201d Carter says. \u201cI get those calls regularly.\u201d<\/p>\n

Carter previously used auto loans<\/u> to finance the purchase of each new vehicle in his Turo fleet. But with four such debt accounts on his personal credit report<\/u>, his debt-to-income ratio made lenders wary of funding a fifth vehicle.<\/p>\n

Finding the right financing<\/h2>\n

When Carter encountered auto loan lenders that didn\u2019t want him as a new or repeat customer, he considered alternatives. After all, his rental business was thriving, and he wanted to reinvest in it.<\/p>\n

One realistic option was an unsecured personal loan<\/u> from a reputable national lender.<\/p>\n

\u201cWith American Express<\/u>, I would basically only get enough to do maybe one or two cars, three really cheap cars\u2026 and AmEx was at 10 percent [interest], almost 11 percent for a third of the money,\u201d Carter says.<\/p>\n

Eventually, while browsing a Reddit forum for Turo hosts, Carter came across a mention of Carputty, which requires a minimum credit score of 680 and operates nationally (except in California, Mississippi, Nevada and Washington). The nature of its auto line of credit \u2014 up to 15 cars and as much as $250,000 for personal use and $800,000 for LLC<\/u> operators \u2014 gave him the flexibility to avoid another lump sum debt on his credit report.<\/p>\n

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It was a godsend when it came through, because we were at the point where we couldn’t afford any \u2014 I mean, there was no way to add an additional vehicle.<\/q> \u2014 Stephen Carter <\/cite> <\/p><\/blockquote><\/div>\n

Carter was thrilled to secure an interest rate below seven percent. The only issue he experienced was skepticism among car dealers. No one had heard of Carputty, a fintech that was founded in 2020.<\/p>\n

\u201cCraziest name ever\u2026 I had at least two dealerships just hang up on me, just saying, \u2018I never heard of it, click, it sounds like a scam,\u2019\u201d Carter recalls.<\/p>\n

\n\n\n\n\n\n\n\n
Average number of cars per Carputty \u201cFlexline\u201d<\/strong><\/td>\n<\/tr>\n
Consumers, personal use<\/td>\n1.7<\/td>\n<\/tr>\n
Consumers, commercial use<\/td>\n2.2<\/td>\n<\/tr>\n<\/tbody>\n
Source: Carputty, as of June 2025<\/em><\/td>\n<\/tr>\n<\/tfoot>\n<\/table>\n<\/div>\n

Carter says his goal is to refinance all of his vehicle loans to house them on the Carputty line of credit, which can be used to buy new or used cars<\/u>, refinance auto loans<\/u> or buy out leases<\/u>.<\/p>\n

As for the Sprinter van he most recently financed through Carputty?<\/p>\n

\u201cI couldn\u2019t even tell you where it is,\u201d Carter says, \u201cbut it\u2019s been gone [rented] since October.\u201d<\/p>\n

Financing a vehicle when auto loans don\u2019t work<\/h2>\n

In most cases, if you\u2019re looking for an auto loan<\/u> and having trouble qualifying, it\u2019s likely a sign that you\u2019re not ready to borrow. After all, traditional car loans are the best way (besides paying in cash) for most of us to finance our vehicles. And their eligibility criteria are meant, in part, to keep you from borrowing a loan you can\u2019t afford to repay.<\/p>\n

But if you\u2019re in a situation like Carter\u2019s, where you have strong credit and still can\u2019t find the ideal loan, consider being flexible about the type of financing you\u2019re seeking.<\/p>\n

Carputty\u2019s line of credit is a unique option \u2014 you can finance multiple cars on one account, even if you\u2019re not a small business owner \u2014 but this company doesn\u2019t have a monopoly on atypical financing.<\/p>\n

Some lenders offer commercial auto lines of credit (Ally Financial and National Business Capital, for example) or business auto loans<\/u>. The keys are to consider your options, shop around with various types of lenders and prequalify<\/u> to limit any impact to your credit.<\/p>\n

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Lightbulb Icon<\/title> <\/svg> <\/p>\n
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Carter’s advice on becoming a Turo host <\/p>\n

\u201cNow, if you\u2019re going to buy a couple of $5,000 cars, and you can afford to pay them off, that\u2019s different, but \u2026 you may want to do a little bit more research before you just buy that dream car and put it on Turo, because I see the horror stories. And we talk amongst the hosts about people buying used Ferraris because they thought it was a niche market for an antique car, and they\u2019re stuck with a note.\u201d \u2014 Stephen Carter<\/p>\n<\/p><\/div>\n<\/p><\/div>\n

What\u2019s your next step?<\/h2>\n

As Carter did, it\u2019s wise to consider all of your options, including auto loans and lines of credit as well as personal loans for cars<\/u>. Consider the pros and cons of various financing types. A line of credit might give you more flexibility, for example, while a loan might carry a lower interest rate. Once you find the right product for your situation, you can spend more time on finding the right vehicle and calculating your potential loan repayment<\/u>.<\/p>\n

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Help us improve our content<\/p>\n<\/p><\/div>\n<\/p><\/div>\n","protected":false},"excerpt":{"rendered":"

Stephen Carter isn\u2019t your typical car owner. Not only does he own five vehicles, but he rents them out on Turo (think Airbnb for cars). But last fall, Carter didn\u2019t qualify for auto loan approval for that fifth vehicle. The other four were on his personal credit report, which meant that his debt-to-income ratio was<\/p>\n","protected":false},"author":2,"featured_media":1194,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[5],"tags":[],"class_list":["post-1193","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-latest-news"],"featured_image_urls":{"full":["http:\/\/ft365.org\/wp-content\/uploads\/2025\/07\/1193-turo-host-couldnt-qualify-loan.jpg",1280,720,false],"thumbnail":["http:\/\/ft365.org\/wp-content\/uploads\/2025\/07\/1193-turo-host-couldnt-qualify-loan-150x150.jpg",150,150,true],"medium":["http:\/\/ft365.org\/wp-content\/uploads\/2025\/07\/1193-turo-host-couldnt-qualify-loan-300x169.jpg",300,169,true],"medium_large":["http:\/\/ft365.org\/wp-content\/uploads\/2025\/07\/1193-turo-host-couldnt-qualify-loan-768x432.jpg",640,360,true],"large":["http:\/\/ft365.org\/wp-content\/uploads\/2025\/07\/1193-turo-host-couldnt-qualify-loan-1024x576.jpg",640,360,true],"1536x1536":["http:\/\/ft365.org\/wp-content\/uploads\/2025\/07\/1193-turo-host-couldnt-qualify-loan.jpg",1280,720,false],"2048x2048":["http:\/\/ft365.org\/wp-content\/uploads\/2025\/07\/1193-turo-host-couldnt-qualify-loan.jpg",1280,720,false],"morenews-featured":["http:\/\/ft365.org\/wp-content\/uploads\/2025\/07\/1193-turo-host-couldnt-qualify-loan-1024x576.jpg",1024,576,true],"morenews-large":["http:\/\/ft365.org\/wp-content\/uploads\/2025\/07\/1193-turo-host-couldnt-qualify-loan-825x575.jpg",825,575,true],"morenews-medium":["http:\/\/ft365.org\/wp-content\/uploads\/2025\/07\/1193-turo-host-couldnt-qualify-loan-590x410.jpg",590,410,true],"crawlomatic_preview_image":["http:\/\/ft365.org\/wp-content\/uploads\/2025\/07\/1193-turo-host-couldnt-qualify-loan-260x146.jpg",260,146,true]},"author_info":{"display_name":"henry","author_link":"http:\/\/ft365.org\/index.php\/author\/henry\/"},"category_info":"Latest News<\/a>","tag_info":"Latest News","comment_count":"0","_links":{"self":[{"href":"http:\/\/ft365.org\/index.php\/wp-json\/wp\/v2\/posts\/1193","targetHints":{"allow":["GET"]}}],"collection":[{"href":"http:\/\/ft365.org\/index.php\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"http:\/\/ft365.org\/index.php\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"http:\/\/ft365.org\/index.php\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"http:\/\/ft365.org\/index.php\/wp-json\/wp\/v2\/comments?post=1193"}],"version-history":[{"count":0,"href":"http:\/\/ft365.org\/index.php\/wp-json\/wp\/v2\/posts\/1193\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"http:\/\/ft365.org\/index.php\/wp-json\/wp\/v2\/media\/1194"}],"wp:attachment":[{"href":"http:\/\/ft365.org\/index.php\/wp-json\/wp\/v2\/media?parent=1193"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"http:\/\/ft365.org\/index.php\/wp-json\/wp\/v2\/categories?post=1193"},{"taxonomy":"post_tag","embeddable":true,"href":"http:\/\/ft365.org\/index.php\/wp-json\/wp\/v2\/tags?post=1193"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}