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Do you have an extra car you could rent to make a few extra bucks from? Or maybe you’ve heard about how much your friend is making from listing on a peer to peer car sharing platform and it made you want to try? A car like the house is a source of income and one of the easy things you can rent to make money. Regardless of your situation or motivation, here are some important things to know about how to turn a car in a money making machine.
With the rise of the sharing economy more people with less-than-perfect credit scores that probably won't disqualify from a car loan choose to rent a car from the owner. At the same time the Sharing economy offers economical benefits and the opportunity to earn extra money for everyone involved. There are a lot of things you can rent out for money. You are probably familiar with Airbnb, one of the sharing economy companies. Other sharing economy examples are Poshmark or other apps that allow you to make money walking dogs. But how does rent out your car work? In practice, it works like this:
Everybody knows the traditional economy pros and cons, but what are the benefits and advantages of sharing economy ? You can earn extra money renting out your car. But do the perks outweigh the risks and hassles? What you need to know before you sign up.
Your car makes money work for you. It is always a good idea to have additional income streams.
You’ll earn rental money for short-term or long-term rentals. Make sure the price is reasonable for your area, the model of your car, and the length of time. Be flexible about pricing—in high-demand period, for instance, you can charge more.
Cars are made to be driven! Leaving your vehicle on the side of a road and don’t using it, be it for an extended vacation or you are moving and can't take it with you immediately, can cause you problems and it is quite expensive. Remember that even if you’re not using it, you’ll still have to insure your car.
When you sign up for a rental company, you become a self employer and are treated like a small business owner. This means that car rental income is subject to federal and state income tax. You will receive a 1099 depending on your year’s earnings.
Basically, the income you earn from renting your car is taxable but you may qualify for tax deductions.
Tax deductions are the first way to maximize your income from car rental. tracking all of your car expenses (including business mileage) and keeping all of your receipts related to the car you are renting will add up to hundreds of dollars in tax deductions.
On the other hand, here some cons that you should consider:
Renting a car to drive for Uber, Lyft and Food Delivery apps is easy. However, you have to know that a Rideshare driver can drive anywhere from 200 to 1,000 miles a week.
Is it safe to rent your car to strangers? The on-demand car rental businesses have measures in place to protect owners. In particular people cannot rent a car with cash. However, even if this helps to avoid the potential and probably the greatest risk of not getting paid, you’ll still have to trust your guest to be respectful.
Unfortunately some drivers can damage your car or you can have issues with tolls, tickets, impound fees and accidents...
You can lease your car online. The “Sharing Economy” changed the traditional car rental market. You can give your car on rent to private travellers or business travellers or rent your car to Uber drivers and Lyft drivers. If you want to know how to make money in the car rental business, here are all the available options:
HyreCar is a peer-to-peer car rental marketplace that connects anyone looking to begin or continue working with any on-demand delivery service with car owners and auto dealers. Some examples of this include Uber, Lyft , Postmates, Instacart and Amazon Flex.
Since 2018 the company has increased the partnership program with car dealerships in six major cities of the US. Renting out unused cars through the platform is an easy way to earn extra cash.
Owners set their own prices for their vehicles. Hyrecar has a full team dedicated to helping you onboard your vehicles who also make pricing suggestions based on your market.
You can start earning now by creating your Hyrecar owner account.
When it comes to renting out your personal vehicle, Turo is one of the best-known options. You can make good money renting your car in Tuto. We suggest you take a look at our complete guide to Turo car rental.
Getaround is one of the apps like Turo and another peer-to-peer car rental network.
The Getaround Connect® device is one of the biggest advantages of the platform. It allows renters to unlock your car with the Getaround app during a trip and save time commitment.
Avail car sharing allows you to save money on expensive airport parking and instead make money borrowing your car to others. The benefits of sharing your car with Avail is that all the rides are protected by AllState insurance.
Avail is currently available in the following cities of the United States of America;
To view a full list of cities where Avail car sharing operates, head on over to the Avail website.
There are different ways to make money with your car. Very similar to Avail,TravelerCar allows you to rent out your vehicle during your trip rather than paying a premium price for airport parking. For you, no more parking costs, and for the tenant, this is an economical solution which can represent up to 50% savings.
If your car does not meet the eligibility criteria of the free car parks, or if you do not want to share it, wherever you are, TravelCar also offers cheap parking solutions, close to airports, stations and city centers . You don't have to worry about finding a parking space at the airport when you park at Extra Car Airport Parking through the platform.
TravelCar aggregates thousands of parking solutions for you. The services are currently available in 62 countries including:
And in the following airport of the United States:
Renting a car from another person became popular also all over Europe were companies that manage peer to peer car rental were born.
In Spain, the most famous is Amovens that allow you to rent a private car with prices that vary according to the type of vehicle.
In France Drivy is the most famous. The company was recently acquired by Getaround.
In Italy Turo is one of the most popular alternatives to traditional car rentals.
So, what are the qualifications to rent a car? To be eligible, you and your vehicle must meet the eligibility requirements. Keep in mind that the requirements vary from platform to platform.
In order to share your car on Hyrecar, it must meet the following requirements:
On the Turo platform you can share vehicles as listed below:
In order to share your car on Turo, it must meet the following requirements:
In order to share your car on Getaround, it must meet the following requirements:
In order to share your car on Avail, it must meet the following requirements:
In order to share your car on TravelCar, it must meet the following requirements:
How much you can make depends on the kind of the vehicle and the locations.
With the online Turo car calculator you can estimate how much you can make renting out in a specific location your specific car makes and the model.
HyreCar estimates that the average car owner makes $12,000 per year. The amount you can earn depends on the protection plan that you select for your vehicle.
If the basic plan is selected, you will earn 85% of the listed rental price. For a 2 day rental listed at $30/day, the owner will earn $51. ($60*.85 = $51)
With Avail If your vehicle is shared, you will earn a fixed amount each day based on your vehicle's class. Standard, Mid-Size, and Van owners can expect to earn $20 per day, while Large SUV owners will earn $25 per day.
Getaround claims that some owners make up to $10,000 per year, or around $800/month. To achieve those earnings goals, your car would have to be rented out several hours of the day for every day of the year, which we don’t think is too possible for the most part of the owners.
With TravelCar, you can get between $130 and $250 per month depending on the age and range of the vehicle, in addition you will not pay the parking.
The car is one of the best things to rent out to make money. Now you know everything you need to know about how to make money with your car and have a clear vision of all the options, the requirements and how much you can make. If you do not feel comfortable renting out your car you can still get paid driving your car for rideshare companies.
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