Cars… They usually cost a lot and require a lot of upkeep for wear and tear. So you may be wondering if you could earn when you are not using your car, you might even be wondering “can I rent out my car?” to which the answer is yes. You could rent your car to strangers whenever you don’t drive it. Car rental could be your additional source of income or you could turn it into a full-time job. Learn about how to generate income in a safe and effective way as a car owner renting out your car for a shorter or longer period of time! The following will answer all the burning questions you might have such as, “is it a good idea to rent out my car?”
Things You Need to Know About Renting Out Your Car
Image by StockSnap from Pixabay. What do you think? Can you imagine yourself renting out your car?
1. Pros and cons of renting out your car
The question of whether “to “ent out my car” or “not to rent out my car” is certainly not easy. Undeniably, a pro-con list could help you decide. So, what are the pros and cons you must consider before taking a step forward to make passive income with your car in your city?
1. Here come some of the pros
• Your unused/barely used car could make the work instead of you, and you’ll get paid.
• You make every decision along the way: from when to how long and to whom to rent out your car. In other words, it’s a flexible job.
• In some cases, renting out your car may even result in a tax deduction. Make sure you read what the Internal Revenue Service’s stand is on this now.
• If you devote enough time to it, your first business can grow out of this, and you could make a steady income.
2. Here come some of the cons
• Even if you’re technically not working, you need to manage the requests, key handoffs, delivery, etc., and keep your calendar up to date. In other words, you need to be flexible and have to plan things.
• Your car may get damaged or you receive unexpected toll notices. (More on this later.)
• In the case of popular cars, it’s more likely your car will be worn out sooner.
You can write your own list; your pros can outnumber your cons.
Photo by Jeff Sheldon on Unsplash. You need to be organised (a great planner if you will) to be able to manage your rentals efficiently.
2. Registration: the verification process
Now that you have answered, “do I want to rent out my car?” your next question might be “how do I start the process so I can rent out my car?” which is yet another important question to begin earning money. Every site has a sign-up form owners interested in renting out their car must fill in.
To register, you may use your Facebook/Gmail account or another e-mail address. You’ll be asked to answer some questions about yourself and type in some data regarding your car. Don’t forget that you will probably be screened, and your car must meet certain criteria. Once your application is reviewed and approved by someone from the team, your listing goes live. Regardless of what site you choose, all take safety measures to make sure everything goes smoothly.
- When renting out your car via Turo, you’re not allowed to list it on another platform. They require exclusivity. With this platform, you can rent out your car, light truck, cargo van, and “specialty” and “classic” cars. Motorcycles, RVs, and certain other vehicles are not accepted. Turo has a set of requirements, and vehicle requirements differ by region. Your car must meet all of them, only then you can list it on the platform.
Your vehicle must:
• be legally registered in the United States (except New York).
• be no more than 12 years old.
• have less than 130,000 miles/200,000 kilometers.
• meet Turo’s insurance requirements.
• have a clean title.
• have a fair market value of up to $150,000. (Required to get a protection package.)
• meet Turo’s safety and maintenance requirements.
- On Getaround, you can list a vehicle if it is in great condition and its mileage is under 125,000 miles.
3. Tips for renting out your car
Another question you might have to look into the process is “where can I rent out my car” and if you’re interested in car rentals, you can check out platforms such as Turo and Getaround. You’ll need to invest in creating an attractive listing, responding to messages, handling keys, tracking your earnings, cleaning your car, etc.
How to build a profile for your car and make your listing popular
- Take photos of your car from all sides. (Wash your car before the photo shoot.)
- Write a concise text about it, mention specific things. (For example, there is a special way to open the door.)
- Set a competitive price. (Check other listings in your area and see how others price their cars similar to yours.)
- Response to all messages within a few hours.
- Always clean your car before a new guest. (Don’t keep personal items in it.)
- Limit the mileage. (Some owners say that drivers tend to drive more if a limit is set regarding how many kilometres/miles they are allowed to drive.)
- Place a magnetic lock box under your car so that the key can be kept there. This way you don’t have to meet your guests, especially if you don’t have time for that.
Photo by Adrianna Kaczmarek on Unsplash. Don’t let your car stay on the driveway day after day, rent it out for great money!
4. Is it safe to rent out my car to someone else?
Yet another important you might have before beginning the process. Since every platform screen their users/members, it should be safe to rent out your car. This means only verified drivers (probably over 21) can sign up to use their services. They must have a valid driver’s license and their driving record must be clean. Platforms may look at their auto insurance score, provided by TransUnion. (Drivers must grant permission to the platform to make such a request.) Also, those who had several accidents a few months prior to their registration won’t be approved.
5. What if I rent out my car and it gets damaged/stolen?
With both Turo and Getaround, you’re insured. With the former, you’re covered with up to $1 million in liability insurance provided by Liberty Mutual. All Liberty Mutual liability insurance in the U.S. is offered through Turo Insurance Agency. Terms, conditions, and exclusions apply. Your car is also protected against theft and physical damage. If you choose to rent out your car with Turo, you’re free to select their Premier, Standard, and Minimum insurance plan. Getaround offers you a $1,000,000 primary insurance, and trips are covered with insurance and 24/7 roadside assistance.
And next you might wonder, “what is the best solution if I decide to rent out my car” and that is to keep your own coverage and expand it, if possible. Some insurance companies have already adapted to the new situation and started to provide coverage for vehicles that are listed on car-rental sites. Furthermore, read about what the insurance plans or your chosen platform cover. Some car owners shared their stories where their car gets damaged but neither their own insurance company nor the platform paid for the damage. It’s better to be safe than sorry, so do your homework.
Some tips to consider:
• Even if you’re swamped, walk around your vehicle after each rental period to see if it’s intact.
• Control the length and the number of rentals to keep your car in great condition as long as possible.
• Think about how you can avoid paying others’ toll.
• (Also, it’s better to rent out a car you usually don’t use. In the case of emergency, you don’t want to look for a plan B.)
Photo by Online Marketing on Unsplash. Doing research on insurance plans is WORTH it.
If an accident happens your guests must report it to both the platform and you. Always take photos of the damages. If your guest does not provide enough documentation on the damage, you have to.
• In case you purchase a protection package from a platform, you process the claim with them.
• If you have your own insurance provider, you process the claim with them.
Keep in mind: If you lease your car and your lease does not allow you to sublet it, you don’t have so many options. You don’t want the police to get involved in that case, that for sure. If the other person involved in the accident is willing to pay in cash for the repair, you’re lucky. However, you may never know what the other party is (going to be) like.
6. How much money can I make renting out my car? Is it worth to rent out my car?
The final question that needs to be answered before you rent out your might is probably “how much will I even make if I do decide to rent out my car?” The amount of the actual income you can make by renting out your car depends on a few factors. It is assumed that every platform charges a commission fee. That could be 10-40 per cent. The percentage is usually influenced by the insurance plan you’ve got – whether you purchased one from the platform or have your own. In addition to the commission fee, some platforms may charge you extra fees for roadside assistance and such. Despite the deduction, car owners could make around $800-1,000 per month if their cars are rented out regularly.
If you do it full-time, renting out several vehicles at once, your profit could be even more.
Still need more tips and/or ideas?
If you’re still unsure between “to rent out my car” or “not to rent out my car” then we also encourage you to discover more ways of making money with your car. Look for other options suitable for you on Appjobs!
Featured Photo by Carlo D’Agnolo on Unsplash