It seems like short-term rentals have become the new norm. Airbnb made it easy to book a cheap yet intimate stay in almost any city in the world without having to deal with travel agencies, chain hotels, or sketchy hostels.
As a result, the tide is changing for car rentals too. There is more demand than ever for easy access to quality cars that can be rented quickly and efficiently from a real person. And with this rise in consumer demand comes a great new money-making opportunity.
Advantages of Renting Out Your Car
1. Make Money
According to the American Automobile Association, aka AAA, the average American can expect to spend around $9000 on car-related expenses every year. That’s a lot of money, especially when considering cars are depreciating assets. Fortunately, you can offset this cost by putting your car to work.
Renting out your car can net you a significant amount of extra income. Therefore, deciding to rent out your car could be a great way to make a little extra cash and save on the overall cost of owning a vehicle. Even if your car expenses are lower than average, bringing in some extra money can significantly affect your life.
As a result, you could put it towards paying off student loans or credit card debt, saving for a downpayment or vacation, or even just towards a fun night out. So, it’s definitely a solid side-hustle for those looking to take their finances seriously without having to give up their car!
2. Passive Income Without an Initial Investment
By renting out your car you can generate passive income without needing to spend any money upfront. As long as you have a car that isn’t too old and is well maintained, you can use that pre-existing vehicle to bring in more money.
3. You Run Your Own Schedule
When renting out your car through a peer-to-peer service you are fully in control of your schedule. If you need your car, you always have it at the ready. But if you don’t need your car then you can have it available to be rented by others. This allows for very little effort or inconvenience on your part.
Where to Rent Out Your Car
1. Turo
Often called the Airbnb of cars, Turo does for the car rental industry, what Airbnb did for the hotel/accommodation industry. It provides an alternative to the established car rental market players, in this case, traditional car rental companies. However, Turo is typically more convenient and more affordable.
Turo is the most popular peer-to-peer car-sharing platform on the market right now. Like the other companies on this list, Turo allows consumers to rent vehicles directly from private citizens without having to go through a large company. The price that you will be able to charge renters to use your vehicle is based on metrics including market value, age, condition, location, and time of year.
Pros
- Turo is available in most U.S states and Canadian provinces so if you want to rent out your car, you’ll most likely be able to use Turo.
- Turo’s popularity means that it has a wide audience of potential renters, making it easier to have your vehicle rented out using this platform.
- Turo doesn’t charge you to list your vehicle on the platform
- The registration and listing process is quite straightforward and simple. Therefore, you can rent out your car simply, quickly, and easily.
- You get to coordinate where and when you meet up with the renter to drop off/pick up your vehicle, which allows for increased flexibility and convenience.
Cons
- There will be a lot of wear and tear on the car
- Though it is not common for cars rented on Turo to incur damage or be crashed, this is still a possibility. The risk of having your vehicle damaged is significantly higher than if you were the only one driving your car.
2. HyreCar
HyreCar is a peer-to-peer automobile renting service that is specifically targeted at drivers who drive for other ride-share platforms. This includes platforms like Uber and Lyft. As a car owner, you list your vehicle on HyreCar, and prospective rideshare drivers who don’t have access to their own vehicles rent it out.
Pros
- HyreCar has a very quick and easy registration and account setup process. With HyreCar you can have your car listed within minutes and start making money almost immediately with little hassle.
- You have the freedom to set your own prices and commission rates.
- HyreCar offers custom protection plans so you can control the level of coverage and risk for your vehicle.
- There are no fees involved with using HyreCar.
Cons
- A major complaint about HyreCar is its poor customer support. It is often difficult to speak to a real person when calling their support line. Of course, your mileage may vary with customer support, but be aware that this has been a popular complaint against the company.
- Because HyreCar is geared towards those who make a living off of driving around, there will naturally be a significant amount of miles added to your car. This will lead to increased maintenance work and more wear and tear on the vehicle.
3. TravelCar
TravelCar is an innovative business that allows users to make money by renting out their cars while traveling. How this works is that users drive themselves to the airport prior to their departure and leaves their cars in a designated parking spot.
Then, other travelers who have landed in your country can rent your car during a period of time that it would otherwise have just sat idle in the lot. In other words, instead of paying the airport to park your car while you travel, TravelCar users can make money by renting their car out.
Pros
- Park at the airport for free instead of spending money to have your car sit idle.
- Earn extra money by renting your car to other TravelCar users.
- Save on any car rentals in your travel destination by renting from a fellow TravelCar user who has left their car for you.
- TravelCar operates in 62 countries so you’ll be able to access TravelCar services in most countries you want to travel to.
- TravelCar offers comprehensive insurance so you can travel worry-free.
Cons
- There is risk involved whenever you’re handing your property over to someone else. This risk of damage exists with TravelCar too.
- As mentioned earlier, because other people will likely be using your car, your vehicle will face increased wear and tear. Generally speaking though, the longer you leave your car, the more risk it is at. This is especially true if you leave it for more than 30 days as TravelCar is incentivized at that point to make the most of the flat fee they pay for month-long rentals by renting your car as much as possible.
4. Avail Car Sharing
Avail is a peer-to-peer car-sharing platform that allows users to rent out their vehicles to other users. They offer 2 options for car owners: (1) short-term listers, and (2) long-term listers. If you decide to list your car short-term, your income depends on factors like how often your car is rented out. If you decide to list your car long-term, you can register with Avail Plus and are guaranteed to earn at least $300 per month.
Pros
- You stand to make between $20 and $25 per day, depending on whether you have a mid-sized car, a van, or an SUV.
- The Avail for Airports program grants users free long-term parking as well as a complimentary car wash, even if your car isn’t rented out during that time.
- Allstate Insurance is included when you rent your car through Avail.
- Avail provides solid 24/7 customer support for all users, whether you’re renting your car out or renting someone else’s car.
Cons
- Avail has limitations on the types of cars they accept. Your car can’t be older than 2011, have more than 125,000 miles on it, or have maintenance issues.
- There are no additional charges for renters under 25, which despite being good for renters, may increase the risk for owners.
Conclusion
If you have a car just sitting idle at home consider joining the car-share industry and renting your vehicle to others. Car-sharing platforms like Turo, HyreCar, TravelCar, and Avail Car Sharing are more popular than ever before and provide an avenue for the entrepreneurial-minded to take advantage of evolving consumer tastes and demand.
So, whether you’re an everyday joe or a sports car aficionado, consider renting out your car as a convenient, efficient, and profitable side-hustle that increases your earning potential while keeping you in control.
