In the past, car ownership used to be considered a liability. (Private) car owners used to spend a lot to maintain the cars without any commensurate benefit. However, these days, it is possible to do much more than keep your car for private uses. There are two instances where private car owners can make some cash using their cars. The first is through joining a ride-hailing service like Lyft or Uber, and the other is through renting out your car. In this discussion, we will be focusing on the latter option.
The idea behind car renting, also known as car-sharing, is that an owner rents out their car to another for a stated period. You won’t rent your car to just any random renter though, there are usually stipulated processes and guidelines, typically put in place and facilitated by a third-party company. These companies have a team that verifies, regulates, and coordinates the relationship between car owners, renters, and drivers in some cases.
So, wondering how to rent your car out? A cursory search will reveal the many car rental companies existing at the moment. In this guide, we’ll give you a more thorough look at how to rent your car out, as well as some top rental company choices that could get you the most bang for your buck.
How Do Car Rental Services Work?
How do car rental services work in the first place? Basically, it is a straightforward process. When you decide on one car rental company to go with, you carefully peruse their requirements. However, for most of them, you need to include your car in the listing of the company. For the listing to stand out, you may want to take pictures of the car. When renters see your car and want to use it, they reach out to you, and you two decide on the price. It usually is for a one-off trip, except if the car is required for extended use.
These are the general requirements, although some companies have more rules. For instance, some require that you should not have been in a major accident. Also, there could be differences in the stipulation of who fills up the gas in the car and so on.
Before You Rent Your Car: Tips to Know
What essentials should you bear in mind before considering joining a car sharing service? Below are some considerations and tips to take into account before renting out your car.
If you have experience with a venture such as this, it would definitely be a plus. Familiarity with the intricacies will place you in a great position to make calls regarding data to put up on your listing and any other data you may want to share on the platform.
The safety of your vehicle is another consideration to have. In most cases, the company may not be totally responsible for ensuring that your car does not get damaged or stolen. That is, except you get on a protection package from the company. Renters can be unscrupulous, so you have to be more than diligent and security-conscious. Ideally, the company should have screened the renters and drivers beforehand. However, it does not hurt to take some other measures to protect yourself.
Do your best to verify the identity of the renters who want to utilize your car. If an accident happens, insist that the renters report to the company directly. This will aid your claim even with the insurance company. Furthermore, take pictures of the damage to the car. That is one way to get evidence if there will be a need for it in the future. In all, you will have to be more proactive than the company or even the renters. The car is yours, and you have the most to gain or lose in this one area.
Locate a Good Rental Company
Generally, rental companies are many. The requirements for most are not stringent. As long as you are on an insurance plan, have a good auto insurance score (from TransUnion), you are good to go. Do, however, make sure that you are not getting the short end of the stick with any company. The income you get for renting out your car should be competitive. Also, it goes without saying that you should pay more attention to companies in your area.
Before you rent your car, you may want to consider the gains you could make. The end every user looks forward to is the returns they’d make from the business — because it is actually a business. However, how much cash you stand to gain depends on a couple of factors. Firstly, the rental company charges a commission for putting your car up. They also factor in what your insurance provider charges them too. The cost and nature of the liability insurance you are on will determine how much the company will take. Furthermore, the cost of repairing your vehicles may also play a significant role. You must bear all of these in mind, including the potential for loss, too. If you are confident, after these considerations, to forge ahead, then by all means do.
Top Places to Rent Your Car Out
As stated in the introduction, there are several car rental companies to consider. While the general rules you follow to list your car are basically the same, there might be minor differences. Below are some companies worth considering.
Hyrecar is a company worth noting when it comes to renting out your car. Hyrecar allows you to rent out your vehicle to drivers for Uber and Lyft, which can allow you to rent out your car quickly and for longer periods. They aim to make this process easy; they match your car with a verified renter and you simply drop the car off at a desired location for pick up. Most rentals make around $35 dollars per day and Hyrecar collects payment upfront, meaning you can receive your pay in 2-3 business days.Click Here To Get Started
According to the company, Getaround hosts make a lot of money by simply listing their cars on the site. The process is similar to that of the other companies. Thus, Getaround user gets a $1 million insurance policy.
There are some benefits Getaround hosts enjoy by being affiliated with the site. One of them is that the user gets a monthly credit. The Getaround user can use the credit however they want. Furthermore, when you list your car with the rental company, you can take advantage of the different parking spots in different cities around the United States.Click Here To Get Started
This rental company specifically targets those who are looking to travel and leave their cars behind. Instead of leaving your vehicles at the airport indefinitely, you could have guests use your car and also pay you for it. What you get is free parking and some money to boot.Click Here To Get Started
Avail is also another rental company that is perfect for travelers. You park your car in the Avail parking lot and have others book your vehicle. The owner gets paid for their cars, while the user pays a fee to use the car and also refuels the vehicle after use.Click Here To Get Started
Turo is one of the most popular cars renting services in the United States. If you are thinking of going into car sharing or renting, you may want to give them a try. One of the perks of Turo is the fact that it runs its own insurance company. Thus, drivers would not need to get independent insurance coverage, apart from that offered by the Turo Insurance Agency.
Turo’s service is actually quite easy and straightforward. In fact, you would most likely conduct everything on the Turo app. You would need to sign up with your name and personal email address. Turo advises you to confirm your age eligibility for listing your car — there are slight differences across Turo’s countries. Afterward, you can then list your car and set an appropriate price. You get a percentage of each trip price, although that could increase if you decide to jettison Turo’s insurance policy.
Benefits of Renting your Car Out
There are a number of perks you can enjoy renting out your car. We will discuss a couple of the top benefits of renting out your car to others below.
One of the commonest benefits of renting your car is to make money. The different companies have the benchmark of what owners earn working with them. Renters pay for using the service, and ideally, the owners get some cut from this payment. Drivers and car owners might earn as much as $900 each month. That is actually pretty decent by all counts. The great thing with this is that the car owner does not have to do anything beyond putting up their cars on the company’s app. Hence, this is a great venture to consider as a passive income earner or if you have more than one vehicle.
You may be eligible for a tax deduction when you are in the car rental business. This deduction might eventually be substantial, especially when you consider the long-term benefits.
A car sharing service gives you the means to keep your car secure while you travel. Instead of leaving your car at the airport parking lot while on a trip, you can list your car, have people pay to use the car, and ensure your car’s safety the whole time. Some companies use anti-theft technologies on their rental vehicles. Thus, you can rest assured that your vehicle is safe the whole time.
Access to Insurance
Insurance companies do not ideally offer coverage for any risk associated with a car rental service. Thus, if a renter gets involved in an accident, the owner cannot recover compensation from an insurance company. However, rental companies provide for this by offering insurance coverage to car owners and users. The offers differ from one company to the other. Thus, you may want to consider what each company offers before making any commitments.
Furthermore, you may want to do more due diligence beyond even what the company employs. Thus, while engaged in car sharing, do well to ascertain the renter’s identity and credentials making use of your vehicle. Ensure that the person ticks all the boxes. If at any point you feel something is off, you may want to cancel the arrangement.
Conclusion: Renting Your Car
If you have gotten to the end of this article, then it is reasonable to believe that you have all the information you need to go about the process of renting your car. You should expect that there may be slight differences between theory and practice. However, if you follow the directions here diligently, you should be making some big bucks in no time.