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.
Why You Should Rent Out Your Car
Why should you check out a sharing economy service? If you are wondering why you should rent out your car, we have a couple of reasons below. Let’s get to them!
You can make good money renting out your car. The extra money comes without you having to exert a lot of energy because you will be making your car work for you. In most cases, you need to have a rental car that is in good working condition, list it up, and fill the paperwork, and you are good to go. Some companies even make a direct deposit of your earnings straight to your account.
There is certainly a need for the extra cash you get when you rent your car. On their own, cars require maintenance. It isn’t uncommon to have cars breaking down for no reason whatsoever. Renting out your car provides you with the extra income to tackle this sort of challenge.
Of course, you could be worried about damages to your car. Most rental companies offer you insurance coverage. This handles any unforeseen challenges when you rent out your car.
Apart from the possibility of making money by renting out your car, there is also the reliability of using a car rental company. There is a reason rideshare drivers rarely go out of work. It is because a lot more people are interested in using such services. Thus, you can expect that there will always be a ready market whenever you want to rent out your car.
More so, if you travel frequently, you could find using carsharing/rental services indispensable. Instead of having your car languishing at the airport and having to pay parking ticket fees upon your return, you could just rent the car out.
Keeps Your Car in Use
Finally, renting out your car is one way to constantly keep it in use. Leaving your vehicle for long periods at a time without warming it up can lead to its breakdown. Thus, if you cannot, you can have others keep your car warmed up at all times. As you know, you get to make some extra income along the way too. Hence, even if the car suffers some wear, your insurance policy can cover it. Even if it doesn’t, you can pay for the repairs yourself.
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.
Consider Your Vehicle
There is no doubt that it is possible to make money renting out your car using a rental agency. However, you do not want to suffer a loss when doing so. Hence, only rent out a spare car or one you won’t mourn for long if it gets damaged. Property damage is a real possibility that the average car owner has to deal with. However, the possibility of that happening increases when you rent out your car. Hence, be sure you can live with your car getting damaged.
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, unless 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.
Check Out the Insurance Coverage
On the note of security, the insurance policy the rental company offers is very important. Most companies have insurance coverage of some sort. However, some, like Turo, will need you to have personal insurance upfront. Others have liability insurance that covers certain mishaps without covering others.
The insurance company offering the coverage is also important. It is crucial to confirm that the insurance company has a reputation for paying insurance claims. You do not want to spend years litigating an insurance claim.
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 the perfect company to use if you are either renting out your car or looking to work as a driver for a ridesharing company. HyreCar works with delivery companies to arrange to pick up goods for clients. The company also works with traditional ridesharing services like Uber and Lyft.
If you want to rent out your car to drivers, you have to list the proposed rental car on the platform. The rental vehicle must be in good working condition. You will have to provide high-quality photos of the car when listing it. Other supporting documents include vehicle registration papers, insurance, and Uber documents. The vehicle requirements could vary, depending on your specific location.
Vehicle owners get to decide how much they want to charge drivers for using their cars. If you list your car, you can also decide to give discounts also. However, users reportedly make as much as $12 000 using HyreCar.
Drivers also have to sign up and book cars. In addition, drivers have to undergo a background check. Similarly, you will be charged a non-refundable fee of $200 if you use a debit card to pay for the services. Hyrecare charges a transaction and insurance fee for drivers looking to use its platform.
HyreCar offers different protection plans to clients. The basic plan, which is the lowest, gives you access to $25 000 when there is any physical damage to your car. You have to arrange to pick up and drop off the car yourself.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
TravelCar is a French car renting service that has a presence in 5 continents at the moment. It operates the same model as Avail. Thus, you get to rent out your car while traveling. Inside of using the parking space at the airport and having to pay for a parking ticket, you could instead rent out your car and make money from it. This is a win-win for both you and the driver who gets to pick up your car.
TravelCar could also find you a parking lot to park your car if you are not interested in renting out your car. Any parking lot that it finds for you will come with a protection plan. The platform has 500 000 parking spots and in 62 countries.Click Here To Get Started
Avail is another carsharing service that travelers can use. However, it is currently available only in select cities in the United States.
Instead of leaving your vehicle parked at the airport and racking up parking tickets, you could rent out your car to uber drivers and earn money while at it. This is the sort of service Avail offers. The vehicle requirements are the standard you will find on other car rental companies.
One of the best things about using Avail is that you are entitled to Allstate insurance. Similarly, you can make as much as $20 per day renting out your car on Avail. It could get as high as $25 for SUVs. In addition, there are no hidden charges when you come to drop off your vehicle. More so, the platform does not charge fees to drivers under 25 years.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.Click Here To Get Started
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.