If you have a car or two spending a lot of time sitting idle in your garage, you can learn how to rent out your car and put your vehicles to work for you.
We’ve already discussed how pickup trucks can be used for side gigs, so the idea that you can rent your car to someone (even a stranger you haven’t met) is possible is quite interesting. How safe can these types of transactions be?
Is there a “Rent Your Car app” you can use to find people to rent your car?
Read up to learn how to reduce your risks and maximize your profits once you decide to rent your car to someone…
This video will show you the simplest and fastest way to make money online today. Watch it for free right now.
How to Rent Out Your Car: Turo vs. Hyrecar vs. GetAround
With many apps popping out as the go-between of the service provider and client, companies like Turo have found a business idea that involves an app for easy access, and a car rental concept now called “car sharing marketplace.”
If you’re interested in how to rent out your car, here are your 3 options:
Founded in San Francisco in 2009 as RelayRides, the company went national in 2012 and re-branded as “Turo” in 2015.
Turo is the most popular car-sharing marketplace out there today.
It’s been dubbed as the AirBnb of cars, because Turo doesn’t own or maintain any cars (much like AirBnb doesn’t own any properties being rented out on the site).
Reasons to Choose Turo:
- They’re the most popular company of its kind
- Operates in 30 major cities including Atlanta, Miami, Boston, San Diego, Chicago, San Francisco, Denver, Seattle, Honolulu, Washington, D.C., Houston, New Orleans, Los Angeles and Raleigh, North Carolina.
- Available in the UK and Canada ( Alberta, Ontario, and Quebec)
- Website has a lot of information
- $1 million in liability insurance (You have to dig deeper into the ins and outs of Turo insurance. Each location has different policies.
Reasons to Skip Turo:
- Since July 2019, Turo changed policies that prevented hosts from sharing their car on any other car-sharing service. So you either go with Turo exclusively, or not.
- Does not operate in New York
How to Rent Out Your Car on Turo
- Download the app, or open an account on the Turo website.
- Check if your car qualifies:130,000 miles or less, clean title, and with fair market value of up to $150,000
- List your car, adding photos and all the necessary information about your vehicle.
- Fill in a calendar (when is the car available? where will can it be picked up?)
- Set price and some rules (max daily mileage, etc.)
- Wait for someone to book your car. As host, you have control over accepting or declining the booking request.
- Contact the client if you have inquiries about the booking.
- When you accept the booking, you’ll have to set meeting details (where/when you’ll meet)
- During meeting time, the traveler will check car for issues, while host checks driver’s license, and discuss about rules and dropoff details.
- Once the car is given back to you without issues, Turo pays you after 5 days via direct deposit.
How Much Can You Make Renting Your Car with Turo?
Turo takes 10 to 35 percent of rental income, so you’ll earn 65% to 85% of the trip price.
However, the total price with depend largely on the insurance coverage you choose.
For example, if you have commercial rental insurance and you’d like to skip the vehicle protection plans offered by Turo, Turo lowers its commissions and allows you to earn up to 90% of the trip price.
Hyrecar is similar to Turo, but focused in people who want to rent a car that they can use to drive for Uber, Lyft, Postmates, Grubhub, or any rideshare/delivery service in hopes of earning money in the on-demand industry.
Because of this, the cars that they allow to become “hosts” are often newer models and have passed the qualifications of Uber, Lyft and the like.
Reasons to Choose HyreCar:
- If you want to rent out your car for longer periods
- If you’re OK with the client using it to earn money driving for Uber, Postmates, or other similar services
- If you prefer to list your car on other car-sharing marketplace
- Gets $200 deposit from the renter
- HyreCar has partnered with Y-Risk, a brand of The Hartford for its multi-faceted liability insurance program
Reasons to Skip HyreCar:
- If you’re worried about extending the life of your car. Another driver will be responsible for it when you rent it out, so you don’t have control over this at all.
- Uses Zendesk as customer support (which means you only get answers via e-mail)
How to Rent Out Your Car on HyreCar
- Sign up and create a free listing.
- Post details about your car and upload photos, registration, inspection papers from Uber or Lyft
- Wait for a driver to apply to your listing. (Applications expire within 24 hours, so answer asap)
- When you approve an application, check driver documents and insurance documents.
- Hand off the keys to the driver, while verifying license and stating mileage/fuel parameters.
- Wait for HyreCar to pay you.
- Get your car back from the driver, double-checking car condition
- Repeat from Step 3
How Much Can You Make Renting Your Car with HyreCar?
HyreCar explains that car owners can obtain a steady source of passive income resulting from a re-booking process.
According to HyreCar’s website, the average car owner makes $10,000 to 15,000 per year renting out their vehicle through the site, but the real amount is usually lower than what HyreCar is making us believe.
Car owners get a weekly rental payment, but a 15% HyreCar fee is subtracted from the total.
Founded in 2009, San Francisco-based GetAround is another peer-to-peer car-sharing company that empowers people to rent and drive cars hassle-free directly from other people who are listing their cars for rent locally.
What makes GetAround different from Turo and HyreCar is that the company has developed its own technology to support the service.
The Getaround Connect™ allows renters to find, rent and unlock cars right from their phone, which means owners do not need to meet with renters personally anymore.
And this free video will show you exactly everything you need to do to get started. Click here to watch it now.
However, the problem with technological advancements is that this comes at a price.
- GetAround charges $99 installation fee for GetAround Connect
- Although you do get a free 30-day trial, once up, you’d have to shoulder $20/month in subscription fees to continue using GetAround Connect
Reasons to Choose GetAround:
- Better insurance ($1 million insurance policy for the duration of the trip, including comprehensive, collision, and liability coverage)
- No need to meetup with drivers
- Impressive GetAround Connect technology
Reasons to Skip GetAround:
- Monthly subscription fee
How to Rent Out Your Car on GetAround
Renting out your car via GetAround is the same as Turo and HyreCar, except the part where you meet with the driver for pick-up and drop-off.
The cool thing about GetAround is that renters pick up your car in a pre-determined spot and then put it back there once done with the rental.
How Much Can You Make Renting Your Car with GetAround?
GetAround claims that some owners make up to $10,000 per year (that’s around $800 a month), which isn’t too realistic. Unless your car is being rented out several hours daily, 365 days of the year, which is highly unlikely.
Car rental fees are around $6 to $10/hour. From this amount, GetAround keeps 40%, and you (the car owner) takes home 60% of the rental rate, which is paid once a month via PayPal or check.
Note that the commission may seem high, but GetAround already included full insurance and roadside assistance with every rental.
How to Rent Out Your Car Long-Term
There will be risks when you rent our your car to strangers, but these risks can outweigh your earning depending on the insurance plan you have (and choose to pay for as part of the peer-to-peer car-sharing company’s insurance options).
A major benefit of listing your car to services like this is you also get a tax deduction of about $0.50 per mile (this amount changes per year, so you better doublecheck).
If you decide to go with either HyreCar or GetAround, drivers who would use it for Uber or Lyft could drive from 100 to 1000 miles weekly.
Add it up and it could reach up to $20k in annual tax write-offs.
Plus, renting out your once-idle car can become another passive income stream that could diversify your cash portfolio.
As for the future of car-sharing companies, it’s safe to say that they can survive until the need is there.
Turo has major followers since they’re the most popular, HyreCar has better partners, while GetAround seems to be juggling acquiring other startups to expand their network.
While you’re here, check out these 5 other ways you can make money with your car.