Do you have an old car that’s collecting dust in the garage? Maybe your kid left their vehicle at your house while they’re away at college. Maybe you like to keep an extra vehicle at your vacation home. In any case, renting out your car might help you make a little extra income on the side.
When you have an asset like a functional vehicle, you want to make the most of its value. A car does no good for you if it’s just sitting in storage without being used. You might as well put it to work so you can make some extra cash!
Renting Out Your Car
The best part is that renting out your car comes with minimal extra effort on your part. You can have the extra income flowing in without having to work a bunch of extra hours.
Does this deal sound too good to be true? Find out how you can make your money work FOR you by renting out vehicles.
There are private car rental companies that function similarly to Airbnb. When you’re an Airbnb host, you rent out your home to travelers looking for a little extra space or a better deal on a room. However, instead of a house, you’d just be renting out your vehicle.
Just like an Airbnb, clients would book your car through a rental service’s website. They send a request that you then approve of.
The process is pretty hands-off as well. Some sites allow you to drop your car off at a nearby airport, and the company takes care of the rest of the labor. Regardless of the company you use, you get a percentage of the commission that customers pay for driving your car.
After reading all of this information, you’re probably thinking of one thing- car insurance. Lending out your car puts it at risk for accidents, damage, and everyday wear and tear. How do you know your car is safe to rent out?
Drivers that use a rental service have to go through a background check to use any of the available vehicles. In case something goes wrong, every site also has a card on file that can cover damages.
You can typically purchase a protection plan through the car-sharing company that you use. That way you can rest easy knowing that you’re always prepared for the worst-case scenario.
Every car rental company charges a different rate, and higher quality vehicles tend to bring in a higher profit. However, there are some average figures that could give you insight on how much you’d be making if you rent out your car.
For example, Hyrecar claims that the average person who lists their car makes about $720 every month from renting. This adds up over time, giving you a bigger cushion of income over time.
Multiplying Your Money
If you really get invested in the car rental business, you can increase your potential profit margins by renting out multiple vehicles. Many car owners use the money they make from another rented car to pay for an additional vehicle.
By having two vehicles available, you can potentially double your income. Multiplying your money in the future starts with investing your profit back into your business.