5 Ways to Make Money Renting Out Your Car

If you’ve got a spare car sitting around idle, wouldn’t it be nice to put it to work earning passive income? There are a handful of services where you can make money by renting out your car. Just as you can rent a room or your home through Airbnb, you can do the same with your car.

According to AAA, the annual average cost to own a car is now $10,728. Letting your vehicle be used for car rentals can help you offset the expense. There are several options for renting out your car. Getting started is not difficult, and in most cases, you can list your car in less than an hour.

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How To Rent Out Your Car

Each car-sharing service below is an online marketplace for renting out your car. You can choose one based on your personal preferences, program availability in your area, and the payout amount. Then, you can make cash by renting out your car.

1. Hyrecar

HyreCar specifically caters to rideshare and delivery drivers. This means that Uber and Lyft drivers would rent and use your vehicle to drive around passengers.

According to HyreCar’s website, the average car owner makes $14,000 per year renting out their vehicle through HyreCar. This can be a nice chunk of change to earn for letting other people use your car when you’re not driving it.

Setting up a listing on this car-sharing site is free and easy. You’ll need to describe your car and then upload some photos, vehicle registration, and inspection documents. You’ll get notified when someone requests to rent your vehicle via car sharing.

Try to confirm a request quickly because it will expire after 24 hours. After approving the request, verify the accuracy of all documents for your car. Insurance is generated 24 hours before pickup unless requested otherwise.

Learn More: Hyrecar Review

2. Turo

When renting out your personal vehicle, Turo is one of the best-known options. It lets car owners rent their cars for money, so much so that it’s touted as the Airbnb for cars. Turo is available in many U.S. cities and select Canadian provinces.

Listing your car is free, and the process is pretty simple on this car-sharing site. Just describe your vehicle and upload clean photos; you’re ready to start. You can use the calendar option to select when your vehicle is available to rent and block out days and times that don’t work for you.

You’ll be notified when someone requests or books your car. Then, you can coordinate when and where to meet your guests. To list your car on Turo, it must have fewer than 130,000 miles, a clean title, a fair market value of no more than $150,000, and have never been declared a total loss.

Learn more: Turo Review: Is This Car Rental Option Legit?

3. Getaround

According to Getaround’s website, car owners make thousands of dollars per year in passive income through this car-sharing platform. You can earn more than $800 per month renting your car through Getaround.

This means you could make more than $9,600 per year in extra income, Which is enough to cover your car payments and then some. As a Getaround host, you receive a $50 monthly driving credit to rent a car through the site.

When renting your car out with Getaround, you carry a $1 million primary insurance policy. Coverage includes liability, collision, property damage, uninsured motorist protection, and theft.

Your rental earnings accrue monthly, and you get paid by the 15th of the following month. You’ll get 60% of your earnings from renting out your car. Getaround keeps a 40% commission to cover insurance, roadside assistance, and a 24/7 help desk.

4. TravelCar

Wouldn’t it be great to park your car at the airport while traveling and make money on it? TravelCar has figured out a way to tap into the potential of vehicles parked in airport lots while their owners are out of town.

The Paris-based car-sharing service rents out your vehicle to other travelers while you’re away. In exchange, you’ll get free parking and earn money for every mile driven on your car, up to $100.

When renting your car out through this car-sharing platform, you’ll get $1 million in liability insurance and coverage against theft and physical damage. Even if your car doesn’t get rented, you still get free parking for up to seven days.

Customers who rent a car through TravelCar pay up to 70% less than the cost of renting from a traditional car rental agency, so there’s a good incentive for them to rent your car.

5. Avail

Avail is one of the best car-sharing companies. It allows you to rent out your car when you’re traveling. When you park your vehicle in the Avail parking lot, other travelers can rent it out.

Mid-sized, standard-sized, and van owners will earn $20 per day in extra income, while large SUV owners will earn $25 per day.

Renters will refuel your car before it’s dropped off. Your vehicle is covered for up to $1 million in Allstate auto insurance and roadside assistance.

Travelers who borrow your car can drive only 150 miles per day and must pay extra for any mileage over that amount.

To be eligible to use Avail, your car must be under ten years old, have less than 125,000 miles, and be in good working condition. As long as you meet these requirements, you can make money renting out your car.

How Much Can You Make Renting Your Car?

How much you make renting out your car largely depends on where you live and the demand for your specific type of vehicle. For example, you’ll get paid differently for renting out an SUV than for a compact car.

The service you use to rent out your car will also affect your earnings. For instance, you’ll earn between 65% and 85% of the trip price with Turo. So, if you list your vehicle online for $50 per day, you’ll get between $32.50 and $42.50.

Turo offers a carculator to help you estimate how much you can rent out your specific car and model. As mentioned, HyreCar estimates that the average car owner makes $14,000 per year.

What About the Risks?

Renting out your car to strangers may understandably make you nervous. It’s bad enough when your friend or child wants to borrow your wheels.

Rental car companies understand people’s hesitation in handing over their keys. That’s why they offer significant insurance policies for their rental cars and why it tends to cost more money if you opt for them when you travel.

Renters are responsible for covering the policy’s price, often more than $500,000, before getting behind the wheel. If the car gets damaged, the renter pays a deductible, and the rental car company works to fix the vehicle. In most cases, the rental company will protect you and your car.

For example, Turo offers three vehicle protection plans for hosts: “Premium,” “Standard,” and “Basic.” All three plans provide up to $1 million in liability protection but differ in how they cover things like exterior wear and tear.

Insurance Required

The level of protection you select for your vehicle affects what percentage you’ll receive as a payout for renting out your car.

If you decline Turo’s protection plan, you must provide commercial insurance coverage verified by Turo before listing your vehicle on their site.

Are you concerned about renters who smoke in your car or leave it dirty? Fear not. The rental service charges a fee to have your car cleaned and detailed. This means you won’t have to shell out more money.

Things to Consider Before Renting Out Your Car

Now that you have some basic information about renting your vehicle, let’s look at factors you should consider. Each car rental service is different, with different customer bases and rules. Some also charge higher fees than others.

Read the fine print before you list your car with any of these online marketplaces, so there are no surprises. Also, ensure you’re comfortable with the company’s car insurance coverage.

It’s good to familiarize yourself with the coverage you receive when renting your car online. Look at what qualifies as a covered peril during the reservation period and the requirements for the renter to be responsible for the damage.

In many cases, you’ll need to provide clear photo documentation within 24 hours of the end of the trip. You’ll want to be able to demonstrate that the damage occurred during the trip. Before renting out your car, make sure you have up-to-date photos of its exterior and interior on file.

Documentation can help showcase neglect or damage from the renter if you get your car back in less-than-stellar condition. Taking before-and-after photos is the fastest way to resolve your case and have your vehicle repaired.

Summary

Renting out your car online is similar to renting out your home. If your vehicle is not being used much, renting it out to a third-party service such as Turo can mean extra money in your pocket.

If you’re uncomfortable renting out your car regularly, you could get paid to drive your car. This route is less hands-off but still a great way to make money renting out your car.

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