How To Rent Out Your Car To Make Money in 2024.
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Did you know that you can make up to £5000 per month by renting your car? If you own a vehicle that rarely leaves your driveway, you could be sat on an excellent passive income opportunity! In this article, we walk you through how to rent out your car in 2024 so that you can start making extra money today. Learn how to rent your car on the best online car rental sites.
Best Places to Rent Your Car
Before delving into the process of renting our your car for cash, it is important to find the best car rental company. Here is a comprehensive list of the best places to rent your car in the UK 2024.
It is also possible to hire out your car through Facebook groups in your local area. However, this method isn’t protected or insured. It is always wise to go through a trusted company that will protect your car throughout the process.
Also read: How to make money from your car in 2024
How to Use Karshare To Rent Your Car
Karshare is one of the most popular car rental companies that allows you to easily rent out your car to people in your local area. The website claims that renters can earn over £650 per month with their car rental service. To start, your vehicle must be under 13 years old, have driven less than 100,000 miles and be roadworthy. If your vehicle meets these Karhsare requirements, you could start making extra money every month.
To start, head to the Karshare website and select ‘share your car’. Here, you will redirected to a page with tons of information about the car sharing process- it is a good idea to read through everything before you begin.
Once you have read through the information provided, click ‘get started’.
You will now need to fill in some information that will prove the eligibility of your vehicle, your parking address and your personal details. The last step is to send Karshare your spare key so that the rental process can begin!
During he rental process, Karshare will fit a telematics device to your vehicle that will monitor renters behaviour. This is done to ensure that your vehicle is driven safely. Karhsare also ensures that your car is kept clean and returned to you in great condition.
It is possible to choose the days that you rent out your car. For example, you could choose to only rent it out at the weekends and then use it yourself during the week.
How To Rent Your Car With Turo
Another good company to hire out your car with is Turo. Turo is one of the world’s biggest car rental marketplaces that has helped millions of vehicle owners to make extra cash.
To begin, head over to the Turo website and sign up for an account. Creating an account is a straightforward process and will enable you to list your car for rental. Once you've created your account, you'll need to provide some essential details about your vehicle, such as its make, model, year, and mileage. It's crucial to accurately describe your car's condition to ensure that potential renters have the right expectations.
Additionally, you'll have the opportunity to set the rental price and availability of your vehicle. Turo provides guidance on pricing based on factors such as market value, location, and demand. It's recommended to research similar vehicles in your area to get a sense of the prevailing rental rates. Keep in mind that setting competitive prices can attract more renters and increase your monthly earnings.
Turo offers a range of protection plans to give you peace of mind while renting out your car. You can choose from different coverage options to suit your preferences and level of risk tolerance. Turo's protection plans provide liability insurance, physical damage coverage, and 24/7 roadside assistance. These safeguards are designed to protect your vehicle and ensure a smooth rental experience for both you and the renter.
Once your car is listed on Turo, potential renters can browse through the available vehicles and make bookings directly through the platform. Turo also provides you with the option to screen renters by setting requirements such as minimum age and driving history. This allows you to have greater control over who rents your car.
During the rental period, Turo offers a dynamic pricing feature that adjusts your daily rental rate based on market demand. This can help you optimize your earnings and attract more renters, especially during peak seasons or high-demand periods. Turo also provides 24/7 customer support for both owners and renters, ensuring a reliable and efficient rental experience.
How To Rent Your Car With Hiyacar
Hiyacar is another great option to rent your car out in the UK. The platform allows people to rent by the hour which means that you can be very precise about when your car is rented. For example, you could choose to only rent out your car in the mornings or evenings. Hiyacar is known for its low prices which means that you may not earn as much as your would through the other platforms however, this does make it easier to find a renter.
You can list your car on Hiyacar in minutes. Simply create an account, provide information about your vehicle and choose when you are able to rent it out. Due to the low prices, Hiyacar are less picky about the age, milage and model of your vehicle.
After providing all of the necessary information, you will be able to list your car straight away. Like most car rental sites, Hiyacar ensures that your vehicle is protected during the rental period. The company also uses keyless technology to make the process of sharing your car seamless. It is also possible to stay in control of your car through GPS technology and a remote locking system.
Sharers are paid at the end of every rental period. This makes renting your car a great way to generate regular income each week. Car sharers can earn up to £650 per month with Hiyacar.
How To Make Money Renting Out Your Car
It is very easy to make passive income by renting out your unused car. The best way to start is by visiting a verified car rental site (like the ones listed above) and signing up. Each platform will offer different pricing strategies, rental periods and vehicle requirements so it is good to shop around before settling on one.
Once you have listed your vehicle on a car renting website, simply sit back and wait for people to start renting out your car. It can take a few days for your car to get chosen. Once you have received a few good reviews from renters, the chances of attracting renters will increase. Depending on the platform that you choose to use, you will receive payments weekly or monthly.
In general, newer and more expensive cars can be rented for a higher price. However, this doesn’t mean that low value vehicle owners cant make a good income with car renting. As a minimum, you may make an extra £100 each month which could help to pay bills or go towards your savings.
Also read: Best online side hustles for students
Useful Things to Know Before Renting Your Car in 2024
While renting your car is a great passive income side hustle, it is important to understand the potential risks that come with hiring out your car to others. Here are a few to think about.
Expensive Car Insurance
Renting out your car means you'll need appropriate insurance coverage. Standard personal auto insurance policies may not adequately protect you during the rental period. It's important to consult with your insurance provider to understand the coverage options available and any additional costs involved. Some car rental platforms, like Turo, offer insurance coverage options for added protection, but it's essential to review the terms and conditions carefully.
Car Theft and Damage
When your car is in someone else's possession, there's always a risk of theft or damage. While rental platforms usually have insurance coverage in place, it's vital to understand the terms and limitations. Take clear and detailed photos of your car before each rental to document its condition. Additionally, consider installing a GPS tracking system or anti-theft devices to help mitigate the risk of theft.
Wear and Tear
Renting your car can lead to increased wear and tear due to frequent use by different drivers. Regular maintenance and servicing become even more critical to ensure your vehicle remains in good condition. Establish clear guidelines regarding the care and maintenance of your car, such as regular oil changes and tire rotations, to minimize potential issues.
Liability and Accidents
Accidents can happen on the road, and if your car is involved, liability concerns may arise. While rental platforms typically provide liability coverage, it's crucial to understand the extent of the coverage and any deductibles that may apply. Familiarize yourself with the platform's dispute resolution process and ensure you have the necessary documentation, such as maintenance records and rental agreements, in case of any disputes.
Availability and Accessibility
Renting out your car means you may need to adjust your own plans and be flexible with your vehicle's availability. Renters may book your car during times when you would typically use it, which could affect your personal schedule. Consider your own transportation needs and ensure you have alternative options available when your car is rented out.
Local Regulations and Permits
Before renting out your car, familiarize yourself with local regulations and requirements. Some areas may have specific laws regarding short-term rentals or restrictions on certain types of vehicles. Additionally, if you live in a residential area with homeowners' association rules, ensure you comply with any restrictions on renting out your car.
By being aware of these risks and challenges, you can take the necessary steps to mitigate them and ensure a smooth and profitable car rental experience. Before finalizing any agreements, thoroughly review the terms and conditions of the rental platform, consult with your insurance provider, and communicate openly with renters to set clear expectations.
Renting out your car can provide a steady stream of income, but it's crucial to weigh the potential risks against the financial benefits. By understanding these factors and taking proactive measures to protect your car and yourself, you can navigate the rental process with confidence and make the most of this passive income opportunity.
Can You Make a Living From Renting Out Your Car?
It is possible to make a living from renting out your car. However, to replace a full time wage, you may need to rent more than one vehicle or rent out a luxury vehicle.
Car renting is mostly used as supplementary income and could easily bring you an extra £600 per month. While you might not be able to live off this, it is certainly enough to pay for monthly expenses such as food shopping or electricity bills.
If you do choose to rent multiple vehicles and replace your full time job with car renting, you may have to register as a business. It is also worth considering tax if you earn a significant income from car renting.
Also read: How to make money renting out your clothes
Do I pay tax if I rent out my car?
In the UK, you don’t have to pay tax if you earn under £1000 per year from your side hustle. However, if car renting brings in more than this, you will need to pay tax. The amount of tax that you will pay if you rent out your car depends on which tax bracket you fall into.
To pay tax on car rental income, include the amount of money that you make from renting your car in your yearly tax return. This is a self assessment that is used by HMRC to decide how much tax you should pay.
What Is the Average Daily Car Rental Rate in The UK?
The average daily car rental rate per day in the UK is £43 per day. This means that it is possible to make around £300 per week if you rent your car each day. Of course, the daily rental rate will vary between the type of car that is being rented. For example, luxury cars like Porsches cost a lot more to rent than a Ford or a Peugeot. Luxury cars have a rental rate of hundreds per day.
Conclusion
In this article, we have taken a close look at how to make money renting out your car in the UK. This is an excellent side hustle idea for anyone who doesn’t use their car on a day-to-day basis and needs some extra cash. If you already own a vehicle, car renting has zero startup costs which means great profit margins. Furthermore, car renting requires very little effort and so is a good option for busy people who want to earn a side income.
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All of our articles are written to help our readers to learn about different side hustles, how they work and how to start earning money from them. Although we mention potential earnings, it is important to understand that there is no guarantee that you will make money from any of the side hustles that are mentioned on our site. Making money from a side hustle requires consistency and significant effort. While we aim to provide useful insight into each side hustle opportunity, it is down to you to follow the right steps towards making any profits.
About The Author
Ruby is the founder of The Rich Girl Guide and has been writing content around personal finance, side hustles and wellbeing for over 3 years. You can find some of Ruby’s published articles on The Motley Fool UK, Tradingplatforms.com and Buyshares.co.uk.