Money
How to make extra cash from your car (no Uber driving necessary!)
Forget being an Uber driver, there’s another fantastic way to make extra cash from the four-wheels sitting idle in your driveaway. The best part? No driving required.
By Caroline Tate
Have you ever looked at your car sitting in the garage and wished it could be of more use (without you having to spend your nights and weekends driving strangers around town)? Good news: you can put your car to work and help the planet and your neighbours while you’re at it.
Car sharing allows you to rent your car out in your local area, meaning people can use your car for an hour, a day, or a weekend when they need it. It's like giving your car its own side hustle.
This means fewer cars on the road, which is better for the planet. And it also means a bit of extra cash in your pocket – all without breaking a sweat.
It’s not just your car: 6 more things people will pay to hire from you.
What is car sharing?
Car sharing is a type of car rental that cuts out the rental company and allows people to rent their cars directly to other people – usually using a car sharing app or digital platform.
Prices to rent a car this way are usually lower than they are from a traditional car rental company, and it can be a great way to make money from your car if there are regular times in your week where you don’t use it.
Car sharing is still a relatively new service, so the industry is still in its infancy, but it is an increasingly popular way to reduce the number of cars on the road, make extra money, and in some cases, offset tax.
How does car sharing work?
It’s easy to get started sharing your car, and it can all be done from an app on your phone.
All you need to do is register your vehicle with a car sharing service.
You’ll need to answer some questions about your car, upload some photos (make sure you have pictures of selling points like a large boot, reverse camera, or screens for the kids), and nominate times the car is available.
Then, when someone in your neighbourhood asks to rent your car via the app, you make money. Not only can this be a nice little earner, it can also offset expenses associated with car ownership, such as your registration, car insurance, and depreciation.
What sort of cars can be rented out?
In order to offer your car for sharing, you’ll need to have a safe car that is in good condition.
Most services will also require it to be comfortable to drive, available for a reasonable amount of time on a regular basis, registered with compulsory third party insurance, and made after 2000.
You’ll most likely also need to prove you don’t have a criminal history or bad credit history.
Where can I share my car?
Car sharing works best in big cities because there is more demand in a smaller area, and more people don’t own a car. There’s a range of services available in Australia, where you can register your car. These are the most popular ones:
Check out each service and see which one appeals to you.
Not all operate Australia-wide, and there are different processes for things like how to hand over the keys to each driver, minimum rental times, and the rates you’ll be paid.
Is car sharing safe?
Each car sharing service has a different level of security, but all of the major services require a driver's licence and identification.
Some also do criminal checks and don’t allow provisional drivers to use the service.
Most car sharing services provide insurance that covers customers driving your car, so if there is an accident, the platform you’re using should cover the costs – but do check this when you’re choosing a service.
How much money can I make?
The amount of money you can make from sharing your car really depends on you. Some platforms allow you to set your own rates, while others charge per day or per kilometre.
If you do get to choose your own rate, be sure to compare your car to others in the area to ensure you stay competitive.
And if demand is low, adjust your prices and see if that makes a difference.
You can also increase the likelihood of attracting repeat customers by keeping your car clean, and stocking it with items people might appreciate, like phone chargers and tissues.
Offering your car for entire weekends is another way to increase your chances of making decent money, because that’s when many people like to get away for days at a time.
Advice given in this article is general in nature and does not take into account your personal circumstances. It is not intended to influence readers' decisions about investing or financial products. They should always seek their own professional advice that takes into account their own personal circumstances before making any financial decisions.
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