When most people think about ways to make money from their cars, they think about ride-sharing services like Uber and Lyft. While these platforms can be lucrative, you can also make passive income by renting your car out to other drivers.
You can make an average of $10,516 in annual income by renting out your car, according to Turo. That’s more than double what the average American spends on car ownership, which is $400 per month or $4800 per year, leaving you with a profit. So, in general, yes — you can make money from renting your car.
From my personal experience with Turo, the average annual income estimate appears to be accurate. I was pulling in around $800 to $1,000 each month when I first started on Turo.
However, there are a few different ways to rent out your car, and each has its own set of pros and cons. In this article, we’ll outline the different ways you can make money from your car.
What is peer-to-peer car sharing?
Car sharing works by connecting car owners with people who need a car. It allows you to rent out your cars for short periods of time, usually by the hour or day. You sign up with a car sharing service, like HyreCar or Turo, and then people can request to rent your car when they need it.
These car sharing platforms allow you to rent out your car to other people on their marketplace similar to Airbnb, but for cars.
The benefit of car sharing is that you can make money from your car without having to drive it yourself. You can set your own rates and schedule, so you can be as flexible or as strict as you want.
The downside of car sharing is that you have to give up control of your car to someone else. You’ll have to be comfortable with the idea of strangers driving your car.
However, car sharing is gaining more popularity as people become more environmentally conscious, and more people than ever are working from home.
If you’re interested in renting out your car, I recommend HyreCar or Turo. It’s the leading car sharing platform, which I’ve personally used and had a great experience with.
How can you rent your car?
The most popular platforms to rent your car are Turo and HyreCar. Turo is a platform that allows you to rent your car to other drivers, and it’s available in more than 7,500 cities across the US, Canada, and the UK.
HyreCar is similar to Turo, but it’s focused specifically on ridesharing drivers who need a car to drive for Uber, Lyft, or other platforms.
You can also rent out your car through companies like Getaround and Avail. All of these companies focus on short-term rentals, so you can rent out your car by the hour or day. You typically won’t need to commit to a long-term rental unless you want to.
Here are the basic steps to get started renting out your car.
- Create an account. The first step is to sign up for a car sharing platform and create an account. You’ll need to provide some personal information, like your name, email, and phone number.
- Photograph and list your car. Next, you’ll need to add your car to the platform. You’ll need to provide some information about your car, like the make, model, and year. You’ll also need to upload some photos of your car.
- Set your rates. Once your car is added to the platform, you’ll need to set your rates. You can charge by the hour or day, and you can also set a minimum rental period.
- Set your schedule. Then, you’ll need to choose when you want to make your car available for rental. You can set specific dates and times, or you can make your car available for rental all the time.
- Get customers. Finally, you’ll need to wait for someone to request to rent your car. Once someone requests to rent your car, you’ll need to confirm the rental and meet them to hand over the keys.
How much can you make renting your car?
The amount of money you can make renting your car depends on a few factors, like the make and model of your car, where you live, and how often you rent it out.
In general, you can expect to make $30 to $80 per day renting your car. If you rent out your car for five days per week, you can expect to make $150 to $400 per week, or $600 to $1600 per month.
Of course, your mileage may vary, and you may make more or less depending on these factors.
However, the amount of money you can make per month on a car sharing platform can typically help you cover the cost of your car payment, insurance, and gas.
In most cases, you will make a profit from renting out your car, making it a lucrative endeavor for many people.
What are the pros and cons of renting your car?
There are a few things to consider before you decide to rent out your car. Here is a list of pros and cons to think about.
Pros
- Make money from your car without having to drive it yourself.
- Set your own rates and schedule, so you can be as flexible or as strict as you want.
- Cover the cost of your car payment, insurance, and gas
- Make a profit from a car you already own and perhaps sparsely use
Cons
- Give up control of your car to someone else
- Risk the potential of your car being damaged or returned dirty
- Worry about liability if something happens while someone is driving your car
Bottom Line
So, is renting your car worth it? Ultimately, the decision comes down to you. If you’re comfortable with strangers driving your car and you’re looking to make some extra money, then renting your car could be a profitable option.
However, if you’re not comfortable with the idea of giving up control of your car, then you might want to reconsider.
No matter what you decide, renting your car is a great way to turn your car into an asset that generates income semi-passively.
