Have you ever thought about renting out your car when you’re not using it? This is known as “car sharing” and it has been rapidly growing in popularity over the last few years.
Similar to a traditional car rental company, you can rent out your car to someone as a way to make extra money. If a potential renter needs a vehicle for a few hours, days, or weeks you can easily rent them your car through a car sharing service, like Turo or HyreCar.
In this article, we’ll go over what car sharing is, how it works, and who can benefit from it. We’ll also provide all the pros and cons of car sharing so that you can decide if it’s right for you.
Finally, we’ll give you a step-by-step guide on how to get started with car sharing.
Let’s get started.
What is car sharing?
Car sharing is a service where people can rent cars by the hour or day. It’s similar to traditional car rental companies, but there are some important differences.
The easiest way to think of car sharing is as Airbnb for cars: A car owner lists their personal vehicle on a car sharing app and a renter reserves their car for a predetermined amount of time.
Unlike traditional car rental companies that have official locations, car sharing is entirely peer-to-peer. This means that you can pick up and drop off the car at any location that’s convenient for the car owner and the renter. Typically, the car owner would communicate with the renter to determine a place to exchange keys.
Another difference is that you can use car sharing services to rent cars for just a few hours, which is perfect if you only need a car for a short errand or trip.
Car sharing is also different from traditional car rental companies in that you don’t have to go through a lengthy process to rent a car.
You can usually use an app to find and reserve a car quickly and easily.
So now that we know what car sharing is, let’s take a look at how it works.
How can you rent your car to someone?
Here’s a list of the basic steps needed to start renting your car out.
1. Sign up with a car sharing app
The first step is to sign up with a car sharing company.
There are many companies to choose from, so it’s important to do your research to find the one that’s best for you.
The most popular car sharing apps, include Turo, HyreCare, and Getaround. These car sharing apps have proven to be the most reliable and offer the best protection for both car owners and renters.
Choosing the right car sharing app is important because it will determine how much money you can make, what kind of protection you have, and what kinds of renters you’ll be able to attract.
Once you’ve found the right app, sign up and create a profile.
2. List your car
Once you’ve found a company and signed up for an account, you’ll need to list your car.
To list your car, you’ll need to provide some basic information about it, such as the make, model, year, and photos.
Make sure to use high quality photos that show your car in the best light. This is one of the most important part of your listing since many renters will be choosing their rental based on the photos.
Your car listing’s description is also an important consideration. In your description, be sure to include any unique features of your car, such as GPS navigation or a sunroof.
Lastly, you’ll also need to set a price for your rental.
The price you set will depend on many factors, such as the make and model of your car, the length of the rental, and the location.
If you’re not sure what price to set, you can use the app’s pricing tool to get an estimate.
Once you’ve listed your car, you’ll need to wait for renters to request it.
Once your car is listed, renters will be able to find and reserve it through the car sharing company’s app.
3. Coordinate with renters
You’ll be notified when someone wants to rent your car, and you can then communicate with the renter to arrange a time and place to exchange keys.
Communicate with your renter through the car sharing company’s app so that everything is documented.
Be sure to agree on a time and place that’s convenient for both of you.
It’s also a good idea to meet the renter in person so that you can go over the car’s features and answer any questions they may have.
Once you’ve handed over the keys, your rental period will begin.
During the rental period, the car belongs to the renter and you won’t be able to use it.
However, you can rest assured knowing that your car is protected by the car sharing company’s insurance.
The renter will be responsible for any damages that occur during the rental period, so you don’t have to worry about that.
Once the rental period is over, the renter will return your car to you at the agreed upon time and place.
Make sure to inspect your car when you get it back to make sure that there’s no damage.
If everything looks good, then you’re all done and can prepare the car for the next renter.
4. Maintain your car
To be a successful car sharer, you’ll need to keep your car in good condition.
This means regularly washing and vacuuming it, as well as keeping up with routine maintenance.
By taking good care of your car, you’ll be more likely to attract high-quality renters who will take good care of your car as well.
Plus, a clean and well-maintained car will fetch a higher price than a dirty one.
So, take some time to clean and polish your car before each rental period.
It’ll gain you better reviews which will help your car rental business grow even faster.
Pros and cons of car sharing
Pros
- Earn extra money: Car sharing is a great way to earn some extra money.
- Convenient: It’s very convenient since you can rent your car out when you’re not using it.
- Protection: Your car is protected by the car sharing company’s insurance.
- Passive: Once you’ve set up your car sharing business, it’s largely passive income.
- Scalable: You can easily grow your business by adding more cars.
Cons
- Less control: You have less control over who rents your car and how they use it.
- Maintenance: You’ll need to keep your car clean and well-maintained.
- Risk of damage: There’s always a risk that your car will be damaged during the rental period.
- Not available: Your car won’t be available to you while it’s rented out.
Final thoughts
Renting out your car is a great way to make extra money and can help offset the cost of owning a vehicle. If you’re considering car sharing, be sure to follow the tips in this guide to get started. Once you develop a system and get the hang of it, renting out your car can be an incredible stream of semi-passive income. By taking good care of your car and providing excellent customer service, you can quickly develop a strong reputation as a reliable car sharer. It’s important to remember that car sharing does come with some risks, but as long as you’re aware of them and take the necessary precautions, you can be a successful car sharer.
