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Car Sharing: How To Make Money Renting Out Your Car

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If you haven’t been driving much lately, you may be thinking about how much your car is costing you as it sits in your driveway. The good news is that you can make money renting out your car, just as you would renting out your home on AirBnB or a similar platform. Here’s what you need to know.

4 Top Companies That Will Rent Out Your Car

There are several car sharing companies through which you can rent out your car when you’re not using it.

1. Avail Car Sharing

Avail is a service that rents cars at airports across the country. They cater to people who are traveling and would otherwise leave their car at the airport for the duration of their trip. You drop your car off at the airport and they list it on their app. When someone wants to rent your car, they pick it up at the airport, and return it back there when they’re done.

Avail indicates you can earn ‘up to $25 a day’ renting your car and indicates that the average earnings for a four day rental is $80.

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Avail Plus is for those who are traveling for a month or more. If you list your car on Avail Plus for at least 30 consecutive days, you’ll get a $400 bonus, regardless of how many days the car is actually rented.

Avail has a long list of eligibility requirements your car must meet if you want to share it. Your vehicle must:

There are other requirements as well. Check the Avail website for the complete list.

2. HyreCar

HyreCar specializes in renting cars to those who will use them to drive for Lyft, Uber or a delivery service. You can rent on a daily, weekly or monthly basis.

How To Rent Your Car Through HyreCar

  1. You need to comply with the requirements that Uber and Lyft have for cars, including things like age and size of the vehicle and physical condition. As part of the sign-up process of HyreCar, they ask for Uber/Lyft inspection documents, along with your registration and pictures of your car.
  2. Once you’ve signed up, you’ll be notified when someone wants to rent your car. Confirm the application as soon as possible, since some drivers will apply for multiple vehicles and just take the one they can get first. You’ll need to be the first to confirm in order to get the booking.
  3. Check the documents, including your registration and vehicle inspection documents. Make sure the insurance document on your HyreCar dashboard is correct before you give the keys to the renter.
  4. Arrange a pick up location with the renter. Be sure to verify their license, check the mileage and the amount of fuel you have, and hand over the keys.
  5. When the rental period is over, arrange a pickup time and location. Check the condition of the vehicle, mileage and fuel when you take back the keys.

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Keep in mind that some Lyft and Uber drivers can put a lot of miles on a car. If you choose to rent through HyreCar, you should be prepared to see your odometer go up quickly.

3. Getaround

Getaround bills itself as a ‘car sharing marketplace,’ and promotes using your own car or even purchasing one or more cars to run your own car sharing business.

If you have two or more cars on Getaround, they assign you a Fleet Business Manager to help you manage your business.

Getaround provides the technology to connect with drivers, charge for rentals and arrange drop off and pick up. They also offer a device that lets renters unlock your vehicle with their phone, eliminating the need to physically hand off keys.

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4. Turo

Turos bills itself as ‘the world’s largest car sharing marketplace. Like Getaround, Turo encourages car owners to build a business around renting their cars.

Turo says that the average annual income generated by renting one car is $10,516. For those who rent five cars the average annual income is $52,579. According to AAA, the average cost of car ownership in 2020 was $9,500 so your profit on renting one car through Turo for a year would be slightly over $1,000.

Pros and Cons to Renting

There are advantages and disadvantages to renting out your car. Here are some of them.

Pros

Make Your Money Work Better for You

Cons

Make Your Money Work Better for You

Testimonial

Jennifer Pillari of Lafayette, Colorado, sums up the pros and cons of renting your car. “I rent out both of my cars on Turo and have for over a year,” she said. “I had often used Turo for car rentals when I traveled, and when I bought a Tesla Model 3 and also kept my gasoline-fueled car, an older, high-mileage Mercedes E350, I decided to rent them both out, rotating their availability.

It has mostly been a decent source of passive income, but there are also many downsides that have made me weigh the pros and cons of continuing to rent them out, such as the wear and tear on the vehicles, maintenance costs associated with accumulated mileage, dealing with disrespectful customers, navigating claims of damage through Turo and challenges that seem to pop up with letting someone else drive my vehicle, particularly the Tesla, which is prone to intermittent issues.”

How Much Money Can You Make Renting Your Car?

As with many other gigs, the answer is, it depends. The type of vehicle you have, the number of days you’re willing to rent it out, and the company you use can all factor into the decision.

To give you an idea, Jennifer Pillari rents her two vehicles through Turo. In the first four months of 2021, she earned a total of $7300 in passive income.

The Bottom Line

Renting out a car you rarely use can be a good source of passive income and can help to offset that monthly car payment that never seems to go away. Just be sure you are okay with the additional mileage and wear and tear on the car, and that you have another plan in the event of an emergency.