Car Sharing: Rent your car out for money
Make money from a car you barely use.
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Thanks to car sharing apps, it’s never been easier to rent your car out. The concept is really simple: you register your vehicle with a car sharing service and whenever someone needs a car in your area, you can make money lending it to them for a specific period of time.
Find out how to start offsetting the costs of ownership like your rego, car insurance and depreciation with car sharing.
How does car sharing work?
To get started, you'll need to register online with a car sharing company and create a profile for your car. Most car sharing websites will:
- Ask some questions about the type of car you have.
- Get you to take some photos of your vehicle and ask you when the car is available for use.
- Bookings are then sorted by you through the app or the booking service itself.
Car sharing services will usually make sure your vehicle is insured when it’s with the customer as well.
Some other aspects of car sharing include:
- You can usually attach a lockbox to your vehicle, so customers can easily access the keys.
- Car sharing is often charged by the hour.
- Insurance and fuel costs are ordinarily included in the charges.
- Mileage is usually capped at a daily rate with added per kilometre charges for additional travel.
What car sharing apps exist in Australia?
The trickiest part of car sharing these days is choosing from one of the various car sharing apps available. Here's some of the main apps:
- Car Next Door
- Drive My Car
- Go Get
To make your decision easier, take a look at this breakdown to see what makes each car sharing app in Australia unique.
|Car next door||Drive my car||Carhood||Go Get|
|Where does it operate|
|How do you give keys to borrowers|
|Max length to borrow|
|Insurance and roadside assistance|
How do I maximise my income?
Want to make the most out of car sharing? Check out these tips to maximise your income.
The weekends are always the busiest time for car sharing, as are long weekends. If you can go without it, try and make your car available for the full weekend. Even blocking it out for an hour or so can hinder your chances of a booking. The majority of people make the booking within a couple of hours of needing a car so it’s always a good idea to keep your vehicle available for last-minute sharing.
If you choose a car sharing service that allows you to set your own price, be shrewd about your pricing. Check the cars available in your area and weigh up how yours compares. It’s all about staying competitive. You can adjust your pricing if you’re not receiving the demand you’d like.
If someone has used your car, chances are they live in the area, so make sure their experience is enjoyable, as they’re likely to return. As well as keeping your car clean, equip it with things like phone chargers and holders, even a GPS device. Making their journey as smooth as possible boosts your chances of them returning to you.
You can market your car with a great profile. Take pictures of your vehicle when it’s clean and shiny and make sure you include any features your car includes, from an in-built GPS to TVs in the back for the kids.
When it comes to writing the description, ask yourself, what makes your car unique? It could be the spaciousness, the boot size or even the handy location of the car. Either way, make sure you highlight that when you write the description.
Requirements for car sharing
Specific requirements will vary between car sharing services though if your car is safe and in good shape, you generally won’t have any problems signing up. The following requirements generally apply to your vehicle.
- It must be safe and comfortable for others to drive.
- It needs to be available a reasonable amount of time. If you use it everyday, it’s unlikely to be rented out.
- It must be properly registered with CTP insurance.
- It should be located in an area of Australia where a car sharing service is available.
- It should be made after 2000, though age limits differ with each service.
- You won’t be accepted if you have a criminal history or a bad credit history.
Frequently asked questions
Q. Where does car sharing work best?
- A. Car sharing is most popular and profitable in busy cities. That’s because there are plenty of people living in the city who don’t own a car. However, they often need one for short periods of time, for example, weekend trips, moving house or simply getting somewhere that has poor public transport links. Cities allow people to pick up cars near them and easily return them.
Q. Is car sharing right for me?
- A. Car sharing is still in its infancy. If you live in a large city and own a car you don’t use all that often, it’s likely that there is a demand for your vehicle. There probably isn’t much demand outside the city and in rural areas, largely because most people still own at least one car.
Q. What happens if someone crashes my car?
- A. With the majority of car sharing services, you will keep your own car insurance and the business you sign up with will provide insurance to cover customers driving your car. That means if someone crashes your car, the car sharing platform you’re with should cover the costs. It will sort the insurance claim, organise repairs and get your car back to you as quickly as possible.
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