Even when you’re not using your car, it’s costing you money. So why not rent out your car to other people and earn money instead of losing it? If you are not the kind of person who spends his or her life behind the wheel, and the car stays parked in front of your house most of the time, this little business could allow you to earn several hundred dollars a month, or even more!
- Here's the program
- What is car rental between individuals?
- How to find tenants for your car?
- How much can you earn by renting your car?
- What are the requirements for renting a car to individuals?
- What are the advantages and disadvantages of car rental between individuals?
- Tips to maximize your earnings by renting your car to individuals
- Conclusion
- EcoTips
- Pros and Cons
- Information recap
What is car rental between individuals?
If you have a car and you don’t need it permanently (or if you have several vehicles), you can put it at the disposal of private individuals who, in exchange for a certain amount that you will have fixed, will be able to use it during a limited period. This period can be a day, a weekend, or a week, and can even be limited to a certain number of kilometers. And then, you can also rent your car on a regular basis or only from time to time, depending on your needs… This solution is very flexible, so it’s up to you!
And not only is it a great way for you to get a quick return on your vehicle and cover some of its maintenance costs, but it also makes it easier for people looking to rent a car to benefit from more affordable rates and a simple and flexible solution. This type of rental is indeed an interesting alternative to traditional car rental agencies, which are often more expensive and sometimes complicated to use.
How to find tenants for your car?
The easiest way to rent a car is to use specialized applications and websites. There are several of them, depending on where you live, and they will allow you to easily publish your ad and find potential tenants more quickly. Moreover, some of them will insure your vehicle in case of problems, during the whole rental period (read the clauses of engagement carefully). In exchange for these services, each website or app takes a small commission, but it is usually quite reasonable.
If you have the choice between several apps, and you don’t know which one to choose, do a little Google search such as “review + app name”. You should find reviews left by customers, especially on sites such as Trustpilot or G2, which should help you choose.
Also, feel free to download several to see how they work, read the terms of use and compare the number of offers/requests. This will allow you to see which ones offer the best prices according to the model of car you have and according to the number of kilometers (some apps impose an age and/or kilometer limit).
The best-known car sharing marketplaces include Turo (USA, UK, CAN, AUS), HyreCar (USA), GetAround (USA, UK, DE…), and Hiyacar (UK)
I’m not going to list all the countries because no matter what part of the world you live in, you can easily find this type of service either through a Google search or by going directly to the Google Play Store or Apple App Store.
As shown here on Turo, the rarer and more exceptional the vehicle, the more it costs to rent.How much can you earn by renting your car?
The price of a rental car depends on many elements: the duration, the model of the car, the year of construction and purchase, the number of kilometers, the region in which it is rented… It is therefore rather difficult to estimate, but you should know that on average the daily price is between 15 and 60 dollars, or even more for some very recent and higher-end models.
In very touristy areas, car rental can be particularly lucrative, especially during the summer season when the number of tourists is at its maximum. The same goes for densely populated areas where, obviously, demand will be much higher. But even if you live in a small village with few inhabitants, this does not mean that you will not find any tenants. Public transport is less available (sometimes even non-existent), so there is necessarily a more or less strong demand.
Can someone who rents a car be called a “tenant”?
Yes, people who rent a car can definitely be called “renters”. The term is often used to describe someone who rents real estate, but it can also be applied to the rental of other goods, including cars.
What are the requirements for renting a car to individuals?
Most sites/apps have fairly strict requirements for both car owners and renters. For example, both parties must be of legal age and agree to the terms and conditions of use. The renter must have a valid driver’s license and sometimes even a minimum driving experience, but also have a credit card to proceed with the payment and also for the deposit (which is not systematic).
As for the renter, he must be the owner of the car (or have the owner’s authorization to rent it) and have a car in good condition and insured, with an up-to-date technical inspection. He must set a rental price for his car and must provide his renter with a rental contract, describing the terms and conditions each time he rents his car.
Most of these points seem obvious, but it is important to point them out because sometimes it is not clear to everyone. In addition, some services may have more stringent requirements, for both the renter and the lessee, but always with the aim of protecting and satisfying both parties.
But the most important thing is that the lessor and the lessee agree on all the terms and conditions of the rental before concluding the transaction. Finally, I suggest you check the local regulations on car rental between individuals as this practice is sometimes closely regulated by law.
What are the advantages and disadvantages of car rental between individuals?
Renting a car between individuals has both advantages and disadvantages for both parties involved. Here are some of the most important advantages and disadvantages for the seller and the renter:
Advantages for the car owner
- Opportunity to earn extra money by renting his car, which can help pay off the costs of buying, maintaining and insuring the car.
- Full control over the dates and times of the rental, as well as who the car is rented to.
- Possibility of renting your car when it is not in use, which allows you to maximize the use of your vehicle.
Disadvantages for the car owner
- Risks related to the use of the car by someone he or she does not know, such as damage, fines or even theft.
- Risks of legal disputes in case of car accidents or damage to third parties.
dvantages for the renter
- Ability to rent a car at a lower cost than a traditional car rental agency.
- Ability to rent a car from individuals for a shorter or longer period of time than what is offered by car rental agencies.
- Ability to rent a car in a more convenient location or closer to home.
Disadvantages for the renter
- Risk of renting a car in poor condition or poorly maintained, which can cause safety or reliability issues.
- Risk of not finding a car available at the desired dates and times, depending on demand and availability of cars.
Take note of these various advantages and disadvantages, as they will help you to better prepare yourself for renting your car, but also to remain attentive to certain points when renting or negotiating.
Tips to maximize your earnings by renting your car to individuals
Let’s end this article with some tips that will help you make the right decisions and thus put all the chances on your side to rent your car and earn money.
- Ask for the right price: The best thing to do if you’re not sure how much to charge for your car is to see what others are charging for a similar vehicle in your area and compare by condition, year, etc. Also, try to set a competitive price that attracts renters while still allowing you to make a profit.
- Check reviews of prospective tenants: Like many apps of this kind, users can leave a review of other users they have dealt with. So it can be useful and interesting to check out the rating left by others on your prospective tenant.
- Make sure your car is clean, well maintained, and in good working order before you rent it. This will increase renter satisfaction (and your rating as a renter on the app) and reduce the chance of problems or incidents.
- Take great photos: If you post great photos, you’ll greatly increase your chances of getting a quick and frequent rental. Clean it well before shooting, take it from every possible angle and show the interior and exterior well. And to learn quickly how to make beautiful pictures, it’s here.
- Be flexible: if possible, offer flexibility in rental dates and times to attract more potential renters. Keep in mind that it is often when you need it the most that others will need it too (weekends, vacations, sunny days…).
- Offer extras: To make your offer more attractive, you can offer extras like a GPS, an active Spotify subscription in the car radio, a smartphone holder, a baby seat or extra insurance for an additional cost.
- Empty your car: Remove everything of value that is not useful or essential because you are never safe from running into someone who is not very honest and may be a kleptomaniac.
- Emphasize the reliability of your car but also its other qualities: Driving a stranger’s car can be a little stressful. Therefore, try to reassure potential customers by insisting on the fact that your car is comfortable and easy to drive. And if it’s not, don’t hesitate to say so either because it’s important that your renter knows about the possible difficulties they might encounter.
- Make sure you have good insurance: If no insurance is included via the app, make sure you have enough insurance to cover possible damage to the car or to third parties during the rental—before you rent your car. If necessary, don’t hesitate to take out special insurance for such cases. Be sure to check with your insurance company before you start.
So, by following these tips, you can maximize your earnings and rent your car to individuals while providing a safe and enjoyable rental experience for both you and the renter.
Conclusion
Renting your car to individuals can be an interesting option for those who want to save money on car rentals or for car owners who are looking to earn extra money or simply amortize the various costs they incur. However, it’s important to consider the pros and cons of this method of leasing before deciding whether or not it’s worth it to you.
If you are willing to leave your car in other hands and run certain risks (accident, theft…), renting your car can be a very interesting option to earn a little extra income from time to time or even on a regular basis if the conditions are met! Today, there are a lot of apps that will allow you to rent your car quite easily but also to find reliable tenants.
And you, would you be ready to rent your car to individuals to generate additional income?
EcoTips
Environmental and climate change issues are more than ever at the heart of the concerns of this 21st century, which is why I am proposing a few ideas that will enable you to limit the negative impact that the implementation of this idea could have.
These solutions that I suggest are sometimes largely insufficient to compensate for these negative impacts, such as carbon offsetting. Unfortunately, there is not always an ideal and 100% efficient solution, far from it. And if you have others, please do not hesitate to share them in the comments below.
The climate crisis that threatens our planet (and us humans in particular) is raising awareness about our ecological footprint. In this context, car rental between individuals can be considered as an interesting alternative to reduce our car consumption and thus contribute to the preservation of the environment.
By renting their cars, car owners allow occasional usersto have a car when they don’t have a need to buy one, thus reducing the demand for new cars and the greenhouse gas emissions linked to their production.
In addition, by allowing multiple people to use the same car, this practice maximizes the use of existing resources, rather than leaving unused cars parked in garages or on the street.
This and other factors make car rental between individuals a way to help reduce the environmental impact of driving by maximizing the use of existing resources, reducing greenhouse gas emissions, and raising awareness of more responsible consumption.
Pros
- Your car earns you money instead of costing you money.
- You have complete control over when and to whom you rent.
Cons
- There are some risks of leaving your car in the hands of a stranger.
- There is also the risk of legal disputes in case of accidents or damage to third parties.
Info
- Location: The renter will pick up the car at your place.
- Investment: None, if you already have the car.
- Earnings perspective: A few hundred dollars per month.
- Required: Take care of your car to keep it in perfect condition.
- Risk level: Quite low if you have taken all the precautions (insurance, technical control…).
- Implementation time: Very fast
- Material needed: A car and a smartphone
The risk of having your car stolen is very low, and even if it does happen, the app’s insurance covers it. On Turo they say “You’re covered with up to $750,000 in liability insurance, and your car is contractually protected against theft and physical damage”.
Thanks for the clarification, but it varies from one app to another, which is why it’s important to read the conditions carefully before using it.