Rent your car to earn money

Rent your car to earn money, because cars usually cost a lot of money. However, an increasing number of pioneer car owners are making their cars profitable.

Take Samina Chowdhury, 31, for example, who originally put her smart car for hire on the peer-to-peer car-sharing site Turo, seven years ago. She didn't mind being without wheels because she was working on the computer from home, which allowed her to rent her car and earn extra money. I paid $99 a month to rent the car. She also rents them out to visitors for $600 to $700 per month.

Rent your car to earn money

Rent your car to earn money

"The arithmetic on that was quite solid," adds Chaudhry, who now has a YouTube channel dedicated to launching a successful automobile rental company. As a result, she rented more vehicles and advertised them for rent.

Leave the daily work and earn money from renting your car

She's since quit her day job and now works full-time as a vehicle rental agent. Her fleet, which began with only Smart cars, has expanded to include luxury automobiles and convertibles. With her one-woman enterprise, she earns around $250,000 each year, she thinks.

Stephen Alvarez, 24, follows in his footsteps.

At first, the New Yorker was only interested in purchasing a pricey Dodge Durango. He figured that because the lease was $817 per month, he could offset the expense by renting it out to other New Yorkers looking for a weekend getaway. However, the automobile brought in two to three times the leasing payment every month. As a result, Alvarez rented additional vehicles.

Rent your car to earn money

In New York and New Jersey, his DNCD Group now handles a rental fleet of more than 100 automobiles. He's employed a crew of people to assist clean, fix, and transport the automobiles to consumers since the firm is so busy. Alvarez thinks that he earns between $300,000 and $400,000 per year.

Making automobiles pays for itself

The typical car posted on Turo's platform makes $10,516 per year, according to the largest peer-to-peer car sharing marketplace. Given that the average auto lease payment is $531 per month, or $6,372 per year, renting a car out here is a very simple way to make a car pay for itself.

There are several techniques to doing it well if you want to keep your risks low and your rewards high.

Examine the price-to-benefit ratio

Arithmetic is very straightforward if you already have a vehicle that you don't use very often. Can you rent it out for a reasonable price, considering the time and effort it takes to deliver your automobile to renters, as well as the cost of maintaining it clean and in excellent working order? It's certainly again if renting your car out for a few days a month is going to generate a respectable return on your time.

The math becomes more difficult if you need to buy an automobile to rent it. You must now determine if your future rental income will be sufficient to meet the cost of the new automobile payments on a no-money-down loan. The automobile payment is, of course, a given. The prospective earnings aren't. So, before you make the jump, make a best-case and worst-case scenario calculation.

Calculate your earnings

How can you figure out how much money you can make from your car? The cost of renting a car varies greatly depending on the place, automobile, and time of year. However, you can estimate your earning potential by browsing at automobiles for rent in your city that is comparable to yours. It's a good idea to look at both classic rental companies like Hertz and Avis, as well as the Turo platform.

Why is it necessary to have both? Turo provides more information about the privately-owned automobiles available for hire in your area. So, whereas a Hertz listing can guarantee a "mid-size sedan" or a 7-seat SUV, Turo listings disclose the brand, model, and year of the vehicle. 

In Los Angeles, for example, a 2018 Chevy Suburban was recently available for rent at $68 per day. In New York, new Tesla Model 3s were advertised at $71 each day.

Fees must be accounted for

However, keep in mind that the automobile owner only receives a fraction of the rental fee – anything from 60% to 85%. The remainder is given to Turo as commissions and fees. (See below for further information.) Assuming that the Suburban is rented out for 10 days each month, the owner will earn between $408 and $578 per month.

Several more peer-to-peer automobile rental services, such as HyreCar and GetAround, are noteworthy. However, SideHusl.com does not encourage them since automobile owners have had negative experiences due to insurance constraints or technological issues.

Contain danger

Accidents do occur. And the more regularly you hire out your automobile, the more probable it is to be involved in an accident. Turo requires that all automobiles advertised on the site have at least the state's minimal personal insurance coverage. Traditional auto insurance plans, on the other hand, do not cover damages incurred when your vehicle is utilized for business reasons.

• That implies you'll also require business liability insurance. 
• Turo offers owners a variety of alternatives, including a no-deductible coverage that covers your vehicle's downtime while it is being fixed. 
• Turo will take a 40% commission on your rentals if you pick this option. 
• Turo's commission would be reduced to 15% or 20% of the rental price if the site offered less complete coverage. 
• However, the less expensive insurance contains deductibles that you would be responsible for. 
• If there is an accident, They also refuse to compensate you for the loss of use of your vehicle.

Think about the logistics

Renting an automobile to others sets in motion a series of little chores that must be completed regularly. Cleaning, assessing for damage, doing routine maintenance, and filling the automobile with petrol are all tasks that must be completed after each rental, according to Alvarez. Logistics delays can cost you both time and money if your preferred repair shop, car wash, and fueling station are located far from where the car is stored, he explains.

He recommends that you select local providers for all of your normal car maintenance before starting a rental business.

Make changes to fit your market

• Both Alvarez and Chaudhry began their careers renting automobiles they owned and enjoyed. However, as their rental companies grew, they began asking consumers about the kind of vehicles they wanted to hire. 
• They extended to include expensive automobiles in both situations. 
• According to them, some clients prefer peer-to-peer networks since they may hire cars that provide an "experience" rather than just transportation. 
• These automobiles may also be hired for a greater fee.

The practicalities of your marketplace, on the other hand, are crucial. Because the East Coast weather keeps convertibles unrented for most of the winter, Alvarez doesn't acquire them. Luxury convertibles, on the other hand, are just the ticket in Chaudhry's Southern California rental market. Meanwhile, in Denver, a couple leases solely Jeeps, which are ideal for travelers heading to the several ski resorts accessible by the Denver airport.

Pricing is crucial

Customers flock to peer-to-peer rental markets because they are frequently priceless for the same — or better — automobiles than traditional rental marketplaces. Renting a Tesla Model 3 from Hertz in Los Angeles, for example, would cost $145 per day. You could get a vehicle similar to this for $88 on Turo.

Experienced vehicle hosts like Alvarez and Chaudhry say they keep track of how much similar cars rent for at both large and small luxury car rental companies. They then set their rental prices a little lower than the national average. 

This helps to keep regular clients coming back and their cars reserved. This method, according to Alvarez, maintains his fleet virtually fully booked, with monthly leases averaging 27 or 28 days.