There’s no getting around it: Owning a car is expensive. The latest research from AAA shows the average annual cost of owning and operating a new car is now $9,282. That’s no small chunk of change.
However, with the right mindset, you should be able to offset some of those costs — or maybe even all of them. To cover car payments and earn extra cash, consider renting your vehicle out to folks who need one. Who knows? You might even be able to generate some profits.
Keep reading to learn about the best top peer-to-peer car rental apps for 2024 and determine whether it makes sense for you to try to make some money this way.
5 Ways to Make Money Renting Your Car
Here’s how to rent out your car to make extra cash:
1. Turo
Turo is the top car-sharing marketplace. It’s similar to Airbnb; you just rent your car instead of a house. The app lets you list one car or an entire fleet of cars at a time.
According to the company, one car generates an average annual income of $10,516. Crunch the numbers, and you can potentially make over $94,000 if you owned and rented nine cars.
The amount of money you can earn depends on the plan you select. Turo also needs to wet its beak, too; you can earn 60% to 90% of the trip price.
Keep in mind that Turo offers a liability insurance policy. Drivers get roadside assistance and access to a safety and support team. The company also offers a prescreened customer base of 14 million global users.
When you rent your car on Turo, the driver handles pick-up and drop-off. You don’t even have to deal with any key handoff, either. Simply leave your car in a parking lot or garage and it’s up to the driver to find it.
Vehicle Requirements
- Proof of registration
- Permanent or Temporary Tag
- Model year can’t be more than 12 years old
- Have less than 130,000 miles
- Fair market value up to $200,000
- Clean title (i.e., not branded or salvaged)
- No total loss declarations
- Meet Turo Insurance Requirements
- Proof of OEM Trafficer if the vehicle has a value at the time of listing of $125,000
2. HyreCar
HyreCar is a rental service that enables you to list your car and generate passive income. Simply set up the HyreCar app and create a profile for your vehicle. You can determine pricing in the HyreCar app just as you can with Turo.
HyreCar makes money by taking a percentage of your weekly rental income based on the specific protection plans selected for your listed vehicles:
- Basic HyreCar Protection: 15% commission on the listed price of the vehicle
- Standard HyreCar Protection: 20% commission on the listed price of the vehicle
- Premium HyreCar Protection: 25% commission on the listed price of the vehicle
With that, there are no membership fees or fees to use the site.
Vehicle Qualifications for Delivery Services:
- The vehicle is 15 years old or newer.
- 2 or 4-door vehicles only.
- Auto insurance is current and valid.
- Registration is current and valid.
- Clean title (branded or washed titles do not qualify)
- No cosmetic damage, missing pieces, or commercial branding.
Vehicle Qualifications for Rideshare Services:
- Vehicle must have 4 doors
- Must be able to transport a minimum of 4 passengers.
- Vehicle is 15 years old or newer.
- Auto insurance is current and valid.
- Registration is current and valid.
- Clean title (branded or washed titles do not qualify)
- No cosmetic damage, missing pieces, or commercial branding.
- Must meet Uber state requirements.
- Some states may require a vehicle inspection for ridesharing.
3. Getaround
Getaround is a top peer-to-peer car-sharing service that you can use to rent your car on an hourly basis. It’s available in more than 100 cities across the U.S.
To use the service, you have to pay $99 and let the company install the Getaround Connect service in your vehicle. In addition, you’ll have to pay a subscription fee depending on how many vehicles you have listed:
- 1 car: $20 per month per car
- 2-9 cars: $18 per month per car
- 10-49 cars: $15 per month per car
- 50-99 cars: $12 per month per car
- 100+ cars: $10 per month per car
It’s important to note that Getaround doesn’t support certain luxury car brands and sports cars. For example, if you own a Mercedes of any type, you’re out of luck.
To give you a better idea of the specifics, check out this complete rundown of the site’s vehicle eligibility requirements.
Getaround Vehicle Requirements
- Private passenger vehicle with at least 4 wheels.
- Model year 2007 or newer.
- Have less than 200,000 miles.
- Seat no more than 10 passengers.
- Power door locks must be installed in the front driver’s side and front passenger-side doors.
- Be in good physical and mechanical condition.
4. Uber
Uber is the world-leading platform for rideshare drivers. When you drive for Uber, you essentially rent your car to help people get around — but you remain in control as the driver.
In case you’re unfamiliar, here’s how it works: Someone will issue a request for a pickup in the Uber app. As the driver, you’ll receive an alert and, assuming you accept the trip, then pick them up and drop them off wherever they want to go.
In exchange, you’ll receive a rating and in-app payment along with tips.
Uber Vehicle Requirements
- 4 doors and be able to transport a minimum of 4 passengers.
- Model must be 15 years old or newer.
- Title cannot be salvaged, reconstructed, or rebuilt.
- Rental vehicles – except those from an approved Uber rental company – are not allowed
- No cosmetic damage, missing pieces, commercial branding, or taxi paint jobs.
5. Lyft
Lyft is a popular ridesharing service that functions very much like Uber. As a Lyft driver, you can drive people around and get paid. It’s great for people who want to maintain full operational control over their cars.
Lyft drivers help passengers take short trips around town and even to different states. For example, you may drive someone to work, a restaurant, or the airport.
Lyft Vehicle Requirements
- Car age and condition requirements vary by region
- Must have 4 doors, minimum of 5 seatbelts, maximum of 8 seatbelts
Lyft also has an express solution that lets you earn extra cash with a rental car. So, if your car is out of commission or you don’t own one, you can still drive and make money. If this sounds up your alley, check this out.
Renting Your Car Without an App
One of the downsides to using a car rental app is you won’t receive the full price for a ride. You’ll have to pay a commission or service fee in addition to insurance costs.
If you’re like me, you hate paying fees when you don’t have to. To avoid paying platform fees, you might want to consider renting your vehicle to people in your close network.
You may have a friend, coworker, family member, or neighbor who has a driver’s license and needs a vehicle but doesn’t have the cash or credit to pay for a new car.
If you’re interested in pursuing this option, make sure to cover all your bases. You’ll need to confirm whether your insurance company has you covered if other people are behind the wheel and get into an accident.
Check Your Insurance Coverage
Standard car insurance likely excludes car rentals. You’ll need to verify with your provider that you have the right coverage plan in place.
In addition, the person you rent to needs to have car insurance.
Don’t even consider renting your car out until you have all of the right documentation in place. Failure to check all the right boxes could cause you a lot of grief down the road.
Tips for Renting Your Car
Here are our top tips if you plan on renting your car.
Maintenance is Important
Maintenance and upkeep are critical. After all, you’re either letting people drive your car or you’re driving them around town. Either way, you need to ensure the safety and security of all of your passengers.
Often, car owners wait for something to go wrong before fixing it. The better approach is to practice proactive maintenance.
If you’re going to try to make money this way, you need to bring your car in for routine checkups and fix anything that might be wrong with the vehicle. Driving a dodgy car around town will eventually come back to bite you.
After all, the last thing you want is for your car to break down when a renter is driving it. They’ll have to call for roadside assistance. You might even put their life in danger. And to top it off, you’ll almost certainly get a bad review.
Car Quality Matters
Generally speaking, the nicer your car is, the more money you can make in this line of work. For example, you can earn more money by renting a luxury car to would-be drivers. But in most cases, a traditional car will be just fine if you keep it clean and presentable.
Avoid spills, scratches, and dents. Bring the car in for a weekly wash to keep it looking fresh.
Pickup Trucks and Vans Make Great Rentals
Pickup trucks and vans can generate a lot of money on rental apps because they’re super useful for people that need to move stuff.
If you own one, consider listing your pick-up or van at the end of the month when people tend to be moving and need quick transportation to haul objects to their new location.
Frequently Asked Questions
Here are the most frequently asked questions about renting your car.
Is it safe to rent your car?
No matter what type of vehicle you have, you don’t have any control over what happens behind the wheel. Someone may drive recklessly, get into an accident, or even commit a crime in your car. This is the risk that you take.
For the best results, it’s important to document rental agreements and use protection plans when they’re available. While you can’t prevent bad drivers or chaotic events from happening, you can legally protect yourself to mitigate any potential predicaments.
Can I make a lot of money renting my car?
You certainly can! How much you bring in depends entirely on how often you rent your car, your location, the quality of your vehicle, and your tax management strategy.
This can be a great option for people who work from home or in an office all day. You can list your car and make money while you earn income at a full-time job — accelerating your journey to financial freedom along the way.
The Bottom Line
Renting your car is an awesome way to earn extra money in the gig economy — especially if you live in a big city like San Francisco or New York, where you can charge higher rates.
Once you start bringing in some extra income this way, you can use the funds to pay off your car loan or, better yet, turn a profit.
It might take some getting used to. But once you set up a few trips and the money starts rolling in, you won’t look back.
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