Are you interested in making some extra money by renting out your car? Renting out your car is a great way to earn a passive income. Although it may seem daunting, doing so only requires four simple steps.
In this discussion, you’ll learn how to get your car to renters who may be located at a long distance. So read on to learn how you can become a successful car renter in no time.
What Are the Benefits of Renting Your Car?
Renting out your car is similar to Airbnb, and it has numerous benefits. Car owners can pocket some extra cash from the car rental fee, but you’ll also benefit from the peace of mind that comes with knowing your car is being driven and cared for properly.
You can also rest easy knowing that if your renter does happen to damage or break down your car, you’ll be properly covered and compensated through your insurance company.
If you’re a student, renting your car can be especially beneficial. You’ll be able to offset some of the costs of tuition, textbooks, and car payments while being paid to let someone use your car while you’re in school.
Car renting can also be ideal for military service members who are often deployed and need extra cash. You can also rent out your car if you’re a professional who frequently travels for work, so you’ll still be able to benefit from the rental income without driving your car.
Regardless of your reasons for renting out your car, you can look forward to making some extra cash and providing a rental service that people are willing to pay for.
How Can You Rent Out Your Car in Four Steps?
Renting out your car is a straightforward process that takes just four easy steps. Here’s how:
Check Your Insurance
First things first: make sure you have a proper insurance policy in place that covers car sharing. You’ll also want to ensure your protection plan includes liability insurance coverage for any damages to your car during rental periods.
The last thing you want is to get stuck with a huge bill in the event of an accident or breakdown while your car is being rented out. Not only would this negate the financial benefits of renting out your car, but it could also cause you a great deal of stress.
It’s also a good idea to have roadside assistance so that the renter has some form of recourse in case of a breakdown.
You can avoid these scenarios by taking proactive measures and ensuring you have an adequate insurance policy.
Choose Your Rental Platform
Once your insurance coverage is squared away, the next step is choosing a rental platform to advertise your car. Peer-to-peer car rental platforms like Turo and Getaround make it easy for renters to locate vehicles near them and provide drivers with crucial information about the cars they are looking to rent.
Make sure you thoroughly research each rental company and read customer reviews about their service before selecting a car-sharing service.
It’s also important to take a close look at the terms of each platform’s agreement so you understand what fees you’ll have to pay or any other requirements that may be involved in renting out your car.
There are several car rental companies, and it pays to do your homework on them. Find out what information they need and make sure your driver’s license, credit card, and bank account data is secure. You also want to confirm whether your type of vehicle is accepted.
Ship Your Car (if Applicable)
Once you’ve selected a rental platform and decided on a rental fee, the next step is to deliver your car to the renter (if they are located long distances). If this is the case, you’ll need to decide if you want to drive your car or opt for an auto-shipping service.
Driving your car can be ideal if it’s a short distance, but if your renter is located at a long distance, you’ll probably want to opt for an auto-shipping service, as it will save you time and money.
After all, your goal should be to make as much extra income as possible with the least effort. You can achieve this much faster if you have your car shipped.
With Carvaygo, you have a professional service that can securely and conveniently transport your car to the renter’s location. Our streamlined system ensures your car arrives on time and safely, so you can rest easy and rent your car hassle-free.
What’s more, our car-shipping service comes with several benefits that you otherwise wouldn’t get if you transport your vehicle yourself.
For starters, knowing a professional team is handling your car will give you peace of mind. And you won’t have to worry about dealing with unexpected expenses or delays while on the road.
When you drive your car long distances, you’re putting yourself and your vehicle at risk. You could be in an accident or experience expensive breakdowns that will cost you valuable time and money. You don’t want to be stuck out on the road in an unfamiliar area during a rental period.
Another plus is that you don’t have to meet in a questionable parking lot or other location for the handoff. With Carvaygo, you can easily avoid this hassle and safely transport your car from one location to another.
Inspect and Document Any Damage
You should inspect your car for any damages before drop-off and after pick-up. Documenting and photographing any damage to your car can help protect you from being held liable for something the renter did not cause.
It’s also important to thoroughly understand your insurance policy to know what coverage is provided in case of an accident or breakdown.
By following these four steps and ensuring you have the right insurance coverage, you can safely rent out your car to long-distance renters and enjoy the financial benefits of doing so.
What Are the Downsides of Renting Your Car?
Renting your car can be a great way to earn extra money, but certain risks are involved. Firstly, you could experience unreliable renters who don’t return your car on time or in the same condition as when they rented it.
Secondly, there’s always the risk of financial loss due to damages or theft. If you don’t have the right insurance coverage, you could be responsible for the costs associated with any repairs or replacements needed.
wear and tear put on it that otherwise wouldn’t occur. This can lead to expensive repairs or replacements you’d have to pay for out-of-pocket. It’s one of Uber drivers' main complaints, and it’s likely one you will share.
It’s important to keep these risks in mind when deciding whether or not renting your car is right for you. The potential benefits may outweigh the downsides, but it’s best to be aware before embarking on your rental journey.
The Bottom Line
By partnering with Carvaygo for auto-shipping, you can ensure your car is safely transported to the renter’s location and back without hassle.
In the meantime, inspect and document any existing damages to your car before a rental period and have the right insurance coverage for any unexpected incidents. Doing so will give you peace of mind and ensure you get the most out of your car-renting side hustle.
Sources:
Does Car Insurance Follow the Car or the Driver? | Travelers
How to Check for Accident Damage on a Used Car | CARFAX
FAIR WEAR & TEAR GUIDE | UTAS
