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How to Rent Your Car Out for $10/Hour
Sports Car

by - January 6, 2014 - 22 Comments

Move over Avis! You might have heard about a new trend that has been popping up over the last few years – renting out your personal car for extra cash. We wanted to give you a quick rundown on how it works and what the risks are.

There are a number of websites that can help you facilitate renting out your car by giving you a free marketplace to list your wheels. A couple of our favorites are RelayRides.com and GetAround.com.

You’ll need to first apply by sharing the make/model of your car, proof of ownership, and a schedule of when you won’t be needing your car. Typically the companies will not allow you to list your car if is in poor condition or older than 10 years old.

Once you are accepted, the rental companies do all the marketing and leg work. Each company is a little different when it comes to exchanging the keys, but some of them even install electronic devices that allow the renter access to your car after they have made payment online and signed a rental agreement.

How Much Can You Make?

Companies like RelayRides estimate that you can earn more than $3,000/year by renting your car out for 10 hours a week. I’m suspicious of the large number, but perhaps if you live in a large city with million of potential renters, that could be a real possibility. However, even if you’re only earning a few hundred bucks, it’s certainly something to think about.

The amount that your car will earn per hour will largely depend on the type of car and its age. For example, on GetAround.com there’s an electric Tesla roadster being advertised for $50/hour, but a more common 2004 Acura is being advertised for only $10/hour.

There’s never any cash exchanged between the renter and the car owner. The companies act like a middle man by collecting the cash and sending you a paycheck.

What About the Risks?

Letting a friend drive your car is enough to make anyone nervous, let alone a complete stranger. Many of the rental companies have seem to take that concern to heart when crafting their rental agreements. To start – renters are required to buy large insurance policies, often in excess of $500,000, before renting your car. If you report that any damage has been done to your car, the renter is charged a deductible and the rental company sees that your car is fixed promptly by their insurance policy.

Renters who smoke in the car or leave it dirty are also charged a fee to have your car cleaned and detailed. In fact, it seems like most of the companies are hypersensitive to protecting the car owners from negative repercussions.

What Else Can You Rent?

Renting out you personal property is a trend we’ve been following all year here at The Penny Hoarder. It seems the poor economy has made this money making trick explode in popularity. If you’re curious about some of the other things you can rent, check out these articles:

- Make Money Renting Out Your Driveway
- Rent Your Closet Space for Cash
- Rent Your Backyard to Campers

Good Luck Penny Hoarders!


 

  • http://www.frugalconfessions.com Amanda L Grossman

    Very interesting! This would definitely help people pay off their car loans faster (for those that have car loans), or help in justifying having a second car if they only use it periodically.

  • http://www.investwithpassion.com Freddie @ Invest With Passion

    That is definitely an interesting idea. I would do something like this if I had my extra car that was just sitting in the garage. Recently sold it to a neighbors son. It was a 1993 camry with about 250K miles on it, but ran like a champ.

    That would have been great extra income to help me pay off my current car loan, which is UP IN DECEMBER!!!!!!!!!!!!!!!!!!!!!!!! Yes, I am fired up and not getting a new car for at least 5 years or more!

  • http://thecollegeinvestor.com Robert @ The College Investor

    I would be concerned, especially after reading that article about the lady who rented her house and got it trashed. Maybe if I had a beater of a car…but I don’t think I would.

  • http://www.60kproject.com The $60K Project

    I wondering if people might take advantage of that gigantic insurance policy and falsely claim that I did damage to their vehicle. Interesting idea but seems risky. Although I would really love to rent that Tesla for a few hours!!

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  • http://afford-anything.com Paula @ AffordAnything.org

    I like this plan! Unfortunately my car is older than a decade … it’s 13 years old. I’m committed to driving it ’til it can’t drive no more. :-) But when I eventually buy my next car, I’ll probably get a strapping young 5-to-7 year old car … and then I can rent it out!

  • http://youhavemorethanyouthink.org/ Shawanda @ You Have More Than You Think

    This seems like a great idea to make some extra cash. I love the idea of regular people getting together – with the help of a facilitator – to deliver a product/service that was previously offered almost exclusively by large corporations. Hope we continue to see change like this and develop safeguards to weed out fraudsters and no do-gooders.

  • http://www.littlehouseinthevalley.com Little House

    Very interesting trend, however, I don’t think I’d ever feel comfortable renting out my car! It’s just not enough money for me to take that risk. It’s funny that these companies won’t allow people to rent out their beaters; that’s the only kind of vehicle I’d feel safe renting to strangers!

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  • http://www.ddiy.co Geoff

    I love this idea! I’ve heard about rental cars subsidzied with ads on them but this type of program is completely new to me. Now you’ve peaked my interest and I’ll have to do some more reseacrh on the topic (this is Geoff from Car Negotiation Coach btw).

    I will totally consider doing this myself. I’ve got a very old convertible that still rides really well but the resale value is crap. I don’t want to get rid of it, but I bet people would be real interested in renting it….it’s such a fun car!

  • http://glashley69@yahoo.com GARY

    Nice.. if I can make extra two hundred a week yo that’s something else .. I mean the car will pay for itself and I don’t have to work to hard.. I have a car that just park for whole week man, it will be nice if the car can do some work and help out with the bills..

    I can rent it or take people around for adventures its a great and risky when it come to insurance.. insurance price is going to go up cause were using it for profit purpose and that’s just extra money out your account. Let’s hope that it makes us more money..

  • http://www.enalux.com alex

    List your luxury car for rent on http://www.Enalux.com for free and make $1300 a month. Enalux is an exclusive luxury car sharing website.

  • Kayla

    Haha, I wish I had a car to do this with, but I’d be kind of nervous!

  • MADDIE K

    Insurance costs in NJ are very high and expensive even for lower end insurance. I have to wonder if the cost of taking out a large coverage plan is worth renting out your car for $10 an hour. Perhaps having a second car would be the best option. I’m just not sure if you could make any real money in NJ after the rental company takes out their cut on top of the additional cost of insurance.

  • http://www.cashmoneyhustle.com Susan

    This is an out-of-the box way to make money, for sure. But, it may not be worth the risk. Adequate insurance coverage is a must have in this situation. Otherwise, the vehicle owner is liable for any damage or negligence on the part of the driver(s).

    • Ben

      I can’t speak for other companies, but Getaround, where I work, pays for the insurance on your car while other people are driving it so you don’t have to worry about that expense.

  • Rae

    As an insurance agent licensed in 24 states to write insurance, I advise anyone thinking of pursuing this to talk honestly with their insurance company. I know most companies will not cover any claim for a personal auto policy if you are making a profit from your vehicle. Please be cautious and make sure you are protecting yourselves. Making a little extra cash won’t necessarily matter if an insurance company cancels you or declines your claim.

    • Ben

      Getaround actually insures each driver to drive your car for the duration of the rental. From their website, “Getaround rentals are insured through our primary insurance policy. Coverage includes liability, collision, property damage, uninsured motorist protection, and theft.” There is more here: https://www.getaround.com/tour/experience

      Source: I work there.

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