June 12, 2023
Editor
Kari is a writer for SideHustles.com. She previously managed a website in the privacy and digital compliance industry and earned money on the side by working as a pet sitter for 7 years.
Owning a car is a necessity in many parts of America, but it comes at a cost. Between the purchase price, loan repayment, fuel, and maintenance, many people spend thousands of dollars on their cars each year.
Fortunately, it’s possible to alleviate some of the financial burden and even make a profit on your car by renting it out through a car-sharing app.
There are several apps that let you put your car up for rent
Yes, you can rent out your car for money. You don’t need a car-rental business to do so; there are apps that let you participate in “peer-to-peer” (P2P) car sharing as a way to bring in passive income.
To rent out your car, you’ll need to meet certain requirements, like having the right insurance and owning a car that meets your chosen app’s restrictions.
Once the app has approved your car, your part doesn’t require much effort—you just have to schedule your key handoffs and keep your car well-maintained.
Personal car rental is legal and comes with certain built-in protections when you do it through an app, but it isn’t perfectly safe.
It’s impossible to know for certain how risky a potential driver is and what their intentions are when they use your car. It’s always possible that someone will:
These are all risks that you need to be willing to take before committing to loaning out your vehicle.
To rent your car as safely as possible, we recommend using a middle-man service (like one of the apps mentioned below), getting the right insurance coverage, and using ironclad rental agreements.
All of these apps will handle the rental transaction (and provide a certain amount of insurance)
If you’ve decided that renting out your car is the right move, here are the four best apps you can use to make up to $700–$800 per month (and even more in some cases).
The Airbnb of car rentals, Turo is a P2P car sharing app that’s become very popular over the past few years and that operates in multiple countries. In addition to its easy-to-use interface, Turo boasts:
You’ll earn 65%–75% of each trip price when you rent out through Turo.
Turo claims that the average annual income for someone who rents out one car is $10,516, while someone who rents out three cars is $31,547.
However, how much you’ll actually earn depends on a variety of factors, including your car’s make and model, how often you rent it out, and where you’re based. You can use Turo’s Carculator feature to get a better sense of what you can earn.
Not that special restrictions apply to cars deemed to be “classics” and those operating in New York.
HyreCar is another popular car-sharing app. It stands apart by advertising itself as a service for those who drive for apps like Uber, Lyft, and other ridesharing or delivery platforms.
Like Turo, it has built-in insurance, 24/7 assistance, and a system of vetting drivers. It also claims to rent cars out for longer periods than comparable apps (on average). This is good news if you want to make more money, but bad news if you can’t afford to part with your car for substantial chunks of time.
You’ll earn 75% to 85% of the trip price, depending on the protection plan you choose. 2 HyreCar says renters can earn up to $720 per month for normal vehicles and $845 for electric ones (EVs).
Be aware that you may need to pay a refundable deposit to rent out your car on HyreCar if you live in Arizona, California, Maryland, New York, or Nevada. 3
Getaround might not have the same name recognition as Turo and HyreCar, but it has a lot of appealing features. In particular, it’s known for its:
You will earn 60% of the trip price with Getaround. 6 They’ll issue your payment through PayPal.
In addition, you’ll need to pay a one-time fee of $99 for the Getaround Connect installation, and a $20 monthly fee for the service.
Like Getaround, Avail Car Sharing offers a bonus (currently $200) when you sign up to share your car through the service.
It’s uniquely passive compared to other car-sharing apps. It mimics a traditional car rental service—you drop off your car and Avail takes care of the rest, including bookings, handoff, cleaning, refueling, post-trip inspections, and payouts. 8
As an Allstate partner, Avail also offers impressive insurance—up to $1 million in liability coverage.
Unlike other car-sharing apps, Avail’s earnings structure is not based on a trip price and commission. Instead, you’ll earn a daily rate of up to $25 according to the type of car you share:
Avail guarantees earnings of $50 for every 7 consecutive days you share your car, even if no one rents the vehicle.
Do your homework and take steps to protect yourself when you rent your car
To make the most of renting out your car through peer-to-peer sharing and protect yourself and your property, keep these tips in mind:
As you know, you have to make sure your car is eligible for rental with the platform. However, your work doesn’t stop there. You should also check with:
Not only should you take high-quality photos to post with your listing, but you should take comprehensive photos of your car from all angles.
If a renter damages the car, it’s important to catch them right away and have proper documentation for your insurance claim.
Car-sharing services like those above will require you to have the right insurance (check their policies, as they may vary) to even list your car on their platforms.
If you aren’t renting out your car through a middleman, make sure your car is adequately insured to protect yourself, your property, and your money. Some insurance policies do not include damage done to the vehicle while someone else was renting it, so don’t assume you’re covered without explicitly confirming with your insurance company.
Keep your car in good working condition and get it serviced regularly. Additionally, make sure it’s thoroughly cleaned after every use, and never leave personal items in the vehicle.
Understand what you are and aren’t willing to allow. Consider:
Conduct market research before you set your rate to ensure you’re being paid fairly. Luckily, many car-sharing apps have built-in features and support that help you estimate your vehicle’s worth.
Carefully read and understand the terms and conditions set by the car-sharing app you choose before signing up and listing your vehicle. If something seems off or doesn’t align with the boundaries you’ve set for yourself, explore other options.
Renting your car can be a great side hustle as long as you don’t lose sight of what you’re doing. It’s not without risk—after all, it involves letting people drive away with what’s probably one of your most expensive possessions—but when it goes well, it can be a lucrative source of passive income.
