It’s a bunch of different ways to make extra money using your phone but renting out your car is one of the more interesting ways to make passive income by using what you already have in your possession which is a car.
I’m going to go over the top 3 rental car apps and how to create a business with your car.
- Turo
This is my favorite rent a car app. This app is really good. Its very self explanatory on both sides of the coin. You can rent cars and you can put your own vehicle on the app to get rented out. So how it works is you can list your car, truck, sports car on the app for FREE. No sign up charges No listing fees. Nothing at all.
Set YOUR prices & rules. you can do a daily price or you can let your price automatically adjust to match demand. You can also customize when your car is available and set up your own ground rules. Other great feature is that your can interact with guests the way you want to.
You can meet them in person which I advise or you can offer self check in. The beautiful thing is your always in control of the process. Welcome your guests. You’ll be able to confirm the details of the trip once they get qualified through the Turo app.
The pick up location of the vehicle can be at your home which I don’t recommend. I would recommend you set up a location you can meet like a Walmart parking lot, or any major super market in your local area.
Meet in a place with more traffic of people just incase something goes wrong or anything of that nature. Remember safety first. When your guest starts a tripYou simply check them in with the Turo app and you’re good to go.
Now here comes the good part. For every trip you get paid via direct deposit within three days after each trip. Depending on the protection plan you choose, you’ll get paid anywhere between 60% – 90% of the trip price. If your guest goes beyond your limit you will get reimbursed for things like fuel and any mileage.
2. Getaround
This peer to peer car rental company is a little different then Turo but the same concept. The mission of Getaround is and I quote “We’re helping consumers shift away from car ownership by giving them instant and convenient access to vehicles when they weed them.”
Which is a great mission and I really like the business model. Its really easy to get started with Getaround you sign up and give your car a name on the site.
Getaround does have a sign up fee unlike Turo. Its costs $100 to sign up and $20 per month to keep your car on the site. This is per car too so if you have a fleet of cars this might get a tad bit costly when you start to expand your business.
They have this system called Getaround connect. Once you get this installed on your car you’ll be to enable bookings on your vehicle and start earning money. Getaround connect allows guests to unlock your car from the app and gives you information about the usage and location of you vehicle.
Now how much you earn with your vehicle all depends on your type of vehicle and time of the year. Getaround has hourly rate pricing.Getaround automatically sets your car’s price at its recommended rate when your car goes live for trips. Your car’s recommended rate accounts for your car’s location, guest demand in your area, and your car’s year, make, and model.
Keeping your car’s price at its recommended rate will help you maximize your earnings.You would want to have a newer model car or truck to get consistent renters. You can also let your Getaround hosts use your vehicle to Drive with Uber.
The car insurance is covered through GetAround just like other apps. Also from what I’m getting is that you would want to make sure you have your car available in more of a major city or close to an airport to have better chance of your vehicle being rented.
Getaround has some prime parking real estate available for you to use when parking your car for peer to peer rentals. So you don’t have to worry if you don’t live nearby a major city.
Hosts are paid once a month through PayPal on the 15th of each month for trips taken during the month prior. In order to share your car on Getaround,
it must meet the following requirements:
- Be a private passenger vehicle with at least 4 wheels.
- Be model year 2007 or newer. If a car is 10 years or older
- it will need an inspection done at on-boarding as
- well as yearly to maintain eligibility
- Have less than 200,000 miles. If 125k-200k an inspection
- is needed at onboarding as well as yearly to maintain eligibility
- Seat no more than 10 passengers.
- Must have power door locks installed
- in the front driver’s side and front passenger side doors.
- Be in Good physical and mechanical condition –
- This means the vehicle may have some minor cosmetic
- defects but is free of mechanical problems:
- The paint and bodywork may require minor touch-ups at most.
- The engine compartment has no major minor leaks.
- The vehicle has only minor rust, if any.
- The body has no damage other than minor scratches or dings.
- The interior has minor blemishes characteristic of normal wear.
- The wheels may have minor repairable scratches or scrapes at most.
- All tires match and have Tire tread > 3/32”
- There are no illuminated malfunction
- indicator lamps (Check Engine Light) on the instrument panel.
- The Windows and Windshield have no
- cracks more than 2” or cracks within the driver’s line of sight.
- All lights (Headlights, Tail Lights, Turn-indicator light & Brake Lights)
- are functional with no damage beyond minor scrapes and scratches.
Getaround doesn’t accept luxury vehicles to get a list of the vehicles that they don’t accept check out the link here. Getaround is definitely a great app to use if you need to make extra money with your vehicle real quick or create a business around.
3. Hyrecar
This is app is very much like Turo in the way you list your car and how you make money. The sign up is free and simple. No up-front costs to use the app. You list your car, you receive rental requests through the app, you approve the rental connect with the driver to hand off the keys and earn.
You have 24/7 customer support vetted drivers and as they state on the website on average HyreCar rentals are typically longer term when compared to other car sharing platforms. Hyrecar can optimize your listing to help you increase your rental request.
They also give you pricing recommendations to make sure your rentals are profitable. They also provide GPS tracking to help you protect your assets. The average person makes $720 a month that’s an extra $8100 a year.
Ok so now we know the top 3 peer to peer car sharing apps and what they are about. The question how do you turn this into a business? First step, you need to buy a car that is close to the current year. Meaning its 2023 right now. You should be trying to get a vehicle that is 2019 or better.
Most people put a down payment on a vehicle and that’s the hardest part but if you go to a new car dealership and tell the sales person to only look for vehicles that have a manufacture rebate.
You can use this rebate to cover the down payment on the loan. You would literally walk out of the dealership with a brand new car and no money up front.
Do remember I suggest you have a 600 or better credit score and a job. If you need to work on your credit there is a link in the description below. If you have decent credit you can start a LLC and then cosign the loan to put it in your companies name.
Once you get one vehicle rolling and bringing in income you can save the money in your business bank account and use that consistent income to leverage buying another vehicle to build your fleet of vehicles. Its going to take some time to build this business model but it can work with time and consistency,
Building a business is never over night but in the long run if done right you can have a fleet of vehicles making recurring income on a monthly basis. If you need help building your business credit and want to learn more GET STARTED HERE.
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Signing off for How To Build A Business Renting Out Your Car.
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