14 Jul, 2022
The costs associated with car ownership can add up over time. So, if you’re not using your vehicle on a daily basis, you may be interested in finding out how you could recoup some of these costs by renting it out.
Depending on where in Australia you are located, you may be familiar with car sharing services such as GoGet and Popcar. These kinds of car sharing services have their own fleet of vehicles that they rent out to drivers who need access to one for a short period of time.
But did you know there are also peer-to-peer car sharing services that facilitate sharing between car owners and other drivers?
Platforms such as Car Next Door, DriveMyCar and Drive mate allow car owners to list their vehicle for rent at times when they have no use for it.
Opting to rent out your car can be a strategic way to help cover the costs of car-related expenses such as registration, insurance and depreciation. But only if it’s the right fit for your personal circumstances.
Whether your car may be suitable for car sharing will depend on a number of factors, including:
You’ll also need to provide evidence that your car is registered and is covered with compulsory third party (CTP) car insurance.
Different car share services will likely have slightly varied processes for getting started. Some of the steps you may need to take include:
The amount you may be able to earn from renting out your car will vary depending on a range of factors, including:
All of these factors will contribute to how much demand you may see from drivers, and ultimately how much you’re able to earn.
Most car sharing services will have a form on their website where you can input your car’s details for an estimate of how much you could earn. Plus, some will guarantee a minimum earning amount if you meet certain criteria.
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This article was reviewed by Personal Finance Editor Mark Bristow before it was published as part of RateCity's Fact Check process.
Personal Finance Editor
Georgia Brown is a Personal Finance Editor and journalist for RateCity, covering the scope of finance in Australia over loans, credit, mortgage and housing, superannuation, and sustainable finance, to name a few. Before venturing into personal finance, she worked as a reporter for Smart Property Investment, Real Estate Business, and REA's realestate.com.au, and these days her work can be seen across numerous publications, including Lifehacker and RateCity.
How to make money by renting out your car – RateCity