Need Extra Money? Lease out your ride!

Do you think this car would qualify for renting? lol

It's become a popular way for car owners to make extra money. And judging by the increase in demand and the number of new companies taking on this venture, automobile owners leasing their personal vehicles is a rising business. Spride Share, an individual car-sharing network, began operations in San Francisco in January 2011. After a pilot period with this program, Spride Share went into full blown operations because this creative idea became popular among car owners wanting to help pay for the high price of vehicle ownership in the Bay Area.

Stride Share has partnered with City CarShare, thus making their cars available to over 13,000 screened City CarShare members. Hardware is installed in each vehicle that monitors usage and allows renters access through an electronic key fob. Each owner can determine when his/her vehicle is available. Rates are designated based on the vehicle: economy, premium, specialty, luxury. Beaters are not allowed.

A Honda Pilot SUV might garner $9/hr, while a current model Toyotal Corolla could lease for approximately $7/hr. Owners will walk away with about 40% of the leasing charges. Spride Share estimates that sedan owners leasing their vehicles for about 15 hours weekly could typically earn approximately $2,200 yearly; with premium car owners earning about $2,800 yearly.

Another car-sharing company, Zipcar, boasts over 500,000 members and cars in 28 states and the UK. The biggest difference between Spride Share and Zipcar is Zipcar owns its 8,000 cars, but parks its vehicles in the neighborhoods and rents out to nearby members. RelayRides, has only been in business since June 2011 in Cambridge, Mass. Owners dictate their own rates, although RelayRides suggests $8/hr for a current Civic, and up to $12 for an SUV. Relay gets 15% off the top, and also charges 20% for insurance.

Insurance is vital

Proper insurance is absolutely vital in car-sharing networks. Spride, RelayRides and Getaround provide additional coverage through national providers, that insures the vehicles and owner in case of accidents. Renters are covered after a $500 deductible.

In many situations, owning a vehicle out right, as in having the vehicle paid off, is not necessary to leasing the vehicle out. Just an FYI: the income earned is taxable.

Should YOU lease your vehicle?

If you can overcome the fear of renting your vehicle to a complete stranger, then perhaps it would be a good consideration. Relay claims its top earners earn more than $600 a month. That's not bad pocket change for a vehicle that could be sitting there collecting dust and rusting. All members who rent in the car-sharing network are screened, and their driving records throughly checked. Addtional fees are assessed on cars that are returned late or dirty. Another great feature is the feedback system that permits owners to rate renters. After considering these things, if you still feel uncomfortable with renting to strangers, you can choose to only rent to friends and family. Most renters, lease cars for in-town errands and don't rent the vehicle for more than a few hours.


So, what say you? What are your thoughts about renting a personal vehicle out?
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Posted in: Side Gigs