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How to Make Extra Money Loaning Your Car

by Shawanda Greene

I was so excited to teach you all about the joys and terror of using a straight razor, and then I tripped over this little gem: How to Rent Your Car Out for $10/Hour.

Let’s give thanks to The Penny Hoarder for this one.

As you may well know, I’m no stranger to renting my assets to, er, strangers. I’ve made a few thousand bucks renting my place out on websites like Airbnb and Roomorama. Obviously, these methods of pulling in extra cash aren’t for everyone.

But since they’ve worked so swimmingly for me, for a brief moment, I considered renting out my car. And then quickly decided the liability of letting someone else drive my car was too great. That is until The Penny Hoarder introduced me to peer-to-peer car sharing services Getaround, Spride and RelayRides.

I love that people are able to borrow from their neighbor and save a little money while their neighbor can lend to them and make a little money. Talk about a win/win situation if I’ve ever seen one.

Companies offer roadside assistance for renters nervous their newly borrowed ride is a rotten lemon. For lenders who are afraid their precious vehicle will be driven by the likes of Mr. Wheeler, there’s ample liability, collision, and theft insurance coverage. It’s great!

Since these services are relatively new, they’re only available in a few select areas. Let’s hope the concept really takes off.

And as always, make sure you do your research!!!

Would you consider renting or borrowing a car through a peer-to-peer car sharing service?

Did you enjoy this article?
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{ 18 comments… read them below or add one }

FamilyMoneyValues August 9, 2011 at 10:46 PM

I've heard of these programs, but I'm not ready to use them yet!

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Shawanda August 12, 2011 at 3:00 PM

It does seem scary – okay – terrifying may be a better way to explain what it feels like to hand over your car keys to a complete stranger.

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Everything Finance August 10, 2011 at 8:16 AM

This is a great idea to make some cash.
If you are going on vacation, renting your car will make sure its in running condition when you get back.

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Shawanda August 12, 2011 at 3:34 PM

Didn't think of that, but it sounds like a great idea.

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Doctor Stock August 10, 2011 at 9:09 PM

Umm… interesting… until my fear of the insurance company suing me for lending my stuff in a way it was not designed to be used. Where's your place by the way?

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Shawanda August 12, 2011 at 3:08 PM

Your insurance company probably won't sue you. They'll likely deny your claim if your car is damaged. But supposedly, insurance is provided through the peer-to-peer car sharing service.

"Getaround's coverage replaces the car owner's personal auto insurance from the beginning of the rental period until the rental period expires. Car owners need to retain their existing personal auto insurance coverage for all periods when the car is not being rented."

Check out http://support.getaround.com/kb/insurance-infract

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TheyCallMeCheap August 12, 2011 at 3:23 PM

I forgot to add, I'm in the DC metro area.

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Funancials August 10, 2011 at 10:01 PM

This might sound strange, but I would almost rather lend to a stranger than a friend. If a payment is missed I would be more likely to forgive the friend (and lose $$).

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Shawanda August 12, 2011 at 3:10 PM

I like web sites that handle cash receipts for you. Although I'm not shy about asking for my money, having an intermediary does reduce the hassle factor.

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Michelle August 10, 2011 at 11:40 PM

I'm not sure about this. I guess if everything was foolproof, such as the all liability and so on being taken care of, then maybe I'd feel better about it.

I love Airbnb though! I used it last month on vacation and rented a great apartment!

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Shawanda August 12, 2011 at 3:15 PM

Isn't Airbnb awesome?! I rented a studio in a Midtown Atlanta high rise through Airbnb last month and it was almost as nice as my place. :)

It's kinda weird, but I'm a bit more cautious about renting out my car than my apartment. I think it's the fact that my apartment is less likely to cause bodily injury to an individual than my car. In some states, you're strictly liable for damages caused by your vehicle. Yikes!

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@DebtChronicles August 11, 2011 at 8:53 AM

Sounds like an interesting idea if the liability thing can be worked out…..although I have a huge problem with people not treating my stuff with the same care and respect that I do….and if you renting out your stuff, you're almost guaranteed that someone is going to abuse it at some point.

But hey, if you're comfortable with it, and it brings in extra income, i say go for it!

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Shawanda August 12, 2011 at 3:20 PM

Although I've never rented out my car, I have rented out my apartment. Without exception, everyone I've ever hosted has been extremely respectful of my space and my belongings. I'm sure they don't treat hotels with the same care. When you're not a nameless, faceless corporation, people tend to identify with you. Unless they're complete jerks, I'd bet most people will treat your things better than their own.

However, there are still a lot of jerks out there. My biggest concern would be renting my car to someone who then allows another person to drive my car who isn't covered by the peer-to-peer car sharing service's insurance. That'd be a nightmare if they caused any damage.

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Andy Hough August 12, 2011 at 11:32 AM

It isn't something I'd be willing to try now but if it has proven to be a workable model a few years from now I'd consider it.

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TheyCallMeCheap August 12, 2011 at 3:22 PM

Felt the same way about Couch Surfers.

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1step August 12, 2011 at 2:30 PM

not so sure i would like someone riding my car like a rental :) the amount of repairs that would be need must greatly increase depending on your driving style, and since you don't know who will be driving your car and how.. It's a tough risk to take.

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Shawanda August 12, 2011 at 3:32 PM

I'd make sure the company I used checked the driving records of their members. Since the service is fairly new, it's perfectly rational to be apprehensive about it. You never know what kind of gotchas will pop up.

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