Until now, Car Next Door’s Borrowers paid a flat distance charge of 33 cents for every kilometre. The distance charge covers fuel, plus other running costs like servicing and tyre wear. Owners received 25 cents a kilometre, and 8 cents went to Car Next Door to help cover our costs of running the platform.
A flat distance charge was nice and simple - but different cars cost different amounts to run, so an owner of a small, fuel-efficient hatchback would end up better off than someone with a large, fuel-hungry van.
To make things fairer (but also keep it simple), owners can now set the per-kilometre rate for their cars at either 21, 33 or 45 cents per kilometre.
What this means for owners
You can now choose whether your Borrowers pay 21, 33 or 45 cents per kilometre when driving your car. Car Next Door will take 8 cents per kilometre to go towards running the platform, and you’ll keep the rest. This gives you more flexibility to make sure your car’s running costs are covered.
Not sure which rate to choose? Take a look at our distance rates guide.
What this means for borrowers
Depending on the car you borrow, your trip might cost slightly more or slightly less than before. Some cars will be 21 cents per kilometre, while others will be 33 or 45 cents per kilometre.
Each car’s distance pricing is clearly displayed on its profile, and our trip cost calculator makes it easy to estimate how much your final trip cost will be. When you book, just enter the dates and times you need the car and an estimate of how many kilometres you’ll drive.
For most trips, Car Next Door will still be cheaper than a traditional hire car, especially for the kinds of vehicles that will have a higher distance charge. Borrowing a van from a hire company for one day can cost over $100 plus fuel (and extra charges to reduce your excess or add additional drivers). Car Next Door has vans starting at $40 a day plus the distance charge, and it’s free to share the driving with any other Car Next Door member. It’s also convenient: you can book for just a few hours if that’s all you need, and pick up the car in your neighbourhood at a time that suits you.
We don’t want you to pay more than you need to, so we’ve put together a cost comparison calculator to help you choose the best option for your trip every time.