Who should I rent out my car with?
Car Next Door, DriveMyCar or Carhood?
- Car Next Door - if your car is available for short and long-term bookings
- Carhood - if you regularly travel for long periods and park at the airport
- DriveMyCar - if your car is available for periods greater than 7 days continuously
You’ve might have heard the term peer to peer car sharing - but what is it? Essentially it’s you lending your car to a neighbour, instead of a traditional car rental service, where a corporation owns a fleet of cars to rent out. The advantage of peer to peer car sharing is that car owners can reduce their car costs by sharing, and borrowers don’t need to buy their own car, taking cars off the production line to reduce our environmental impact. For a more in-depth explanation, check out our post explaining it in more detail here.
You’ve decided you want to make some money on your car, you’re sick of it costing you more than you think it should. But who should you choose to rent out your car with? Here are the pros and cons of using different car sharing companies in Australia - Car Next Door, DriveMyCar and Carhood.
<^1>Minimum 72hrs for free parking. Under 72hrs will be charged $25/day parking for non rented cars.
<^2>If your car doesn't quite fit one or both of these criteria but you're sure of its mechanical reliability, please get in touch.
Car Next Door
Car Next Door allows you to rent out your car to many different borrowers, from an hour-long booking to as long as you want. You set your own hourly and daily rate and also receive 25 cents for every kilometre a borrower drives.
The advantage of being an owner on Car Next Door is that it allows you as an owner to increase your revenue because it’s possible to get multiple bookings in the same day, which can be more convenient for borrowers. Unlike old-school car rental companies where you would need to physically get to an airport or office location to pick up the car, approved Car Next Door borrowers can get access to your car without being required to meet them or be there to hand over keys. This convenience for them makes it much more appealing for borrowers to use your car more regularly.
But how does that work for me, and safely?
After signing up as an owner with Car Next Door, you’re covered by our Car Next Door Fleet Insurance policy. Membership is $60 a month, which includes comprehensive insurance and roadside assistance and replaces your current car insurance. What this means is you, or any borrower driving your car is covered by fully comprehensive insurance in the event of an accident. The reason for this fleet insurance policy is that it allows you to safely rent out your car to your neighbours for an hour or two when they need it without the hassle for you of having to meet to arrange insurance or sign paperwork, or even to physically hand over your keys. This insurance is what allows you to be able to lend your car out for short periods and increase your potential earnings and be fully and safely covered. We've designed our platform so that borrowers can book and access the keys all through our app and a secure lockbox - meaning you don’t have to waste time sitting around waiting for them to turn up.
If you only use your car occasionally and would like to rent it out for the days it's sitting idle, while you’re at work or having a lazy weekend, Car Next Door may be the better option for you.
Carhood is a peer to peer car sharing service that you can use to get free airport parking and rent out your car at the same time. The way it works is that you drop your car off at a Carhood warehouse location near the airport. Currently, they are operating at the Brisbane, Melbourne and Sydney airports. Like many traditional airport car parking services, you then will have access to a free shuttle to and from the airport. The difference is that you get free parking in exchange for Carhood leasing your car to incoming travellers. You can also earn an income on the car rental if it does get leased. As long as the car is dropped off for at least 72 hours, you won’t pay a parking fee - regardless of whether or not it gets rented out. If you park it for less than 72 hours (minimum 8 hours), you will pay $25 per 24 hour period if it isn’t rented. Carhood will set the rental rate for your car based on the type of car, its features, age and condition. You will receive a portion of the rental income earned, and free car parking.
Renters are covered under Carhood’s insurance, so you won’t have to pay anything in the event of an accident. Not only that but if your car does get rented out, it will be cleaned before you pick it up!
This service is great if you are going away and still want to drive to the airport, but aren’t looking to pay expensive parking fees. Not only that but since you don’t have to manage the car rentals yourself, it’s a low effort way to rent out your car when you are away.
DriveMyCar is another peer to peer car sharing network, where they will rent out your car on your behalf to renters. One of the key differences between Car Next Door and DriveMyCar is the minimum booking time. DriveMyCar requires a minimum of seven days for a booking, and bookings can be for an entire year. The insurance and that reservation is an agreement between you and that specific renter. DriveMyCar organises the insurance for when a renter is using your car, but not for your personal use, and so you must have your own insurance separate to this.
With DriveMyCar, your daily earnings rate is determined by an algorithm, and then from that, they calculate the amount that a renter will pay in total, which includes their income. Renters get a minimum 100km a day for free, and then you can choose whether you want to offer more free km, or select a per km surcharge over that set distance.
One of the advantages of DriveMyCar is that if you are going away or overseas for a longer period of time, for example, you may only have one borrower to deal with.
Unlike Car Next Door where you could have ten bookings in a three week period, DriveMyCar is a longer-term setup. If you are going away for an extended period of time, or won’t be needing access to your car at all for a longer period, DriveMyCar could be a better option for you.
For us here at Car Next Door, our vision is to make a drastic difference in the way all Australians think about car ownership and how we use our cars.
It’s our mission to rid the planet of the one person one car mentality.
Sharing your car, whatever the platform ultimately leads to fewer cars being produced and resources being shared. Millions of Aussie cars sit by idly, depreciating in value and taking up space. That is what we ultimately are aiming to change, and if you’d like to join us as a car owner or as a borrower we’d love to hear from you!