Renting out your car is not only a good way to offset the cost of owning a car, it actually helps out people in your community who can then avoid the need to buy a car. The benefits can be almost ten-fold, with many sources saying that the average share car can take 5-10 cars off the road.
If you’re thinking about renting your car out, no doubt you have some questions, maybe even concerns, about whether it’s right for you.
In this list we’ve considered the top reasons that people rent out their car on Car Next Door. If you agree with most of these points then chances are renting out your car will work for you.
1. You don’t like the idea of your car sitting there all day costing you money
Whether you drive it or not, your car is costing you money. Apart from the regular outgoings like registration, insurance, servicing and fuel; depreciation is one of the most costly parts of car ownership that’s often forgotten. We’ve done the numbers, and a $20,000 car could be costing you over $104 a week, even if you don’t drive it. Car sharing puts your car to work on the days you’re not using it to offset the cost of it sitting idle.
2. You want to turn your car into an asset that works for you
Some people like to say that cars are an asset, something you can always sell to get your money back. By definition, cars are not an asset, they are a liability. Not only is there the costs of upkeep, but cars lose value at an average of 12% per year. It doesn’t take an economist to tell you, that's a bad investment. However, if your car brings in an income for you, then it truly is an asset. The average car on Car Next Door generates around $3,500/year so besides offsetting costs, some cars even make a healthy profit. The question is, what will you spend your extra money on?
3. You hate the mounting costs of car ownership
Every year, there’s only one way that the costs associated with owning a car go... up. The cost of CTP and comprehensive insurance continues to increase faster than inflation every year. CTP premiums in NSW are expected to jump by 13% in 2017. Car Next Door replaces your existing comprehensive insurance, so you can save money on insurance right away, and we don’t charge you more and more each year, because we’re not an insurance company. We wish that we could replace your registration costs too, but you’ll still have to pay the traffic authority for that, sorry... at least your car’s income can cover this.
4. You're responsible and reliable
If you’re someone who looks after your things and keeps things clean and tidy then borrowers will love your car, and the more regular borrowers you attract, the more profitable your car will be. Car sharing is a two-way street, nobody wants to drive a dirty, smelly or unreliable car, so if you look after your car, borrowers will also look after your car in return. Don’t forget, if a borrower makes a mess in your car we pay to have it cleaned and borrowers are fined for leaving it in a messy state. So we want to keep your car clean as much as you do.
5. You understand stuff is just stuff and you're happy to share it
This one is a big factor in how suitable car sharing will be for you. If you feel uncomfortable entrusting your friends, family or neighbours with your property because you’re worried they might not look after it then car sharing might not be right for you. We’ve facilitated over 100,000 car rentals on Car Next Door, and we’re confident in saying that borrowers are overwhelmingly trustworthy. Accidental damage occurs in less than 1% of bookings and we’ve got solid rules and procedures in place to protect you as an owner so you’re not out of pocket. Borrowers who break the rules get kicked off the platform, no excuses. We’re tracking how your car is driven via GPS, whether it’s returned late, and with 2 way reviews we know if borrowers make a mess in your car. We’re always looking out for you.
6. You like helping other people in the community
I think we all fundamentally care about other people in our community, even if they are strangers. If someone is in need of help, you’ll stop to help them out. Ok so maybe you don’t help out with the neighbourhood veggie patch, or volunteer your time at the local community centre, but you don’t need to be a philanthropist, renting out your car simply helps out those who don’t own or can’t afford a car. Maybe they need a specific type of car to get something done, like a ute or a van, or perhaps they’re just stuck trying to visit their family outside of the city. If you don’t have compassion for others, car sharing is not for you.
Members Night with some of our Melbourne Car Owners!
7. You don’t like seeing things go to waste
It doesn’t matter if it’s food going in the bin, or that house that’s sat vacant for years while the cost of housing goes through the roof, you don’t like seeing good things wasted. The way it is now – with a car to every person (18 million vehicles and 17 million licensed drivers), most cars are sitting unused for 96 percent of the time – is just crazy. It’s a waste of resources, a waste of space, and a waste of money. Plus, having a car just waiting makes driving feel like the easiest, cheapest option to get somewhere – even when it’s not.
8. You want to make a positive impact on pollution and congestion
Let's face it, we all know that we should be trying to reduce our impact on the planet. But outside of the usual things like recycling and reducing waste, it's sometimes hard to think of a way to further reduce your impact without drastically altering your way of living. Renting out your car reduces traffic congestion by taking an estimated 5-10 cars off the road, and actually leads to an increase in active transport (walking, cycling) and public transport use.
So I want to rent out my car, what should I do next?