I’ve made £5,300 hiring out my car to strangers – how you can too
SALMAN Rafiq bought a new car in September, but he barely uses it himself – instead he makes hundreds of pounds a month renting it out to strangers.
Millions of people struggling in the cost of living crisis are looking for easy ways to make extra money – could car-sharing be the future?
Salman, 29, who works as a compliance officer, only uses his hybrid Toyota Corolla to go to the office a few days a week.
So he decided to try a car-sharing app to make some extra cash on the days he wasn’t using his hybrid hatchback Toyota Corolla.
He now makes an average of £500 by sharing his car with strangers – and has been so successful, he’s bought another vehicle too.
Salman said: “I decided to try it because it seemed like there were a lot of benefits – I can get an extra income just because I’m not using my car, and it helps people in the local area too.”
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There are a few apps to choose from, but Salman signed up to Karshare – he downloaded the app and entered his car registration to see if he was eligible.
Karshare has some exclusions and won’t let you sign up if your car is too old or has more than 100,000 miles on the clock, for example.
“It tells you how much you can expect to make on a daily and monthly basis,” said Salman.
Next, he booked for a Karshare adviser to come and check his car over.
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An engineer comes and fits a telematics box into the engineer with a spare key inside.
Contactless technology lets the renter unlock your car without having a key, and means you don’t have to meet everyone who hires your car.
It also lets Karshare track how your car is being driven – whether the renter is speeding, for example.
Getting set up
From signing up to getting his first rental took Salman around two weeks in total and cost around £200.
This money doesn’t have to be paid upfront – it can be taken out of your bookings.
He took pictures of his car himself to put on his listing, but Karshare can also send a professional to do this if you prefer.
Salman said: “At first I would just hire out the car for a few hours a day, but I found this really time consuming.”
That’s because before each hire you need to make sure your vehicle is clean and the petrol tank is fuel.
Renters are supposed to sort this before they return the car – and get a fine if they don’t – but not everyone does.
How much to charge
Salman typically charges around £50 for a day’s hire of his car – the app can help you pick the right price.
His biggest ever booking was £1,200 when someone rented it for an entire month.
“I was shocked by that,” he said. “Most of the time people use it for airport runs or to take the kids out for the day.”
You can also charge more on certain days – for example at weekends, bank holidays or at Christmas.
Salman’s own car is now rented out for around half the month.
Karshare takes a 30% cut of your booking – so if you make £100, you’ll only receive £70 of it.
The money arrives in your bank account seven days after the rental.
The fee includes fully comprehensive insurance to cover any renter, so any accidents won’t affect your own policy.
Salman said that using the app hasn’t affected his car insurance premiums.
But if you are changing the way you use your vehicle though, it’s always best to contact your insurer first, or you could risk invalidating your policy.
Salman has used the app himself as a renter too – he hired a van for £56 to take his family to Blackpool on Christmas Day.
“I enjoyed getting the personal experience of using it and I saved money this way – it would have cost at least double if I’d used a mainstream rental company,” he said.
Salman uses the money he earns through the app to pay for bills and essentials, as well as saving towards a holiday.
This summer he hopes to go to Turkey with money he has earned from the app.
He said: “I recommend the app to everyone, two of my friends have signed up now and one is making about £1,500 a month.”
What other car sharing apps are there?
Karshare estimates that its users make an average of £650 a month from renting out their cars through the app.
It takes a 30% fee from your bookings.
Turo, another car sharing app, said its users keep 65-75% of the booking price – you’ll need to meet renters to hand over your key though.
It also offers liability insurance to cover your car while it’s being rented.
Hiyacar also has keyless technology; it said users can earn up to £650 a month through the app.
You’ll need to have a phone or video call with the firm to get set up, and it takes a 30% cut of the rental fee.
It offers perks including AA breakdown cover and discounted services at KwikFit.
BlaBlaCar lets you carpool to share journeys rather than hire out your car entirely.
It charges passengers rather than the driver.
Zipcar lets renters hire a car from just £3 an hour, and also offers a Flex “one-way” service in London with a per minute charge.
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There are other ways you can make money from your motor too – such as Tarek Fergani who makes more than £100 a month renting out his parking space.
Elsewhere, we spoke to one student who makes £100 a month from his side hustle designing trainers.