Over recent years, the transportation industry has undergone some astounding changes. The introduction of ride-share companies, including Uber and Lyft, became game-changers in the sector.
As of mid-2018, approximately 833,000 Uber drivers hit the road during the prior year, shaking the taxi industry to its core.
Now, there’s another disruptor in the transportation space. Two apps, dubbed the Airbnb of car rentals, are creating new opportunities for individuals looking to make money on the side. Plus, they are impacting the rental car industry, putting companies like Budget and Avis in the same position as taxi businesses.
If you are looking to make some side money off of your vehicle, here’s what you need to know about the Airbnb of car rentals services.
Turo-The Airbnb of Car Rental
A peer-to-peer car-sharing company, Turo works a lot like Airbnb. People who want to make additional cash for their vehicles can rent them out to users in need.
Approximately 250,000 cars are up for rent through the app, covering over 4,500 cities. Turo welcomes a wide range of vehicles, including everything from pickup trucks to sports cars.
Turo has comprehensive agreements for both those who put their vehicles up for rent and the renters. This shouldn’t come as a surprise as there is a substantial amount of risk in renting out your car. After all, someone could scratch, dent, or even total it. Plus, there is a chance of theft.
There are insurance options through Turo that can offer a level of protection. It’s still important to read all of the fine print thoroughly. This ensures you are fully aware of where various responsibilities lie, including it a renter gets in an accident.
How Easy Is It To Become Sign Up For Turo
Signing your car up with Turo is relatively simple. However, it is important to note that the company can reject your vehicle if it doesn’t meet their standards. If you’re driving a clunker, you likely won’t be able to put your car on Turo.
Once your car is on the available list, Turo uses dynamic pricing to set the rate. This means what you can earn fluctuates depending on demand. If you want to offer delivery, such as bringing the car to the nearest airport, you can set an additional fee.
As the owner, you get the final say on whether to provide the vehicle to someone who wishes to rent it. This is another reason why Turo is one of the “Airbnb of car rentals” apps, as you can reject a request largely at your discretion. However, all potential renters go through screening processes, including an examination of their driving history to ensure they are safe drivers.
If you accept a renter, the Turo app walks you through a handoff checklist, ensuring you complete important steps like documenting the mileage and checking the renter’s driver’s license.
After that, you’re typically aren’t involved until the renter brings your car back. Then, you reassess the condition of the vehicle and close out the agreement. Turo deposits your money not long after that.
Getaround is another peer-to-peer car-sharing business, allowing individuals who want to earn a little extra cash from a dormant vehicle to rent out their car to someone in need. The app boasts 1000’s of vehicles but focuses on major cities, like D.C., L.A., and Seattle, and their immediate surrounding areas.
This service focuses on trips of all sizes. For example, a person who wants to spend an afternoon at a local hiking spot but doesn’t have their own vehicle might rent a car through the app. Other renters, such as those who usually rely on public transportation, can secure an automobile through Getaround to make tasks like getting groceries easier.
Like Turo, Getaround has insurance options to mitigate your financial risk. However, you are letting a stranger drive your vehicle, so issues can occur. However, renters are pre-screened for red flags, like prior accidents, to make sure they are reasonably skilled drivers.
Additionally, your car has to meet the company’s standards. If your vehicle isn’t in good repair, you might not qualify.
Otherwise, this Airbnb of car rentals offers the kind of experience you expect from the service category. You list your car, make an agreement with a renter, and allow them to use your vehicle. In return, you earn some side money.
Should You Sign Up with the Airbnb of Car Rentals?
Whether renting your car through an app like Turo or Getaround is a wise move depends on your situation. First, you must own a vehicle that you don’t need to drive from time to time. If you rely on your car on a daily basis, this might not be right for you. However, some renters only secure a car for a few hours a day, so it is still worth exploring.
Second, when you rent out your vehicle, you are taking a risk. While the Airbnb of car rentals companies do offer insurance, a renter being in an accident is still an inconvenience.
While you may have coverage for repairs, you will be without that car while it is in the shop. Additionally, if they total your vehicle, you could be in for a series of headaches along with the loss of a car. After all, an adjuster will determine the vehicle’s value, so you might not get enough to purchase a similar automobile from the insurance money alone.
What About Your Personal Car Insurance?
Additionally, your personal insurance likely won’t cover an accident that involves a renter. This means you can’t tap that resource to make up any difference. Instead, you are relying on the insurance from Turo, Getaround, or similar company, hence why reading all of the fine print is a must.
You can lessen your risk by reading renter reviews before agreeing to provide your car. Similarly, you can contact your insurance company to see if they will also cover any damage.
Finally, you need a vehicle that potential renters may find attractive. Pickup truck owners may appeal to people who are moving or need to purchase a large item. Sports car owners could attract tourists or business professionals. If a renter wants to head out camping, then they may look for SUVs to rent.
Depending on your type of vehicle, your demand may vary. However, you can always explore this by listing your car and seeing if there is enough interest to make it a worthwhile venture.
Ultimately, if you are comfortable with sending your vehicle out onto the road with a stranger, you can make extra money with these apps. But, if you couldn’t survive if your car is in an accident or totaled, this might not be the best money-making option for you.
Have you rented out your vehicle on one of the Airbnb of car rental apps? Tell us about your experience in the comments below.
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