Published on : 01 March 20193 min reading time
Rental between individuals allows the person who puts his/her car for rent to absorb more quickly an expensive vehicle purchase, especially the one that spends most of its time in a garage or on a parking spot. As for the person looking for a car rental, this sort of peer to peer car rental allows him/her to have available a vehicle right next to his/her home, at an often very interesting cost.
P2P car hire: money easily earned for many
Private car hire makes it possible to make the substantial investment represented by the purchase of a new or old car profitable, and to make up for the vehicle’s cost of use. The company that mediates between you and the tenant for a regulatory framework of private car hire, www.drivy.co.uk/ for example, usually retains at least 30% of the paid amount. However, by regularly renting your car, you can theoretically reach several hundreds of Pounds every month, provided you have an attractive enough vehicle and are in an area where demand is relatively strong. The amount varies depending on the model and, of course, the rental period and mileage.
Criteria for a profitable private car rental
The criteria remain fairly broad: it is generally necessary for the car to be less than 10 to 12 years old, to display less than 120 000 km, for maintenance to be up to date and to be in good condition. Then you will be free to accept or refuse rental requests, knowing that tenants are also subject to detailed criteria: driving license check and number of points, no accident responsible or termination by insurance in recent years, etc. You can decide, of course, the days and slots you want to offer your car to rent in. However, do not forget that you will have to report your earnings to the tax authorities when you file your annual income tax return.
Hidden risks and costs
Connected enclosures spare you the step of being there for the car inventory and delivery of keys. The main drawback of this seemingly straightforward action is that the tenant will be the one deciding on the app if your predefined inventory no longer corresponds to reality, or taking pictures that are supposed to testify to the interior and exterior condition of the car. It’s up to you to make the right steps with the intermediary company to obtain compensation in case of degradation.
How did private P2P car rental become this common?
Steps for renting out your own car