Owning a car is expensive. The costs are between car payments, insurance, gas, repairs and maintenance. The average person spends over $9,000 annually to keep their car on the road!
But what if your car could become an income source instead of a money pit? With some creativity and hustle, your vehicle can be transformed into a cash cow. Whether you want to earn a few extra bucks or even a full-time income, there are numerous ways to put your car to work.
In this post, we’ll explore 7 clever and feasible methods for making money with your car. From ridesharing services to parking rentals, you’ll discover how to offset the cost of car ownership or make a healthy profit. With low start-up costs and the ability to set your schedule, these options are accessible even if you have an old beater.
How to Make Money With Your Car
Turning your car into cash doesn’t have to mean racking up mileage. With the right approach, you can monetize your vehicle without excessive driving.
So buckle up if you want to subsidize your car expenses or generate real income!
Here are 7 ways to turn your auto from a sinkhole on wheels to a money-making machine:
Drive for a Rideshare Company
Apps like Uber and Lyft have revolutionized transportation by allowing everyday people to provide rides using their vehicles. As a rideshare driver, you use the app to pick up passengers and drop them off at their desired location.
Driving for a rideshare company offers tremendous income potential, especially in busy metropolitan areas. While earnings vary based on your location and hours driven, drivers average around $15-$25 per hour after expenses. It’s an extremely flexible way to earn since you set your schedule.
To maximize profits as a rideshare driver:
- Focus on high-demand times like rush hour and weekends
- Target surge pricing zones on the app
- Maintain excellent ratings to unlock bonus opportunities
- Drive fuel-efficient vehicles to reduce gas costs
- Look for promotions and incentives in the app
While rideshare driving increases maintenance and gas costs, the income generated can be well worth it. It’s an easy way to subsidize the expense of car ownership.
Deliver Food
Food delivery has exploded in popularity, which means more opportunities for drivers. Services like GrubHub, DoorDash, and Uber Eats will pay you to deliver food orders through their apps.
Like ridesharing, food delivery allows you to capitalize on the value of your car without an extensive time commitment. Delivery driving typically pays an average $15-$25 per hour, including tips. You log into the app during peak meal times and earn with each food order delivered.
To maximize income as a food delivery driver:
- Schedule shifts during peak meal times like lunch and dinner
- Focus on higher-end restaurants, which tend to have larger orders and tips
- Provide excellent service to earn larger tips from customers
- Take advantage of bonus opportunities on the app
- Drive in dense urban areas to reduce mileage and gas costs
Food delivery is an easy, low-risk way to profit from your vehicle. Just track income versus gas and maintenance costs to maximize your net earnings.
Rent Your Car Out
Peer-to-peer car rental services like Turo and Getaround make it incredibly easy to rent out your car when you aren’t using it. You list your vehicle on the app with details like the rental price, availability, and location. Renters can then book their car right through the app.
Renting your car when you aren’t using it can generate serious income. With Turo, owners earn an average of $500-$600 monthly! Rental prices depend on the vehicle’s age, condition, and location. More in-demand models like convertibles, trucks, and luxury cars can command higher prices.
Here are some tips for maximizing income through peer-to-peer rental:
- Clean and maintain your vehicle to earn positive reviews
- Price competitively based on local market rates
- List numerous availability windows to attract more bookings
- Accept longer term rentals of 1 week+ when possible
- Drive a desirable, fuel-efficient model to attract renters
Car rental platforms provide insurance protection and handle scheduling and payments. Take advantage of this hands-off approach to monetize the asset you already own!
Advertise on Your Car
Imagine getting paid to drive around as you normally would. That’s exactly how services like Carvertise work. They essentially pay you to become a rolling billboard!
Carvertise partners with major brands that pay drivers to completely wrap their vehicles in an advertisement. Depending on your location and mileage, drivers get paid a monthly rate, often between $100-$500. All you have to do is drive your normal routine while displaying the ad.
There are a few downsides to consider:
- The car wrap can reduce your vehicle’s resale value
- The advertisement often limits your ability to use your car for side gigs
- Approval rates are low, as brands have strict vehicle requirements
However, if you qualify, displaying an ad on your car provides effortless passive income just for driving as usual!
Offer Car Washing Services
If you enjoy hands-on automotive work, consider detailing, washing, and polishing other people’s cars for profit. This can be done by starting your mobile business or providing services through a company like Spiffy.
A mobile setup has low start-up costs. All you need is basic equipment like wash mittens, hoses, cleaners, and towels. Charge $30-$60 per standard wash, depending on exterior condition. You can schedule appointments in advance and conveniently travel to your customer’s location.
Providing services through Spiffy has lower risk and startup costs. The company handles all scheduling, payments, and advertising. You complete washes using their equipment and supplies. Spiffy takes a cut but provides consistent income.
To maximize profits:
- Master automotive cleaning techniques to provide quality services
- Advertise your mobile business through channels like social media
- For Spiffy, target areas with higher pricing rates and demand
- Expand your services like waxing, polishing, and interior detailing
- Build repeat customer relationships through loyalty programs
Washing cars is often overlooked but in demand. Put your auto skills to work and build a profitable business!
Deliver Packages
Delivery driving extends beyond just food orders. Services like Amazon Flex allow regular people to handle package deliveries using personal vehicles.
As an Amazon Flex driver, you earn $18-$25 per hour, depending on your location. You use the mobile app to claim available delivery blocks, pick up packages from the warehouse, and deliver to customers in your area. It’s easy to earn a solid income without an inflexible schedule.
Tips for Amazon Flex drivers:
- Target blocks during peak demand, like evenings and weekends
- Maintain excellent delivery ratings to get priority access to blocks
- Memorize your area to plan efficient routes and limit miles driven
- Drive a spacious vehicle to accommodate more packages per block
- Take advantage of bonus opportunities that pop up in the app
Amazon Flex is best suited for those who enjoy driving and navigating deliveries. Take advantage of surging ecommerce delivery demands and convert your unused cargo space into earnings!
Rent Out Parking or Garage Space
Apps like JustPark and Parkleez tap into the lucrative parking rental market. You can list your extra parking space, driveway, or garage to renters needing convenient, affordable parking.
Rates range from $50 to $200 monthly, depending on location, size, covered vs. uncovered, etc. You get paid to rent out an empty parking spot at your home.
To maximize rental income:
- Price competitively based on nearby parking rates
- Target densely populated areas with limited parking
- Advertise your space through local channels to attract renters
- Clearly outline terms and policies in your listing
- Collect security deposits and use rental agreements
- Enforce access limits and hours to control use
Turn that unused concrete slab into a profitable asset! Renting out parking and garage space provides passive income with little time commitment.
Things to Consider Before Using Your Car to Earn Extra Income
Turning your vehicle into a moneymaker may sound enticing. With the rise of ridesharing, delivery, and car rental apps, it’s tempting to think you can easily offset your auto expenses or even generate substantial profits. However, several important factors must be considered before using your car to earn extra income. Evaluating these potential downsides and risks will help you make an informed decision.
Employment Status
Most car side hustles classify you as an independent contractor, not a formal employee. That means you won’t receive traditional benefits and legal protections. For example, you must pay self-employment taxes, fund your health insurance, and cover gas, repairs and other expenses out of pocket. You also won’t have guaranteed wages or reliable hours. Before diving in, ensure you understand and can manage the complexity of being an independent contractor.
Realistic Income Potential
Be wary of inflated claims about how much you can earn. Actual driver pay is often much less after accounting for gas, maintenance, taxes and downtime. For example, Uber suggests drivers can make over $25 per hour, but surveys show real earnings tend to be $10-15 per hour after deducting expenses. Talk to your area drivers for firsthand insight into realistic take-home pay.
Increased Vehicle Wear and Tear
The more miles you drive, the faster your car will depreciate and require repairs. Ridesharing, delivery driving, rental guests – it all takes a toll. Be prepared for higher maintenance bills, more frequent replacements, and accelerated loss of resale value. Crunching the numbers will tell you if the income exceeds rising costs.
Insurance Coverage Needs
Personal auto policies usually won’t cover you while transporting passengers, delivering goods, or renting out your vehicle. Look into commercial, rideshare or rental coverage to avoid devastating gaps that could ruin you financially after an accident. Don’t jeopardize your assets by assuming standard insurance will protect you.
Financing Restrictions
If you have an auto loan, verify that using your car commercially doesn’t violate the terms. Many financing agreements prohibit activities like ridesharing. Breaking these clauses can get your loan called in or your vehicle repossessed. Protect your investment by understanding and abiding by your loan agreement.
Licensing Requirements
Most cities and states regulate the commercial use of personal vehicles. You may need special licenses, permits, or commercial registration, depending on location. Fail to comply, and you risk citations or even having your car impounded. Do diligent research so you operate legally and avoid fines. The costs of proper licensing should factor into your income projections.
Conclusion
As you can see, cars aren’t just expensive liabilities. With a bit of creativity, your vehicle can become a real money-maker! From ridesharing to advertising, there are numerous ways to cash in on your car.
Remember these money-making options next time you cringe at the cost of a car repair or loan payment. Tap into the earning potential of your car to offset expenses and even profit. With consistent effort, your auto can pay for itself and then some!
Try out a few ideas that appeal to your interests and lifestyle. Before you know it, you’ll be raking in the dough from your formerly draining set of wheels. Now, get out there and start making money with your car!