CAR NEXT DOOR
Rent out your car
The money I make covers the rego, servicing and insurance, so it’s like I have my car for free.
WHY I CHOSE CAR NEXT DOOR
I heard about Car Next Door when I was thinking about selling my car. I had moved from the suburbs into the city and just wasn’t using my car much anymore. I had actually listed it for sale and had a few inquiries. It was looking like I would sell it for around $3000 to $4000. Then I heard that Car Next Door would offer me a guaranteed $2000 income over the first 12 months of renting my car out. So I thought: I will earn at least $2000 in the next year, and even if I sell it after that I’m still ahead.
HOW IT WORKS FOR ME
I block out the times when I want to use my car – it only takes a few seconds from my phone. It is available for borrowers (who are vetted by Car Next Door) to rent at other times. Car Next Door covers the insurance and handles any issues that may arise. It also provides the access technology, so I don’t have to meet borrowers to exchange keys.
I generally just check the car once a week, and take it for a clean once a month. If you want, you can get a mobile cleaner to come and clean it – they can get into the car using the booking system, so you don’t need to be there.
WHY I LIKE IT
Well, first, the income. It has been about double what I expected – I’ve earned nearly $4000 in my first year. I also love that I can drive other people’s cars for different kinds of trips. If I’m going on a longer trip, like down the coast, I choose a really nice, comfortable car. If I’m moving house I can rent a van and it is so much cheaper.
LESSONS LEARNED
I’ve had a few odd bits go missing from the car, such as a phone charger. The lesson is not to leave your personal possessions out, and to check the car after every booking if you can so that you can notice and report anything and it’s easy to work out which borrower is responsible. Once I had a borrower who had a prang but I didn’t have to do a thing. Car Next Door arranged for the repairs to be done. I’ve had borrowers who got traffic fines – I just send them through to Car Next Door and I get paid an inconvenience fee, so it really doesn’t bother me.
TIPS FOR OTHERS
Do it! I was worried that it would be a hassle but the process is really simple and the member support team is great if you have any questions or need a hand.
HOW YOU CAN DO IT
You list your car as on the website and Car Next Door comes out and installs technology to allow borrowers to get the keys. You set your car’s hourly and daily rates and availability. Drive when you want to; rent it out at other times. Screened borrowers book your car. Your earnings depend on your car’s location, condition and availability. Car owners whose car is available at least 50% of the time can earn $3600 a year on average. Top earners make $7000 to $10,000 a year. You pay $60 a month for membership, and this includes full insurance, 24/7 roadside assist and member helpdesk, use of the key exchange and security technology, management of payments, personalised marketing for your car and use of the online platform to manage your car. Car Next Door’s fleet insurance policy offers full damage cover. Your car is covered against collision, theft and third party property damage, whether it’s being driven by you or a borrower. You do need to declare the income. The tax office advice states that you would also be able to deduct the costs incurred in earning it, which would include the monthly membership fee, fuel, servicing and tyre costs associated with borrowers’ driving.