9 Best Ways to Generate Passive Income with Your Car
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If you own a car, you know that car payments, gas, maintenance, and repairs can add up quickly.
In fact, according to AAA, it costs an average of $706 per month to own a car. But there are ways you can offset the costs by turning your car into a passive income earning tool.
9 Smart Ways to Make Passive Income with Your Car
If you choose to pursue these opportunities, you won’t have to make any changes to your schedule or lifestyle. You’ll be able to use your car as normal and make some extra cash while you do it.
Rent it out
Just like you can rent out a room or your entire home through Airbnb, you can rent out your car and post the listing through various apps. This may be a great option if you don’t use your vehicle often because you live in a city or work from home.
Getaround is a car sharing app that allows car owners to connect to people who would need to rent a vehicle. According to the company, you can use it to earn hundreds of dollars per month as long as your car meets their requirements:
- Model year is 2010 or newer
- Has less than 125,000 miles
- Seats a maximum of 8 passengers
To get started with Getaround, create a free account, including details like the dates your car will be available as well as a pick-up and drop-off location. After a 30-day free trial, you’ll pay a one-time fee of $99 and a flat fee of $20 per month to continue to use the app.
A Getaround representative will install Getaround Connect, a device that allows renters to locate and unlock your car. You’ll also receive a digital key so you can access and unlock your car from your phone any time you’d like. Additionally, your car will carry a $1 million insurance policy when you rent it out.
Turo is another car sharing app. The company states that you can use it to earn $500 per month or more if you own a car that’s registered in any state except New York. The platform also requires that your car:
- Be no more than 12 years old
- Have 130,000 miles or less
- Doesn’t exceed $150,000 in value
To sign up with Turo, create an account, and click on “List Your Car.” From there, enter information like the make, model, and license plate number. Also include details such as the amount of trunk space and whether your car has features like a built-in GPS or leather seats.
Although Turo will suggest a daily rate for your car, you can choose your own fee. The insurance coverage you select will determine how much of the rental fees you get to keep.
Here’s an overview of your options.
- Standard Plan: If you opt for the standard plan, you’ll get liability coverage and physical damage protection. You’ll also pocket 70% of the price of your trip.
- Premium Plan: You’ll take home 65% of your trip earnings price if you choose the premium plan. This option is similar to the standard plan but also includes wear and tear and loss of rental income.
- Basic Plan: The basic plan doesn’t cover wear and tear or loss of rental income. Turo will pay 20% of the initial $3,750 of any car damage expenses and 100% after that. You’ll get to keep 85% of your trip price.
Jeremy Poland, owner of The Platform.Shop, has used Turo to rent out his Porsche Cayenne to business travelers in Houston. He earned $400 per week for two rental sessions that lasted between three to four hours.
For those looking to use the service, Poland offers some advice: “To make good money on Turo, keep your car clean, leave unopened packs of gum, and relist your vehicle every once in a while,” he said. He also explained that the more luxurious your car is, the more you’ll earn.
Unlike Getaround and Turo, HyreCar gives car owners the chance to rent out their vehicles to Uber and Lyft drivers. To use it, create a free profile with photos of your car, registration information, and Uber or Lyft inspection documents. If you haven’t had your car inspected by Uber or Lyft, you can pay $30 and sign up through RideShare Mechanic.
You’ll be notified any time someone wants to rent your car via HyreCar. Then you’ll need to accept their request within 24 hours and coordinate with the driver to give them your keys and verify their driver’s license. You’ll get paid as soon as the driver picks up your vehicle.
When the rental is over, you and the driver will arrange a drop-off time and location.
According to the HyreCar website, you can make up to $1,000 per month if you rent out your car to ride share drivers.
Wrap it with ads
If it doesn’t bother you to drive around with stickers or wraps on your vehicle, you can get paid to place advertisements on your car.
Carvertise is an advertising company based in Wilmington, Delaware that connects brands like Amazon and Sprint with drivers who want to earn extra cash by placing ad decals on their cars. It has locations in New York City, Los Angeles, Chicago, Dallas, Philadelphia, and Boston.
To make money with Carvertise, you’ll need to drive at least 30 miles per day and own a car from 2008 or newer. Once you fill out a short questionnaire on their website, they’ll match you with a brand that advertises in areas you frequently visit.
If Carvertise believes you’re a good fit, you’ll go to one of their in-person locations so that a representative can put the car wrap ad on your car. You’ll choose from a partial or full wrap ad and earn anywhere from $300 to $1,200 per campaign.
On average, campaigns last three to four months. Carvertise will remove the ad from your car as soon as the campaign is over.
Wrapify works with brands who want to promote their offerings through “rolling billboards.” They place wrap ads on cars and pay drivers based on how many miles they drive. If you’d like to earn money with Wrapify, you’ll need to pass a background check and drive a 2010 or newer vehicle.
To sign up to work with Wrapify, download their app and create an account. The app will track your driving habits and send you campaign offers based on the places you frequently visit. If you see a campaign you’re interested in, register for it and go to a nearby Wrapify shop to get your car wrapped.
The number of miles you drive within a campaign zone and the type of wrap you choose will dictate how much you earn. If you opt for a full wrap, you can make anywhere between $264 and $452 per month. With a partial wrap, your earning potential will range from $196 and $280 per month.
6. Local businesses
Local businesses are always looking for new and creative ways to advertise their products and services. This opens up an opportunity for you to reach out to them and ask if they’d pay you to place their name, phone number, and logo on your car.
If they’re interested, then propose a fair offer — around $100 to $300 for a month-long campaign, for example — and negotiate from there. Keep in mind that a business that’s been around for years might have a bigger budget, but a startup might be more willing to pay for advertisements.
Once you settle on a price and duration for the campaign, you can work with a local sign maker to create a magnetic sign to place on your car.
7. Free Car Media
Free Car Media is a nontraditional marketing company that pays drivers to place ads on their cars. If you’d like to make money with them, fill out an online application. If you’re accepted, the company will email you with program details.
Once you select a campaign, Free Car Media will mail you an ad for your rear window with directions on how to put it on your car. If you want to earn more money and drive around with an ad on your entire car, they’ll direct you to a nearby location for professional installation.
Most programs with Free Car Media last between 6 and 24 months and pay between $50 to $400 per month.
Track your mileage
Some companies will pay you in exchange for your mileage data. If you drive a lot and don’t mind selling that information, this is a simple way to earn some passive income with your car.
OnMyWay is a data collection app that helps prevent distracted driving. If you go to the website and type in your phone number, you’ll get a link to download the app. You’ll earn $10 just for downloading it and $0.05 for every mile you drive without texting.
Although you won’t receive a payout in cash to your bank account, PayPal, or Venmo account, you can exchange your earnings for in-app deals or to different, lesser-known stores like Hollywood Sensation or Jordan Lash. These deals are coupon codes that advertisers have purchased and range from $10 to $100 in value.
Mobilo is an app that strives to put an end to distracted driving by rewarding users, only with points instead of cash. The app will activate Google Maps or another GPS app on your phone. If it detects a speed above 12 mph for at least two minutes, you’ll get points.
Mobilo will reward you with one point every minute you don’t use your phone. It’ll deduct a point any time you use your phone while driving. You can redeem your points for Mobilo, a new cryptocurrency. The company states that in the future, insurance companies and others who value safe driving will accept Mobilo as a form of payment.
As of February 2020, the only product you can purchase with the cryptocurrency is Mobilio Airbag, which can help you if you get into an accident during a ride with Zipcar or Share Now. If you buy it 30 minutes before your ride and don’t use your phone during the trip, you can use Mobilio Airbag to pay the damage fee Zipcar or Share Now will charge you.
Be Cautious About Investing Money Upfront
When you look for ways to make passive income with your car, stay away from any company that requires you to make an upfront investment. If you have to pay to apply or remove a wrap ad from your car, look elsewhere. In most cases, legitimate companies won’t charge you to work for them.
It’s also important to be realistic about the amount of money you can earn with your car. These opportunities won’t replace your full-time job, but they can help offset car-related expenses like your loan payment, gas, or maintenance. Even if your car is paid off, it never hurts to have an extra source of income.