If the goal is to raise your standard of living, you can ask your boss for a raise, find a new job, or add a side hustle. The latter option is one that many people choose since they can up their income potential without risking the security of their nine-to-five full-time job. Car-sharing is a big business across the country and elsewhere. It’s on pace to reach revenue globally of $13.44 billion this year, according to Statista. And it could be the perfect side hustle if you have a vehicle you don’t use much or multiple vehicles that spend more time in the garage than on the road.
Consider the following pros and cons of choosing car-sharing as a side hustle.
Pro: More Income
One benefit is the income-generation potential. Turo, one of the better-known car-sharing companies, notes that people who own vehicles worth between $25,000 and $35,000 can earn $10,516 for a single car annually. That’s for one car. Imagine if you have multiple vehicles, you’re willing to list on a car-sharing platform.
In addition to Turo, other car-sharing businesses include Zipcar, Car2Go, Lyft, and AutoShare.
Pro: Minimal Barrier to Entry
Another benefit of going the car-sharing route is there’s a relatively low barrier to entry. It’s as simple as owning a vehicle that meets the car-sharing platform’s guidelines. According to one source, around nine in 10 — 91.7% — U.S. households had at least one car in 2022. So, this is a side hustle you get into without much difficulty.
Pro: Flexible Schedule
Yet another reason to consider car-sharing is the flexibility. You don’t have to list your car or multiple vehicles 24/7. If you need to go on a road trip or require exclusive use of it for an extended period, you can do what you want. It’s your car, after all.
Con: Wear and Tear
The wear and tear will accumulate when you allow others to drive your vehicle. You’ll have to prioritize maintenance and repairs, though you can factor those costs into the car-sharing fee. But there’s no doubt that car sharing will run up the odometer and wear out vehicle components faster.
Con: Insurance Risks
If going the car-sharing route, ensure you have the right insurance coverage. You don’t want to find yourself in a situation where you’re financially exposed if someone renting your vehicle gets into an accident. Talk to your insurer and fill in any coverage gaps.
While there are millions of accidents in the U.S. yearly, arguably the scariest ones involve commercial trucks. There were 5,837 large trucks involved in fatal collisions in 2022. That’s up 49% over the last decade. If a small passenger car hits or gets hit by a commercial truck, the possibility of a truck accident case becomes a reality. Accidents of this sort can result in life-changing injuries, totaled cars, and lead to personal injury cases for those seeking justice.
As a vehicle owner in the car-sharing space, get sufficient experience to reduce exposure. Don’t assume your existing coverage is enough. It likely isn’t. Your insurer can advise you. While focusing on car insurance, you can also look at other insurance and related needs. Those include life insurance, health insurance, dental insurance, or even estate planning.
Con: Inconvenience
Sharing your vehicle with strangers means accepting that it might not be available when needed. You might agree to rent it out but find that you need it when someone wants to rent it. Rather than pulling the rug from someone’s feet, you may have to make alternative plans.
Car-sharing can be a good side hustle. But before deciding, consider the pros and cons. If there are more positives than negatives or vice-versa for your situation, you’ll have an easier time deciding.
