For most households in the US today their car is probably their second most big purchase after their house.
- Is there a way around turning your car from a liability to a real asset that works for you and produces your income every single month?
- Is it possible to have someone else pay your car loan every month?
Before we get to a straight answer to these questions let’s first understand the different types of car-sharing models:
Traditional Car Sharing
Peer to Peer Car Sharing
Traditional Car Sharing
Traditional car sharing was pioneered by companies like Zipcar and adopted by traditional rental companies later such as enterprise. Here are some of the pros and cons of this model.
- Availability: Because of a large pool of cars it may be easier to find a car near you
- Well-maintained vehicles: As a renter, you can be assured that vehicles are all maintained professionally
- Peace of Mind: As a renter, you may feel more comfortable from the fact that you are not driving someone else’s car
- Hourly Pricing: Most of these companies offer hourly pricing if you need a car just to run some errands
- Non-transparent pricing. Traditional car-sharing companies may lack transparent pricing and include extra charges, such as membership fees. Some may also have dynamic pricing, which means the prices are constantly changing, making budgeting difficult
- Limited selection. Traditional car services often have a limited range of makes of vehicles, so it can be difficult for users to find a car that suits their specific needs
- Not traveler-friendly. Many traditional car services are geared toward local commuters and residents, rather than travelers. Lack of airport access can make it challenging for a visitor to coordinate a shared car for their trip
PEER TO PEER Car Sharing
Peer-to-peer car sharing is a newer car share model that has been embraced by companies like Turo, GetAround, Avail, etc. Here are some advantages of peer-to-peer companies and factors to consider:
- Lower prices. Many peer-to-peer companies can offer lower rates to drivers because the company doesn’t have the overhead cost of maintaining a fleet of vehicles
- More transparent pricing. The peer-to-peer model of car sharing often allows for a more transparent pricing model, one that avoids extra and unexpected fees and charges.
- Airport access. Many peer-to-peer car share services offer airport access and actively solicit car owners who travel out of town with some frequency. Cars are dropped off at airports when owners travel so that incoming travelers can pick them up for use during their own trips.
- Vehicle variety. Peer-to-peer car share services can offer a huge range of vehicles, allowing drivers to select the car or van that best meets their needs. Some drivers even use car-sharing services as an opportunity to take an extended test drive of a model that they’ve been thinking of buying.
- Passive Income: For hosts, this is a great way to start a passive income stream with a second spare vehicle in the household.
- Vehicle consistency: While some car sharers enjoy the treasure hunt of being able to select the vehicles that they drive, others prefer the consistency of a particular make and model.
- Increased maintenance: Car owners are responsible for keeping their vehicles clean and well-maintained at all times. While they get paid, they do have to consider the extra time and energy it takes.
So going back to the questions it is a sounding YES. Based on the advantages of peer-to-peer sharing platforms for guests there is a growing number of people choosing one of the peer-to-peer sharing platforms over the traditional platforms. Therefore it’s a great opportunity for anyone looking to start a side hustle passive income stream.
Take Action: Here’s a list of 5 platforms that you can use to start making passive income from your car today.
3 thoughts on “Car An Asset or Liability?”
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