Within the sharing economy, owners rent out something they are not using, such as a car, house or bicycle to a stranger using peer-to-peer services.
The potential to earn on your unused assets has flourished in the past 4-5 years – the arrival and growth of Airbnb has allowed users to become more comfortable with the idea of sharing.
It isn’t just homes that people are willing to share within the community. Recent data has shown that renting out a car that is typically left unused can earn someone up to £2,000 a month.
However, what does the sharing economy mean on a smaller scale? And can you buy a car to simply use within the sharing economy? With HiyaCar, the platform that allows you to rent cars from people in your community, the average car owner can make £116PW, which over the course of a year can equate to £5,980. If you have a good model of car, this can potentially be more.
Senthuran Gengatharan currently uses the platform HiyaCar for two of his cars, utilising them to make a profit whilst they remain unused. By doing this, he manages to save money for unexpected expenses and any extra, unexpected costs.
Case Study: Senthuran Gengatharan
“I heard about the sharing community through a friend of mine who is an active member.
Technology has increasingly divided communities with more and more people living in the virtual world, it’s very different to when I was growing up when there was a real good feeling of being part of a community but it’s a shame that we hardly know our neighbours nowadays. This platform allows people to connect in the community whilst also allowing you to make money.
I had some doubts when it came to the sharing economy, I take pride in my cars and it’s very personal to me, the fear of giving it to a stranger is always there but so far I have come across really genuine people which has encouraged me to continue.
My friend recommended me to try out a platform he used, I did my own research for peace of mind and everything seemed so easy. Once I signed up I had my first booking within the first couple of days!”
You meet people from all walks of life and hiring for various reasons, from musicians on tour to business meetings, weddings and holiday goers. I tend to get a lot of last minute bookings where people are desperate for a car because they’ve left it too late or the traditional hire companies are charging too much. It’s always a good feeling when you can help people and to see the relief on their face!
It really does vary how much money I make in a week when hiring out my car, some weeks are quieter than the others. During peak periods such as Christmas or the summer holidays you can expect the car to be hired out pretty much every day. I’d say on average it’s about £150 a week per car.
This extra bit of income has helped me save for a holiday and also keeps some extra money in the bank for any unexpected expenses.
I currently hire out two cars, but I would definitely consider buying more cars just to hire out within the community, sometimes it’s hard to keep up with the demand.
I would, without a doubt encourage people to hire out their car – your car is a depreciating asset but this platform allows it to generate an income for you which was previously not possible.”