How to Legally Rent a Vehicle to Someone. No longer do you have to let your vehicle sit in a parking spot when you don't need it. Instead, legally rent your vehicle to someone else with the help of a car sharing service. If you still have a loan on your vehicle, your lender probably won't object, according to information on the "Kiplinger" website....
No longer do you have to let your vehicle sit in a parking spot when you don't need it. Instead, legally rent your vehicle to someone else with the help of a car sharing service. If you still have a loan on your vehicle, your lender probably won't object, according to information on the "Kiplinger" website. Car sharing services insure your vehicle against any damages that may occur while someone else rents it.
Locate a car sharing service -- such as Relay Rides, Getarounds or Spride Share -- that allows you to legally rent your vehicle to other people.
Enroll your car in the sharing program you choose. Many car sharing services allow you to sign up online. Specify the make, model, year and mileage of your car. Also, list rental rates and availability for your car. Ask a representative of the car sharing service any questions you have.
Make an appointment to allow the car sharing service to install a kit in your vehicle to allow renters to unlock your car with their smartphone during their rental period.
Park your clean car in an area easily accessible to renters, such as on the street in front of your house or in a dedicated parking spot. Leave an extra set of keys in the console or glove compartment of the car for the renter to use once he enters the car through the car sharing service's technology.
Tips & Warnings
Ask your tax preparer about deducting vehicle expenses for your rented vehicle, such as depreciation and fuel.
If you only want to rent your car to people you know, look for a car sharing service that allows you to accept or deny rental requests.
If you want to rent your car without a car sharing service, call your insurance company and ask if they allow you to rent your vehicle. If the insurance company allows it, you will have to purchase a commercial policy and public liability insurance, and meet any other requirements of your insurance company.
If you receive income that exceeds $600 per year for renting your car, the car sharing service will send you a 1099.
When renting your vehicle, ensure it's available during each renter's scheduled time.
If the renter doesn't have a smartphone, he can't unlock your vehicle without meeting with you and getting the keys.
If you're leasing your vehicle, check with the lessor to see if you can legally rent your car under the terms of your lease contract.
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