A DAD has revealed how he has made £1,600 without having to leave his house.
Tim Kay, 35, first rented out his car for cash back in 2020 as a way to help pay his bills.
Tim has managed to make £1,600 by renting out his car on the Karshare app
A key-less handover means he doesn’t even have to leave the house
Now, two and a half years later, he uses the Karshare app to bring in some extra cash alongside his full time job.
He has made £1,600, bringing in around £400 a year in extra income.
Tim, who lives in Coventry with his wife and child, first heard about Karshare through a newspaper ad when it launched in his area.
He told HOAR: “I checked it out and it didn’t seem to be a scam so I gave it a go.
“I signed up and listed my Ford Focus, which is the car I still rent out now.
“When I first started I was on minimum wage so it was an easy way to help pay my bills”.
Tim now works at Specsavers as a home visits optical assistant which means he has a company car, giving him the freedom to rent out his personal car when he doesn’t need it.
How does it work?
One of the perks for Tim is that “you literally don’t have to do a thing” when a renter comes to pick up the car.
This is because when he first signed up to the platform his car was fitted with “KarshareGo” technology.
This is essentially a small black box which is installed in every vehicle and acts as a virtual key.
Tim had to hand over his spare key to a technician who came to his house to set up the box.
It means that now when someone comes to pick up the car they can unlock it through the app using facial recognition.
Thus avoiding the need for a key handover.
All renters have to go through a thorough licence and ID verification process before renting.
The telematics installed also keep an eye on the renter’s driving, like speeding, while they have his car.
It also keeps track of mileage and how much fuel has been used on each rental period.
Tim is able to list certain criteria on his profile too such as no smoking and to be respectful of neighbours when getting in and out of the car.
When a renter first comes to collect the car they have to take photos of its condition at the beginning and then again at the end to prove they’ve taken care of it.
How does insurance work?
As an owner, Tim lists his car on the Karshare app for a set price per day and the company lets him know if the price is too high or too low.
All he has to do is make sure he has comprehensive insurance on his car.
Then when the car is out and about the vehicle is covered by the platform’s insurance policy.
How much do you pay in fees?
Karshare takes a 30% cut of your booking – so if you make £100, you’ll only receive £70 of it.
The money arrives in your bank account seven days after the rental.
The fee includes fully comprehensive insurance to cover any renter, so any accidents won’t affect your own policy.
Renters are also have to pay a deposit and a fee to use the platform.
The deposit covers any issues Tim might find with his car when he gets it back, such as if he has to get it cleaned or the driver has gone over the petrol amount he has set.
Karshare will take care of any issues like this but they have to be reported within 48 hours of getting the car back.
Tim said sometimes he has had to vacuum out the car when it’s been returned but if you let the platform know, they’ll give £10 for the cleaning.
This comes out of the renter’s deposit.
Tim explained that while cleaning can be a bit of effort, the whole system is “fairly low maintenance” and for the money, it’s worth it.
If anything happens to the car whilst it’s being rented out that is also generally taken care of.
Tim said: “If anything happens to the car when the renter is out and about and I get a bill, or a letter or a fine I email them and they take care of it.
“I actually had a fine once when the renter had driven in a bus lane and I sent it to Karshare and they said ‘yep we’ve got that, don’t worry about it’.
“Thankfully nothing else major has happened, like an accident or something.”
Tim has to make sure the car has a full tank of petrol when it’s rented out.
Karshare will instantly credit the owner’s account if fuel is missing when the car is returned.
Tax rules around earning extra income
It’s worth remembering that anything you earn with an extra income like this can be taxed.
You can earn up to £1,000 without paying tax thanks to the trading allowance.
The odd jobs you can claim tax-free include money made at car boot sales, online selling or auction, according to HMRC.
It could also include money made from food delivery or by charging other people for using your equipment or tools.
Once you earn more than £1,000 a year, you need to complete a self-assessment tax return and start paying tax on your extra earnings.
How much that is will depend on how much you already earn.
What other apps are there?
There are other apps out there that will mean you can make cash by renting out your car.
Turo, another car sharing app, said its users keep 65-75% of the booking price – you’ll need to meet renters to hand over your key though.
It also offers liability insurance to cover your car while it’s being rented.
Hiyacar also has keyless technology; it said users can earn up to £650 a month through the app.
You’ll need to have a phone or video call with the firm to get set up, and it takes a 30% cut of the rental fee.
It offers perks including AA breakdown cover and discounted services at KwikFit.
Of course with any car sharing app the owner needs to be aware than damage could be done to your vehicle, make sure you read the insurance policy carefully before signing up.
If you have any questions about how the app works then it’s always worth getting in touch or reading reviews online.
Tim did point out that the Karshare team have “gone above and beyond” to make sure any issues he’s had have been resolved.
Do you have a money problem that needs sorting? Get in touch by emailing [email protected]
