Special Diets

good idea or risky bet?

Is your car costing you dearly when you don’t use it much? Renting between individuals can be a good way to supplement your income. But there is always a share of risk, especially in the event of a breakdown, despite the insurance provided by specialized sites.

By

John Leblanc

Published on
Updated

Renting your car to individuals provides some additional income when you are not using it.

Yes because


Renting out your car to strangers? This is an idea that many will be tempted to brush aside. But many vehicles are used only occasionally, while their insurance, maintenance or parking can cost money permanently. Not to mention the monthly payments for long-term rental (LLD), rental with option to purchase (LOA) or credit which are generally taken out for their acquisition. Renting between individuals can thus become a means of transforming all these moments of immobilization into a source of additional income, and help to pay all these expenses along the way. The argus provides an update on the sites specializing in this field, the eligible models, as well as the guarantees they offer in the event of a breakdown or accident while you are not driving.

The main sites available

Even if there are offers on more general sites, such as Leboncoin in the “services” section, car rental between individuals is mainly done today via specialized sites. Professionals are responsible for connecting motorists, facilitating payment and generally providing insurance. In return, they charge a commission and more or less significant “service fees”.

  • Getaround (formerly Drivy): with its 2.5 million users in Europe, it is one of the leaders in the sector. In particular, the company offers an application, Getaround Connect, which allows you to use your smartphone to take stock of the situation and unlock the vehicle. The owner does not need to be present, but a box will have to be installed beforehand.
  • Yes because : Founded in 2012, this “pioneer of the collaborative economy” is present in France and Spain. It claims over 2 million users, including 30,000 owners. Like Getaround, it allows you to open, close or start using a smartphone application called OuiCar Connect.
  • Roadstr: even if there are also some models for the very general public, this site is intended above all to be dedicated to “enthusiasts of vintage, sports and luxury cars”. The electric car also occupies a growing place, with in particular a large number of Teslas.

  • Travelcar/Free2Move: A subsidiary of Stellantis dedicated to various mobility services, Free2Move notably absorbed Travelcar, a company born in 2012 around an original idea. When you go on a trip by train or plane, this company offers you to rent your vehicle rather than paying for parking, which is often very expensive. It claims 1 million regular users, in no less than 62 countries.
  • Ucar: In addition to its classic fleet, the rental company Ucar offers vehicles “repoed” by individuals. The company then takes care of managing the booking schedule, welcoming the customer and cleaning your car before returning it to you. On the other hand, the search engine of its site does not really make it possible to distinguish rentals between individuals from traditional rentals.
  • Wheeliz: this company specializes in the rental of vehicles suitable for people with reduced mobility. Its site therefore essentially offers utilities equipped with wheelchair access ramps, as well as a few cars modified for drivers with disabilities.
  • Zotcar: Here is another extremely specialized site. It is in fact only present in the overseas territories, more precisely in Guadeloupe, Martinique and Reunion. This does not prevent it from offering, like Getaround or Ouicar, its own application allowing a digital inventory and unlocking without the owner being present.

Which models are eligible?

As we have seen, sites have specialized in a particular type of vehicle. Roadstr thus favors fairly high-end models… which does not prevent it from refusing ” some sports cars with too radical driving or style ” like the ” Mercedes in finish or AMG or Brabus engine ” , the ” BMW in finish or M or Alpina engine » or even the « Volkswagen in GTI, GTD or R finish or engine » . But other companies, even more generalists, also have their share of exclusions. At Getaround, for example, vehicles must have less than 200,000 km, less than 15 years and a definitive gray card, while Ouicar does not accept models with more than 14 CV, more than 9 seats or without a license. The most restrictive, however, is Ucar, which only tolerates vehicles less than 5 years old and less than 50,000 km.

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Renting your car to individuals: good idea or risky bet?

At Roadstr, BMW M, Mercedes AMG or Audi RS models are not welcome.

BMW

How is my car insured?

Leaving your car in the hands of someone you don’t know at all is bound to be worrying. But all the sites we have mentioned provide all-risk insurance to cover your vehicle during the rental period. In the event of an accident, your bonus or malus will not be affected, and it will be up to the tenant to pay the deductible. However, take some time to read the terms and conditions, which vary from company to company. If Getaround and Ouicar, for example, offer reimbursement up to the new value for vehicles less than 12 months old up to a limit of €50,000, Roadstr bases itself on the expert’s say value, corresponding to the market. of the occasion of the moment. It will also generally be necessary to ensure that the profile of the driver to whom you are going to rent your car corresponds to the conditions set: at Roadstr, he must be at least 28 years old, or even 35 years old from a power of 400 hp, and at least 5 years license, even 10 years for sports models of 300 hp and more. Finally, if the renter wants to keep your car longer, don’t forget to notify the company so that the insurance can also be extended.

What happens in the event of a breakdown?

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mechanical breakdown call for assistance

In the event of a breakdown, the tenant benefits from assistance, but it is normally the owner who remains responsible for the repair costs.

Adobe Stock – Fotolia

The insurance contracts of specialized companies include assistance that will cover towing, even far from your home. At Ouicar or Getaround, you will also be paid for the journey to recover your vehicle once it has been repaired. But it’s always the owner who “remains responsible for the costs related to the repair of the vehicle, except to demonstrate by an expert that the damage is linked to abnormal use of the vehicle by the tenant” . Suffice to say that you can expect a long and expensive obstacle course in this case… As for example if you recover your car with a ruined clutch. As a bonus, at Getaround, “€90 management fees will be applied to you in the event of a breakdown following normal use of the vehicle”. The company therefore provides on its site a checklist of points to check in order to limit the risks.

What happens in the event of a traffic violation?

If the renter commits an offense while in possession of the vehicle, all sites obviously hold him responsible. But as the notice of violation will arrive, in the majority of cases, at the home of the owner, this situation generates its share of complications. For tickets related to parking or issued from abroad, which do not lead to a loss of points, Getaround recommends that the holder of the gray card first pay the fine, then request a refund on its site. On the other hand, the story is different at Ouicar, which advises instead to fill out a request for exemption with the information relating to the tenant, then to send it to the competent authorities by registered mail, enclosing a copy of the rental contract completed and signed. proof. This leaves the tenant the freedom to exercise his right of contestation. However, you still have to cross your fingers so that it is not a bad payer, which could then earn you a few follow-up letters from the administration!

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speed camera in town

If the lessee commits an offense while in possession of another individual’s vehicle, this may cause some difficulties.

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Do I have to declare the income from my rentals?

Normally, all income from vehicle rental must be declared to taxes. However, there is an allowance of €305: you will therefore not be taxed if you earn less than this sum over the whole of a year, once the charges linked to the rental have been deducted. In addition, the tax authorities seem to show a certain tolerance for very occasional rentals. But beware, conversely, if you have made this activity a real “business”, some going so far as to buy several vehicles for this sole purpose. Beyond €72,600 in annual revenue, you will no longer be able to adopt the micro-BIC regime for micro-enterprises, which is quite simple: you will have to switch to the real regime, which is much more complex, which notably requires you to register your activity. You will also have to pay VAT from €34,400 in revenue.

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