For many Australians, owning a car isn't a luxury, it's a necessity. It's the key to getting to work, running errands, and more. However, the cost-of-living crisis is putting pressure on every aspect of life – including car ownership. Both new and used car prices have skyrocketed in recent years, making car ownership a hefty investment. Furthermore, with the cost of car travel rising at triple the rate of inflation, many households are struggling to keep up.

If you're feeling the pinch, there are ways to offset the financial strain and even make money from your car. This blog post explores four ways you could use your car to supplement your income, whether you're looking for a flexible side hustle or a way to cover car-related expenses.

1. Ridesharing

Ridesharing has become increasingly popular worldwide, and Australia is no exception. Platforms like Uber, Ola and DiDi offer opportunities for people to earn money by providing rides to passengers. There are also a number of carpooling apps that connect you with passengers heading in the same direction.

Being a rideshare driver offers several advantages, including:

• Flexibility: you can choose when and where you want to work. Whether you're looking to make a few extra dollars during your free time or seeking a more consistent income, ridesharing allows you to tailor your schedule to your preferences to fit around your existing commitments.
• Potential for good income: your income directly correlates with the time and effort you invest. By strategically choosing peak hours and high-demand areas, as well as providing excellent customer service, you can increase your earning potential.
• Low barriers to entry: unlike many traditional businesses that require substantial startup capital and ongoing operational expenses, becoming a rideshare driver typically requires minimal investment. The process of signing up for ridesharing services is straightforward and relatively quick – as long as you meet the basic requirements and hold a valid driver’s licence, you can potentially become a rideshare driver.

However, it’s also important to consider:

• Vehicle requirements: different platforms may have specific requirements for the make, model and age of vehicles used.
• Fuel and maintenance costs: as the driver, you'll be responsible for covering fuel costs and car maintenance expenses related to your earning activities.
• Insurance: ensure your car insurance policy covers ridesharing. Platforms may offer additional insurance options, but it's essential to understand your coverage before you hit the road.

2. Delivery services

The boom of e-commerce has fuelled a surge in demand for delivery services across various sectors. This encompasses everything from everyday essentials and packages to restaurant meals. Companies like Amazon and Uber Eats have capitalised on this trend by offering efficient and reliable delivery options to customers, allowing them to get what they need delivered right to their doorstep.

Advantages of being a delivery driver include:

• Flexibility: like ridesharing, delivery driving often offers flexible work schedules, allowing drivers to choose when and how much they work. This flexibility is ideal for individuals with varying schedules or those seeking a side hustle to supplement their income.
• Minimal entry requirements: unlike some professions that require specific qualifications or extensive training, becoming a delivery driver typically has minimal entry requirements. As long as drivers meet basic criteria such as having a valid driver's licence and access to a reliable vehicle, they can quickly enter the field and start earning income.
• Variety of delivery options: delivery driving encompasses a wide range of options, including parcel delivery, food delivery and grocery delivery. This allows drivers to choose the type of delivery service that best suits their preferences and skills, catering to different interests and preferences.

However, it's important to consider factors such:

• Unpredictable income: while the potential for good income exists, the earnings can be inconsistent and unpredictable. This can be due to factors ranging from fluctuating demand to weather conditions.
• Long hours and physical demands: depending on your chosen platform and workload, delivery driving can involve long hours, especially during peak periods. The job can also be physically demanding, involving lifting packages and navigating different terrains.
• Competition: the delivery driver market can be competitive, especially in high-density areas. This can lead to difficulty securing deliveries and potentially lower earnings due to increased competition for available tasks.

3. Car advertising

If you're not keen on transporting passengers or delivering goods, another option to monetise your car is through advertising. Companies specialising in car advertising connect drivers with advertisers looking to promote their brands or products. These companies typically apply vinyl decals or wraps featuring the advertiser's graphics onto the driver's car, turning it into a mobile billboard.

Car advertising offers a passive income stream, as you can continue driving your car as usual while exposing the advertiser's message to a wide audience. Depending on the terms of the agreement, you may be compensated based on factors such as the duration of the campaign, the amount of mileage covered or the visibility of your car in specific locations.

Benefits of such an arrangement include:

• Passive income: earn money simply by driving your car as you normally would. You don't require additional work or effort beyond displaying the advertisement. Once the advertisement is displayed, it requires minimal maintenance.
• Potential for long-term campaigns: some advertising contracts can last for several months or even a year, providing you with a steady stream of income for an extended period. This can be especially attractive if you are looking for a consistent and reliable source of additional income.
• Low barrier for entry: the application process is typically straightforward, requiring minimal paperwork and no specialised skills or qualifications. As a result, individuals can quickly set up their cars for advertising and start earning income without significant time or effort.

However, it is important to keep in mind:

• Potential damage to vehicle: The application of vinyl decals or wraps onto the vehicle's exterior may cause damage such as paint fading, residue buildup or scratches upon removal. This can decrease the aesthetic appeal of the vehicle and potentially reduce its resale value.

• Aesthetic impact: applying vinyl decals or wraps featuring advertiser graphics may alter the appearance of the driver's car. Some drivers may find this aesthetically unappealing or feel uncomfortable with the visual changes to their vehicle.
• Limited control over campaign: drivers may have limited control over the content and duration of the advertising campaign. Once the decals or wraps are applied, drivers are typically required to maintain them for the agreed-upon duration.

4. Peer-to-peer car rental

Peer-to-peer car rental platforms enable car owners to rent out their vehicles to people in need of temporary transportation. Whether it's a weekend getaway, a business trip or simply running errands, renting a car from a fellow community member can offer convenience and cost savings compared to traditional car rental companies.

Peer-to-peer car rental can be an excellent option for car owners who don't use their vehicles frequently or who are open to sharing their cars with others. Benefits include:

• Potential for good income: owning a car that's often unused presents an opportunity to generate income by renting it out to others. This can be particularly attractive if you have a car with desirable features or caters to a specific niche, like a van for road trips or a convertible for weekend getaways.
• Reduced car ownership costs: sharing your car through peer-to-peer platforms can potentially offset some car ownership costs. Depending on the rental frequency and platform fees, the income generated can help cover expenses like insurance, maintenance and even loan payments.
• Flexibility: car owners can set their own rental rates and availability schedules, choose who rents their car by reviewing renter profiles and ratings, and potentially rent out their car for specific occasions or longer durations.

However, there are potential downsides to the arrangement, such as:

• Wear and tear: renting out your car exposes it to increased wear and tear. This can involve regular maintenance, potential repairs due to accidents or improper use by renters, and a faster depreciation rate due to higher mileage.
• Insurance concerns: while most peer-to-peer platforms offer insurance coverage for renters, there might be gaps or limitations in the coverage, leading to liability concerns. It's crucial to carefully understand the insurance terms and conditions to ensure your car is adequately protected during rental periods.
• Trust and security concerns: owners may be hesitant to rent out their vehicles to strangers due to concerns about theft, damage or improper usage. Likewise, renters may have reservations about the condition or reliability of vehicles listed on rental platforms, leading to decreased confidence in the rental process.

Owning a car in Australia can be more than just a means of transportation – it can be a valuable asset for generating income. Based on your preferences and lifestyle, there are numerous opportunities to monetise your car and unlock its earning potential. If you need a new set of wheels, Savvy's can help you find the loan for your needs, saving you money on interest rates and potentially freeing up more funds to explore income-generating options with your car. Connect with us and start comparing car loans today!