Make the most of your car

Cars are expensive to run, but you can make some money back from yours by renting it out when you're not using it.

933_MW_P20_Per-Fin

You can rent your car outwhen you're not using it

Cars are expensive to run, but you can make some money back from yours by renting it out.

With the average car costing £1,849 a year to run and steadily depreciating many of us are looking for ways to keep our car costs down. The good news is there are ways you can turn your car into a money-spinner.

Firstly, most of us aren't getting a lot of use out of our cars. Most cars are parked up at home 80% of the time, according to breakdown company RAC. So one way of making more of your car is to rent it out to your neighbours. Peer-to-peer car sharing sites such as Hiyacar, Drivy or Turo allow you to create a listing and rent your car out in return for a share of what you earn.

You could earn up to £800 a month from hiring out your car, according to Drivy. Clearly, how much you make depends on the make of your car and how often you are prepared to rent it out. It must also be insured, taxed and have a valid MOT, and each site has different requirements relating to the age of your car. Note that when your car is hired out, it is covered by a fully comprehensive insurance policy provided by the rental firm.

If you don't like the idea of strangers driving your car, another rather unusual possibility could be to turn it into an advertising billboard, where you get paid to have an advertisement on your car. Register free of charge with Car Quids, and they'll contact you if there's an advertiser interested in using your car. You could earn £200 to £300 a month from this.

Finally, an option that won't make you money, but which can cut down costs is commuter carpooling. Both BlaBlaCar and Car Quids' carpool option will connect you with people in your local area wanting to travel to the same place.

You upload your journey and the site suggests a price (to cover your fuel costs) and then you can scroll through the people looking for a ride. BlaBlaCar verifies members, who pay through the site, and provides breakdown cover.

As long as you aren't making a profit from carpooling other users should just be contributing to your fuel costs your own car insurance shouldn't be affected.

Premium Bonds minimum investment cut

NS&I hopes the change will encourage customers of all ages to invest small sums on a regular basis, with regular standing orders for £25now permitted.

Premium Bonds have long been the nation's favourite choice for cash savings, with £79m currently invested and 21 million of us holding bonds. That's despite the fact that you earn absolutely no interest on your money. Instead, your bonds are entered into a draw to win cash prizes of between £25 and £1m each month.

The average investor should win enough prize money to equal a 1.4% return on their investment. However, the risk is that you win nothing at all. With inflation currently at 2.1%, your money will be shrinking in spending terms. If you'd prefer the certainty that your money will grow, Al Rayan Bank has a one-year bond paying 2.17%.

Recommended

Post-Covid travel is now less testing as the rules get simpler
Personal finance

Post-Covid travel is now less testing as the rules get simpler

With the scrapping of the amber and green travel lists, the rules governing re-entry to the UK have finally been simplified.
15 Oct 2021
How to deal with scam calls on your mobile phone
Personal finance

How to deal with scam calls on your mobile phone

Fraudsters are becoming more inventive as the world goes online. Nicole García Mérida explains how to combat them.
13 Oct 2021
How your pension can cut your inheritance tax bill
Pensions

How your pension can cut your inheritance tax bill

Your retirement savings can help you maximise the amount of money you leave to your family.
11 Oct 2021
How Britain’s DIY divorce boom can help you split up without costing the earth
Personal finance

How Britain’s DIY divorce boom can help you split up without costing the earth

A “do-it-yourself” approach can greatly reduce lawyers’ fees when getting divorced. But do be careful.
5 Oct 2021

Most Popular

How to invest as we move to a hydrogen economy
Energy

How to invest as we move to a hydrogen economy

The government has started to roll out its plans for switching us over from fossil fuels to hydrogen and renewable energy. Should investors buy in? St…
8 Oct 2021
How to invest in SMRs – the future of green energy
Energy

How to invest in SMRs – the future of green energy

The UK’s electricity supply needs to be more robust for days when the wind doesn’t blow. We need nuclear power, says Dominic Frisby. And the future of…
6 Oct 2021
The after effects of the gas-price shock
Economy

The after effects of the gas-price shock

In the wake of the recent spike in the natural gas price, we can expect slower growth, an industrial recession – and a newly assertive Russia, says Ma…
17 Oct 2021