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

How to deal with self-assessment tax returns after a very trying year
Tax

How to deal with self-assessment tax returns after a very trying year

The Covid-19 pandemic will complicate the self-assessment tax return process for 2019-20. What if you can’t pay? Ruth Jackson-Kirby has some advice.
20 Jan 2021
Travel to the EU: how the Brexit deal affects you
Personal finance

Travel to the EU: how the Brexit deal affects you

The Brexit deal will mean some administrative changes when you next travel to the EU. Here are the most important ones.
11 Jan 2021
Beware these cons and scams this Christmas
Personal finance

Beware these cons and scams this Christmas

Ruth Jackson-Kirby outlines some of the worst new scams to watch out for this year
27 Dec 2020
Loyalty to your energy supplier doesn’t pay – switch
Personal finance

Loyalty to your energy supplier doesn’t pay – switch

New measures will make energy suppliers22 switch you to a cheaper deal when your fixed-rate tariff ends.
22 Dec 2020

Most Popular

Why we won’t see a house-price crash in 2021
House prices

Why we won’t see a house-price crash in 2021

Lockdown sent house prices berserk as cooped up home-workers fled for bigger properties in the country. And while they won’t rise quite as much this y…
18 Jan 2021
Prepare for the end of the epic bubble in US stocks
US stockmarkets

Prepare for the end of the epic bubble in US stocks

US stocks are as expensive as they’ve ever been. How can you prepare your portfolio for a bubble bursting?
18 Jan 2021
The best investment trusts to buy for 2021
Investment trusts

The best investment trusts to buy for 2021

Sectors ranging from emerging markets to student accommodation look poised to do well this year, says David Stevenson, as he picks the best investment…
19 Jan 2021