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Using Your Car As A Source Of Income

August 19, 2017
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5 minutes read
Using Your Car As A Source Of Income

If you’re currently paying off your car, you might wish you could use that money on something else. But just as you do with local insurance, you’ve got more than a few options to get both what you want as well as what you need. Rather than sigh with resignation every time you make your car payment, look for ways to make your car practically pay for itself and then some.

Use Ride-Sharing Apps

Depending on where you live, you might have the option of driving for either Lyft or Uber. You’ll have to have a vehicle that meets the necessary requirements, and know you’ll have an additional insurance policy to protect you and your car while you’re on the clock. That being said, just make sure your auto insurance company doesn’t mind your side job, otherwise, you might run the risk of having your regular policy denied.

Rent Your Car Out

If you don’t drive your car that much, or if you spend long hours at work and don’t need to use your car, consider renting it out. It’s not unusual for motorists to make more than $6,000 every year. Check out your area to see if there are companies available like Turo and Getaround. Know that people who rent your vehicle have been screened for your protection and peace of mind. And just like with ride-sharing services, your car is covered with an extra insurance policy. Be sure you check with your insurance agent to make sure you won’t risk your coverage by renting your vehicle out.

Deliver Packages

Why let the postal service and UPS have all the fun when it comes to delivering packages? If you do a lot of traveling or take a lot of road trips, you can pick up packages along the way and deliver them for extra cash. For your safety when picking up packages, you can meet at a local Waffle House. In terms of payment, it varies according to distance, overall urgency and the size of the package. Know you’ll be able to inspect the package before delivering it so you know exactly what you’re transporting.

Carpool

Your commute to work can dig into your cash reserves with all the gas money and wear and tear, so why not make it easier on yourself and your wallet by carpooling with others going your way? There are plenty of apps available, and best of all is the fact that you don’t have to make any changes or additions to your insurance policy. What’s more is carpooling goes a long way in reducing the amount of carbon emissions churning into the air, which goes a long way in saving the environment.

Become a Mobile Advertisement

If you don’t mind your car being covered in a company brand, it can be a great way to make some money you can use on your car payment rather than spend your own money. While you might be somewhat put off or shocked by the new appearance of your car, the scales are sure to be balanced by the fact that you’re getting paid for your car to become a mobile billboard. If there’s already a brand or company you love, why not see if they’re interested in you becoming a mobile advocate for their products or services?

Don’t Forget About the IRS

In your quest to make your car pay for itself, don’t forget you’ll have to set aside a portion of your earnings for the IRS since you’ll be classified and taxed as an independent contractor. Work with an accountant to file the appropriate paperwork and figure out how much you’ll need to send the IRS in incremental tax payments throughout the year.

It’s easier and more efficient than ever to make money off your car. Explore your options, decide which is the best for you and don’t forget to save Uncle Sam a slice of the pie.