Renting out your car.... Official MoneySavingExpe...

[MSE Lawrence]

This is a special discussion as part of the

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Renting out your car with WhipCar

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[go4it]

Seems a good idea, would be interested to hear from anyone who is signed up for it.

Obvious worry is what happens if someone does a runner with your car, or is involved in an accident. How does their insurance work for a car that is already insured?

[aj9648]

Can I stick my company car on there?

[Poosmate]

The site says their insurance supersedes your own insurance. I guess it would have to though as your own insurance wouldn't cover you for hiring your car out. Strictly speaking, if you took your mates to the airport because they offered you the petrol money plus a bit for your trouble, you basically void your insurance if you have an accident on the way there (and probably some licencing law too - carrying fare paying passengers).

I do wonder about the insurance though, who pays for it? It's free to list your car and free to list as a driver.

Aaah having typed that, it seems they operate a fine system for not being there to hand over vehicle/pick up keys or return vehicle/collect keys so either party can be fined at both ends of the booking if either are late arriving at pick up/drop off point. (Rules me out then I'm always late for everything!) They also take 15% plus VAT from the actual booking from the car owner.

Getting to the interesting bit now:

"Drivers pay the owner's list price including insurance plus a small transaction fee."

Drivers excess is £250 but they can buy an Excess Waiver policy to make that £0. (Hmmm I wonder how much that would cost).

I couldn't offer my car anyway as it's too old (older than 8 years)! Might give it a try if my next car is new enough.

Poo

[lwills]

I have registered my car on there, I only use it in the week I don't really use it at the weekends. I will see if I get any booking and let you know what it's like!

[sweetfilly]

Regsitered my car but once logged out there's no facility to log back in without clicking site map.also as car owner they seek credit card info and whilst site says no payments will be taken their system keeps declining the card..t+c's says they try to hold £100,spoke with a guy and he says don't know why system does that but the £100 is kept on hold which i cannot understand if no payment is taken.

[LeeUK]

Originally Posted by sweetfilly

Regsitered my car but once logged out there's no facility to log back in without clicking site map.also as car owner they seek credit card info and whilst site says no payments will be taken their system keeps declining the card..t+c's says they try to hold £100,spoke with a guy and he says don't know why system does that but the £100 is kept on hold which i cannot understand if no payment is taken.

That's why it declined one of my credit cards then as I think it has less than £100 available to spend on it.

[hammodt]

What's the tax position with renting out your car? Do you have to declare it as "income" on a tax return?

[LeeUK]

Originally Posted by hammodt

What's the tax position with renting out your car? Do you have to declare it as "income" on a tax return?

I would think so.

[Deep Ocean]

I am definately interested in this. I am a student and can't afford to run my 2001 Renault Megane Cabriolet. I was going to list it on Ebay this week and would stand to get £2,500ish. I could rent it out for £31 a day. I am toying with this idea. But I would imagine that potential drivers of my car would not treat it with the same care and respect as I do. They could clock up the mileage and thrape the engine. I would have to pay tax to get the car back on the road again. I am beginning to talk myself out of the idea now. I think perhaps £2,500 is a better option.

[sicker]

I registered my car to-day as it is a 2006 model and has only done 3100 miles. Might as well try to make some cash out of it plus give it a good run. Not really expecting much interest somehow

[dgbdgb]

I've signed up and had the first rental experience with Whipcar - worked well. I'm hoping this will take off - makes me feel happier about having an underused asset - since moving to a new area, we don't use the car very often.

Whipcar team seem pretty supportive.


Dave

[Deep Ocean]

Originally Posted by dgbdgb

I've signed up and had the first rental experience with Whipcar - worked well. I'm hoping this will take off - makes me feel happier about having an underused asset - since moving to a new area, we don't use the car very often.

Whipcar team seem pretty supportive.


Dave

Are you not concerned about how well your car is treated? They could clock up your mialage and ruin your engine.

[Deep Ocean]

Originally Posted by sicker

I registered my car to-day as it is a 2006 model and has only done 3100 miles. Might as well try to make some cash out of it plus give it a good run. Not really expecting much interest somehow

As said in my post and in my reply to the post above. Are you not concerned of how well your car will be treated?

[LeeUK]

I always hear of how people thrash rental cars. Wouldn't want someone treating my car like your typical rental car.

[InMyDreams]

The feedback on the site doesn't ring true to me. People saying that their cars now pay for themselves or for holidays... but I can't find a single car that's been rented once, let alone regularly. Doesn't quoted feedback have to be genuine?

I also can't find out what the 'transaction fee' is.

And what happens if your car gets written off? My car is worth more to me than its 'market value' because I know it so well. It's all very well saying the cars are insured, but if you ever have to cash in on that insurance I think you would regret renting your car out big time. And what about any damage you notice after the 48 hour limit?

I think it's a fabulous idea but I just can't see it getting off the ground. Too risky for owners unless they charge high and too expensive (compared to rental companies) for borrowers.

[thomo79]

Hi Everyone
I just attempted to register with whipcar, but couldn't because of my car's history (but that's not my issue).
Please read this extract from there T&C's:

As part of the Vehicle Registration Process WhipCar will automatically search for the Vehicle against one a series of third-party databases (including MIAFTR and PITO) in order to check the Vehicle's age, model, registration, and accident history. The results of this check will be assessed by WhipCar and WhipCar may at its discretion refuse to register the Vehicle. In order to proccess this check a WhipCar owner must supply credit card details against which WhipCar will place a £100 pre authorisation to confirm that this is a valid card linked to the address supplied. For the avoidance of doubt - no money will be debitted from this card at any time.

I gave them my debit card details for this £100 'pre-authorisation' not expecting it to be actually debited from my account (as it clearly says above). But it was! I now have to wait 3 working days for it to be credited back. I was not happy about this and it's lucky I have no bills coming out over this 3 day period otherwise it would've got messy! Check your account if you register.

[Deep Ocean]

Not getting off to a good start are they? I don't think I will be using them.

[ribbonstring]

Do you think you are allowed to rent off your own family members? If so, I may have found a loophole to be able to rent cars of people from family and friends for very cheap!

I have just passed my driving test and my dad has a car which I am not insured on and therefore can't drive it. If I paid to rent it through whipcar, I would be covered on insurance temporarily if anything happened, and my dad could just hand me the money straight back, save the 15% transaction fee! Therefore, the days insurance would only cost me a few quid...is this right or have they put in measures to prevent people doing this??

[LeeUK]

Originally Posted by ribbonstring

Do you think you are allowed to rent off your own family members? If so, I may have found a loophole to be able to rent cars of people from family and friends for very cheap!

I have just passed my driving test and my dad has a car which I am not insured on and therefore can't drive it. If I paid to rent it through whipcar, I would be covered on insurance temporarily if anything happened, and my dad could just hand me the money straight back, save the 15% transaction fee! Therefore, the days insurance would only cost me a few quid...is this right or have they put in measures to prevent people doing this??

I'm sure they'll have that loophole covered. And I bet they will find out when you or your dad make a claim against Whipcar's insurance and they find out it's the same surname and/or address.

Plenty of day insurance companies around for temp cover.