5 Reasons Why You Should NOT Rent Out Your Lexus
Thinking about renting your car out for some extra money? Here's why you shouldn't do it!
1. Anxiety
As car enthusiasts, there are certain bonds we all have with our vehicles. Call it what you will, but to most of us, lending out our car to a stranger is like dropping off the kids off at an abandoned house or renting out your close friend. There’s just not enough trust there to remove the anxiety that comes with lending out a vehicle.
2. Insurance
Ever read the fine print on your insurance policy? It's pretty clear what it allows and doesn’t. Lending out a vehicle for money is considered a business, which requires a satisfactory commercial insurance policy since a personal policy won’t generally cover it. The thing about commercial policies is that it not cost effective, especially to people looking to make some side income through one of these business models. TrustedChoice, puts commercial car insurance anywhere from $1,200 to $10,000 every six months, depending on what the vehicle is used for.
3. Liability
So you’re still not convinced that’s it's a bad idea? Along with the surprisingly high costs on commercial policies, some peer-to-peer rental companies have been known to offer their own supplementary insurance policies. The problem with their policies isn’t the costs, but it's the stipulations associated with them.
Turo, formally known as RelayRides, is currently under fire for offering false insurance policies and pushing the blame of accidents to its members. It did this by either changing the terms and conditions or changing how these conditions are meant to be interpreted. If a member does not have commercial insurance and only relied on Turo’s policy, they end up having to pay for damages out-of-pocket or risk losing their own coverage. This situation has appeared countless times throughout this car sharing community.
4. Risk of Theft
I thought the best defenses against theft is to slow the process down or frustrate them, not to make the thief as comfortable as possible! While there are obstacles in place, such as requiring an approved credit card and ID verification, it's a lot easier for thieves to falsify information using a peer-to-peer car sharing application. There are countless cases tied to stolen cars from these types of situations, all of which open up a can of worms dealing with the car sharing company, personal insurance, and local police department.
5. Lack of Profit
Even if you manage to keep your Lexus running in pristine condition, a number of miles on the car will impact its overall worth. It will be up to you to decide if the costs of arranging and protecting this investment will surpass its unmolested value. For example, a 2015 IS 250 clocking 12,000 miles a year is worth approximately $27,700, while the same car driven 54,000 miles a year is worth approximately $18,000. While 54,000 miles may seem like a lot, many peer-to-peer operators report their renters driving 100 to 150 miles per day. This also doesn’t take into account what you’ll be paying for a commercial policy and taxes. At the end of the day, you may be paying people to borrow your car from you!
For all your interior, exterior or under the hood maintenance needs, our How-To section has got your covered here in ClubLexus.com!