A new trend is taking car rentals to a new level.
Alex Backer of Altadena plans to make money off his personal vehicle by renting it out when he's not using it.
"You can set your own price," Becker said.
Getaround is a personal car-sharing network based in the Bay Area. It connects car owners with potential renters. The trend is already global, with WhipCar operating in London and Communauto in Canada.
'Getaround' makes money by taking a portion of the rent. The rate is up to the renter. Also unique to the program, some rentals are available by the hour. Major rental companies do not usually offer hourly deals, just daily.
The essential ingredient in the deal is the proper insurance.
"Getaround's insurance takes care of all the risk. They protect the car, and if anything happens, they take care of it" according to Becker. In most cases, you don't have to own your vehicle outright, meaning loan-free, to rent it out.
Most lenders don't object, although lease agreements occasionally nix subleasing. And yes, the income generated is taxable.
The wear and tear on your car might be less than you think. Renters typically drive just five or six miles for every rented hour. And having a little extra in the piggy bank doesn't hurt.