Your Thoughts on DriveMyCar ?

na8an on 17/05/2016 - 07:40
Last edited 18/05/2016 - 10:25 by 1 other user

Hi Bargainers,

Good morning!

I have this thought of renting my car (yet to buy) to DriveMyCar, as it seems a good idea since I won't be using the car everyday for work.

I am looking at models of Jaguar XF and Range Rover Evoque 2012- 2015 at a price range of 40 -45k, as I will be opting out a personal loan @ 12%pa.

The company quoted me about $1500pm can be earned on the car if rented out for whole month. Does anyone who has experience with DriveMyCar enlighten me about the cons involved, other than excessive k's on car and regular wear & tear.

cheers!
JB

Automotive

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Comments

  • ESEMCE on 17/05/2016 - 08:27

    The obvious standout to me is that you'd need company level insurance.
    If your asset is involved in a serious collision and the someone is seriously injured/killed where does your portion of blame end and drivemycar.com.au's begin?

  • na8an on 17/05/2016 - 08:38
    +1

    Well apparently the company drivemycar will take out a insurance for the rental period. So I won't be liable for the damages.

    As per my own car insurance when asked they asked me to get in contact with Vicroads if I had to get commercial or private ones.

    • dasher86 on 17/05/2016 - 08:49

      I thought an added bonus when signing up to sites like drivemycar is that they also cover your insurance as well not just during the rental period. Don't quote me on this one though!

      • na8an on 17/05/2016 - 08:55

        I'm not aware of any other site, but drivemycar has not mentioned any. so I can't quote you about that!

        • dasher86 on 17/05/2016 - 09:57
          +1

          Carnextdoor

        • neil on 17/05/2016 - 11:10

          @dasher86:

          I researched a bit into CarNextDoor and found out only when on the last step of signing up that I'd have to pay $900 per year for insurance (not free as I originally thought).

    • fruit on 17/05/2016 - 11:03

      Check the excess

  • Hellfire on 17/05/2016 - 09:57

    Looks like a recipe for disaster.

  • RockyRaccoon on 17/05/2016 - 10:11
    +3

    Some simple maths

    $45000 car at 12% = $5400
    Rego and insurance = say $1000
    DEPRECIATION on the car at conservative 10% PA = $4500
    Maintenance Tyres etc (all depending on the distance driven, But if its rented out for the 12 months this would probably add another $2000, Jag services arent cheap

    So that would give you say 13K per annum costs and the income if rented out everyday for the year = $18K so you get around 11% return.

    BUT this is based on a full 12 month rental. Which is highly unlikely. If this car was rented out say every second day you lose money. So to break even you need to have the car rented out for at least 260 days a year (260X$50 = $13K)

    Keep in mind all the figures used are conservative (Audis depreciate about 15-20% each year according to NRMA, Lexus about 12-15% so Jags/Range Rovers probably more) and a Jag that gets too old probably would be in demand for rental after a few more years, which is another issue you need to consider. Maybe they are better now but both the cars brands you mention are not historically known for their reliability (US JD Power Associates rates Range Rover as 2 stars out of 5 for reliability in 2016)

    Then you have to be able to get it to the rental place for it to be rented out so you have to drive it there and get home again - Taxi /Walk?

    If is say you wanted it Tuesday evening, that can take out two days of rental, as it would be back for someone to pick up wedneday morning

    Is it worth it?

    • na8an on 17/05/2016 - 10:54

      Thanks for breaking down numbers and describing how it would be later.

      So it's not worth it if I'm going for a loan and renting out a reliable car like a Toyota would fetch us great return considering they are not much already listed.

  • cloudy on 17/05/2016 - 10:17

    I suggest u try renting someone's car first, see how u like the process.

    I've considered putting my own car on there, but where I live, there are plenty of choice, so I didn't think my car will be used much.

    • na8an on 17/05/2016 - 10:59

      I have come across this site the same way.. Although haven't rented yet, waiting for a long weekend.

  • fruit on 17/05/2016 - 11:02
    -2

    How many times do you want to post the full URL? Are you doing a shitty job at SEO?

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