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Recently, I have found a job in Downtown Montreal, Canada. I also live in downtown and my new job is a couple of blocks away from my apartment. Hence, it's getting expensive to keep my car. I have to pay indoor parking (winter is coming) which is $200 dollars a month. However, I don't want to sell it as it is not that expensive (Hyundai car 2007 model) and also gives me the flexibility to go around when I need to meet some friends and sometimes go out to buy things like grocery and shopping. My apartment is very close to two very good universities in downtown and all pizza places.

I want to rent my car to international students who can make some money doing part-time jobs (cab-driver, pizza delivery, etc.) However, I don't know how much should I charge them per month ($300 maybe). I also want to keep my car during the weekend or if not possible, then during some hours. Also, is it safe to do this?

Your guidance is appreciated.

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    $300/month sounds expensive for a used car when they are likely to get a similar rate as a lease or finance for a car. Also, if you plan on renting it out for that amount, I'd say it would be awkward to reserve the car on certain days for your own personal use. As for being advantageous, I wouldn't say so. What happens if there is damage to the car?
    – NuWin
    Oct 6, 2016 at 2:04
  • Actually, from my knowledge, it is difficult for international students to buy a car initially when they move to Canada. Lets say, if I rent it for the entire month and not use it for my personal use, what according to you should be the fees? Also, as you said, I am more concerned about the damage that could happen. Should I do a contract or something that would protect me? I do not know what is the best option.
    – Ron
    Oct 6, 2016 at 3:08
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    You haven't mentioned the word "insurance" in your question. Given that any thought? Oct 6, 2016 at 3:41
  • Yes. Sorry for that. I have a third party insurance on my car. Again, it is much expensive for a two way car insurance.
    – Ron
    Oct 6, 2016 at 4:00
  • Is it safe? Only as safe as you make it. (My mate's Peugeot was never the same when he found it one day through dumb luck about two years later.) Of importance for him, and I'm guessing for you, is can you afford to lose it should it not come back?
    – gef05
    Oct 6, 2016 at 8:55

2 Answers 2

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The moment that you start to rent your car to strangers you are talking about using your car as a business.

Will it be financially advantageous?

If you can convince somebody to rent your vehicle for more than your required monthly payments then it might be. Of course you have to determine what would be the true cost of ownership for you. It could include your auto loan, and insurance, but you would be saving on the garage costs.

Of course if you don't have it rented 100% of the time you will still have some costs.

Your insurance company will need to know about your plan. They charge based on the risk. If you aren't honest about the situation they won't cover you if something goes wrong.

The local government may want to know. They charge different car registration fees for businesses. If there are business taxes they will want that.

Taxes. you are running a business so everybody from the federal governemnt to the local government may want a cut. Plus you will have to depreciate the value of the item. Turning the item from a personal use item to a business item can have tax issues.

If you don't own it 100% the lender may also have concerns about making sure their collateral survives.

Is it safe?

and from the comments to the question :

Should I do a contract or something that would protect me?

Nope. it isn't safe unless you do have a contract. Of course that contract will have to be drawn up by a lawyer to make sure it protects you from theft, negligence, breach of contract....

You will have to be able to not just charge rent, but be able to repossess the car if they don't return it on time.

You will have to be able to evaluate if the renter is trustworthy, or you may find your car is in far worse shape if you can even get it back.

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I'm going to address a couple of extra issues over and above mhoran_psprep's great answer.

Insurance

A lot of the jobs you describe require that you have additional insurance over and above what you currently have, normally insurance that lets you drive for payment. You should insist that anyone you rent to has this insurance. If not, you may find yourself liable and uninsured.

Also you should be aware of this story: "Quebec Uber drivers have cars seized, fined up to $7,500".

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