A cars monthly income will be seasonal and affected by many factors. On average, over the course of a year a car earns $250 to $350 per month, SUVs earn $300-$500, vans and utes earn $550 to $750. Many vehicles earn well above these averages and some earn less.
Income and Car Next Door's share
Your car earns money for both the time it is booked and the distance it is driven. When a Borrower uses your car, you receive:
- 50% of the first $240 of time-based income each month, and 75% of the time-based income after that. You can set your own hourly and daily rates.
- 25 cents per kilometre that the Borrower drives. Car Next Door gets 8 cents per kilometre. A GPS unit in the car records the number of kilometres traveled by Borrowers.
For example, if your car made $500 in time income and traveled 100 kilometres in a month, you would be paid:
|50% of the first $240 of time income||$ 120|
|75% of rest of the time income||$ 195|
|$0.25 x 100||$ 25|
What affects earnings?
It is difficult to predict your car's earnings precisely. The average number of bookings is around 6 a month, but some cars are booked much more frequently.
Some cars are busy right away and others might take a few months to build up a group of regular borrowers.
There are many variables that affect how often a car is booked, including the car's location and seasonal demand. However the most important are:
(1) availability; and
(2) length of time on the platform.
The more competitively you set your rate and the more hours you make your car available (particularly on the weekends), the more you're going to earn.
Doing additional promotion of your vehicle in local hotspots, with some tools we provide you, will also help.
For optimal earnings, we recommend maintaining an availability of at least 70% on weekdays and weekends. The cars in the top 10% earnings bracket have an average availability of 90% in both periods.
How long does it take to start earning?
In the first few months, it may take a while for bookings to build momentum. This is completely normal and to be expected. Car owners should give it a minimum of 6 months to allow bookings to build, as more local people become aware of your car's availability through our marketing initiatives. It will likely grow year on year after that.