UK drivers are facing mounting costs of owning and running their car.
In the past year we’ve seen the price of fuel shoot up by 20p a litre, insurance premiums rise and an increase to the cost of car tax.
Recent studies have revealed that the cost of owning a car is crippling UK families who are ‘struggling to make ends meet’, citing these costs as a factor.
New car sharing company, HiyaCar, which was launched in February 2016, is a service which allows drivers to rent out their car, when they’re not using it, for cash.
A new service claims motorists can make over £300 a day by renting out their car
Motorists who rent out their car on the service can earn between £20-£300 a day, depending on what car they own.
For example a driver of a Hyundai i20 Active Auto can make £8 an hour renting their car, £32 a day or £208 a week.
Meanwhile A Jaguar XF Prestige D Auto can be rented out for £70 per hour, £320 a day and £1,280 a week.
Express.co.uk spoke to Graeme Risby and Rob Larmour, the co-founders of HiyaCar to get an insight to how the platform works and why it was set up.
“Many cars in the UK are sitting idle for much of their lives simply depreciating in value while their owners pour money into them.
Motorists can make back the entirety of their running costs just by renting out their car for 3 or 4 days
“On the other side of the coin, those who don’t own a car, or can’t afford to own one, might well be interested in getting occasional access to a car.”
“We expect to see a slowdown in the amount of people purchasing cars as they turn to sharing model alternatives.
“HiyaCar want to be part of a future with less need to own a car, and with fewer vehicles on our roads.
Drivers post adverts like this one to advertise the car they are selling
“However, those that are owned will be put to better use, both in terms of personal finance and wider sustainability.”
The service is completely free to sign up to and there is currently 20,000 members registered to the service.
However, drivers will have to pay a 30 per cent commission to HiyaCar every time their vehicle is rented out
“As an owner, joining will give you the ability to start hiring your car out to those who want access to it, thus putting cash back in your pocket when you’re not using your car.
“Registration as a driver or owner is simple and you can be ready to hire a car or hire your car out within minutes. “
In essence the platform works in a similar way to services such as Air BnB does and drivers can chose whether they want to rent out their car for a number of hours, days, weeks or month.
“The way people view ownership is changing.
“The growth of the sharing economy shows that people are becoming more accustomed to the idea of sharing their assets with others and we’ve seen a spate of companies recognise this.
“Whether it’s clothing, food or cars there are more ways than ever for people to share, and earn from, their assets.
“By building a presence in local neighbourhoods, we want to encourage trust and communication.
“Our service is entirely peer-peer so it is based on people interacting with one another, while it takes trust, it also builds a sense of community.
Drivers also don’t have to worry about damage to their car as their vehicle is protected by a unique cover policy which the hirer pays when they rent the vehicle out.
“Furthermore, a sense of trust is not the same as a sense of risk. We have a unique, comprehensive, insurance policy with AXA that supersedes all other policies and protects our owners.
Hiya Car was launched in February 2017
“In the rare event that any damage takes place to their vehicle, this policy will cover 100% of the costs and will not affect their current personal insurance policy in any way.
All cars need to be personally insured, MOT’d and taxed to qualify for a listing.
Once a hirer chooses what car they want and, how long they want to rent a car for, they will then meet the driver at a chosen location to exchange the keys.
Then after the condition of the car is agreed by both parties and then the hire period begins.
On top of the £6 daily insurer charge, hirers will also be expected to pay a £3 booking fee.