Renting out...

A friend of mine is in need of a car, and I have two right now: mine and my dad's. I have my car note to pay plus my car insurance which adds up to just under $ 900 every month. She got a few quotes for a sedan for around $ 600/wk. She had a clean driving record for the last ten years but just got into her third car accident in the last year and a half.

My money is really tight right now, and the $ 600/wk is too much for my friend. She's a single mom. I was thinking about offering her my car for $ 400/wk. Is that reasonable? Is this a bad idea? Lol help... I'm just trying to make some extra money and I know if she took this offer it would save her from having to borrow a rental.

Should have some kind of contract, because what if she gets into another car accident with your car? What about insurance, or she will get her own? Don’t have her on your insurance it’s a huge liability

Why doesn’t she get a used car under $ 5k for a while? They offer it on CarFax at least until she can get something new for cheaper. Better to have a paid off car and have more in savings over time while waiting for her record to clear.

It doesn't make sense to me to rent a car for a week what you could pay for a month and eventually own.

Remove the risks. Can you add her to your insurance for a vehicle?

Charge her the difference and a bit more per week?

Or even sell her a car with monthly payments?

My first thought is single mom, but then i see her accident history, then I think how to satisfy all parties involved.

Posted by therestheone
Should have some kind of contract, because what if she gets into another car accident with your car? What about insurance, or she will get her own? Don’t have her on your insurance it’s a huge liability

She offered to put the car under her insurance. Idk I've never done this kind of thing before so I dunno what I'd put in a contract.

Posted by Lostthoughts
It doesn't make sense to me to rent a car for a week what you could pay for a month and eventually own.

Remove the risks. Can you add her to your insurance for a vehicle?

Charge her the difference and a bit more per week?

Or even sell her a car with monthly payments?

My first thought is single mom, but then i see her accident history, then I think how to satisfy all parties involved.

I don't think I'd want to add her onto my insurance because my insurance is already really high; actually just went up to over $ 300/mo. What I did was calculate how much money per month I pay for my car note plus my car insurance and figure out that amount weekly... and then I rounded it up a little to the next hundred dollar amount and that's what I figured I'd charge her every week so that I profit and she saves. That's what I was thinking. But I'm not sure if that's unreasonable or if there would be some better solution.

Posted by SnowBunny726

Posted by Lostthoughts
It doesn't make sense to me to rent a car for a week what you could pay for a month and eventually own.
Remove the risks. Can you add her to your insurance for a vehicle?
Charge her the difference and a bit more per week?
Or even sell her a car with monthly payments?
My first thought is single mom, but then i see her accident history, then I think how to satisfy all parties involved.

I don't think I'd want to add her onto my insurance because my insurance is already really high; actually just went up to over $ 300/mo. What I did was calculate how much money per month I pay for my car note plus my car insurance and figure out that amount weekly... and then I rounded it up a little to the next hundred dollar amount and that's what I figured I'd charge her every week so that I profit and she saves. That's what I was thinking. But I'm not sure if that's unreasonable or if there would be some better solution.

click to expand

It's not unreasonable at all. Your thoughts are also win win.

Im just a softy and would lean more her way.

Have you talked to her about it or testing the idea on here first?

I'd definitely add only A to B nessacary trips only with your car to further reduce risks.

Shit happens, it would definitely cut that issue with her luck down a lot. But if she puts it on her insurance, then not a issue for you per say.

Yes you suggestion is good one. Down to personal preference. Still a win win.

Posted by Lostthoughts

Posted by SnowBunny726

Posted by Lostthoughts
It doesn't make sense to me to rent a car for a week what you could pay for a month and eventually own.
Remove the risks. Can you add her to your insurance for a vehicle?
Charge her the difference and a bit more per week?
Or even sell her a car with monthly payments?
My first thought is single mom, but then i see her accident history, then I think how to satisfy all parties involved.

I don't think I'd want to add her onto my insurance because my insurance is already really high; actually just went up to over $ 300/mo. What I did was calculate how much money per month I pay for my car note plus my car insurance and figure out that amount weekly... and then I rounded it up a little to the next hundred dollar amount and that's what I figured I'd charge her every week so that I profit and she saves. That's what I was thinking. But I'm not sure if that's unreasonable or if there would be some better solution.
click to expand

It's not unreasonable at all. Your thoughts are also win win.

Im just a softy and would lean more her way.

Have you talked to her about it or testing the idea on here first?

I'd definitely add only A to B nessacary trips only with your car to further reduce risks.

Shit happens, it would definitely cut that issue with her luck down a lot. But if she puts it on her insurance, then not a issue for you per say.

Yes you suggestion is good one. Down to personal preference. Still a win win.

click to expand

I second this opinion.

Don’t add her onto your insurance.

Limit the usage of the car for just work, possibly running to the store for needs and such—no freely taking the car out for a drive. That’s what to base the contract on. Also include in the contract the type of insurance coverage she needs to get for herself (full coverage ideal because of possible car crashes as is her history).

Also please do talk to her about possibly buying a used but good condition car. Take it to a nearby mechanic for checkup to make sure it’s good condition before buying from the dealer (usually diagnostics is like $ 190 but it’s worth it), and check out CarFax for cars under $ 5k if that’s within her means.

It’s better to buy a cheap used car especially with that many crashes, also a less liability for you. You got a big heart to offer what I’m assuming is a great car to your friend with that kind of driving record…

Nope, give her a ride. Don't compromise what you have already.

Don’t do it. I let a friend borrow one of my cars before. He got a flat tire, replaced the tire without telling me. Vehicle ownership is a luxury and lending it out is a huge risk.

I have known people who have had terrible luck and got in several accidents. It is best she use public transportation for a while.

You should also consider shopping around for car insurance for cheaper rates. I know I did. When I did, my previous insurer said if they could possibly contact me in six months if they could match the rate I’m at now.