- This money will help you cater for other costs such as rent, food and other personal expenses.
- Ms Monicah Tumushabe, a resident of Kyaliwajala, a suburb in Wakiso District, is one of those people who have benefited from hiring out her car during day
- But have you thought about making some extra cash from renting out your car? You can make your car work for you by renting it out during office hours, David S. Mukooza writes.
Here is what happens for most people: You get to work, park your car for hours until it is time to go home.
But have you thought about making some extra cash from renting out your car?
Well, this is another income-generating activity you can engage in to get by in this tough economy where prices of almost everything are rising at a terrific speed.
This is the kind of business where your start-up capital is already there. What is required is that you own a car in good mechanical condition. It could also be a bulky carrier.
Before you point out the risks associated with this business such as accidents and robberies, you should insure the car.
Today’s start-up segment shows how you can earn extra income by renting out your car.
Mr Newton Buteraba, the chief executive officer of House of Wealth, says: “Transport is one of the businesses that survive. Although the economy is tough, people have to move. If the risks are well-managed, this is a lucrative business to start.”
Renting or hiring out your personal car during office hours or when not in use is a very lucrative side income gig.
Ideally, starting this venture, one should own a vehicle, which acts as your starting capital.
The first thing you would do is to comprehensively insure your private vehicle because the driver you hire might not be trustworthy or may lie about the destination route.
Someone could hire your vehicle to carry out town service activities but change their mind without letting you know. Before you know it, the car is in Northern Uganda or deep in Western Uganda.
Because you are going to give out the vehicle to people you may not necessarily know, it is advisable to install a car tracker. This will help you monitor on your phone and manage risks.
A car trucker will help you monitor the movement of the vehicle as a safety measure and the mileage covered in case you require taking it for servicing, Mr Buteraba advises.
Secondly, understand the market segment, by talking to the people within to understand the risks and how they manage them.
You can also look at the type of car and its market rate and decide on what it can do. Should you be giving it to Uber/Taxify drivers? What about those offering tour and travel or others who do school drops?
These categories will help you to calculate the earnings from hiring your vehicle out. These metrics will give you a profit and loss account status.
Mr Buteraba says that say if you hire out your private small car, the average rate or charge after all expenses would be about Shs50,000 per day.
This means if you do this six days in a week, you will be assured of your Shs300,000. This figure will translate into Shs1.2 million monthly earning and a Shs14.4 million annual turn-over.
This money will help you cater for other costs such as rent, food and other personal expenses.
Ms Monicah Tumushabe, a resident of Kyaliwajala, a suburb in Wakiso District, is one of those people who have benefited from hiring out her car during day