When Is Using Your Car for a Side Hustle Actually Worth It?
Before you turn the ignition on a side gig, figure out whether your car will actually make you money — or end up costing you more.
Let's be honest… the job market is awful right now. The Bureau of Labor Statistics recently revised the July and August job reports, lowering previous estimates by 60,000 jobs.
This means that if you're looking for work, you might have to get creative with your job search. One of the most effective ways to earn extra cash is through side gigs. And the answer to your next quest could be sitting in your garage or driveway.
Below, I'll walk through key factors to weigh before starting a car-based side gig, along with several smart ways to put your car to work.
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A few things to consider before choosing a side hustle
Before picking a path, look under the hood of your expected expenses. Fuel costs top the list: Unless you drive a hybrid or an EV, rising gas prices can quickly eat into your profits. But that's only one consideration:
Maintenance
Next, consider wear and tear. Car repairs are not cheap, and oil changes can be heartburn-inducing. How much should you budget? NerdWallet found that drivers spend 11.7 cents per mile on vehicle repairs.
The more miles you put on your car, the sooner you'll need new tires, brake replacements and other maintenance, all of which can eat into your earnings. Costs also vary by vehicle type. Electric vehicles don't require oil changes, but their weight and instant torque can contribute to faster tire wear. Hybrids still require engine maintenance, although regenerative braking can help extend brake life.
Taxes
Income from a side hustle is generally taxable, even if you earn less than $400. If your net self-employment earnings reach $400 or more, you'll generally also owe self-employment tax, which is 15.3% for Social Security and Medicare.
You may be able to reduce your taxable income by deducting eligible business mileage. For July through December 2026, the IRS allows a deduction of 76 cents per business mile, up from 72.5 cents during the first half of the year. An app like MileIQ can help you track your business trips and maintain records for tax purposes.
Insurance
Lastly, consider how using your car for a side hustle could affect your auto insurance. Driving more or using your vehicle for business purposes could increase your premiums or require additional coverage.
Before getting started, contact your insurance provider to find out whether your existing policy covers your planned activities. Depending on the side hustle, you may need a rideshare endorsement, business-use coverage or a commercial auto insurance policy.
Failing to disclose business use could leave you without coverage if you're involved in an accident while working.
If you haven't compared auto insurance rates in a while, use the Bankrate tool below to explore your options:
Doing your homework ahead of time can help you steer clear of any surprise expenses.
Smart car side hustles with minimal wear and tear
If your goal is to boost your income without running your vehicle into the ground, consider these high-efficiency alternatives to traditional rideshare or food delivery apps:
- Peer-to-peer car sharing: Platforms like Turo or Getaround let you rent out your car to other drivers. The best part? You can set custom mileage limits to reduce wear and tear.
- Vehicle advertising & wrapping: Services like Wrapify or Carvertise pay you for commuting with commercial decals applied to your car.
- Pet taxi & transport services: Helping pet owners transport animals to grooming appointments, vet visits or daycare often commands higher rates per trip than standard rideshare passengers.
- Localized hyper-local errands: Focusing on grocery, catering or localized neighborhood courier services within a tight radius can minimize fuel consumption and wear.
- Your car goes Hollywood: If you live in a larger city, many talent agencies have casting calls for vehicles in movies, TV shows and ads. While having a luxury or antique car helps, I've seen ads for regular sedans and SUVs too.
- Become a personalized driver: I know someone who drives people to and from the airport, and that side hustle became his full-time job.
This list notably omits standard rideshare services like Uber or Lyft. High-mileage driving rapidly multiplies your expenses for gas, tolls, oil changes and ongoing maintenance.
And those costs add up. AAA's Your Driving Costs study estimates that owning and operating a new vehicle costs an average of $12,863 annually, or about $1,072 per month, when driven 15,000 miles annually over five years. That includes depreciation, financing, fuel, insurance, maintenance and fees.
Unless you are primarily looking for an opportunity to get out of the house and socialize during retirement, full-time rideshare driving rarely delivers the best net return on your investment.
Ultimately, using your car as a side hustle can be an easy way to earn more income. However, your success requires careful planning.
By choosing side hustles that reduce wear and tear, such as car sharing, vehicle advertising or local deliveries, you can keep your side hustle profitable without destroying your car.
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