Car Next Door Review - 1st Six Months - Amazing Results
Table of Contents
What is Car Next Door (CND)?
Car Next Door (CND) is an business that brings together people who need a car for a short period and people who have a car available and willing to rent.
CND is part of the share economy.
As AirBnB is for renting rooms/properties in the share economy CND is for renting cars in the share economy.
Why Did I Experiment With CND?
I signed up for Car Next Door (CND) because we have two cars and one of them is often sitting idle in our driveway depreciating. Each year, it costs us thousands of dollars just to own it.
While still holding a certain amount of skepticism about the enterprise and half expecting not to make much money at all. I was also hoping to make a profit from my car on CND after all expenses.
Further, I love to experiment and try out new ways to lower my costs so this seemed like a fun option.
And finally we have old cars so I was not too worried about the risks associated with rental use of my car.
We’ll get to the numbers below, but I can say that the CND experiment has provided some surprising results. CND has not been a profit creator for me, but it is a solid cost offset vehicle (excuse the pun).
My Car Next Door Review Approach
The approach I took was to treat this like an experiment/pilot/trial. My trial period was 6 months.
Essentially, I gave myself six months to start seeing some regular results.
If this didn’t happen, I was going to re-assess the enterprise and probably can the trial and discontinue my membership with CND.
Anywho, I’m 6 months into the trial now and things are looking good. So now it’s time for the Car Next Door Review.
The car is actually booked no stop for most of the months of January and February as you can see from the table below.
The Results of the Car Next Door Review (Jul-19 to Jan-20)
So below I have put together the tables and charts to show the breakdown of this first six months Car Next Door Review. Hopefully you get some insights.
The period includes every month from when I commenced the trial which was July 2019 up to time of last final invoice.
You can see clearly that it took a good 5 months before things became steady with bookings. You need to keep this in mind when you are considering starting with CND.
So, below is the full table and charts showing my CND Cash Flow, Net Income per month and cumulative income to date.
The period includes every month from when I commenced the trial which was July 2019 up to time of last final invoice Jan-20.
Again, if you are considering experimenting with CND, keep in mind the time it takes to start earning a regular income. It took me about 5 months before things started to become consistent, which you can see from the table and charts below.
These are my results from an experiment with Car Next Door. The results to date are for the period Jul-19 to Jan-20.
Pros and Cons of CND
- I’m earning a decent cash flow, enough to offset at least 1/2 the cost of my car (e.g. the insurance and registration costs).
- I’m spending less on petrol on the car, because it is booked the majority of the time (the petrol costs are still paid by me but are offset by the income from the per km use charge.
- I’m spending less on parking with this car because it is booked the majority of the time.
- There is significantly reduced risk of parking fines or traffic infringements because I’m rarely use the car.
- I basically have a free second car on hand anytime I need it. I just have to make a booking on the app for when I need it.
- Each user has to be registered with the CND and all users are peer reviewed.
- To my surprise people are very respectful with treating the car well.
- I am fully insured for the vehicle for all the shared drivers.
- The customer service is responsive and helpful.
- The App is super helpful for tracking my bookings and income. Every time someone makes a booking or updates a booking or returns my car or leaves a review, I get a notification on my phone so I can check in to see what is happening.
- 1. Payments are not weekly or fortnightly but monthly. And typically, payments are not made to your nominated bank account until about 5-7 days after the month end.
- Income made from a booking which goes over the month will not be included in the month it starts but rather in the month it finishes. For example, look at November above and you can see my car was booked for about two weeks and went over to December. I did not earn anything in November because of this. I earned this income in December.
- So I earned $0 in July, small pickings in August and September, and Nothing in October and November. I was about to give it up when things started to pick up in mid-November. Bookings have been going gang busters now since November. In summary, it took about 5 months to start seeing regular bookings and regular income.
- You have to schedule in a booking to use your own car and if you are not organised you can miss out because I am finding my car is in quite high demand.
- Set up is a bit of a process. You need to register your car, get a profile photo, get some good car pictures, set up your insurance and bank details and then get a booking for the GPS installation and stickers. This took me about a month.
- The car will depreciate faster due to the nature of rental. Users treat cars differently and rive them differently and so the wear and tear on the car is increased
I recommend using Car Next Door if:
- You live in one of the cities or large regional towns. I would not recommend for smaller towns as you would probably not make enough income to make it worth the costs.
- You have a car or a second car which you do not use very much and which is sitting idle.
- You have patience and you don’t mind experimenting for 5-6 months to see if this will work for your car and your area.
- You would like to offset the cost of car ownership.
- Your car is a bit older and you are not too worried about the damage that multiple users will do to your vehicle.
Generally, I am enjoying seeing my car being rented out every day and earning us an income. I’m happy to continue the experiment for another six months to see how the full year cycle turns out in terms of offsetting the cost of car ownership.
Check back in in 6 months and we’ll see how this goes.
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