A car is one of the most expensive assets most households own, and for much of the day — particularly during working hours — most cars sit parked and unused. Several platforms have emerged in the UK that allow car owners to generate income from this idle time, either by renting the car to others, using it for deliveries or ride-hailing, or simply renting out the parking space. The right option depends on how much time you want to commit, what your insurance situation allows, and how comfortable you are with others using your vehicle.
Peer-to-peer car rental: renting when you are not using it
Platforms including Turo and Hiyacar allow car owners to rent their vehicle to verified drivers when they are not using it. Owners set their own availability and price, and the platforms handle the booking, payment, and provide insurance for the rental period. Typical earnings vary by car type and location, but owners in urban areas with reliable vehicles can generate several hundred pounds per month from a car that would otherwise be sitting unused. The car needs to be relatively modern, in good condition, and insured for peer-to-peer rental — standard personal car insurance does not cover this use.
Delivery driving: flexible earning around your schedule
Food and parcel delivery platforms including Deliveroo, Just Eat, Amazon Flex, and Stuart all allow drivers to work flexible hours using their own vehicle. Amazon Flex in particular pays a set rate per delivery block, typically between eleven and fourteen pounds per hour, and allows drivers to select blocks that fit around other commitments. The income is taxable and comes with running costs — fuel, additional mileage-related wear, and the portion of insurance that covers delivery use — which should be factored into any honest assessment of net earnings. Many delivery drivers treat this as a way to earn during specific windows rather than as a primary income.
Renting your parking space
If you have a parking space, driveway, or garage you do not fully use — particularly in a town or city centre, near a train station, near a sports ground, or in a high-footfall area — platforms including JustPark and YourParkingSpace allow you to rent it by the hour, day, or month to drivers who need reliable parking. Passive income from a parking space in a desirable location can run from fifty to several hundred pounds per month with no ongoing effort after the initial listing is set up and verified.
Insurance and tax: what you must check
Whatever method you use to generate income from your car, checking the insurance position first is non-negotiable. Using a vehicle for hire and reward, peer-to-peer rental, or delivery without the correct insurance cover is both illegal and leaves you exposed to significant financial liability. Most standard personal car insurance does not cover these uses. Income above the trading allowance of one thousand pounds per year from car-based activities must be declared to HMRC. Keeping clear records of income received and costs incurred makes tax reporting straightforward.
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Ask Fin provides general guidance only, not regulated financial, tax, or insurance advice. Always check your insurance policy before using your vehicle commercially. Income from car-related activities is subject to tax above the trading allowance.