What does 'Your share of trip income' mean?
At the top of your monthly invoice, you will see a figure for "Your share of trip income".
This is your share of all of the time and distance income that your car has earned in the invoice month. It is the most important figure to look at on your invoice (rather than 'closing balance').
How to work out your car's income after expenses
To work out your income after expenses, and so understand the true financial benefit from renting your car out, you will need to subtract your car's running costs from your share of trip income.
We can't include this in your invoice, because each type of car has different running costs. However, it is easy to work it out yourself.
Why shouldn't I just look at what gets deposited to my bank account?
Your "Closing Balance" is the amount that goes into your bank account, but it is not your profit. This is because your personal costs (like tolls and insurance if you're on our Instant Keys plan) are already taken out; and because it includes all the fuel charges, which may be higher or lower than the cost of fuel actually used by borrowers. See "How do Borrowers pay for the fuel they use?"
Step 1: Find your share of trip income and kilometres driven
To work out your profit, start by finding, on your monthly invoice:
- Your share of trip income; and
- The number of kilometres driven by borrowers.
Your share of trip income is at the top of the first page.
Total distance is on the second page:
Step 2: Work out your car's running costs per kilometre
The other number you need for your calculation is the cost of driving your car for a kilometre.
- The simplest way is to look up your car type in one of the car running cost guides online, such as the RACQ car running costs guide.
- Look at the running costs only (from page 7 of the RACQ document). These are the costs that vary with your car's usage: fuel, tyres and servicing.
- You may need to pick a car that is similar to yours if you can't find your exact make and model. For example:
|Car Type||Running costs|
|Small, e.g Suzuki Swifit||12c/km|
|Medium, e.g. Toyota Corolla||16c/km|
|Large, e.g. Nissan Pathfinder||22c/km|
If you're really keen, you could also do this by keeping your own record of everything you spend on fuel, tyres and servicing over a year (making sure to spread the cost of any parts over their expected lifespan) and recording the total kilometres driven over that period.
Step 3: Subtract your running costs from your share of trip income
Now, just multiply (distance driven) x (running cost per kilometre) and take that off your share of trip income to get your total profit.
Let's try an example.
|Owner's share of trip Income||Distance||Running costs|
Multiply the distance by the running cost:
(1,811km x 0.14c/km) = $113.54
Now subtract this from the owner's share of trip income:
$752.75 - $113.54 = $639.21
The result is the total profit.
So $639.21 would be the owner's total profit in this example.
Instant Key owners - don't forget to include your insurance savings!
If you previously paid more than $60 a month, or $720 a year, there's one final sum to work out the financial benefit of sharing your car.
It's simply the difference between your old insurance cost and the $60/month membership fee.
For example, if you used to pay $100/month for your insurance, you're saving $40/month, so add that on to your profit figure.
(The membership fee is also tax deductible, which your old insurance probably wasn't.)
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