Q: If I own a vehicle and would like to rent it out for profit, can that individual use vehicle themselves for profit?
I charge someone to rent my vehicle. They then use vehicle for Ride Share App then return vehicle after 6hr.
I see that you are in West Virginia but asking about laws in Colorado. The Colorado law supports you leasing your automobile to someone who then uses it for profit. Leasing an automobile to another person or business can be done at a profit to yourself (just be sure to tell your CPA about that revenue) and the person using your car can also make a profit. You can add things to the lease agreement to protect yourself, such as language about returning the car on-time, using only premium fuel, or agreeing to a no-smoking policy.
Colorado imposes a sales and use tax that also includes leases. A lease of tangible personal property for a period less than 36 months does not trigger the tax.
Contact your insurance company and ask about adding the additional driver to the policy. Sometimes an additional driver can be added for only a small increase in cost. By adding the second driver, you are taking big steps to make sure that your insurance policy will cover any liability arising from a crash, vehicle theft, or similar problem while your renter has possession of the car.
The person renting the car from you, however, should read the Ride Share App policies carefully. The ride share platform may expect ride share drivers to own the cars used to transport passengers. There may be terms in the ride share policies that require a certain kind of car insurance. Further, there may be some risk that a passenger suing the person who uses your car could sue you as well, regardless of insurance coverage. Even a lawsuit doomed to fail can be an expensive headache in your life.
Cameron Kawato agrees with this answer
Justia Ask a Lawyer is a forum for consumers to get answers to basic legal questions. Any information sent through Justia Ask a Lawyer is not secure and is done so on a non-confidential basis only.
The use of this website to ask questions or receive answers does not create an attorney–client relationship between you and Justia, or between you and any attorney who receives your information or responds to your questions, nor is it intended to create such a relationship. Additionally, no responses on this forum constitute legal advice, which must be tailored to the specific circumstances of each case. You should not act upon information provided in Justia Ask a Lawyer without seeking professional counsel from an attorney admitted or authorized to practice in your jurisdiction. Justia assumes no responsibility to any person who relies on information contained on or received through this site and disclaims all liability in respect to such information.
Justia cannot guarantee that the information on this website (including any legal information provided by an attorney through this service) is accurate, complete, or up-to-date. While we intend to make every attempt to keep the information on this site current, the owners of and contributors to this site make no claims, promises or guarantees about the accuracy, completeness or adequacy of the information contained in or linked to from this site.