Earn money while you drive!

Rising fuel prices, loan repayment and maintenance costs made car ownership a nightmare for Nikhil Vaid.

Not any more, as the 27-year old had his Eureka moment when car advertising companies came to his rescue.

Companies such as Cashurdrive, Carpaisa and Adometre give you a chance to earn by selling space on your cars for advertisements.

Needless to say, Vaid had his set of apprehensions.

In the beginning, he was repulsed at the very thought of driving around with advertisements on his car.

"Also, I didn't want people to find out that I can't afford to maintain my car," says Vaid.

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On the other hand, Delhi-based Subhash Khurana was more concerned about his car getting spoilt.

But his fears were allayed by the demonstration he received from these companies, where he saw the advertisements were stuck with stick-ons and pulled out smoothly.

Besides, the opportunity to earn Rs. 20,000 a month for three months was too good to miss, felt the 60-year-old Khurana.

Raghu Khanna, Managing Director, Delhi-based Cashurdrive, which set shop in 2009, says: "Dilemmas like those of Vaid and Khurana are commonplace. But the concept is fast gaining ground among private car owners."
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Of the 20,000 cars registered with Khanna's company, about 12,000 are privately owned.

Modus operandi

Those interested can register on the websites of these companies, providing their personal details.

Most important is the route you take on a daily basis and the average area you cover while travelling.

"Demographic information is important, as brand managers often pick the cars based on the profile of the driver," says Karan Bhardwaj, co-founder, Mumbai-based Adometer.

The target audience's age group is linked to that of the driver. Say, Adidas wants to advertise; it will define the required driver's profile to the car advertising company, such that it matches their target audience.

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For instance, Adidas may want a driver in the age group of 18-25.

Compensation

On an average, the number of kilometers you cover daily and the space you are willing to offer for advertisements on your car are crucial.

The advertising, known as car wraps, can be done on the entire body of the car or can be partial - only on the doors or the boot of the car - depending on the driver's discretion.

And, depending on the space you offer and the brand you endorse, your compensation will be determined.

It can start at Rs. 1,000 and go up to Rs. 25,000 a month..

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Obviously, smaller cars such as Alto, Nano or hatchbacks won't earn as much as sedans or SUVs.

You can choose from cash or cheque payments or opt for fuel/retail vouchers.

"Vouchers may not always be available. And, it may differ from city to city," says Ram Mohan Reddy, managing director of Hyderabad-based Carpaisa.

He says cash is far more popular as people look at this opportunity for generating additional income.

Tax

Irrespective of the payment option you pick, the amount will be treated as your income and taxed according to the slab you fall under.

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So, your college-going kid may sign up with these companies to manage his fuel bills or even earn a few extra bucks.

But when it is time to pay the taxes, you take the toll if the payment comes to your account.

Not a smooth ride

However, don't start dreaming of your equated monthly instalments vanishing on the back of this income, just as yet.

Khanna says: "The inventory of cars is substantial, but advertisers are not taking to it as aggressively."

And, the ones who are, prefer commercial vehicles much more than privately-owned ones because they run more kilometres and cover larger parts of any city.

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The condition of your car also plays a role in getting an advertisement.

Bhardwaj says: "A dented car cannot be used as the advertisement won't get placed properly."

Besides, signing up with these companies does not guarantee you a spot in any advertising campaign.

First, there is a minimum waiting period of three months. Second, the advertiser may or may not be interested in your profile.

And, if you do get selected, most campaigns last for about three months only.

After this period, you will go back on the waiting list of the company.

Therefore, do not look at it as a regular source of additional income, especially if you have retired like Khurana, who is on the waiting list since those euphoric three months.