3 Ways to Leverage Your Car to Raise Money For School Fees 

The back-to-school season is here again, and you have a lot on your plate as a parent. You’re trying to get that last-minute shopping done for your kids, pay their school fees, and perhaps buy them a new set of uniforms – it's all adding up pretty quickly, and it can feel like a financial hurricane. 

Like many other parents, you might be cash-strapped, making the process even more challenging. Juggling these education expenses while keeping the household budget intact can be a real struggle. So, it's essential to get creative and savvy when it comes to raising money for these necessities. 

One idea that can make a significant difference is leveraging your car to help cover those school fees. This article will explore three ways you can do that. 

Read Also: Back to School: Fees and 5 Other Things to Plan For Today 

Rent Out Your Car

This arrangement typically involves you, the car owner (the "renter"), allowing another individual (the "rentee") to use your vehicle for a specified period, usually for a fee that you agreed on. The person/company renting the car will pay you a rental fee, which you can use to pay for your kids' education. 

For this option to work, you will need to find a person who can rent the car for long enough for you to make enough money and for them to pay upfront.

There are multiple ways you can rent out your car. The first option is to find an individual you can trust and give your car. This is typically the riskiest path as you lose control over how it's used, and you will be liable if your car gets into an accident and injures someone. Additionally, you will typically pay for insurance and repairs, which can lower your profit.

The second option is to rent to a company. There are a lot of businesses that need cars but don't want or can't afford to buy one.

First, you need to find a company interested in leasing your car. This can be a local business or even a larger corporation, depending on the demand in your area. Next, you'll need to negotiate the lease terms, including the duration, rental fee, and additional terms or conditions. 

Ensure a clear, written agreement is in place to protect you and your car. In exchange for leasing your car, the company pays you a monthly rental fee which you can use to pay for school fees. 

Finally, you can rent out your through a car rental company. The company will coordinate rentals, clean the car, handle maintenance issues, and pay you a monthly rental fee. The downside of this method is the company will typically not pay you upfront.

Renting out your car can be a lucrative way to make extra money to pay for school fees while maintaining ownership, but it typically comes with some downsides. The income you generate will typically be low when you factor in maintenance and other expenses; you will not be in possession of your, and clients depending on the contract can terminate the contract at any moment. 

Read Also: Back to School Budget Busters: Save on Supplies, Clothes & More 

Take a Logbook Loan

The biggest downside of renting out your vehicle is that you lose possession. This can be a concern for parents who need their vehicles for personal or work purposes. 

However, logbook loans can be an alternative option for those who need quick access to cash to pay for school fees and are hesitant to part with their vehicle. Logbook loans allow you to use your vehicle as collateral for a loan while still retaining possession of it. 

In exchange, the lender receives temporary joint ownership of the vehicle through the “NTSA In-charge” process until the loan amount plus interest is paid in full. Throughout the loan term, you can use the car as usual. The logbook will be transferred back to you once you've settled the loan. 

Logbook loans are typically accessible and with faster approval and disbursement time. This can be ideal for parents racing against time as other loans, such as personal loans, can take weeks to months to process. Additionally, you can borrow higher loan amounts without needing a guarantor or a perfect credit score. Some logbook loan lenders will offer you as much as 80% of your car's forced-sale value. 

While you can get money to pay for your kids’ school fees and maintain ownership and possession of your vehicle, you should ensure that you fully understand the costs and risks of logbook loans. They can have higher interest rates, and you can lose your car if you default. 

Always exercise caution while borrowing. Shop around, compare different lenders, carefully read the terms and conditions of the loan, and, most importantly, borrow only what you can afford to repay comfortably. 

Read Also: Would You Take a Logbook Loan to Pay School Fees?

Sell Your Car

Paying for your child's education can be a significant financial burden, and when funds are tight, it's essential to explore all available options. Selling your car makes financial sense when you have exhausted all options. Maybe you couldn't find someone to rent it, you’ve lost your job and can’t afford logbook loan payments, or you have more than one family car.

Selling your car outright provides a lump sum of cash that can be used to cover school fees and potentially extra money you can use to invest or meet other obligations. The amount you’ll be able to fetch for your car will depend on factors like the make and model, the age of the vehicle, and its condition.

Selling your car to pay your child's school fees rather than resorting to logbook loans can also help you avoid debt, ensuring financial stability and eliminating the stress associated with loan repayments or the risk of losing the car. 

Additionally, once you sell your car, you are no longer responsible for maintenance, insurance, or any other expenses associated with vehicle ownership as it is with renting. This can free up money in your budget.

However, selling your car means parting with a valuable asset. This could inconvenience you if you rely heavily on your vehicle for transportation or work. If you are selling your car urgently, you might have to sell it below market value. 

There are several ways to sell your car, but a private sale can produce the best results. You will need to find someone willing to pay for what you are asking. The downside to this option is it will take time. If you still need a car, consider downgrading by trading in your car for a cheaper one and using that extra money you receive to pay for school fees. 

Read Also: What to Know Before Taking a School Fees Loan 

WRAPPING UP

Like every parent, providing the best education to your children is your utmost priority, and as you know, that requires keeping your child in school. As discussed in this article, your car can help you raise the money you need to pay for your kids' fees. But not all the options are suitable for everyone. 

Therefore, you will need to consider your specific situation. For example, if you need your car for work, renting it out or selling it can affect your bottom line. On the other hand, taking a logbook loan when you don't earn enough to make minimum repayments can spell disaster. 

If you are running out of time, always consider talking to your child's school administration and creating a payment plan that can work for you and the school. You can then explore ways to increase your income, such as working as an Uber driver part-time while maintaining car ownership and avoiding debt.

Finally, consider visiting your local county government and Constituency Development Fund (CDF) offices and applying for bursaries that they offer.