In recent years, Car Sharing has become an increasingly popular option for people who use their cars infrequently. Particularly in metropolitan areas where you may not need to use your car every day, Car Sharing can be a great way to offset the cost of owning a car. For people who don’t drive often Car Sharing gives you the opportunity to access to a car whenever you need without actually owning one.
What is Car Sharing?
Much like AirBnB, Car Sharing is a marketplace where a car is listed and can be rented by an individual for use for a period of time. There are two types of car sharing: Peer-to-Peer Car Sharing services such as Car Next Door which allow you to rent an individual’s car while they are not using it.
You can also use a subscription-based Car Sharing company such as GoGet. where an organisation owns a fleet of cars and rents them out.
Car Sharing has many benefits, with a study from the Car Sharing Association finding that for every shared car on the road, up to 13 cars are taken off the road which in turn improves traffic and congestion.
How is Car Sharing Different to Car Rental?
The most obvious difference between car sharing and car rental is that Car Sharing is most often a Peer to Peer service, where the vehicles are owned privately by individuals. Usually rental companies will have a fleet that is centrally owned and subsequently rented out.
The cost structure is also different, with most Car Share platforms charging per hour and kilometre, and Car Rental companies charging per day and kilometre. Often this works out so that car sharing platforms are cheaper for shorter trips, but it is cheaper to go through a car rental company if you are travelling a long distance or going on a longer trip.
Location is also a key difference. Mostly you can pick up a car for rental at airports or other central locations, but with Car Sharing they can be located all over the city, depending on where an individual has chosen to leave the vehicle.
Will Listing My Car on a Car Sharing Platform Impact it’s Value?
If your car is going to depreciate over time anyway, why not offset the cost by putting it on a car sharing platform? It’s not quite as simple as that. There are a few things that you’ll need to consider before deciding if car sharing is right for your vehicle.
The more kilometres on your vehicle, the less it will be worth. If you list your vehicle on a Car Sharing platform it is likely it will be driven more than if its sole use is private. How much this devalues the car depends on a range of factors, including the age and make and model of the vehicle.
Whilst many Car Sharing platforms will offer their own insurance, you’ll need to calculate how this stacks up against your own insurance. Again, the more the car is driven, the more likely damage is to occur, as well as an increase in general wear and tear which has the potential to impact the resale value of your car. To combat this you might consider having your car serviced more frequently – some Car Sharing platforms will even offer you discounts on servicing.
All these factors considered, car sharing can be a great way to offset the cost of owning a vehicle if you use it infrequently. Use Prices People Pay to work out the cost of buying a used car, and then calculate the cost of your insurance and usage on top.
