Would you lend your car to a stranger?
Realizing that car ownership is no longer a cost-effective means of transportation, more urban drivers are looking at car-sharing services that allow you to rent cars by the day, or even the hour.
Car sharing usually involves joining an organization like Zipcar that owns a fleet of vehicles scattered throughout the city. Members pick up cars from various locations across town and return them to the same spot when they're done – all for a set hourly rate.
Think ZipCar minus the communal cars, and you've got RelayRides, a new Google-backed start-up.
Once you sign up as a supplier, RelayRides then installs a car-sharing GPS device made by Car2Go, whose technology immobilizes the engine until it’s accessed by the reservation holder.
Initially, RelayRides plans to offer lower hourly rental fees than Zipcar (which would similarly include gas and insurance), but ultimately the plan is to let owners set their own price after choosing the day and time of the week of availability.
After registering online and obtaining driving record approval, successful applicants receive membership information and access to reserve a nearby car for either a few hours or a few days.
Owners can make $250 a month on average renting out their vehicles, and that figure should rise as RelayRides attracts more users, CEO Shelby Clark told Bloomberg.
Right now, the owner gets 65 per cent of the total rental fee, with RelayRides taking a 15 per cent cut. The other 20 per cent goes toward a hefty insurance policy — just in case your neighbour crashes your car into a tree.
The owner is still responsible for maintaining, cleaning and taking care of the car, however.
Would you lend your car to a stranger to make a few bucks? How much would it take to make it all worthwhile?
By Gordon Powers, MSN Money
Posted by: William | Dec 23, 2021 10:28:58 PM
Would I lend my car to a stranger? How much would it take? I would require a $60,000 deposit, which I would return at my discretion. My rate would be $500 per day. Given these, I can safely say that I would NEVER lend my car to a stranger. Heck, I would not even lend it to someone I know well, even in an emergency.
Posted by: nolan | Dec 24, 2021 2:33:10 AM
This is a terrible idea people need to manage finances properly and be able to afford there own vehicles im all for reducing pollution and waste but im not about to lend my vehicle out to be deystroyed by people that are not responsible enough to own there own
Posted by: Allan Young | Dec 24, 2021 2:44:41 AM
This is a ridiculous idea. Unlike a home, a car has mechanical parts that need to be maintained. $250 a month is peanuts. Maybe if I had a spare Neon lying around I'd consider it and if so - who the heck would want to rent a Neon when you can get a decent new car for $30/day?
In Singapore they do have daily use rental cars because a 2.0L 4 cyl Camry costs CA$110,000. But they don't have schemes where people lease their own car (that's the correct word: "lease" not "rent") because owners pay so much for their cars that it's precious to them.
So in other words, where cars are cheap like in N.America, it makes no sense for owners to rent out their cars, nor does it make sense where cars are expensive. Someone didn't ask for feedback before they started investing in this hare-brained idea.
Posted by: SP | Dec 24, 2021 9:39:08 AM
This is a good idea for quite a number of people. Not only the people who have a pickup parked in their driveway 50 weeks a year but also for the people who just need a different type of vehicle for a brief period. Ever try to rent a 15 passenger van for a day? For companies with large fleets of vehicles that get intermittent use this could be a great way to lower the carrying cost of the units while keeping the vehicles active. I am not sure if any of the other commenter's here have ever noted how profitable the rental car business is.
Posted by: Richard | Dec 24, 2021 1:55:23 PM
Stupid... Stupid... Stupid. The key phrase is at the end of the article... "the owner is still responsible for maintaining, cleaning and taking care of the car, however". Even more of a key word is MAINTAINING. So what if you have a bona fide licensed driver who has your car and the car is insured through the "rental" agreement papers; the insurance covers accidents... ONLY !!! Let's say this "driver" RPMs your car to the hilt, slams on the brakes at every stop, runs up curbs ad infinitum !!! No accidents... but YOU're the one responsible for the maintenance on the car, which means anything mechanical, including brakes, rocker arms, ball joints, shocks... etc. You certainly won't get very far "maintaining" your car from these yahoos on $250. per month.
Posted by: Richard | Dec 24, 2021 1:58:11 PM
Bottom line... if you can't afford a car... even a cheap "junker" + the annual maintenance and insurance costs... TAKE THE BUS or buy yourself a bike !! Or go to a car rental company for your weekday or weekend "escapes". Maybe it's better that you're NOT on the road.
Posted by: jm | Dec 24, 2021 2:02:21 PM
I wouldnt mind taking 15% and not owning a bolt in the vehicle. thats good money for a pimping fee.
Posted by: Adam | Dec 24, 2021 2:36:57 PM
This is a fabulous idea! Car ownership in today's world is for people making big bucks and for chumps who think driving is still affordable. I am an engineer with zero history of accidents, claims and speeding and I commute 8km to work, yet between insurance and gas on my 4-door Sebring I pay about $300/month. Factor in parking, maintenance and a car payment (I personally don't have one) and you realize that an automobile is a massive income suck.
If you require a $60,000 deposit for your vehicle it must be valued somewhere in that ballpark, so it is no surprise that a couple hundred bucks a month would have no interest to you. My situation is quite different however since my vehicle is worth about $5,000
I have a passion for automobiles but I realize there is no such thing as a car that is a good investment since you constantly pump money into it and they depreciate so quickly. I already carpool to share the burden of car ownership but even still it is not enough. I plan on buying a new car in 6-12 months and already I am trying to find new ways to set aside money. My vehicle is almost fully depreciated and this idea is music to my ears.
To Richard's comments: You are absolutely right, but public transportation lacks in my area so I remain a slave to my car and the insurance companies. I graduated university 3 years ago and am saving for a house and a wedding; this $250/month would remove the burden of my car
Posted by: Richard | Dec 26, 2021 3:24:20 PM
Adam... what the heck are you paying in insurance premiums each year ? My 2002 Sebring LXi costs me about $600. per year insurance (Aviva insurance), whether I drive it or not. So that's about $50./month. And if you have a 2.7L engine like mine, 16km to/from work shouldn't cost you $250. per month. I commuted to work also... but my $300. per also included $150. parking per month + insurance + gas. Any used car owner should always factor in approx. $100. maintenance per month. Here's a few tips... get a broker to find you the best deal on insurance rates, if your Sebring is only worth $5K (which mine was) take the collision coverage off the car and don't pay "daily" parking rates... get a monthly pass. Good luck !!
Posted by: Janice | Dec 28, 2021 11:16:04 AM
Just last month a friend of mine borrowed her aunts car to go to Toronto. While there she was rearended and the car written off. The passenger that was with her has decided that even through she was not injured sueing the person who hit them, the driver of the car she was in and the owner of the car she was in was a good idea. So now three people are being sued so how does having a fourth person holding insurance help you? Lend, rent, lease my car to someone I don't know. NEVER. Let someone I know drive my car only if they are close family. And even then with hesitation.