Peer to peer car rental, is a service where cars are listed on third party platforms by existing car owners for others to rent. It is different from renting cars from companies. This has become a side hustle for people engaging in this peer to peer car rental business as they are able to pay for expenses such as car maintenance, fuel, car loan and insurance.
How does it operate?
The owner provides the necessary information to third parties who display the car in their marketplace. The renter goes to the third parties marketplace and makes an application.The renter browses through the third party app to see available cars and determine if they meet their requirements including the duration of time they will need it and if they are satisfied, go ahead to make payment and pick up the car at the specified location The renter makes an informed decision based on the car information provided by the owner, photos, make and model of the car, fuel consumption, insurance.. Car pick up, returns, toll fees are all organized through third parties.
You can choose daily, weekly or a specified number of days to rent a car. There is a mileage limit of 20mph up to 200mph limit a day.
Factors to consider when looking to put your car up in the marketplace for peer to peer car rental:
- Car model and make
- Age of the car
- Fuel consumption
- Photos
- Availability time frame
- Location
- Insurance
Requirements of peer to peer car rental
- ID
- Valid driver’s licence
- Phone in your name
- Screening and fraud verification
Three main Peer to peer car rental platforms in the United States are Turo, Getaround and Avail.
Turo
Turo operates a peer to peer marketplace and it is one of the world’s largest platforms where you can book any car you want around your neighborhood.Turo takes between 15% to 40% of the rental value and offers insurance for every rental. If you decide to use your own protection, you will be charged 8%. You must be 18 years or above, have not been involved in an accident and have no violations in the past year to be eligible to rent a car on their marketplace
To list your car on Turo, you must sign up on their app, upload photos, state availability dates, fees and location. You can get approved within 24hrs. Once approved, you have 8 hours to respond once your car is requested for rental. For some exquisite cars, Turo requires a deposit. Payment to car owners usually takes 3-5 business days.
Getaround
They offer hourly and daily rentals. With Getaround, you can refer a friend and you earn credits on your next trip while they can earn up to $15. You do not need insurance as they provide their own insurance.
Getaround charges 40% and it is all inclusive. They also have separate fees for persons under the age of 25 years. The younger you are, the more you are under 25 fee.
Avail is also a new peer to peer car rental platform. Their services connect outgoing and incoming passengers at the airport and around the locality. They charge between $20-$25 a day to rent your car out depending on the make and model. All fees are upfront and there are no hidden charges.
Reasons why you can be disqualified from using the peer to peer marketplace
- Licence or ID is expired
- Letting someone else drive the car who was not registered as a secondary driver
- Returning the car late
- Returning the car in a dirty condition
- Disrespecting another user or employee
- Unpaid debt
- Having multiple accounts
- Trust and safety issues
Your approval can be declined for the following reasons:
- Criminal background
- Driving record
- Auto insurance score
- If you forget to enter key information in your application like your phone number, email address, or driver’s license.
Advantages
- Low cost and affordable
- Freedom
- Meets your needs
- Comfortable and convenient
- Less cars on the road
Disadvantages of peer to peer car rental
- Availability of the car
- Inconvenience
- Mileage limits
- The is no government protection
- You may need to provide supplemental insurance to the one already provided
- Can become very expressive if you need to drive daily
Summary
Peer to peer car rental offers both the owner rental income from the use of their car which otherwise would be parked in their garage offering no returns but expenses, for the renter, it offers convenience and affordability of movement. Irrespective of which third party platform you choose, you must bear in mind that if you do not comply with the third party policy you can be suspended or disqualified.
FAQ
- Which peer to peer car rental is rated the best?
Turo has been rated the best peer to peer car rental marketplace
- Can you be suspended from using the peer to peer marketplace?
Yes, especially if you do not use your real name for payments.
- Who determines the fee charged?
The third parties determine the fees based on the make and model of the car and locality amongst other factors.
