What Car Sharing Is
Car sharing lets you use a vehicle for a short time without owning it. A company or community keeps a pool of cars parked in the neighborhood. You join, find a nearby car using an app or website, unlock it, drive, and return it according to the service’s rules. Costs are usually based on time and sometimes distance, and fuel or charging and basic insurance are often built into the pricing.
It is different from a car rental, which usually involves longer hire periods, counter paperwork and a daily rate. The two overlap, and some services sit in between. Check how a given service describes itself.
A few common models exist, though the names and details differ by place:
- Station-based sharing. Cars live in fixed spots, and you return them to the same place.
- Free-floating sharing. Cars can be left in any permitted spot within a service area.
- Peer-to-peer sharing. Individuals lend their own cars through a platform, which sets the terms.
The Advantages
No ownership costs. You avoid the purchase price, depreciation, registration and most maintenance. You also avoid hunting for storage and dealing with a vehicle that sits unused for days.
Pay for what you use. If you drive occasionally, paying by the hour can be much cheaper than owning, since you are not paying for a car that sits idle. Whether that is true for you depends on how often you drive and what your local rates are.
Cars are maintained for you. The operator is generally responsible for servicing, cleaning and tire care, which saves you time.
Insurance is often included. Many services bundle basic cover, but the terms vary. Look at what it includes and what you pay in an accident.
Variety. Some services offer different vehicle types, so you can choose a small car for errands or a larger one for a bulky purchase.
Good fit with other transport. If you live where walking, cycling or public transit covers most trips, a shared car can fill the gaps.
The Disadvantages
Limited availability. Car sharing works best in dense areas with many members and vehicles. In suburbs and rural areas, services may not exist or may offer few cars.
Cars may not be there when you want them. At busy times, such as weekends or holidays, nearby vehicles may be booked. Plan ahead for important trips.
Cost can climb with heavy use. Hourly rates and distance charges can add up. If you use a car most days, owning, leasing or even a long-term rental may be cheaper. Compare real figures, including the running costs of ownership, rather than relying on impressions.
Fees and rules. Memberships may have joining fees, monthly fees, late fees, cleaning charges, penalties for leaving the car outside the area, or mileage caps. Read the terms before you sign up.
Not your car. You cannot keep a child seat, tools or emergency kit permanently in the car, and you cannot customize it. If you travel with a baby or a lot of gear, this can be inconvenient.
Long trips can be awkward. Many services are built for short, local trips and may restrict overnight use or long distances. For a multi-day trip, a rental is often a better fit.
Shared use means variable condition. Cars are generally cleaned and checked regularly, but you may sometimes find one less tidy than you would like. Most services let you report problems.
Insurance and Responsibility
Before you drive, understand:
- What insurance is provided, and what the maximum you could owe after damage is.
- What you must do after an accident. Many services have a specific process, and it is worth reading ahead, in addition to the steps in our article on what to do after a minor accident.
- Whether you are responsible for parking tickets, tolls and fines. Typically you are, and the operator may add an administrative fee.
- Whether your own policy affects anything, which is a question for your insurer.
Check the car before every trip. Walk around it and note any damage, and use the service’s app to report anything not already recorded, so you are not blamed for it. Take photos if the app allows.
Who Car Sharing Tends to Suit
Car sharing often works well for:
- City residents who make a few car trips a month.
- People who sold a second car and need occasional access.
- Those who want to try life without owning a car before selling theirs.
- People who need a car mainly for errands, appointments or short trips.
It tends to be a poor fit for:
- Commuters who need a car every working day, especially outside service areas.
- Families who need car seats and gear installed.
- People who live far from where cars are parked.
- Anyone who needs a car at short notice at all hours.
Doing the Math
To compare with owning, estimate how many hours and miles you would use in a typical month and price those with a real service near you. Then compare with your estimate of owning a car, including insurance, fuel, maintenance, parking and the money tied up in the vehicle. This is a personal calculation, and the answer changes with where you live and how you travel. A hypothetical case illustrates the idea: a person who would use a shared car for a handful of short trips a month may find it costs less than a car that sits parked, while someone driving every day will usually find the reverse. Check actual prices before deciding.
Trying It Out
Many services let you join with a small fee or sign-up and make a few test trips. Try it for a couple of months before selling your car if you are considering that step. Because selling and replacing a car is a big step, it helps to be confident that sharing meets your needs first, and keeping alternatives such as car rental for longer trips can fill in the gaps.