You probably have lent your car to friends and family who needed it to run an errand or to go on a date, but what about the concept of renting it out to complete strangers?
The idea has become a reality in the United States through services like Getaround (getaround.com) and RelayRides (relayrides.com). Both are peer-to-peer car rental programs allowing people to offer their own vehicle to rent, regardless of whether it's an exotic ride or a basic four-banger, to anyone willing to pay the hourly fee the owner charges. It's like Craigslist meets Enterprise Rent-a-Car.
At the moment, Getaround is only offered in the San Francisco Bay Area and San Diego, while RelayRides is limited to the Bay Area and Boston. Both are still in the beta testing stage, but are keen on expanding.
Naturally, giving up your car to someone you don't know can be worrisome, and evidently, there are checks and balances to make this business model work. Getaround and RelayRides offer owners full insurance coverage and the renter assumes all liability with coverage coming from their own insurer. Not surprisingly, renters are rated by owners, an incentive for drivers to not make themselves at home too much when borrowing the car.
Hourly rental fees are typically in the $3 to $60 range, with a slew of vehicles available. Would-be renters can opt for something as basic as a Prius or be one of the lucky few to try out the Tesla Roadster that one member was offering (albeit with some stipulations).
RelayRides has a chart that indicates an owner can earn as much as $6,000 (U.S.) annually if they've rented their car out for 20 hours a week, or $3,000 for just 10 hours/week. The numbers are theoretical estimates, of course, because it depends on the make and model of the car, as well as the hourly rate and volume of time. The figures above are based on full-size vehicles such as a Camry or Sonata. Economy cars would fetch less, while luxury vehicles could get more.
RelayRides sets pricing on the criteria of make, model and year, though owners can bump that up if their car has certain amenities (navigation, a bike rack, DVD player, etc.) that might justify a rate hike. Getaround is more liberal, allowing the owner to test the market a bit more in pricing, including coming up with daily and weekly rates. Being late on return costs the renter an extra $30, with another $30 tacked on for each hour thereafter. Of the final price, both sites take a cut of about 35 per cent.
All of this can be arranged through either website, or in Getaround's case, using its own iPhone app. Renters can locate an available car through the app and request permission to rent it from the owner. Getaround can also install a module in the owner's car that enables renters to access the vehicle with a key inside. If the renter doesn't have an iPhone, then a physical key swap with the owner has to be arranged.
The FAQs on both websites cover most questions, including cases where renters are ticketed or do damage to the car.
It's a novel idea, but one that requires a fair amount of risk and trust on both sides, and while it may not be available in Canada yet, it's only a matter of time.