How to navigate the dangers of trendy car sharing apps | Better Business Bureau
Car sharing apps have been called the Airbnb of the car rental business. They may be used by city dwellers who don’t want to own a car but need one occasionally. Or as an alternative for travelers who want more flexibility in the terms of their rental and more choice in the kind of vehicle.
Popular car sharing apps include Zipcar, Turo, Avail, Getaround and Hyrecar. Some are referred to as peer-to-peer (P2P) apps because the vehicle is owned by a private individual (a “host”) who makes it available through the car sharing app, while others are owned by corporations.
Wikipedia cites these general differences between traditional car rentals and car sharing, although features vary among different apps:
Carsharing is not limited by office hours.
Reservation, pickup, and return is self-service.
Vehicles can be rented by the minute, by the hour, as well as by the day.
Users are members and have been pre-approved to drive (background driving checks have been performed and a payment mechanism has been established).
Vehicle locations are distributed throughout the service area, and often located for access by public transport.
Fuel costs are included in the rates.
Vehicles are not serviced after each use, although certain programs continuously clean and fuel their fleet.
If you plan to use a car sharing app, download it ahead of time, get familiar with how booking works, and allow enough time to be approved as a driver if necessary. Most car sharing apps offer insurance, but you may be covered by your own policy or through your credit card.
Understand all of the fees. Most apps charge a “trip fee” to cover customer service and other platform expenses. There may be additional fees for delivery and pick-up, mileage over a specified limit, returning the vehicle late, and cleaning it. One of the advantages of car sharing is a wider selection of cars than at a traditional car rental agency; you’ll pay more for a higher-dollar vehicle and maybe for the time of day you use it.
If it’s a P2P transaction, remember that quality and cleanliness may vary from car to car more than at a car rental agency. Read reviews about the host and vehicle from previous users and check out the condition thoroughly before approving the reservation. If you’re taking the opportunity to drive a fancier vehicle with more controls and features than you’re used to, be sure you understand how all of them work.
Car sharing offers hosts the opportunity to make extra money and offset the expense of owning their vehicle. But the FTC refers to it as a “potentially risky side gig” and offers these tips:
Some people who’ve listed their cars have reported having them damaged, stolen, or used to commit a crime. Even if the company has policies for dealing with these types of situations, they can take a lot of time and money to resolve.
Companies might recommend steps to help prevent theft or misuse of your car, like software that lets the company immobilize your car’s engine remotely, but there are no guarantees they’ll work.
Insurance can be complicated and might not cover everything.
Check out the car sharing app with the BBB. Some don’t have good ratings.
Randy Hutchinson is the president of the Better Business Bureau of the Mid-South. Reach the BBB at 800-222-8754.
This article originally appeared on Memphis Commercial Appeal: How to navigate the dangers of trendy car sharing apps | BBB
