Buying a new or even used vehicle these days is expensive, but there’s a less expensive option: car sharing.
Companies like Turo, Getaround and Zipcar are a twist on traditional rental car companies. These services let you find a car near your home, unlock it with an app on your smartphone, drive it without needing to stand in line or wait for keys at a car rental location, and return it to the same or a nearby location after you’re done.
When considering whether to own or share a car, look at the total cost of ownership, including interest on a car loan, insurance, maintenance, taxes and gas.
On average, cars are driven only six hours per week, sitting in a garage, driveway or parking spot for the majority of the time. “Personally owned vehicles in cities mostly go unused, sitting idle about 95 percent of the time, and for most people, it’s the second-most expensive thing they own,” says Justin Holmes, head of marketing for Zipcar. The company estimates that by sharing Zipcar vehicles, members spend $300 less per month than the $600 per month average monthly cost of owning a vehicle.
To be sure, using a car sharing service requires you to plan ahead and be willing to choose among the cars available when you want to rent.
The three major car sharing companies all allow you to sign up online or via a smartphone app, but you must have a smartphone to unlock and drive the vehicle.
Founded in 2000, Zipcar is the oldest car share company of the three. Zipcar owns a fleet of 12,000 cars across the United States and charges $90 per year or $9 per month for membership. Car rentals start at $11 per hour and $91.50 per day, with prices varying by location. Zipcar reservations include gas, a dedicated parking spot, secondary insurance, and you can drive 180 miles a day without paying more. Secondary insurance will only cover in excess of whatever primary insurance covers, whether that’s a car owner’s insurance or the renter’s.
After you’re done with a rental, you return it to the same location with at least a quarter tank of gas—or use the included gas card to fill up the vehicle.
Getaround and Turo are peer-to-peer car sharing services, meaning car owners sign up and rent their cars to strangers through a platform.
Tesla, Jeep, and Toyota are among Turo’s most-booked vehicles. On a recent search for a car in Washington, D.C., 128 Teslas were available, ranging from $56 to $300 a day, and 112 Jeeps were available, from $27 to $261 a day. (Unlike Zipcar and Getaround, Turo only rents by the day.)
You don’t need personal insurance coverage if you book a trip with a protection plan made available via Turo. If you do have insurance, Turo’s liability insurance will supplement your personal coverage. Gas isn’t included.
Getaround is available in nearly 30 states, eight countries and 950-plus cities worldwide. Rental fees begin at $8 an hour and vary based on the location, trip duration, and vehicle. Getaround includes insurance, which is secondary to the driver’s personal coverage. People who drive with Uber but don’t own a car can rent a Getaround vehicle through an Uber partnership.
