Carsharing vs. traditional car rentals: which is right for luxury car renters? Many people ask themselves this question, as renting a car to get somewhere or to travel is not that easy. For instance, some car rental companies may charge too much, and some car-sharing platforms can rip you off too, especially if you jump in with no knowledge.
Most people prefer traditional car rentals because these services are easier to use. Carsharing is a rather new concept, so things are always changing in that sector. For this reason, traditional car rentals ended up being the choice of many travelers and car enthusiasts, especially if you intend to ‘rent’ a luxury car.
Read this article if you want to learn more about traditional car rentals and carsharing. You will find out everything there is to know regarding this subject. Get educated on differences, similarities, security, and monthly costs if you want stylish traveling without risking your life or money.
What Is Carsharing?
Carsharing is the car rental ‘business’ model where people get to rent a vehicle, usually by the hour. The cars’ owners rent their vehicles to ensure shared mobility.
When using carsharing services, you gain access to different vehicle models. Most of the time, people who rent meet with owners to get the vehicle’s keys.
Carsharing was first referenced in prints under the Selbstfahrer Genossenschaft program, which went on in 1948, in Zürich. However, the concept became formal and official only a few years later. By the ’60s, public authorities, industrialists, innovators, and cities analyzed what high-technology transportation meant. Early in the 70s, the first carshare projects started developing. France came up with the ProcoTip system that lasted for only 2 years or so.
What carsharing aims to do is reduce pollution and greenhouse gas emissions in the big picture.
How Carsharing Works?
As mentioned, carsharing involves renting privately owned cars. People who want to drive any car model can choose their vehicle from the largest fleets. Many people own different car models, so choosing the model you like is easy in carsharing.
What’s also interesting about carsharing is that it helps keep the roads clean. When everyone drives someone else’s car, there are no longer any traffic jams. Moreover, drivers don’t pay for maintenance and insurance costs anymore.
Carsharing is more popular in urban regions, as this is where people have adopted the concept the most. There are 4 sharing models for carsharing programs: one-way, round-trip, fractional, and peer-to-peer. If you want to find out more about how these sharing models work, don’t hesitate to check Google.
Is Everyone Eligible For Carsharing?
If you need to rent a vehicle for only a few hours, then carsharing is your answer. Visit the carsharing apps you have installed on your phone to enter your pickup points and destination locations. The good news is that you can also choose the type of vehicle you want to ride.
It’s free to install carsharing apps on your phone, but carsharing memberships may cost you. The fee for a carsharing membership can be one-time or annual. Before you join a carsharing service, check if you are eligible in terms of age requirements, driver’s license validity, and driving record.
People under 18 and who don’t have a driver’s license can’t use carsharing services. When you join a carsharing service, you provide your paperwork at enrollment. There’s no need to present any documentation each time you rent a vehicle.
Can People Extend Their Carsharing Bookings?
Some carsharing services allow you to extend your bookings, whereas others don’t. It’s very important to file for an extension if you can’t bring the vehicle back in time. Make sure that you don’t confront this situation too often because car owners may leave you a bad review.
Extending your carsharing booking should not be that difficult with some carsharing apps. Depending on what services you use, you can ask for an extension in only a few minutes.
In short, if you know that you’re not that punctual, check which carsharing services allow you extensions.
What Is A Traditional Car Rental?
Traditional car rental involves renting a vehicle from a company that rents cars to the public. You can rent a vehicle from car rental companies for only a few hours, or you can rent for a few weeks. Car rental companies usually have branches near important places such as airports and malls.
If you don’t own a car, you can always count on traditional car rental companies to get to your destinations. The same goes if you travel. It doesn’t matter where you go by plane or train, you can rent a vehicle at your destination.
You can also rent a vehicle from a car rental company if your car gets damaged. This is an unavoidable situation sometimes, so traditional car rental offers you a solution. Waiting in the middle of the road for a ride is no longer your only getaway.
How Car Rentals Work?
One thing is for sure, car rental services are more efficient than carsharing services. When renting from a company that specializes in car rental services, you get a well-maintained car. In other words, you don’t risk remaining on the side of the road anymore.
There are many car rental services out there, so you have many options. For instance, you can go to Hertz or book a car online with them. The good news is that all car rental companies in the US, Australia, and New Zealand operate both off and online.
When renting a car online, you no longer need to spend too much time at the company’s office. Picking up your ride is easier and no longer involves finding a vehicle for your needs. Besides, you get to decide beforehand the model you want to drive and the rental price.
Is Everyone Eligible For Car Rentals?
Anyone can drive a car rental vehicle if they are 18 years or older and possess a driver’s license. Eligibility for car rentals is the same as with carsharing, only that with car rentals, you don’t need a membership. Car rental companies make things easier for you when you want to rent online too.
Just visit a car rental company’s official website or download its app. You will need to present your documentation before renting, but you can do this at the company’s office too. Here, you will have to submit your ID and proof of address.
If you don’t have a driver’s license, you won’t be able to rent a car anywhere. But if you still need a ride, you can ask a friend who has one to help you get to your destination. They can go to the car rental company themselves and ask to rent a vehicle.
Can People Extend Their Car Rental Bookings?
Yes, it’s very easy to extend your car rental bookings. Just mention the Rental Agreement Number when doing so because the company will need it to identify your rental in the system. The good news is that you can call the company directly for things to move faster.
All car rental companies allow their customers to ask for extensions and run late when bringing their vehicles back. If asking for an extension with car rental companies, you only let those companies know about running late. After all, you are renting their cars and not someone else’s vehicle.
The Differences And Similarities – Carsharing Vs. Traditional Car Rentals
There are many differences between traditional car rentals and carsharing, but there are also some similarities. As mentioned, the first involves renting from a company and the second from car owners. However, both are about driving rentals and not your car.
The time for which the driver needs the car is also a key difference between the two. While car rental companies rent for 24 hours or longer, car sharing is all about renting per hour. Note that some carsharing companies have special deals when you rent for more hours.
On the other hand, both offer flexibility and are affordable. Car rental companies and car owners struggle to offer great prices to customers because competition is tight. The best news is that it doesn’t matter where you rent from, you get to enjoy a personal ride.
Should You Decide On Carsharing Or Traditional Car Rentals?
When analyzing the differences and similarities between carsharing and car rental, I would go with car rental. The cost differences are not that significant, and car rental companies are very serious when it comes to customer satisfaction. This is surely a thing to consider.
With carsharing, you can’t be sure that you will find a vehicle available. Therefore, you may not have a vehicle when you need it the most or if you are stranded somewhere.
But let’s investigate what both services have to offer below.
| Carsharing | Car Rentals |
| You may face technical difficulties with the vehicle | Having a technical problem is rare when renting from a car rental company |
| You may not enjoy the ride because you don’t drive a luxury vehicle | Car rentals may not all be in the luxury category, but they surely work flawlessly |
| Not profitable for longer journeys | Perfect if you need to travel between cities |
Monthly Cost Depending On Usage – Carsharing Vs. Traditional Car Rentals
Monthly costs for both carsharing and traditional car rentals are approximately the same. Fleet vehicles can be older or newer, yet car rental companies have newer cars for rent. To put it more simply, it costs them more to maintain their vehicles, but this doesn’t mean they charge more.
What’s interesting about traditional car rentals is that the vehicles you rent don’t consume that much fuel. Therefore, when you rent from a traditional car rental company, you don’t pay that much to get to your destination. On the other hand, many carsharing vehicles are electric.
If you care about the environment, opt for carsharing.
However, don’t think for a moment that you will pay less to drive a carsharing vehicle. On the contrary, charging an electric car can cost you as much as putting fuel in a traditional car.
What Are The Monthly And Weekly Costs For A Car Rental?
Monthly car rental costs depend on your destination, pickup and drop-off locations and dates, and car type. The car rental company may have a thing to say too when it comes to this. To clarify, check online which company has the best deals.
When it comes to weekly costs for the same services, these depend on fewer factors. If renting weekly, you only must consider the type of car you get and the pickup and drop-off locations. Checking the market to see which car rental company charges less weekly would be a good idea too.
If you haven’t decided yet to rent weekly or monthly, know that you should consider renting weekly. If you do, you have more flexible options when paying. At the same time, you can benefit from free cancellations if you decide you no longer need the car.
Is Carsharing More Affordable Than Car Rental?
Yes, carsharing is more affordable than car rental. But it all depends on the time you need the vehicle for and where your destination is. For instance, if you need to travel for longer periods, you should opt for car rental services.
You can also benefit from carsharing services if you work remotely and don’t want to own a car. You will only have to pay for short rides, and prices could be $5-$10 per hour. This is not that much, but car rentals are cheaper if you need the car for a long time.
Above all, note that carsharing is more affordable even if you own a vehicle. If you don’t need that much fuel or to charge your car for longer distances, you don’t even pay anymore. In other words, carsharing is for those who don’t want to stress about charging a car or fueling a car.
How Car Insurance Works? Carsharing Vs. Traditional Car Rentals
Both carsharing vehicle owners and car rental companies take care of insurance policies for their vehicles. Renting prices include these costs too, but you may need to pay extra insurance on your rental. Luckily, car rental companies charge less when it comes to insurance costs.
With carsharing, insurance is included in the membership. Consider non-owner insurance if you want collision protection or the insurance company to replace the vehicle. Yes, you heard it right, there are situations in which your rental car may get stolen, or it’s destroyed.
Car rental companies offer insurance if you don’t have insurance on your car. In case you do, you no longer need to pay any extra money. However, these are the conditions only if you rent a vehicle for personal use and not business trips.
Is Car Insurance For Carsharing And Traditional Car Rentals Expensive?
Insurance coverage costs for carsharing and car rental vehicles may vary depending on the state and country. But one thing is for sure, renting is better than owning when you can’t afford car insurance. Besides, if you don’t drive that much, why would you need to own a vehicle?
Before driving a rental car, you need liability insurance. This type of insurance covers property damage and injuries that you may cause to other people. You may also want to ask for insurance on repairing the car after you damage it or accident medical bills.
All in all, car insurance for traditional car rentals and carsharing can be quite expensive, depending on what you need. The good news is that you may not need to pay the car rental company for all this. You may already have coverage through more existing policies combined.
What Is More Secure For The Renter? Carsharing Or Traditional Car Rentals
Carsharing is one of the most popular traveling alternatives that offers many benefits. However, the concept is still new as far as auto insurance policies and state governance go. While carsharing is indeed affordable, there are some risks involved when it comes to reservation or your journey going wrong.
While there are many regulations, laws, and mandates for consumer safety in carsharing, car rental is still more secure. When renting from a car rental company, people get American Car Rental Association protection. Moreover, the car rental industry has special laws in place to protect renters.
The carsharing “terrain” is not that regulated, so renters may experience some serious problems with car owners. If they want to reduce their financial risks, renters must close agreements beforehand with owners. This can be a hassle when you don’t have too much time on your hands.
Pros And Cons – Carsharing Vs. Traditional Car Rentals
Now that you have learned more about the differences and similarities between traditional car rentals and carsharing, let’s move on. To sum things up, I should discuss the Pros and Cons of both these services. Have a look over the tables below to understand the Pros and Cons better.
Carsharing
I would say to choose carsharing if you are young and free. Of course, this traveling method has its advantages and disadvantages that you should take into consideration. The good news is that you can afford it on a lower budget, but let’s see its Pros and Cons.
| Pros | Cons |
| More flexibility when it comes to vehicle models | You need to have rigid planning in place |
| You don’t have to pay for any repairs | You must get used to other types of vehicles all the time |
| Cheaper services | Not the best services in an emergency |
Traditional Car Rentals
If you plan a business trip or want to impress someone with your ride, opt for traditional car rentals. You can choose a luxury vehicle from a car rental company’s fleet, to drive it anywhere. But before you do it, let’s investigate the Pros and Cons of using traditional car rental services.
| Pros | Cons |
| User-friendly locations for car rental company branches | There may be some limitations in place, depending on the company you decide on |
| You can pay for the rentals remotely | Some companies ask for extra charges |
| Everything is secure and faster | Terms are stricter |
Conclusion
Hopefully, this article has answered the question of Carsharing vs. traditional car rentals: which is right for luxury car renters? What you should know is that no matter where you want to go, you can always rent a vehicle. Whether you do this through car rental or carsharing, both services are quite the same.
However, traditional car rentals have more luxurious fleets. Even if they impose some limitations, they also offer superior services and cover you in case of any event. With carsharing, you don’t get to have that much peace of mind, and services are available only in urban areas.