GM Car Owners With OnStar Now Can Be Their Own Rental Agencies
The Los Angeles Times reports that the world of micro-rentals just got a whole lot more crowded, with the introduction of a nationwide partnership between GM and ride-sharing company RelayRides. RelayRides has been arranging short-term car sharing in just a few cities for several years; car owners can sign up to make their own cars available for short-term rentals to others, so their expensive investment (especially in cities where parking is like a second apartment's rent) isn't sitting idle. Now, the two companies are rolling out that system in a much larger market: the rest of the U.S. Owners of GM cars new enough to be equipped with OnStar monitoring systems will be able to sign up to take part with the OnStar system providing the ability to unlock and track those cars remotely, which might make the bargain more attractive to many owners who'd like to earn money from their cars (and reduce the total number of cars needed in a given area), but reluctant to hand the keys to a stranger. (Cars without the system can still be enrolled, but will require a key hand-off.)
Even though this seems like a good thing, there is a corporation involved so I'm sure there is evil involved.
Gentlemen of Slashdot, affix your tinfoil hats and let's start dissecting this!
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First!
This is NOT covered by your car insurance, so when an accident happens, you will be sued and end up broke. For example, the person driving your car runs over a rich old woman crossing the street? That's gonna cost YOU!
Great news for people who want the shit beat out of their cars by random strangers.
Next step, car companies "selling" you a car for cheap, where you're required to rent it out every so often on-demand and the car company/dealership keeps the profit from the rental. That way, you get a shit, beat-up, smoked-in, sexed-in, whatever-renters-do-in'd car for a cheaper price.
There are a few questions that would need to be cleared before I would even consider such an idea. Burden of proof on damages, specialized insurance (I'm pretty sure your normal car insurance won't cover it), wear, cleaning, smokers, tickets...
The point is rental companies see their cars as an investment that is supposed to bring in some profit before being phased out. Private owners consider their own cars as "my precious" and renters as "who cares, it's not my car" and hope the rental company doesn't note the new scratches.
If you think rent a car places are bad about dents just wait for this.
Better take a video of the car before pick up so you don't pay for old dents.
So when my car is rented by someone who slips the clutch like a driver's ed student and puts five years worth of wear on the clutch plates in two days, I'm supposed to be happy about this because hey, Onstar?
No thanks.
My closet is full of clothing just hanging there unworn.
And my sock drawer is a virtual gold mine!
I wouldn't rent my car out if I had to pay for the gas. If your car gets 35 mpg and they drive it responsibly on the highway, you would only make $2 an hour. But realistically, they won't drive responsibly, they're going to drive it like it's rented, probably even worse because of the free gas.
The best case scenario still works out to " can I thrash your car for an hour? I'll give you $2."
better to stage a fake accident with the rented car and have the deep pockets of GM / on star / RelayRide pay out.
Who among us treats a rental with the same tender care we treat our own cars?
I always check the tire inflation of a rental. I have gotten cars with 60 lbs of pressure. Does this make drifting easier?
"No fear. No envy. No meanness." Liam Clancy
This isn't really car rental -- it's car sharing. This is very different from rental cars. With car sharing, there is more onus on the "renter" to treat the car well since the chances are -- they want to rent the car again and again. If they treat cars poorly, they'll be kicked out of the car share service.
As someone who has started a new job and travels regularly, I am shocked to see how my colleagues treat rental cars. Hard breaking, rapid acceleration, reckless turns, etc... and then the interior... and it's not just my company. I've been in other rental cars (driven by other third parties at the client) and it's all the same. Sometimes they smell, sometimes people scratch them... why would you do that for $10/hr?
Even if they insure it, if they get in a wreck they'll probably repair it with non-original parts, and it'll never be the same. Yeah it was fixed, but when your buyer pulls the Carfax report, he's going to see the accident.
People do not treat rental cars well. $10/hr and you have to pay for gas, plus the income is taxable? I'd never do it, and my car is far older than the ones people are renting out.
We have two cars, parking for one, and variable (relatively low) needs.
I actually looked into this, but our cars are too high mileage (they limit to 120K and we racked up miles quickly prior to our move) to rent out through their service.
But when one dies, this will probably be better vetted in practice and if it's still going this provides two more options for me depending on frequency of need.
1: More convenient and cheaper rental
2: A way to partially offset the cost of the newer car.
Either way, I like.
If I'm renting my car out under this arrangement, how can I be sure that the renters aren't abusing it in subtle or hard-to-detect ways? Burning up the brakes, doing donuts in parking lots, weird stuff with the transmission... there are lots of ways to damage a car that won't be immediately apparent. By the time it's noticed, it may be too late. And even in the case of overt damage, expect a major fight with the insurance company over just who caused it and whether your insurance or Relay Rental should pay. Dealing with insurance companies is always a nightmare, every time.
For rental recipients, this poses its own set of problems: how do you avoid being blamed for damage you didn't cause? How can you be sure that the car isn't missing basic functionality – you wouldn't be happy to get a rental in the middle of July with broken A/C.
I have purchased 2 cars through Hertz's Rent 2 Buy program. The first purchase was a very specific minivan that had a tow package installed (suspension but not a hitch). I bought it with about 40k miles on it. It was at least $2000 below KBB, and I've had it for 2 years now. It has given me NO trouble whatsoever. I just purchased a small SUV from their program and it was basically cherry. Again, $2000 below KBB and it too has been wonderful so far.
I've had a lot of people raise their eyebrow at this. They typically recount a story where they treated their rental like crap. But they've rented many cars. Most are rented at the airport by business people who drive to a hotel and an office, and back to the airport to go home. Most rentals are like that minus the horror stories you hear.
The nice thing about the Hertz program is that you rent the vehicle after finding it online near you. You can rent it for 3 days at $50/day. You get to drive it and see if the tire pressure sucks, or the car shimmies, or the tranny doesn't shift right. You bring it to a garage and have them inspect the car for damage and general road worthiness. If you decide to buy, you go to their website, click "Buy" and keep the car. They send you an fedex with all the paperwork, and even do financing through Chase or BoA. After you send them the downpayment, they send you the completed registration and plates for your state. You can even transfer your old plates if you sell your old car separately. I dumped a 100k+ mileage Honda Accord hybrid on CarMax. They paid me 4k for it, and the AC didn't work and there was significant body damage. We now have a 2011 late model SUV with 37k miles, the AC works, and the car has been like a dream in comparison. Gets the same mileage, and is from a reputable Japanese manufacturer.
For all those who are going to reply that the car will be trouble down the road, I'd ask you to tell me how you treated your last lease vehicle. That is what you're going to get on a used car lot. One driver who didn't change the oil, and didn't give a crap about the car because it was just a lease and they will trade up in 3 years anyway. Is there really any appreciable difference? Yes. The rental company had an incentive to make sure the car was in its rental fleet, and so they did the maintenance regularly. It all depends on your POV... if you want to roll the dice that you got a good lease car over a bad one, okay. Or, you can buy the rental for thousands less, with the chance that a small number of drivers abused the car, while most treated it with care lest they end up having to pay the rental company for damage. I'll take the latter.
Brawndo: It's what plants crave!
Its worth remembering what happened to a poor boston student who rented her car for a carshare out using relay rides (and their liability insurance (same 1 million dollar liability insurance GM is using):
http://www.nytimes.com/2012/04/14/your-money/relayrides-accident-raises-questions-on-liabilities-of-car-sharing.html?pagewanted=all
I'm somewhat dubious about this. Given the propensity of people to mistreat stuff they don't own, I don't know that I would be willing to rent my car out. I depend upon the reliability of my car. I've heard tell of people beating up rentals. Plus, imagine the insurance you would have to carry and I'm sure it would not be inexpensive. In fact, you would have to incorporate yourself just to shield anything personally-owned from potential loss due to a lawsuit. If your customer got injured because the brakes fail (it can happen even in a car properly maintained) and a child got injured as well as a third party, you could be positively cleaned out and living on the streets.
One thing people haven't thought about is that On-Star is able to monitor the car's operation. It could be easy to spot renters who are driving 100 miles an hour or are doing donuts in parking lots and fine them for abuse. But I see all sorts of other problems. For example, when I rent from a major company, I know the car will be cleaned and vacuumed and that the company has some kind of maintenance program. You could wind up renting a car filled with baby seats and McDonalds wrappers. And what about minor dings, scratches and so forth. You would have to take pictures of your car daily to prove who messed up your car.
Sure, it's great when you can inspect it before plunking down money. I'm sure there's plenty of fine former fleet cars. But how would you feel about loaning the car out after you've already bought it?
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It seems many of the car-owners have an inflated opinion of their cars' worth. Looking at the prices people in my area want to charge, they tend to be at least double what ZipCar would charge me (and ZipCar includes gas!). That kind of kills their business model in major cities.
One holiday season when I was returning to my original home for a little over a week I considered renting a car to make it easier to get around. Car rental companies utterly rape customers on costs over the holiday (the same imaginary supply and demand bit that causes gas prices to go up and down at convenient times) to the point where I would have paid 10x as much for a really lousy rental car than I did for round trip airfare.
I thought perhaps I could get around the stupidity by trying to rent a car through craigslist. I posted an ad "I want to rent your car" and after getting a reply from one idiot who thought himself funny, the ad was removed within 24 hours.
But there is definitely a market for this. People do have cars that they don't always need, and people have a demand for cars that they need for just a short bit of time. Not everyone has the disposable income to pay a rental car company for a car, either. Even the cheapest Hyundai shitbox gets expensive quickly. A one-week rental of a Hyundai is equal to about 10% of the car's MSRP on the lot.
Damn_registrars has no butt-hole. Damn_registrars has no use for a butt-hole.
while the kids drive. I can set the maximum speeds and even the volume of the radio with Ford's mykey. I would hope OnStar is as advanced if not more.
After all, if the car leaves the proscribed area it should turn itself off.
* Winners compare their achievements to their goals, losers compare theirs to that of others.
Agreed. I spend a lot of time out of the country and it's a shame having to pay for a car I rarely use, but it's essential when I am in that location.
In the UK a cheap car can be £600($940) and the tax per year for that is ~£200($312). Fuel is £6.7/gal ($10.4) Renting a car is ~£70($110)/day and leasing is only a little cheaper.
We have all these cars on the road, some people have 3 or 4 cars each for different tasks. It's ridiculous excess.
This should be useful for people in cities like London where there isn't the space but it's workable to get public transport out of town and use a car from there. I'd love this kind of thing to catch on outside the U.S.
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There is no God, and Dirac is his prophet.
False dichotomy.
Option C: Pay a little more up front to buy new, take good care of it yourself, and get ridiculous mileage out of it bringing down the total cost/mile compared to a used car.
Woman rents out her car via RelayRides, someone gets killed while driving her car, she may end up getting personally sued.
http://www.nytimes.com/2012/04/14/your-money/relayrides-accident-raises-questions-on-liabilities-of-car-sharing.html?pagewanted=all
"Professional *what*?"
Save Ferris
"now can"?
RelayRides was advertising in SV six to eight months ago. /.!
Get with the times,
Both age 3 times faster than they would normally... There is no way I would rent my car out to a random person. I know many people who rent cars and have a goal of putting more wear and tear on the car than they paid for the rental... driving with the e-brake on, driving with both the gas and brake applied at the same time, repeatedly accelerating and braking as fast as possible until you warp the rotors, setting an automatic to no use more than first or second gear for the entire rental duration (think 6,000rpms at highway speeds for 3 days straight) just to name a few.
Tinfoil hat affixed.
Sounds like a drug/contraband/money traffickers dream come true. Call up GM with fake credentials, get a car, nobody sees your face on camera when you pick up your vehicle.
Who was talking about vandalism? Just rode hard and put away wet is all... And we are talking rentals here, Are we not?
"Ouch, podjo, that was a bad pothole."
"No worries. It's a rental vehicle."
A friend's car is of course returned clean and full.
Whoa! Fifty GBP for turning in a dirty car. There would be no charge in the US for returning a car with a bit of litter in it. Maybe if the interior was egregiously filthy, or if you smoked in it. Then you could get dinged. That said, I usually police the interior before I turn a car in, if only to double check for my own possessions. I'm currently in Europe. Have to remember to use that litter bag.
I would not want my car rented to "random strangers". What's up with this big sharing movement, anyway? Everything seems up for grabs. Couch surfing, car swapping, my personal data.... What's next? Wife swapping..? Oh, wait!
"No fear. No envy. No meanness." Liam Clancy
New cars are for ego driven suckers.
John McAfee 'It was like that time I hired that Bangkok prostitute; to do my taxes, while I fucked my accountant'
Don't you already do this as a matter of course when renting a car? If you have to walk around the car to inspect it, you may as well have your phone camera actively recording what you see.
Slightly different angle, same idea of short-term rentals: I've become a fan of a service in my home town where you can rent a car, get billed by the minute, and don't have to worry about gas or anything else, as everything is included in the rental price.
It's perfect for driving in the city, costs about half as much as a taxi would, and they have an iPhone App that tells you where around your current location the nearest available car is.
Concepts like these will change mobility, especially in cities. I don't need a car of my own, haven't needed one for years, but every now and then I have something to transport or whatever. Lots of people aren't so different.
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I'm the sort of person who gets a bit annoyed at having to own more than 1 pair of shoes. 1 should be enough, I find the efficiency assuring. All the rest is just an irritation for me. I can see I don't really need it but I have to recognise social rules around me. So the partner says have to buy shoes for sport, work, hiking, sailing, work boots etc, I do it. To me, having to own more than one of something shows up the failure of something to deliver (the world on a stick).
When I was younger living at home we had my van, my dads van, my brothers car, my mothers car, my fathers car all on one driveway. Then relatives visit and we've caused our own traffic jam. It seemed like an inefficient waste of metal especially as not all of them were used at any one time. Likewise, when we're driving down the road there will be at least a few people going the same way. It costs me over $200 to fill my car now. If I was driving like I used to that would be $5000 of wasted cash. I'd prefer to have that cash in my pocket.
I have an engineers mindset so I like efficiency. I find that beautiful. There are other arguments to be made including that having more than what we need in general is the kind of thing that is bringing the world to it's knees, but that isn't why I like to be minimalistic, promise.
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