Peer-to-Peer Car Lending: The Perfect Transport Solution to Save Money

Giving car keys

Owning a private vehicle is no doubt very convenient, but it has several strings attached to it. From monthly installments and fuel bills, to periodic oil changes, servicing, and other maintenance costs, the expenses just don’t seem to end.

But necessity is the mother of invention and this is a technology-driven era where people are always coming up with smart and ingenious solutions to their problems. And the answer to such transportation troubles is car-sharing.

Car-sharing, or peer-to-peer lending as it is often called (because there are no agents, firms or third parties involved), is becoming increasingly popular in various countries. Lending your car to others or renting one for your own use offers various advantages to both, the owner as well as the renter.

Here are the top benefits of car sharing that prove why this is one of the greatest ways to reduce your transport expenditure.


Pay Only for What You Use

Car-hire firms normally charge you for a certain number of days or hours even if you need the vehicle for a shorter time period. In peer-to-peer lending, you only pay for what you use and thus, avoid extra dollars from going down the drain.

No Deposits and Other Costs

Professional car lending does not only involve extra paperwork, but also requires you to pay a security deposit or make a particular amount of payment in advance. Car-sharing is a simpler process that eliminates all such complexities.

Readily Available

Car hiring agents require pre-booking, whereas there are people who can lend you their car in return for a small payment whenever the need arises. Car-sharing is, therefore, a lot more flexible than the traditional way of renting a vehicle.

Covers Your Car Maintenance Costs

People who own a car and find it difficult to cover its maintenance costs rent it out a few times each week when not in use(for instance, over the weekend or after office hours.) This helps them earn a little cash which can be enough to cover the car taxes, vehicle depreciation, insurance costs, and the likes.

An Affordable Mode of Transportation

For people who do not travel very much and are satisfied with using public transport, borrowing a car when needed is a more cost-effective way than buying a personal car as it enables them to avoid overhead expenditure.  

Other benefits of car-sharing include a reduction in environmental pollution and traffic jams as well as strengthening the bonds within the local community. Also, peer-to-peer lending improves the domestic economy.

Read Next: All You Need to Know About Lift Sharing for Money