The hidden cons of car sharing apps

Most of us are looking to save time and money right now, so you might be tempted to try a car-sharing app.

These shiny new players in the vehicle rental market work a bit like Airbnb, except for cars. Everyday folk add their own vehicle, then hirers book it using an app and pick it up from the owner's house.

Carshare companies say their approach is quicker and easier, more convenient, more flexible and more affordable. But, in reality, they're making a lot of money from what can be a riskier and more time-consuming process for the hirer. 

We've scoured the small print to find out the truth behind the marketing myths.

1. "Quick and easy"

Car-sharing apps say they'll save you time and admin. Yet traditional car rental companies have streamlined the process to make it as simple as possible to hire a vehicle.

If you've got a standard photocard license, you'll simply show that and its DVLA code, plus proof of address, to the person at the desk when you pick up the car. Easy.

But car-sharing apps don't have the benefit of tried-and-tested methods or face-to-face meetings with professionals, so they have to take their time (and yours!) to be extra careful to verify your identity. 

Some common technological and administrative hoops you might have to jump through include:

• Checking your phone is compatible with the app. Yes, you need to be tech-savvy and have the right kind of phone, with most car-sharing apps listing lots of makes and models that won't work.
• Downloading and installing the app on your phone. (Make sure you've got enough storage space – you might have to delete some files, too.)
• Verifying your email address.
• Completing your online profile in full and uploading a profile picture.
• Going through a "seven-layer identity verification process" to verify your identity, licence validity, age and many other factors. In layman's terms, this means sharing a range of documents with the app by scanning, photographing, uploading or emailing them – often alongside your digital signature.
• Adding or verifying your driving license to reduce your risk score. Otherwise, your costs could be way too high if you're a safe driver.
• Submitting to facial recognition technology, potentially sacrificing your privacy unnecessarily.

2. "Convenient"

You might like the idea of popping around the corner to grab a car from one of your neighbours. But sadly, even once you're signed up, the process of picking up the car can be more challenging than it first appears.

There often aren't many cars available that suit your needs outside the city centre – so you may have to travel further away than your local car hire firm to pick up the vehicle. And before you set off, you have to negotiate the app's security processes, so you'll need plenty of data and good reception at the pickup location.

For some companies, this means presenting your personal keycard to unlock the car. For others, it means submitting to facial-recognition systems. (Some people find it easier to use an actual key!)

3. "Flexible"

You're renting the vehicle from an individual, so if you're a few minutes late for the agreed pickup or drop-off time, you have to contact them to let them know. And if they're running late, you'll just have to wait until they arrive! 

Even once you're on the road, your options can be significantly curtailed. Most car-sharing apps don't let you travel abroad – and if you need to extend your booking, you have to contact the owner directly, as far in advance as possible. They use the car themselves at home, so may well have plans that mean you can't change the length of your trip.

4. "Affordable"

You might get a cheaper-looking, dented second-hand vehicle, but car-sharing apps can mask a frightening array of hidden costs.

For instance, insurance excess can run to as much as £2000 – and the more risky their algorithm thinks you are, the more you'll pay. This leaves young drivers and anyone with recent claims or points on their license facing major financial risks. If you go over the mileage limit you'll also face an extra charge per mile.

Many apps don't require a security deposit, which can look attractive. But in reality, when you book via an app, your bank holds the total cost on your card. If your booking request expires or isn't accepted, your bank returns the money. However, that could take several days, so if you need to make another booking in the meantime, you'll need twice the funds.

If the worst comes to the worst, your booking could expire several times, leaving you languishing in your overdraft.

5. "Safe"

Even car-sharing apps wouldn't claim to be safer than renting from a tried-and-tested traditional hire company. On top of the financial uncertainties outlined above, renting a second-hand car from strangers creates a lot of personal risks.

It's always a good idea to be careful about when and where you arrange to pick up or drop off a vehicle. Try to aim for busier areas in the daytime, when you'll be well-lit and other people might be around if you get in trouble.

Do consider bringing someone else with you. Always tell somebody when and where you're picking up or dropping off the vehicle. And make sure you have your phone with you. 

It's less easy to protect yourself if the vehicle itself is unsafe. Even if the app has checked the owner's license, insurance and MOT, there's no guarantee the car hasn't been damaged in the meantime – so you're taking the owner's word that it's safe to drive. 

Metro Vehicle Hire carries out stringent safety checks on all its vehicles, maintaining them to the highest standards of safety and cleanliness. If you're looking for a simple, reliable and affordable car rental in Newcastle, don't hesitate to get in touch.