Carsharing Rises In Popularity

The sharing economy has taken off in the US as companies like Uber and Airbnb encourage the public to share and share alike. However, the trend has taken hold in an unexpected arena— the auto industry. Luxury Goes Economical BMW AG is taking a bold step into the idea of car-sharing with a new program called DriveNow. The German automaker partnered with Rental company Sixt to give BMW Mini Clubman owners the opportunity to share their cars while they are on vacation or at work. Those who need to rent a car pay a user fee and a per-minute rate in order to use the cars, which would otherwise sit in a garage. People who lend their cars out earn money from the DriveNow program, making their auto purchase all the more valuable. Ford On Board Ford Motor Co F announced its own venture into the car sharing market on Tuesday, saying that the company is rolling out a pilot car-sharing program in both the US and the UK. The program will allow Ford owners whose vehicles are financed through Ford Motor Credit Co to rent their cars out for short periods of time when they are unused. Retaining Value As new cars lose a significant portion of their value as soon as they are driven off the lot, many consumers have become more conservative with their auto purchases and are turning to the second-hand market. For that reason, many dealerships are offering car-sharing as a way to help new car owners retain some of the value from their new car. The program not only provides a new revenue stream for an automaker, but it gives potential buyers an incentive to make a purchase.