Staying Flexible in the Ever-Changing Sharing Landscape (Part 3)

Our final installment will take a look at how the challenges of vehicle ownership are beginning to separate the sharing economy into two clans: those who are managing and acting as an entity and those who are not. Your vehicles are a unique investment. In very few situations can your investment cost you more money than you actually invested. Cars are a finicky bunch and they need constant attention. Protecting your investment is paramount to maintaining your vehicle and the equity hiding within.

Increased Complications Related to Personal Vehicle Ownership

Managing multiple vehicles, insurance, registration, maintenance, acquisition, disposal, management and transportation are the hopscotch of car sharing. Being able to negotiate the maze of vehicle ownership is vital to your success.

• Managing your fleet can be daunting. Creative use of various location verification technologies (i.e. API enabled/connected cars, manufacturer and owner installed GPS systems, etc.) are the key to overseeing the location of your entire fleet. Having the ability to locate your vehicles 100% of the time is one of the best ways to protect your investment and avoid costly claims, towing and storage.
• Insurance companies have begun to realize that those of you who own multiple vehicles could be involved in some kind of car sharing for profit. Make sure, if you’re using personal insurance for vehicles rented on any sharing platform, that the insurance company approves use on the platform. The potential for loss of your initial investment in the vehicle is overwhelmingly less important than the potential for the millions of dollars in liability should your guest be at fault for an accident to which your insurance company will not extend coverage.
• Remember also that most platforms require your registration to be in the same name as your insurance. Simply purchasing your vehicles under an LLC, or other entity, will not guarantee you are going to be safe when a claim comes down the road.
• Local laws which define a maximum number of vehicles which a private owner can sell within a prescribed period of time can severely hamper any effort to sell multiple vehicles. Know the laws in your area and have a plan.

With the unprecedented growth within the sharing community, you can expect the current trends to increase and gain momentum towards all of the “usual” business dilemmas: saturation, marketplace erosion and excessive cost controls taking a piece of the profit pie. CarSync is your ace in the hole. We know sharing. Our platform is positioned uniquely to bring you and your fleet into the next phase of sharing. Take a moment and hit the “Contact Us” button. We’re here to help.