Renting Out Your Car to a Stranger in Maryland
Renting out your car to a stranger in Maryland seems to be an innovative idea, and it is growing in popularity.
118,000 residents in the “Free State” have registered on an online platform that has been paving the way for this new sharing economy. It is called Turo –a peer-to-peer car-sharing company that is benefiting many drivers who have more than one vehicle.
Michelle Peacock, who controls the government relations for Turo, says that the tool is lifesaver for car owners.
“When you think about buying a car and you drive it off the lot that day, it loses 40 percent of its value as soon as it leaves the lot. Here’s a way that hard-working folks in Maryland and in this country can monetize that car,” Peacock said.
That old vehicle sitting around in your garage collecting dust while you drive the latest and greatest dream machine could collect you additional cash, and with it being the holiday season, that is definitely a good thing.
A Glen Burnie-based travel consultant, David Parks, says that it doesn’t just benefit him.
“When I ended up having two cars and I realized that my other car was just sitting there not doing anything, (I thought) maybe I should help somebody out and make a little profit as well,” Parks said.
The profit is not solely for the person renting out the vehicle. While owners set the price, Turo receives an average of 25 percent of the earned revenue for each rental.
Turo exercises caution when people sign up with the program. Every user goes through a screening process where owners and renters upload their driver’s license.
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While Turo considers itself a nontraditional rental car company, organizations like Enterprise Car Rental see them as a threat and worked with Maryland lawmakers to demand Turo to pay an eight percent sales tax and follow regulations according to Senate Bill 743.
Regardless of this threat, this new business model is appealing to many drivers. With Turo offering up to $1 million in liability insurance, 24/7 roadside assistance and a replacement car, its future remains promising.
Source: WBAL TV
John Baden is known for his creativity, humor, and charm. Since writing books during his childhood, he has written for newspapers, radio and TV stations, and online publications. In his free time, he enjoys playing the piano, watching Chicago Cubs baseball, and experiencing the outdoors. For John, a perfect day is summed up in a morning cup of coffee, an afternoon run in the sun, and an evening spent in an exciting chapter of a good book. See more articles by John.