What is Peer 2 Peer Carsharing?

21. Feb 2023 | By Malena Gärtner

In Peer 2 Peer Carsharing, people rent out their self-used vehicles to others.

Peer to Peer CarSharing simply explained

Peer 2 Peer Carsharing means that the owner of a private car occasionally rents out his car to other private persons. Peer 2 Peer Carsharing is mediated via digital marketplaces. Private carsharing is always based on the same principle. The owner posts his car and specifies the location and the rental period during which the car is available. The renter can see at a glance on the platform which car types (make, model) are available, the rental periods, the location of the respective vehicles and the prices.


Different platforms offer insurance solutions and the digital infrastructure.

Private car sharing through intermediation via platforms

Peer 2 peer car sharing platforms have unbeatable advantages - compared to renting out private cars via Ebay, for example. At the top of the list is the issue of insurance. Almost all private car insurance companies prohibit the private rental of a car. Platforms, on the other hand, have separate contracts with an insurance company so that the car is insured in the event of an accident. If an accident happens, neither the renter nor the landlord will be upgraded by their own insurance company.

The second advantage is the digital infrastructure that the platforms provide. Registration is possible for renters with just a few clicks. A driver's license and/or ID card, a credit card or a PayPal account are usually sufficient. The platform shows the location of the nearest car on a map. Interested parties are shown the cars in the app - or on the computer - and can request them. There are usually two options: either the rental company confirms the request or the booking can be made immediately, without further inquiry.

You, as a renter, describe your car with a few clicks (make, model, mileage). Photos and a brief description are also possible. Then you specify the location and the rental period in which the car is available and the rental conditions, for what price you rent your car. The platforms are generally very user-friendly and easy to use.

The transfer

You can hand over your car in person or completely digitally.

The handover of the peer-to-peer carsharing can take place in person or via app. Either the renter and the renter meet at the car and make a short tour of the vehicle together. The rental agreement is then signed digitally via the private carsharing app. When the car is handed over, both parties make another tour and a confirmation via the private carsharing app.

With the corresponding Connect Box, there is no need for a face-to-face meeting; the car is converted accordingly beforehand - usually free of charge. Anyone who rents the car can open it from the outside via a private car sharing app on their cell phone. Inside the car, the so-called Connect Box with car key and fuel card is located in the glove compartment. The car can only be returned once the key and card are back in place. An additionally installed GPS system allows the car to be located at any time. This is important if the rental price in peer-to-peer car sharing is based on the kilometers driven.


With peer-to-peer car sharing, you significantly reduce the fixed costs for your car.

Can I earn money with Peer 2 Peer Carsharing?

Yes and no. Yes, because private car sharing means additional income of several hundred euros per month, depending on the type of vehicle and utilization (number and period of bookings).

No, private car sharing - with the current conditions - almost never brings a profit. Refinancing the purchase of a vehicle with the income is almost impossible. How much can be realistically earned with peer to peer car sharing, you can calculate with some apps with a small tool. However, you reduce the costs for your self-used vehicle with peer to peer car sharing.

What should I look out for in peer-to-peer car sharing?

Rent only your own car.

Briefly discuss with your insurance company if you want to rent out your car privately, and don't forget to declare your rental income on your tax return.

If you want to rent a leased or financed vehicle, check your contract carefully beforehand to make sure there is no corresponding exclusion clause. You are generally you are responsible for repair and repatriation of the car. The mobility protection of the platforms refers to the occupants of the car, they are brought home.


Peer 2 peer car sharing creates a win-win situation

Private car sharing is booming - with good reasons.

Your advantages as a tenant at a glance:

  • Quick and free registration. Simply download the private car sharing app and register.
  • The app shows immediately and clearly where the next car is.
  • You reserve your car uncomplicated with one click.
  • You have access to a large number of well-maintained and technically flawless vehicles.
  • There are hardly any restrictions on where you can go, even vacation trips within Europe are possible.
  • You will benefit from very competitive prices

Your advantages for you as a landlord at a glance:

  • Private car sharing is a good, regular extra income for you as a car owner.
  • Verification of the tenant is done by the platform.
  • The complex process of renting is carried out entirely by the platform.
  • All billing is done reliably via the platform.
  • You have insurance that pays for accident damage.