Car sharing with a neighbor
August 27, 2024 4:19 PM Subscribe
My neighbor needs a car. I need an extra car. Can we use the same car? Tell me if this is a minefield.
My household has two drivers and two kids (one of which will soon be a driver themself) but only one vehicle. My neighbor down the street has no reliable transport of his own and not enough credit or income to obtain such. He has been getting by with the occasional borrowing or renting of a car. Thus, we both could get some use out of a shared car. Are there any downsides I am missing? I've known this guy for a while and I think he is trustworthy, just broke.
We live in Massachusetts.
My household has two drivers and two kids (one of which will soon be a driver themself) but only one vehicle. My neighbor down the street has no reliable transport of his own and not enough credit or income to obtain such. He has been getting by with the occasional borrowing or renting of a car. Thus, we both could get some use out of a shared car. Are there any downsides I am missing? I've known this guy for a while and I think he is trustworthy, just broke.
We live in Massachusetts.
Response by poster: I am thinking that we can pool our money and buy a car together, something like this?
posted by mkb at 4:33 PM on August 27
posted by mkb at 4:33 PM on August 27
I'd be concerned about insurance coverage -- how do you arrange coverage so that everyone is covered and no one is exposed to extra risk if someone has a car adventure?
I'd be concerned about the day-to-day management of who gets the car. Say your neighbor needs to schedule the car in advance for something critical and hard to reschedule like a medical appointment, how can he make sure the car's available at that time?
Car expenses are just beginning after the purchase. How do you track who's responsible for gassing it up? Cleaning it? Maintenance? Automatic toll fees? If your neighbor is broke, you might wind up taking on more than your share of those ongoing expenses. You might be cool with that, but you might not be, or other folks in your family might not be.
posted by Sauce Trough at 4:36 PM on August 27 [13 favorites]
I'd be concerned about the day-to-day management of who gets the car. Say your neighbor needs to schedule the car in advance for something critical and hard to reschedule like a medical appointment, how can he make sure the car's available at that time?
Car expenses are just beginning after the purchase. How do you track who's responsible for gassing it up? Cleaning it? Maintenance? Automatic toll fees? If your neighbor is broke, you might wind up taking on more than your share of those ongoing expenses. You might be cool with that, but you might not be, or other folks in your family might not be.
posted by Sauce Trough at 4:36 PM on August 27 [13 favorites]
Yeah, liability is a bummer...
Have no idea what an insurance company would charge for you to be safely covered. Neighbor has an accident, and kills someone, and maybe they were drunk or something. Not good.
Talk to your insurance agent first. And don't expose yourself to an excessive judgement.
posted by Windopaene at 4:49 PM on August 27 [1 favorite]
Have no idea what an insurance company would charge for you to be safely covered. Neighbor has an accident, and kills someone, and maybe they were drunk or something. Not good.
Talk to your insurance agent first. And don't expose yourself to an excessive judgement.
posted by Windopaene at 4:49 PM on August 27 [1 favorite]
What happens if one of you has to move? Are you going to be buying the car outright? If there's going to be a car payment, that's a whole other minefield. But even without that, are you splitting cost of car 50/50? If so, how do you decide who gets the car and when they get the car? And as already pointed out, you have to figure out how you'll split gas and maintenance for the car.
Can you both handle it if the car suddenly needs a $2000 car repair and have to split that 50/50?
Also, what about EZ pass, traffic cameras...those tickets/fines will go to whoever is listed as the primary owner on the registration.
What if you or your neighbor has an emergency need for more funds. Would one of you buy the other out? Force the sale of the car? What if that happens when the car is relatively new and it forces you to sell the car at a loss?
Even if your neighbor is trustworthy, if he's broke, this sounds like a disaster waiting to happen.
Maybe if you purchased the car, and then your neighbor was willing to pay the extra cost of getting him insured to drive the car, plus a set monthly amount for maintenance/gas, then maybe it could work, but you'd still have to have a system for deciding who gets to use the car if there are conflicting needs.
There are a tremendous amount of downsides to this.
posted by litera scripta manet at 5:00 PM on August 27 [10 favorites]
Can you both handle it if the car suddenly needs a $2000 car repair and have to split that 50/50?
Also, what about EZ pass, traffic cameras...those tickets/fines will go to whoever is listed as the primary owner on the registration.
What if you or your neighbor has an emergency need for more funds. Would one of you buy the other out? Force the sale of the car? What if that happens when the car is relatively new and it forces you to sell the car at a loss?
Even if your neighbor is trustworthy, if he's broke, this sounds like a disaster waiting to happen.
Maybe if you purchased the car, and then your neighbor was willing to pay the extra cost of getting him insured to drive the car, plus a set monthly amount for maintenance/gas, then maybe it could work, but you'd still have to have a system for deciding who gets to use the car if there are conflicting needs.
There are a tremendous amount of downsides to this.
posted by litera scripta manet at 5:00 PM on August 27 [10 favorites]
Are you aware of turo or other car sharing services? If you were planning to buy the car outright, this could handle liability, etc. for renting to the neighbor and potentially other people. Or perhaps you can both rent someone else’s car as needed.
If you aren’t able to buy a car outright (it sounds like you would use it more?), this is a bad idea for the reasons above.
posted by momus_window at 6:03 PM on August 27 [1 favorite]
If you aren’t able to buy a car outright (it sounds like you would use it more?), this is a bad idea for the reasons above.
posted by momus_window at 6:03 PM on August 27 [1 favorite]
I have no experience with this, have never owned a car and rarely drive, so take what I say with a grain of salt.
First of all, you say "I think he's trustworthy." You think. So what gives you pause? Really think about that for a bit.
The arrangement:
Ownership: what if you own the car, and he pays you a set amount a month to use it? (Since he's broke, can he even afford that?) In that way, you're the car-sharing service. What will you do if he doesn't pay? Obviously not let him use the car, but how will that affect your relationship/will you care if your relationship is affected?
Maintenance, insurance: you'd be the owner, so you would take care of that and you'd get him to pay a portion into that. For gas, if it's close to empty when he uses it, he has to fill it up.
Scheduling: what if you and him have a set schedule for the car, and you kind of have a sign up system for when to use the car that is outside that routine? What will you do if he doesn't adhere to that and takes it when you're not aware and you need it?
Collisions: what if he has a collision, and injures/kills someone? Then what?
It would be great if you could make this work, but I feel like you need a really solid relationship to do so.
posted by foxjacket at 6:22 PM on August 27 [3 favorites]
First of all, you say "I think he's trustworthy." You think. So what gives you pause? Really think about that for a bit.
The arrangement:
Ownership: what if you own the car, and he pays you a set amount a month to use it? (Since he's broke, can he even afford that?) In that way, you're the car-sharing service. What will you do if he doesn't pay? Obviously not let him use the car, but how will that affect your relationship/will you care if your relationship is affected?
Maintenance, insurance: you'd be the owner, so you would take care of that and you'd get him to pay a portion into that. For gas, if it's close to empty when he uses it, he has to fill it up.
Scheduling: what if you and him have a set schedule for the car, and you kind of have a sign up system for when to use the car that is outside that routine? What will you do if he doesn't adhere to that and takes it when you're not aware and you need it?
Collisions: what if he has a collision, and injures/kills someone? Then what?
It would be great if you could make this work, but I feel like you need a really solid relationship to do so.
posted by foxjacket at 6:22 PM on August 27 [3 favorites]
Shared ownership of the car seems like a very bad idea. You owning the car but renting it to your neighbor on occasion if you can work out the insurance coverage for that seems like a much less fraught option.
posted by Stacey at 6:26 PM on August 27 [3 favorites]
posted by Stacey at 6:26 PM on August 27 [3 favorites]
We had an arrangement for about a year where a neighbor paid a small amount to borrow our car for a short time every morning (driving their kid to school, a 15-minute round trip, and they asked for a few extra borrowing times when there was a minor emergency.) We checked that the drivers had insurance and it worked beautifully overall. If I recall, they basically paid for our car insurance during that time. I think it would make more sense to do something like this than to co-own the car—it’s a little more straightforward for situations like differing maintenance/cleaning preferences, if one person moves, etc. I think it’s also helpful to have an agreed upon period of time that the car is “rented” every day/week/month, so that everyone has the availability in their head as a matter of course. If the guy is super broke, I’d also consider your response if he asks to pay later.
posted by tchemgrrl at 6:53 PM on August 27 [9 favorites]
posted by tchemgrrl at 6:53 PM on August 27 [9 favorites]
This is a HUGE minefield, but it can be navigated. It cannot, however, be negotiated by word of mouth. The particulars of the ownership of the car need to be in writing:
- Who is contributing how much towards the overall cost of the car?
- What does that ownership share entitle each owner to in terms of the amount that each owner can use the car on a weekly/monthly basis? Is it a strict percentage (Owner 1 paid 60% of the cost and gets 60% of the available hours, Owner 2 gets 40% of the available hours)?
- Same question re: insurance. Who carries the policy? Who pays the lion's share and who is listed as an eligible driver? Who determines level of acceptable coverage? Who is liable if an un-covered person is driving?
- What defines "available hours" as far as who gets to drive it when - is the car "bookable" 24/7? How far in advance?
- How will the car be "reserved" - will there be a shared Google calendar or equivalent that is the single source of truth about when the car is available for use, or will there be another method of claiming the car when it's needed?
- Gas. What is the expectation for a minimum tank level at the end of a trip? 1/4 tank? Half?
- Maintenance: who pays? Are routine things like oil changes split 50/50, or proportional to ownership share? Is a repair as a result of a crash solely the financial responsibility of the person driving at the time of the crash, even if the crash wasn't the person driving the car's fault (what if it's hit by another car that doesn't have insurance, for instance)?
On preview, this is a lot of what foxjacket covered. But it's something you absolutely, definitely do not want to leave ambiguous, because as nitpicky as it sounds up front - particularly among friends or people who get along OK as neighbors - it won't sound nitpicky the moment there's a conflict. And in any co-owner situation, there will be conflicts.
You say your neighbor is "trustworthy, just broke". Be careful that you're not essentially buying them a car by making the offer of "sharing" a car with them. If they have no financial skin to put in this game at all, think twice about doing it. I understand the impulse to help, and it's honorable, but that help can also take the form of an occasional ride as needed, rather than you taking on the financial burden and non-zero risk (to your finance and your insurance rates) of co-owning a car that another person cannot afford to financially contribute to in any meaningful way.
posted by pdb at 8:47 PM on August 27 [5 favorites]
- Who is contributing how much towards the overall cost of the car?
- What does that ownership share entitle each owner to in terms of the amount that each owner can use the car on a weekly/monthly basis? Is it a strict percentage (Owner 1 paid 60% of the cost and gets 60% of the available hours, Owner 2 gets 40% of the available hours)?
- Same question re: insurance. Who carries the policy? Who pays the lion's share and who is listed as an eligible driver? Who determines level of acceptable coverage? Who is liable if an un-covered person is driving?
- What defines "available hours" as far as who gets to drive it when - is the car "bookable" 24/7? How far in advance?
- How will the car be "reserved" - will there be a shared Google calendar or equivalent that is the single source of truth about when the car is available for use, or will there be another method of claiming the car when it's needed?
- Gas. What is the expectation for a minimum tank level at the end of a trip? 1/4 tank? Half?
- Maintenance: who pays? Are routine things like oil changes split 50/50, or proportional to ownership share? Is a repair as a result of a crash solely the financial responsibility of the person driving at the time of the crash, even if the crash wasn't the person driving the car's fault (what if it's hit by another car that doesn't have insurance, for instance)?
On preview, this is a lot of what foxjacket covered. But it's something you absolutely, definitely do not want to leave ambiguous, because as nitpicky as it sounds up front - particularly among friends or people who get along OK as neighbors - it won't sound nitpicky the moment there's a conflict. And in any co-owner situation, there will be conflicts.
You say your neighbor is "trustworthy, just broke". Be careful that you're not essentially buying them a car by making the offer of "sharing" a car with them. If they have no financial skin to put in this game at all, think twice about doing it. I understand the impulse to help, and it's honorable, but that help can also take the form of an occasional ride as needed, rather than you taking on the financial burden and non-zero risk (to your finance and your insurance rates) of co-owning a car that another person cannot afford to financially contribute to in any meaningful way.
posted by pdb at 8:47 PM on August 27 [5 favorites]
This is a minefield. Someone has to be the boss of the car. That someone is you. You need to set the rules. You need to enforce the rules. Was this your idea or the neighbors? I think that matters. If it was your idea, I think it is more likely to work.
I would also make sure you can afford the car on your own if neighbor cannot or does not pull their weight.
Is it a nice thing to do? Yes. Is it neighborly? Yes. Does it work in theory? Yes. Will it work IRL? Maybe, but not without some stress.
posted by JohnnyGunn at 9:23 PM on August 27 [3 favorites]
I would also make sure you can afford the car on your own if neighbor cannot or does not pull their weight.
Is it a nice thing to do? Yes. Is it neighborly? Yes. Does it work in theory? Yes. Will it work IRL? Maybe, but not without some stress.
posted by JohnnyGunn at 9:23 PM on August 27 [3 favorites]
How this can work -- you buy the vehicle, take responsibility for maintenance and repairs, and add the neighbor onto your car insurance as an occasional driver.
Set a fee for rental, including time and distance.
The neighbor returns the vehicle with a full tank (this picky detail is a clue about their willingness to adhere to other less obvious rules).
Set expectations, including no uninsured drivers, no driving under the influence, no commercial use (Uber, DoorDash, etc).
Get it in writing, with input from a lawyer.
You may find that laws are too restrictive for this arrangement.
Set an informal rule that only those age 25 or older will drive the vehicle.
Your teenage driver can be included in any lawsuit involving this rental car, so stop that possible issue from the beginning.
However, do include your teenager on the car insurance, because things happen.
Otherwise, somebody is going to be in court.
In all likelihood, you will be the owner of the vehicle. You have the clear path to qualifying for the loan, making regular payments, etc.
In the event of a lawsuit, you are the obvious plaintiff.
Cut to the chase and keep things legal and responsible.
It's not personal, it's business.
posted by TrishaU at 2:20 AM on August 28 [1 favorite]
Set a fee for rental, including time and distance.
The neighbor returns the vehicle with a full tank (this picky detail is a clue about their willingness to adhere to other less obvious rules).
Set expectations, including no uninsured drivers, no driving under the influence, no commercial use (Uber, DoorDash, etc).
Get it in writing, with input from a lawyer.
You may find that laws are too restrictive for this arrangement.
Set an informal rule that only those age 25 or older will drive the vehicle.
Your teenage driver can be included in any lawsuit involving this rental car, so stop that possible issue from the beginning.
However, do include your teenager on the car insurance, because things happen.
Otherwise, somebody is going to be in court.
In all likelihood, you will be the owner of the vehicle. You have the clear path to qualifying for the loan, making regular payments, etc.
In the event of a lawsuit, you are the obvious plaintiff.
Cut to the chase and keep things legal and responsible.
It's not personal, it's business.
posted by TrishaU at 2:20 AM on August 28 [1 favorite]
If you add him to your insurance as a driver you might also need an umbrella insurance policy. Worst case scenario he causes an accident and you get sued beyond the limits of your auto insurance. However, I don't know if an umbrella would protect you in this instance (where youre renting the car to someone). You need an insurance expert to chime in
Other thing you can do is let him rent the car you buy if he maintains his own car insurance. They are called non-owner policies or something like that and don't have to be tied to the car. It can be a few hundred bucks a month. Probably more expensive for your neighbor than him continuing to rent cars.
Seems like Turo car sharing company has figured this out.
posted by jello at 7:13 AM on August 28 [1 favorite]
Other thing you can do is let him rent the car you buy if he maintains his own car insurance. They are called non-owner policies or something like that and don't have to be tied to the car. It can be a few hundred bucks a month. Probably more expensive for your neighbor than him continuing to rent cars.
Seems like Turo car sharing company has figured this out.
posted by jello at 7:13 AM on August 28 [1 favorite]
So many good comments above - but the one about making sure your neighbor has their own insurance policy might not be enough!
Example:
-You hold the title to the car
-Your neighbor gets drunk, drives the car, and accidentally mows down a very photogenic kid (bound for Harvard) and their very photogenic grandparent (who a purple heart). Grandparent dies, the kid needs intensive care for the rest of their life.
-Your neighbor has a $300K liability policy. That's like 1.5 years of medical care for the kid.
-The victims then sue you (because you can sue anyone in America - which is both a good thing and bad thing) claiming you knew your neighbor was reckless and still you enabled him to mow down their family. The lawsuit can't immediately be tossed.
I'd avoid this because of the legal liabilities.
posted by Mushroom12345 at 9:13 AM on August 28 [1 favorite]
Example:
-You hold the title to the car
-Your neighbor gets drunk, drives the car, and accidentally mows down a very photogenic kid (bound for Harvard) and their very photogenic grandparent (who a purple heart). Grandparent dies, the kid needs intensive care for the rest of their life.
-Your neighbor has a $300K liability policy. That's like 1.5 years of medical care for the kid.
-The victims then sue you (because you can sue anyone in America - which is both a good thing and bad thing) claiming you knew your neighbor was reckless and still you enabled him to mow down their family. The lawsuit can't immediately be tossed.
I'd avoid this because of the legal liabilities.
posted by Mushroom12345 at 9:13 AM on August 28 [1 favorite]
Tell me if this is a minefield.
This is a minefield.
posted by zippy at 12:08 AM on August 29 [2 favorites]
This is a minefield.
posted by zippy at 12:08 AM on August 29 [2 favorites]
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posted by chesty_a_arthur at 4:22 PM on August 27