Risk Management in Used Car Leasing
2018-08-23 15:19 Thursday
The rise of the sharing economy has had a negative effect on car sales. Many automotive enterprises have opted to enter into car leasing industry, as a means of adapting to the new user-based consumer economy.
GM recently announced that it will launch a P2P shared auto service, which will help car owners lease out idle vehicles. The service is available on Maven, a car-sharing platform run by GM, which has initiated pilot services in select cities, including Detroit and Chicago. Owners of 2015-2018 Chevrolet, Buick, GMC, Cadillac or GM truck models, can lease their vehicles to users through the platform, thereby earning a consistent commission.
Similar to Airbnb’s business model, Maven encourages car owners to make profits from idle property. To reinforce users’ trust on the platform, GM will purchase insurance policies that cover every leased car for up to one million dollars, and car owners have to pass a rigorous evaluation on the platform.
Car owners registered on the platform will receive approximately 60% of the lease income, with pricing varying. according to car models. In Maven’s first three months, it has offered car owners an additional 150-dollar incentive for vehicles that remain leased for 1.5 months or above.
Only GM vehicles can be registered on Maven. For other brands car owners, other P2P car-leasing platforms such as Turo and Getaround are viable options.