Carsharing is an innovative vehicle sharing model that has developed as a response to traffic challenges in urban areas. This paper explores various aspects of carsharing, starting with the history and differences between carsharing and traditional car rental. The paper analyzes in detail the advantages and disadvantages of carsharing. Benefits include reducing the number of vehicles on the road, reducing greenhouse gas emissions, flexibility in vehicle use and the potential to reduce vehicle maintenance costs. On the other hand, disadvantages include challenges with vehicle hygiene, vandalism and potential damage to traditional car rental companies. Carsharing is also explored as part of the broader concept of the "sharing economy" and its impact on the community and the environment is considered. It has been found that carsharing can have a positive effect on reducing the need for parking in city centers, which can free up space for other purposes. Carsharing business models, including free models, and the sustainability of such approaches are also discussed. Regulations and legal frameworks for carsharing in Croatia and Europe are also part of the analysis. The paper also explores the future of carsharing, including the potential role of self-driving cars in such systems and global trends in the industry.