COMMENT
Can Car Rental Be Cheaper Than Owning?

By Alison Hunt (TMFAlly)
April 13, 2005

According to the RAC's annual Motoring Index Report, the average motorist clocks up 11,000 miles each year and almost half of them form part of a two-car family. But do many households really need two cars? Or even one?

Many of my friends commute to work, and after spending a small fortune on travelcards wonder if it is worth running a car as well, especially as many live with a partner with his/her own car.

The running costs of a car can be considerable. After taking into account purchase, depreciation, insurance, servicing, VAT, tax, breakdown cover and fuel, the RAC believes it costs the average Ford Focus owner nearly £442 each month (assuming he drives 12,000 miles each year). That's £5,302 each year to run a small family car!

However, many cars (especially second family cars) aren't driven anywhere near 12,000 miles – and when you consider that it costs around £3,687 to run a Vauxhall Corsa (assuming it's driven for 6,000 miles each year), you wonder if there is a better way.

So what are the alternatives? Well car rental is the first one that springs to mind. Assuming most commuters don't need their car during the week, how much would it cost to hire one every weekend?

Hiring a Vauxhall Corsa from Friday night to Sunday night from easyCar.com would cost around £74. Doing this for 48 weekends a year (assuming there will be a few that you don't need a car) will cost £3,552 – and regular renters could no doubt negotiate a better price.

This is a saving of £135 on owning a Corsa (though this and more would be swallowed up by fuel costs no doubt) but it does show that renting and owning can be quite comparable. And not only are you spared the responsibility of owning and maintaining a car, you also have the flexibility to hire a larger car instead should you need to, simply by paying a higher fee.

However, those that live with a partner with his/her own car could find that they wouldn't need a car to themselves anywhere near that often. And hiring that Corsa for just 20 weekends a year would cost £1,480 – a significant saving on owning it.

But what about those that need their car during the week for occasional trips, such as to the supermarket or the school run? This is where Car Clubs could be useful.

Car Clubs such as Car Plus believe they can save car owners who drive 6,000 miles or less between £1,000 and £1,500 each year. By joining a club (which may involve paying a monthly fee) you can book a car for the days you need it and are charged for the time that you actually use it. The car can then be picked up from a designated parking bay not more than ten minutes walk from your home/office and accessed by a smart card.

So if you need a car twice a week, for example to do the weekly shop and to go somewhere not accessible by public transport, you could use a Car Club car. You may also have access to a number of different types of car, useful if you'd occasionally prefer a people carrier for a family day out, or an estate to move heavy loads.

There are a number of different types of car club; here is an outline of typical costs for two types, given by Car Plus:

Typical Car Club Costs

	Club Type A	Club Type B
Membership Fee	£25 one off joining fee	£15/month
Returnable Deposit	£100	£100
Hourly Rate	£4.95	£2.80-£3
Mileage rate (inc. fuel)	First 30 miles free, then 19p	17p-18p
Overnight Fee	£0	£0
Daily Maximum	£49.50	£36

Car Plus believes that most members can save between £7 and £30 each week compared to owning a car, though the costs involved by members using public transport often negates this saving. Work out how much your car is costing using this calculator.

Many Car Club members live in cities where owning a car isn't very practical due to parking space restrictions and costs, so access to a car which can then be dropped off is very useful. And the idea is an environmentally friendly one - in fact, as most members give up second or first cars on joining, with others putting off purchasing one altogether it is believed that every car in the Bristol Car Club replaces at least 4.5 private cars in the Bristol area.  

Of course, there is the inconvenience of not having a car on your driveway whenever you need it. But if you have a routine anyway, booking your car for regular trips need not be a hassle, and it may persuade you to walk/cycle more. And most people would agree that not having to deal with car maintenance and those dreaded garage visits would be great!  

So if you have a car that's not really used that much, consider hiring or see if there's a Car Club in your area . You may just find you can save some money.

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