Ditch Your Car And Save £2042
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Over the past few weeks, I have been looking at some of your options if you want to buy a car.
First, I whizzed through an explanation of green cars, before zooming my way towards the benefits of leasing a car as opposed to buying one.
But what if you don't want the responsibility of owning a car at all, even if you can give it back at the end of the deal?
Here are some alternatives:
Car Club Connections
One alternative to owning a car is joining a car club.
Car clubs are a half-way-house between owning a car and using public transport. I think they're ideal for people who drive a car rarely or occasionally, but would like the luxury of having access to one when the need arises.
Clubs are becoming increasingly popular, allowing you to drive brand new or recent models parked in designated spaces across Britain.
To qualify, you need to be at least 18 and have held a valid driver's licence for at least a year. You will also need to meet criteria regarding accident claims and road convictions.
You apply either online or by phone. According to how much you'll be driving, you then decide on the appropriate price plan, and pay an upfront membership fee which can be an annual or one off charge.
When you're up and running, you can book a car online, by phone, or sometimes by text. You then simply turn up, unlock the car with a special ‘smartcard', and drive away.
You can hire a car for any period from an hour to several days. You also get some free mileage included per day, with additional distance charged per mile.
Most cars are tracked electronically to record accurate time and mileage data, so you don't even need to do any complex calculations. You drive, the bill is calculated for you and sent to you at the end of the month.
The savings could potentially be huge. According to the AA, the average cost of owning a car used for two trips per week is £2,749 a year. Streetcar says the same journeys made using a car club would cost you just £707. That's a £2,042 saving.
So, here's a quick look at what some of the different companies charge. Rates shown are for Pay as you go use.
Company | Annual Membership Fee | Cost per hour/weekday (from) | Free Miles Per Day | Additional Miles (from) | Minimum Age |
|---|
Zipcar |
£50
|
£4.95/£35
|
60
|
23p
|
21
|
WhizzGo |
£25 smartcard plus £125 insurance deposit (onetime and refundable)
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£4.95/£40
|
30
|
20p
|
18
|
City Car Club |
£75 (onetime)
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£4.75/£47.50
|
50
|
22p
|
19
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Streetcar |
£49.50
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£3.95/£39.50
|
30
|
23p
|
19
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Charges vary from company to company depending on how frequently you drive, so it's important to shop around. For example, renting a car for two full days a month and driving an average of 100 miles each trip would cost £88.40 with Zipcar compared to £117 with City Car Club - that's nearly a £30 difference. If you average this over a year, choosing the right club could save you £343.
If you want to find out the mileage for your journey, RAC has a route planner which calculates both distance and journey times.
Car Club Pitfalls
On the downside, car clubs are generally restricted to big cities such as Manchester, Birmingham, Bristol, Brighton and London, although coverage is growing.
When deciding which companies provide the best financial value, you should also look at the perks some hire companies offer over others.
For example, Londoners may be keen to know that Zipcar and WhizzGo absorb the congestion charge, while Streetcar doesn't and City Car Club only offers a discount depending on the location and car you opt for.
Also, as innovative as they are, car clubs will never offer you the ultimate flexibility you'd have if you were an owner. Although you can extend your hire period while you're behind the wheel, you will be fined if you return the car late without notice.
If you want to know if there is a local car club in your area, visit www.carclubs.org.uk which will show you a map of all available locations.
Jump Into A Car Pool
Take a look at car pools too. These pools are car clubs with a community edge. No contracts are signed, and you use your own car, as opposed to one provided by a company.
You register your details with a car sharing website and specify where and when you want to travel. The system then matches you up with other suitable travellers.
The idea is that you split the cost of the journey, saving both parties money on travel costs.
However, you shouldn't think of it as an opportunity for a bit of moonlighting on the side. As a driver, although receiving contributions towards journeys are fine, you should not seek to make a profit, and doing so may render your car insurance invalid.
Swimming In The Deep End?
However, I don't know about you, but the thought of sharing a car with Joe Bloggs down the street puts a few doubts in my mind. Would I want to drive or be driven around with a complete stranger?
In an effort to combat these reservations, most car pool sites allow you to filter your search if, say you prefer to travel with members of the same sex.
Tips such as meeting in a public place and never exchanging home addresses are some other common sense measures you can take.
You can find out more by visiting carshare.com, which also lists car sharing pools around the country.
Life Cycle
If none of that tickles your fancy, then you could always get on your bike - literally.
Under the Cycle to Work Scheme, employees paid through the Pay as You Earn System are given generous tax relief on their bike purchase, together with any associated accessories.
Depending on how much tax you pay, you could cut up to 43% off the final bill. For further information, ask your employer, or take a look at cyclescheme.co.uk.
TFL also provides Londoners with a cycle guide with handy tips to get cyclists from A to B with the least hassle.
Obviously, lifestyle needs and personal circumstances are bound to affect whether you need a car just as much as your financial and environmental concerns.
However, if you do live in a city, and don't want the hassle of maintaining an expensive lump of metal, these alternatives may appeal.
More: Seven Motorbike Insurance Tips
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