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| Join a club that can help drive down the cost of car ownership Join a club that can help drive down the cost of car ownership | |
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| When Dirk Mürlebach moved from Margate in Kent to Poplar in London he got an unwelcome surprise. On his arrival in the capital, he was told that his car insurance premium was rising from £435 to almost £2,000. “I thought ‘right, I’m getting rid of the car’,” he said. | When Dirk Mürlebach moved from Margate in Kent to Poplar in London he got an unwelcome surprise. On his arrival in the capital, he was told that his car insurance premium was rising from £435 to almost £2,000. “I thought ‘right, I’m getting rid of the car’,” he said. |
| Instead of spending his days navigating public transport in the absence of his own vehicle, Mürlebach signed up for the same service that a growing number of British drivers are using – car clubs, where you can pay to drive by the hour. | Instead of spending his days navigating public transport in the absence of his own vehicle, Mürlebach signed up for the same service that a growing number of British drivers are using – car clubs, where you can pay to drive by the hour. |
| While the number of cars on UK roads is up by almost 20% since the turn of the millennium, there is also an increasing appetite for more flexible car use. Nearly 250,000 people are members of car clubs using some 4,000 vehicles, according to Carplus, a group which promotes the use of shared transport. | While the number of cars on UK roads is up by almost 20% since the turn of the millennium, there is also an increasing appetite for more flexible car use. Nearly 250,000 people are members of car clubs using some 4,000 vehicles, according to Carplus, a group which promotes the use of shared transport. |
| The concept is straightforward: typically, users join a club, pay a monthly fee, and then pay by the hour to use the vehicles which are parked in various locations and can be collected and returned as and when required. In turn, the obligations associated with buying and running a car – tax, insurance, maintenance – are avoided. | The concept is straightforward: typically, users join a club, pay a monthly fee, and then pay by the hour to use the vehicles which are parked in various locations and can be collected and returned as and when required. In turn, the obligations associated with buying and running a car – tax, insurance, maintenance – are avoided. |
| Mürlebach, who signed up to E-Car, which specialises in electric vehicles, runs an art gallery and hires a Renault Kangoo mid-size van to transport paintings, a Nissan Leaf to pick up his children when they fly into Stansted airport, or the smaller Renault Zoe for everyday errands such as shopping. The club charges a one-off £50 membership fee and he pays an optional £15 monthly charge for reduced hire rates. “I pay just £5.50 an hour for a Nissan Leaf or £6.50 for the Renault Kangoo, and that’s it. No insurance, breakdown cover, maintenance, cleaning, tax, parking permits or congestion charge,” Mürlebach said. “We spend on average around £50 a month. Previously, when we owned a car, the average cost was around £300 a month.” | Mürlebach, who signed up to E-Car, which specialises in electric vehicles, runs an art gallery and hires a Renault Kangoo mid-size van to transport paintings, a Nissan Leaf to pick up his children when they fly into Stansted airport, or the smaller Renault Zoe for everyday errands such as shopping. The club charges a one-off £50 membership fee and he pays an optional £15 monthly charge for reduced hire rates. “I pay just £5.50 an hour for a Nissan Leaf or £6.50 for the Renault Kangoo, and that’s it. No insurance, breakdown cover, maintenance, cleaning, tax, parking permits or congestion charge,” Mürlebach said. “We spend on average around £50 a month. Previously, when we owned a car, the average cost was around £300 a month.” |
| Most of the wave of car clubs are based in London, although bigger cities such as Brighton, Manchester, Leeds, Liverpool, Norwich, York and Edinburgh have also seen growth. | Most of the wave of car clubs are based in London, although bigger cities such as Brighton, Manchester, Leeds, Liverpool, Norwich, York and Edinburgh have also seen growth. |
| Traditional rental companies and manufacturers are getting involved, with Hertz, Enterprise, Ford and BMW recently investing in or acquiring car clubs. Avis-owned Zipcar claims to be the world’s largest network, operating in London, Bristol, Oxford, Cambridge and Maidstone, plus more than 50 cities across Europe and North America. | Traditional rental companies and manufacturers are getting involved, with Hertz, Enterprise, Ford and BMW recently investing in or acquiring car clubs. Avis-owned Zipcar claims to be the world’s largest network, operating in London, Bristol, Oxford, Cambridge and Maidstone, plus more than 50 cities across Europe and North America. |
| “Many [drivers] either dispose of their car or put off buying one when they join a club. We calculate that in London alone this has taken 25,000 cars off the road, freeing up space the size of 50 football pitches, reducing parking needs and congestion,” says Carplus spokesperson Beate Kubitz. | “Many [drivers] either dispose of their car or put off buying one when they join a club. We calculate that in London alone this has taken 25,000 cars off the road, freeing up space the size of 50 football pitches, reducing parking needs and congestion,” says Carplus spokesperson Beate Kubitz. |
| So should you put your car on the market and instead switch to using a vehicle by necessity? | So should you put your car on the market and instead switch to using a vehicle by necessity? |
| The advantages | The advantages |
| We calculate that joining a club in London alone has taken 25,000 cars off the road | We calculate that joining a club in London alone has taken 25,000 cars off the road |
| The car club fleet is relatively cleaner than privately owned vehicles, typically producing 30% less CO2, while a growing number are electric with zero tailpipe emissions, according to Kubitz. | The car club fleet is relatively cleaner than privately owned vehicles, typically producing 30% less CO2, while a growing number are electric with zero tailpipe emissions, according to Kubitz. |
| Zipcar claims that just one of its cars helps to take 17 privately owned vehicles off the road. | Zipcar claims that just one of its cars helps to take 17 privately owned vehicles off the road. |
| Christopher Morris, founder and managing director of E-Car, claims traditional car ownership is outdated, expensive and environmentally damaging. “Most people can get around in exactly the same way through car sharing as with their own vehicle.” | Christopher Morris, founder and managing director of E-Car, claims traditional car ownership is outdated, expensive and environmentally damaging. “Most people can get around in exactly the same way through car sharing as with their own vehicle.” |
| With this in mind, his club is opening in more rural locations, including Stornoway in the Outer Hebrides, and the village of Harbury outside Leamington Spa. “Demand has been high in these settings, proving that car sharing is not restricted just to large urban areas,” he adds. | With this in mind, his club is opening in more rural locations, including Stornoway in the Outer Hebrides, and the village of Harbury outside Leamington Spa. “Demand has been high in these settings, proving that car sharing is not restricted just to large urban areas,” he adds. |
| Rachael Leach, a marketing manager in Earlsfield, doesn’t need a car to get around London, but rents one through the easyCar Club instead of taking the train on weekend trips outside the capital. “It is a lot more flexible than travelling on the train network at scheduled times, and costs around the same as two train tickets,” the 28-year-old says. “I have also hired a car for a day trip to Ikea when moving into my flat. I also like to try out the convertibles during the summer.” | Rachael Leach, a marketing manager in Earlsfield, doesn’t need a car to get around London, but rents one through the easyCar Club instead of taking the train on weekend trips outside the capital. “It is a lot more flexible than travelling on the train network at scheduled times, and costs around the same as two train tickets,” the 28-year-old says. “I have also hired a car for a day trip to Ikea when moving into my flat. I also like to try out the convertibles during the summer.” |
| Richard Laughton, chief executive of easyCar Club, which is backed by easyJet founder Sir Stelios Haji-Ioannou, says members tend to be younger, with 80% under 40. “Families are still under-represented, but anecdotally a number of two-car families are shifting to hiring a second car when needed.” | Richard Laughton, chief executive of easyCar Club, which is backed by easyJet founder Sir Stelios Haji-Ioannou, says members tend to be younger, with 80% under 40. “Families are still under-represented, but anecdotally a number of two-car families are shifting to hiring a second car when needed.” |
| Know your need | Know your need |
| RAC spokesman Simon Peevers says car clubs work best in urban areas, but overall usage remains low. | RAC spokesman Simon Peevers says car clubs work best in urban areas, but overall usage remains low. |
| The clubs represent good value for occasional motorists as the running costs, such as vehicle excise duty and maintenance, are typically covered in the monthly subscription fee. | The clubs represent good value for occasional motorists as the running costs, such as vehicle excise duty and maintenance, are typically covered in the monthly subscription fee. |
| “The key thing is to do your research and make sure the logistics, in terms of access to vehicles, meet your requirements as a motorist,” says Peevers. | “The key thing is to do your research and make sure the logistics, in terms of access to vehicles, meet your requirements as a motorist,” says Peevers. |
| The cost | The cost |
| Most clubs charge a one-off membership fee of between £25 and £60 to cover the cost of checking your licence with the DVLA and setting you up on their system. Many also offer a choice of tariffs. Some charge a monthly subscription of between £5 and £15 in return for lower hire charges. Others have no monthly fee at all. | Most clubs charge a one-off membership fee of between £25 and £60 to cover the cost of checking your licence with the DVLA and setting you up on their system. Many also offer a choice of tariffs. Some charge a monthly subscription of between £5 and £15 in return for lower hire charges. Others have no monthly fee at all. |
| Renting typically costs between £4.50 and £7.50 an hour, depending on the club, tariff and vehicle. Some also charge around 20p a mile. | Renting typically costs between £4.50 and £7.50 an hour, depending on the club, tariff and vehicle. Some also charge around 20p a mile. |
| The AA and Auto Express’s Driver Power 2015 survey puts the cost of running a brand new £18,000 petrol car at an annual £2,559, based on 10,000 miles a year at 45 miles per gallon – an average of £213 a month. | The AA and Auto Express’s Driver Power 2015 survey puts the cost of running a brand new £18,000 petrol car at an annual £2,559, based on 10,000 miles a year at 45 miles per gallon – an average of £213 a month. |
| Although signing up to a car club looks cheaper, the monthly cost can quickly run into hundreds of pounds if you use it regularly. | Although signing up to a car club looks cheaper, the monthly cost can quickly run into hundreds of pounds if you use it regularly. |
| On E-Car’s pay-as-you-go subscription there is no monthly fee. Hiring a large hatchback such as a Nissan Leaf costs £5.50 an hour including VAT, with a maximum daily charge of £50. | On E-Car’s pay-as-you-go subscription there is no monthly fee. Hiring a large hatchback such as a Nissan Leaf costs £5.50 an hour including VAT, with a maximum daily charge of £50. |
| With no other charges, hiring a car for five full days in a month would cost £250, easily exceeding the cost of ownership. | With no other charges, hiring a car for five full days in a month would cost £250, easily exceeding the cost of ownership. |
| Most drivers, however, are likely to hire for shorter periods of a few hours, and at £5.50 that would give you almost 39 hours of motoring over the course of a month before exceeding ownership costs. For occasional drivers, running small errands or taking the odd day trip, there are savings to be made. | Most drivers, however, are likely to hire for shorter periods of a few hours, and at £5.50 that would give you almost 39 hours of motoring over the course of a month before exceeding ownership costs. For occasional drivers, running small errands or taking the odd day trip, there are savings to be made. |
| Of course, this is balanced against the fact that car club members avoid the hefty upfront cost of buying a car, depreciation, and the subsequent expense of buying a replacement. | Of course, this is balanced against the fact that car club members avoid the hefty upfront cost of buying a car, depreciation, and the subsequent expense of buying a replacement. |
| If you rely on a car on a regular basis, and need access to it all the time, you may not experience the benefits | If you rely on a car on a regular basis, and need access to it all the time, you may not experience the benefits |
| Insurance | Insurance |
| Although there are no insurance premiums to pay, car club members will typically be charged an excess for an accident or damage for which they are deemed to be at fault. These usually range from around £250-£500, with those under 21 paying more, typically between £500 and £750. However, annual excess insurance policies are available from independent firms such as insurance4carhire.com or icarhireinsurance.com, for around £40, which will reduce your liability to zero. | Although there are no insurance premiums to pay, car club members will typically be charged an excess for an accident or damage for which they are deemed to be at fault. These usually range from around £250-£500, with those under 21 paying more, typically between £500 and £750. However, annual excess insurance policies are available from independent firms such as insurance4carhire.com or icarhireinsurance.com, for around £40, which will reduce your liability to zero. |
| Most clubs will waive the excess following an accident or damage if you are not at fault, so check with the club you are joining. | Most clubs will waive the excess following an accident or damage if you are not at fault, so check with the club you are joining. |
| Insurance cover with a car club is pretty much the same as with a standard comprehensive car insurance policy. | Insurance cover with a car club is pretty much the same as with a standard comprehensive car insurance policy. |
| The pitfalls | The pitfalls |
| One danger of relying solely on a car club is that you could be left without wheels if all the cars near you are booked up when you want one. | One danger of relying solely on a car club is that you could be left without wheels if all the cars near you are booked up when you want one. |
| If you know when you will need a car you can get around this potential hazard by booking as far ahead as possible. | If you know when you will need a car you can get around this potential hazard by booking as far ahead as possible. |
| Car clubs try to match usage to demand, so will add new cars if a particular location proves popular. If you are concerned about availability, however, you could join more than one club. | Car clubs try to match usage to demand, so will add new cars if a particular location proves popular. If you are concerned about availability, however, you could join more than one club. |
| “If you rely on a car on a regular basis, and need access to it all the time, you may not experience the benefits,” says Simon Peevers at the RAC. “ Equally, if you live in rural or remote areas it may be a challenge to organise a vehicle at short notice, depending on how the scheme is set up.” | “If you rely on a car on a regular basis, and need access to it all the time, you may not experience the benefits,” says Simon Peevers at the RAC. “ Equally, if you live in rural or remote areas it may be a challenge to organise a vehicle at short notice, depending on how the scheme is set up.” |
| Cars are cleaned regularly but not between every use, so there is a chance you will pick up a messy one. It’s up to the driver to take their sweet wrappers home, and inevitably some people won’t. Different car clubs have different regimes to keep on top of this, but all have numbers to report cars found in an unacceptable condition. | Cars are cleaned regularly but not between every use, so there is a chance you will pick up a messy one. It’s up to the driver to take their sweet wrappers home, and inevitably some people won’t. Different car clubs have different regimes to keep on top of this, but all have numbers to report cars found in an unacceptable condition. |
| Members are asked to leave the car in the same condition as they found it, and the onus is on the individual to report any damage or a lack of cleanliness to head office. | Members are asked to leave the car in the same condition as they found it, and the onus is on the individual to report any damage or a lack of cleanliness to head office. |
| ‘Access without the expense’ | ‘Access without the expense’ |
| The traffic in Norwich was a constant problem for Oliver Chastney, especially when he was trying to find a parking space. This type of difficulty is, however, avoided through his membership of a car club. | The traffic in Norwich was a constant problem for Oliver Chastney, especially when he was trying to find a parking space. This type of difficulty is, however, avoided through his membership of a car club. |
| “When I drive out of town, it is often faster to walk to a car club on the edge of the city where the traffic is a lot easier, and drive from there,” he says. | “When I drive out of town, it is often faster to walk to a car club on the edge of the city where the traffic is a lot easier, and drive from there,” he says. |
| Chastney, who runs local engineering company Dofygate, joined the Norfolk Car Club in 2007 after spotting a brand new Volkswagen Polo parked in a specially designated bay just 50 yards from his house. | Chastney, who runs local engineering company Dofygate, joined the Norfolk Car Club in 2007 after spotting a brand new Volkswagen Polo parked in a specially designated bay just 50 yards from his house. |
| He paid a one-off £25 fee to join, followed by a £5 monthly minimum charge, which can be put towards usage. What he pays thereafter depends on the car he uses. | He paid a one-off £25 fee to join, followed by a £5 monthly minimum charge, which can be put towards usage. What he pays thereafter depends on the car he uses. |
| “I recently booked a Volkswagen Polo for three hours and drove 39 miles, and it cost me less than £25.” As a relatively heavy user he spends around £200 a month, or £2,400 a year. “I may not save that much on running costs, but I have ready access to a new car without the expense of ever actually buying one,” he says. | “I recently booked a Volkswagen Polo for three hours and drove 39 miles, and it cost me less than £25.” As a relatively heavy user he spends around £200 a month, or £2,400 a year. “I may not save that much on running costs, but I have ready access to a new car without the expense of ever actually buying one,” he says. |