We take a look at pay-as-you-go rental schemes. Could they save you money? Could you live without your car?
What's the big idea?
In recent years we've seen the rise of commercial car clubs: companies offering cars for hire on an hourly basis, booked as and when you need to use them. These companies have thousands of cars throughout the country ready to drive away from convenient city-centre and suburban locations.
There are several operators (the big four are City Car Club, Streetcar, WhizzGo and Zipcar), but the basic idea is much the same: you pay a yearly membership charge and then go online (or make a phone call) to book a car when you need it. You then walk to the car, swipe your membership card over the windscreen to unlock it, and drive away.
The price varies from provider to provider but is typically in the region of £4-£6 per hour (including fuel). Between them the four majors cover Bath, Birmingham, Brighton, Bristol, Cambridge, Edinburgh, Guildford, Huddersfield, Leeds, Liverpool, London, Manchester, Newcastle, Norwich, Oxford, Sheffield, Southampton, St. Albans and York, with other cities to follow.
Internationally Zipcar (which started in Boston, MA, as far back as 1999) has cars in over 50 US cities and more than 100 university campuses. In Europe, GreenWheels is dominant in the Netherlands and Germany, but the country with the most car-sharers per capita is Switzerland, where the first clubs emerged in 1987.
Arguments for
Frugal. Unless you drive for a living, or drive to and from work, the yearly cost of using a pay-as-you-go car is a fraction of what you'd spend on car ownership. You don't have to worry about the cost of monthly repayments, depreciation, insurance, fuel (up to a daily mileage cap), road tax or residents' parking permits. If you live in London, some of the providers also factor in the cost of the Congestion Charge.
Fun. You get to try out a number of different vehicles and aren't tied-down to driving the same car day in, day out. Between them, the car clubs operate family hatchbacks, hybrids (Toyota Prius, Honda Insight), frugal diesels (Vauxhall Corsa Eco, VW Golf Bluemotion) and even Mini Coopers.
Green. For each pay-as-you-go car there are typically 30 car club members. If each of these members replace an existing car with car club membership this takes 29 cars off the road. The fewer cars there are on the road, the less carbon is expended in the production of new cars. In congested city centres this could lead to fewer parked cars which would lead to less driving around hunting for spaces (and the wasted fuel and unnecessary emissions this creates).
Convenience. Because many car clubs have locations in different cities somebody from Manchester, for instance, can use a car when they visit Birmingham or Edinburgh.
Arguments against
Availability. You can't guarantee that there will be a car available in a location convenient to you. Of course you can book far in advance, but you can't always drive away whenever the fancy takes you. Inevitably pay-as-you-go cars are more popular at the weekends, making spontaneous day trips less likely.
Ownership. There's a social status to car ownership that isn't always trumped by the satisfaction of doing one's bit for the environment. Some of the companies insist on plastering their cars with logos, making it impossible to pretend that you're driving your own wheels.
Other users. Although there are contractual penalties for breaking the rules, it's not uncommon to find the car you have booked hasn't arrived back yet, or that the interior is littered, or the fuel tank close to empty (car club members are expected to fill up the cars when necessary, using the pre-payment card in the glove compartment).
Pets. Quite understandably, most car clubs forbid the carrying of pets. But this can be hard on environmentally-minded dog walkers.
Longer journeys. Car clubs only really make sense for short, urban journeys. If you want to book a car for an entire weekend, or need to drive from city to city, then traditional rental cars are more cost-effective.
Related links
Smart idea? Have your say...
Would you ditch your own car if there was a car club vehicle parked on your street? Or could you not bear to share? Let us know your thoughts on pay-as-you-go cars.
More motoring schemes and ideas
Are they kidding, a taxi would be a lot cheaper. I can just see thousands of frustrated "would be drivers" waiting for a car to be available, just when they need it. No way this can work if you are a normal driver. Just think of going to a football match, one hour to get there, three hours parking and one hour to get back. 5 hours at £6 per hour plus the parking charge and petrol and we are looking at £40! - Pay to Go, sounds more like Pay through the Nose! No thank you.
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Well, if I had the chance to use them I would. I live in the countryside and so need a car to get around as there aren't many busses running where I live and so almost impossible to live without a car.... but that being said I am now unemployed due mainly to downsizing in the company I worked for. So now I only use my car maybe once a week to do a bit of shopping etc, so maybe 2-3 hours usage and 20-40 miles per week. If I factor in how much insurance, fuel, tax etc etc costs me to run my car it costs me around £40 a trip... so if I could rent a car for a few hours for £12 it would save me loads. And if I used a taxi the same trip would cost me around £24 as I have had to do that on occassion.. so that's not a viable alternative unless you live close to where you are going anyway, lol
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I can understand the idea of this. It sounds ideal for a certain type of people with a certain type of lifestyle. For me, it's a definite no-no! I have 4 children (and a husband, so make that 5!) that I need to ferry about all over the place for school, clubs, visits etc. As a family, there's no way we can afford 2 cars and my husband has to travel 30 miles just to get to work, so he has a motorbike instead. It's far more econimical than a car, and also 'greener' (for those that find this important). Interesting concept, but obviously it's not going to work for everyone - what does??
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My OH and I have used Streetcars. It cost £50 a year to join. So far we've only used it twice: one for the day and once for four hours, so it's been pretty expensive! Also the cost is going to go up by £10 a day and they say to make up for this they're going to give you free petrol. But you only get free petrol if you hire for more than two days... so doesn't really make up for it. Don't think we'll rejoin next year.
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I'm an OAP and I think that this is just up my street, so to speak. Having a little car like mine for 10 years was very economical but as it gets older the bills rise. As last years MOT bill was nearly £388 as replacing the off-side front strut was not cheap. Yes: I think that I'll definetely go for this way of motoring, without the hassles of motor-owner-ship. Took some time off writing this, to phone the local garage about this article & bingo..they've already geared up doing this kind of thing. Will get rid of the old buggy tomorrow...anyone out there interested in a 1995 Fiat ?
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It is a very clever idea to lure people into thinking they pay very little but when you add up it turns out to be more expensive than a taxi or car hire!!!
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As someone else mentioned, this would only suit a very very small percentage of the population. A Taxi would almost certainly work out cheaper for most people, also it comes to your door so no walking involved and you get a personal driver. If you want a car for the day to go on a trip then a small hire car can be had for £25 or less for a full 24 hours. Again they will deliver and collect the car in most cases if required. Really dont see this being a commercial goer unless they where literally everywhere, and I bet everytime you got in one, it would have no fuel in it, so the first half hour would be taken up getting to a fuel station, whilst you are sat amongst someone elses mess in the car!
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I work a month in the north sea and a month at home. I do drive a lot when i'm home but subsequently have to pay for the car to sit idle for a month ie Tax & Ins... I feel it would benefit me although as Ray W stated it would be open to greed for the fat cats. overall though run properly I would ditch my ownership for this as long as availability and flexibility are good.
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Never owned a car & never will. I wish more folks would use public transport so as to bring the prices down and / or improve the service. When i do my shopping (once a month) i will use a taxi and again at xmas if i have large items that is to big to get on a bus with. Doing this is way cheaper than owning a car and makes you more active as well,& i aint no fitness freak. I think having a car tends to make people a wee bit lazy as i know some people that would not walk the length of themselves and would go around the supermarket in their car if they could.
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Gordon effing Bennett! The Human Race is surely doomed: . "What would happen in a civil emergency and you had to leave in a hurry? Think about it...." Get stuck in the nightmare traffic jam along with everyone else. Think about it.... . "10.£6 an hour,its too dear! Go shopping its usually a 2 minute drive about 2 hours round the old asda store and 2 minutes home =£12-£18 ,I could get a taxi there and back for £6" Then get a Taxi? . "why would you want to do it,what happen's if you ned a car at a drop of a hat" Probably do what anyone else does who cannot drive or has no car. . What a load of drivel there is here. Do people actually switch off their brain cells when it comes to cars? . 1. Cars are essential only to a few. For the rest, it's a CONVENIENCE only. 2. Cars are expensive, polluting, noisy, smelly, eco-unfriendly fossil fuel burning monsters that kill and maim thousands every year. And that's just for starters. And please, don't try the 'but it's people who kill not cars...". If they weren't driving a car, they wouldn't kill anyone (with the car). 3. Has anyone carefully worked out the relative costs of running their own car versus alternatives (car hire, car pool, public transport, friends, etc...) for what they NEED to do. 4. It is an ego massager and phallic extension for many men. . Nope, basically it comes down to this kind of comment: . "7.No, I can't give up my little car!" There you have it in a nutshell. People will not give up their cars without one helluva fight, BECAUSE they do not want to lose the CONVENIENCE. Do not underestimate this, as it is a very potent factor. Very. . For the moment, there are no compelling reasons for most to give up their cars (as long as you can afford it), so it is not going to happen outside of forces beyond their control. There are many good reasons to do so, but they are not going to successfully complete with the basic human instincts and desires when it comes to car ownership, and has little to do with sensible logic. But that's humans for you!....
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