UK motorists join car clubs in large numbers during the recession
Car Clubs are basically pay-as-you-go rental schemes. A recent survey has shown that UK motorists have joined car clubs in large numbers during the recession and there are now over 60,000 motorists in the UK.
Membership has more than doubled at City Car Club in the past year mainly because car clubs are a much cheaper alternative to owning a car. But also the growth in broadband internet access in the UK has been a big factor because most people join and book the cars on the internet.
The survey by Transport Research Laboratory found that there are now 61,000 car club members across the UK and asked City Car Club members how they had changed their motoring habits since joining a club and found that 41% of existing members and 39% of new joiners said they had reduced their car ownership.
In total it amounts to a reduction of 24,400 cars off the UK roads, and the growth of car clubs shows no signs of slowing in 2009. Taken in addition with the fact that car sales have dropped by over 25% in the UK the survey shows a massive change in how UK motorists want to have access to a car.
Members can book locally parked cars for as little as £3.96 an hour and 50 miles free petrol every day. The cars are parked in local clusters on the streets in convenient locations near to residents and businesses and can been booked on the internet or also at the car at a moment's notice.
City Car Club is cheaper than running a private car, over £1,800-a- year cheaper in most cases. Membership is £50-a-year (£25 for partners) and £30 for business users, and that annual charge covers insurance, maintenance, depreciation, cleaning costs, and 50 miles free petrol every day. According to AA figures, a second-hand Vauxhall Corsa doing 4,000 miles-a-year will cost
£2,903 - a City Car doing the same mileage will cost just £1,065 - a saving of £1,838. (And that's without including the cost of buying the car in the first place).
They can be used easily for the school run and the supermarket shopping, and in many cases families use the car club instead of an expensive second car. It is much cheaper than owning a car because the club pay for all the insurance, maintenance, road tax, and breakdown cover.
Cars are parked in designated parking bays and once booked, members gain access with their smart enabled, personal membership card (totally keyless access). Their PIN is entered onto the in-car computer and then just drive away. Journeys made are itemised on a monthly statement.
Here is a example of a member of City Car Club member who joined relatively recently and the sort of savings he has made:
Richard Vaughan, 36, a Technical Manager from Northolt Middlesex, is married and has two young children. Richard said: "I use the Car Club for business and personal use and I am so pleased with the amount of money I have saved. We sold our second family car because there really was no need for it. So when I need the car for the school run I can book one at the click of a mouse, it is brilliant."
Annual Cost of Running a Car previously £1,457 Annual City Car Club bill £600 Money saved: £857 (£1,077 if depreciation is included)
Richard joined City Car Club in 2008 and spent £1,457 in the previous year to run his Citroen C2 1.1 (please see full breakdown of costs below). Richard spent around £600 over a 12-month period which is a saving of £857.
Previous Expenditure
£115 road tax, £133 RAC membership, £162.20 insurance, £270.25 maintenance (MOT/servicing), £777.17 fuel (Cost of Motoring Index 2007 findings, RAC).
£220 Depreciation (Average figure from Parkers Car Price Guide for a C2 1.1 - not including first year depreciation)
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