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3i Travel Plans and Car Clubs


What Is A ‘Car Club’?

A car club is where a car, or a number of cars, is shared by a community of people, for example a neighbourhood of residents or a group of employees. Vehicles are used on a ‘pay as you drive’ basis which means being able to drive a car without the need to own one.


Background To Car Clubs

Car clubs are very popular in Germany, Austria and Switzerland, and have been running for at least 10 years. The Swiss ‘Mobility Carsharing’ for example, has 25,000 members using 1,000 cars, and there has been a car club for employees at Frankfurt Airport for some years.


What Are The Benefits Of Being A Member Of The Car Club?

  • members would have access to a car on demand: "pay as you drive"
  • cost savings, as there is no need to personally own or run a car, thus freeing capital tied up in a car
  • members would have the chance to hire a car for anything from a short shopping trip to longer periods such as holidays
  • no need to have a second family car which spends much of its life depreciating in the garage or on the roadside
  • potential for access to other car clubs as they set up across the country and abroad
  • accessibility for all who drive - not just those who own a vehicle

 

Who Might Join A Car Club?

  • People who wish to save the money they currently spend on a car
  • People who do not own a car but wish to have the flexibility of driving one every now and again
  • People who own a second vehicle which is not used very often
  • People who want to become less car-dependent for health or environmental reasons



How Does A Car Club Work?

The operation of a car club will depend on who wishes to use it. It could be an arrangement between two or three neighbours, or perhaps be run by a company on behalf of its employees.
However, the general features are that:

  • any car rental agreement is between the car rental company and the person who hires the vehicle
  • the person phones the car rental company and pre-books the vehicle
  • payment can be on a monthly basis



Who Is Eligible?

Dependent on the type of car club, joining criteria might vary for example:

  • membership for those over 25 years old
  • possession of a driving licence with 9 points or less on it
  • permanent member of a company workforce



What Will It Cost?

The cost depends on how it is operated. There is usually a membership fee to join the scheme, and sometimes a monthly fee. For schemes operated by a car rental company, costings can be based on hourly rates, half-day costs, overnight hire, one day costs, multiple day costs, weekly costs or long-term lease. There may be restrictions on mileage.


For neighbourhood schemes, full fixed and variable costs are calculated for the proposed duration of the scheme, and shared between participants.

Example of costs associated with a Car Club

Three neighbours decide to share a car, and set up a car club to run initially for one year. One neighbour ‘sells’ her vehicle to the club, and the other two buy in. Items taken into consideration include:

  • Fixed costs - current cost of car; depreciation; road tax; MOT test fee; road rescue service; insurance and garage costs
  • Variable costs - mileage; average fuel consumption; fuel price; maintenance


For Further Information:

The Car Club Kit - available from Car Club Publications, PO Box 1237, Coventry CV6 3ZB
Carplus (The Car Club) - 0113 234 9299 or www.carclub.org.uk

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