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Cost benefits of car clubs

 

Cost of private motoring
If you drive less than 6,000 miles per year then a car club will be likely to save you around £1000 and £1500 a year. Replacing a second family car with car club membership is likely to bring even more cash savings.

Most people do not think about the true cost of running a car which once you include the finance cost, depreciation, tax, MOT, petrol, servicing, repairs, and parking add up to an average of over a hundred pounds a week.

Some real examples of car running costs:

Source: RAC cost of motoring report 2004

References

  • RAC cost of motoring report 2004

  • AA motoring costs report 2005

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    Cost of car clubs
    Car clubs give you greater flexibility charging only for the time you use the car not when it is sitting on the drive. Car clubs allow you to free up the travel budget to use on trains and buses or taxis when that is the more convenient way to travel.

  • The Carplus leaflet 'Add up your car costs' can be used to calculate the true cost of car ownership, (order paper copy). 

  • This has been incorporated into an Excel spreadsheet 'Add up your travel costs' which allows you to compare your travel costs before and after joining a car club. 

  • If you would like help completing this then contact the office on 0113 234 9299.

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    Typical car clubs costs:

    Club A  Club B

    Fixed costs 

    Membership fee £25 one off joining fee £15 /month
    Returnable deposit to cover any insurance excess incurred £100 £100
    Cost per journey
    Hourly rate £4.95 £2.80 - £3
    Mileage rate, including fuel 1st 30 miles free after that 19p  17p - 18p
    Over night fee   £0 £0
    Daily maximum £49.50  £36

     

    Rates may vary depending on the car club and the size of the car.

  • Examples of member savings

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    Economic benefits

    Businesses can reduce the cost of owning, running and administering company pool cars by joining a car club as a corporate member. Employees can then book the cars as and when they need them for work trips. This has been proved to have the knock-on effect of discouraging car commuting – staff no longer have to drive to work as they can use car club vehicles during the day.  Other advantages include freeing up parking space or locating in more prestigious city centre offices with less parking.

    Cars affect how we live and run our economy in a whole host of ways. Significant economic benefits can be made from having fewer, more efficiently run, shared vehicles on the road.

    o                    Delays from congestion make business less efficient.

    o                    The cost of road accidents puts extra burdens on the tax payer.

    o                    The need to supply sufficient parking hinders city regeneration as ever increasing parking spaces are required.

    o                   Increases in insurance premiums can be attributed to global warming

    o                    Pollution clean up costs have to be met by business and government.

    Accidents lead to social costs of £2 billion per year, and greenhouse gas emissions, air pollution, noise and infrastructure cost a further £2 billion.

     

     

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     Last updated on 16 June 2008    Click here to become a member of Carplus and support our work.   Sign up to the Carplus egroup. another website by cwndesign