Car Share Programs Save Money

Shed Your Auto by Becoming a Car Sharing Member

© Judith Zwolak

Jun 26, 2008
Car Sharing Saves Money, Mervi Lievonen
Save on gas and insurance by getting rid of your personal car altogether. Car sharing programs like Zipcar in big (and some small) cities, make good money sense.

Rising gas prices have led many drivers to reconsider owning a car for their personal use. Even in car-obsessed nations like the U.S., going carless is catching on in households from coast to coast.

Buses, subways, walking, and biking can meet most transportation needs in a large city, but sometimes even the most devoted eco-conscious urbanite craves the convenience of a car. Enter car-sharing programs, where members join to have access to a car for personal use whenever they need it, without the hassles and expense of owing their own auto.

Zipcar Car Sharing

Car-sharing services provide convenient transportation options for big-city folks. Zipcar is a national, non-profit company that offers members in large urban areas easy access to a car parked at locations all over the city. Members pay a fee to join and another fee every time they reserve and use a car at any of the Zipcar locations. The company pays for the member’s insurance and allows 180 miles for each reservation. Zipcar even pays for gas – members use the gas card in every car to fill up when the tank reaches ¼ full.

Prices for the car-sharing service differ depending on location, but all allow you to pay by the hour or day. In San Francisco, for example, Zipcar members in the “Occasional Driving Plan” pay $9 per hour or $68 per day after a $25 application fee and $50 annual membership. Other Zipcar plans offer discounts for a various monthly reservation commitments. Members reserve their cars online or by phone at numerous, mostly off-street, locations throughout the city. A programmed “Zipcard” given to all members unlocks the vehicle when held to the windshield.

Zipcar reports that 40 percent of its members decide against purchasing a car or sell their current car. Members of the service also say they save about $5,000 a year in gas, maintenance, insurance and other car-related costs.

Smaller Car Share Programs Catching On

Even smaller, progressive towns such as Ithaca, New York, have adopted the non-profit, car-sharing model. Residents of the town of nearly 30,000 can join Ithaca Carshare for $200 per year and pay $4.95 per each hour (one hour free) and $.20 per mile, or $50 per year and $7.95 per hour and $.20 per mile.

Special Perk: Cornell and Ithaca College students and staff get special rates and membership incentives in Ithaca Carshare.

Austin CarShare, in Austin, Texas, costs either $10 per month or $50 per year based on how often a member will use the service. The hourly rate is $5 or $8 an hour with a 55 cents-per-mile charge.

Special perk: Austin CarShare vehicles are exempt from paying to park in city metered spaces.

“Old School” Car Sharing

One way to cut down on car ownership and usage in locations without car sharing programs: use rental cars instead of a personal vehicle or as a second car.

Check out special rates through Hotwire.com or the Automobile Association of America.

Is Car Sharing for You?

Subscribing to a car-sharing service may not serve a soccer mom in the suburbs, but this innovative money-saving option is a goof fit for individuals and families who need a car infrequently or may want to put off buying a second vehicle.


The copyright of the article Car Share Programs Save Money in Family Finances is owned by Judith Zwolak. Permission to republish Car Share Programs Save Money in print or online must be granted by the author in writing.


Car Sharing Saves Money, Mervi Lievonen
       


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