A new study has shown that drivers living in urban areas would be financially better off using a car club, rather than owning their own car.
iCarhireinsurance.com claims that a car club user would pay almost £1,000 a year less. It found that owning a car in an urban locale would cost, on average, £2,274 a year. By comparison, the average cost of running cars from a car club came in at £1,364 a year.
Broken down, a car club membership with companies like Zip Car or Enterprise costs £66 per year. That includes insurance, petrol (for up to an hour’s driving a day), full MOT, servicing and breakdown cover. Usage of a midsize car like a Fiesta costs around £6 per hour.
The calculation for running a car for a year is based on an average of £900 per year for fully comprehensive insurance, £235 in fuel, an MOT (£55), a full service (£125 on average from Kwik Fit) and breakdown cover (£50, or thereabouts, from the AA). The calculation also incorporates the cost of purchase. A £4,500 Ford Focus over five years costs around £900 per year.
It’s obvious this comparison implies limited use of a car. If you own and run a car and use it for more than an hour a day, the numbers might tell a different story. Ernesto Suarez, founder and CEO of iCarhireinsurance.com appears to echo that sentiment.
“If you don’t use your car much, 2019 might be the year to ditch it for good, and save around £1,000 using a Car Club instead,” he said.
“Hiring cars by the hour from approximately £6 for a midsize car, which includes basic insurance and petrol, is a good option for those in urban areas, giving you the convenience of a car without the headache and costs that come with running and parking it.”