Car Sharing

Living downtown in a major city, your really don’t need a car but it is nice to have one to get away every once in a while. I currently do own a car, but it spends most of the time parked in the garage. For this reason, I’ve been thinking of selling it and joining a car-share program, like Zip Car or The Cooperative Auto Network (CAN)

Zip Car and CAN seem to be the major players right now here in Vancouver. They both offer an attractive option to owning your own car, which can be a waste of money if you don’t drive a lot. Here is what I currently pay for my car – keep in mind, it’s a 1993 Tempo and is paid off:

But lately, I’ve been thinking if I sell my car and pocket the cash, I’ll be better off joining one of these car sharing programs. With these program all gas and insurance is included and there’s no parking to pay for. They also offer many cars conveniently located in the downtown core. As a matter of fact, there is a car right in front of my apartment! Here’s a brief summary of the membership options and pricing models for each.

Both Zip Car and CAN offer attractive rates and benefits, but I took a look at what I typically drive for one trip around town and calculated what the costs would be if I used them instead of my own car. CAN has two options – full membership (where you buy refundable shares worth $500) or an hourly option. Zip car offers an hourly option.

Which one is cheaper? This example is somewhat simplistic, but to me, it looks like CAN is the better deal, but then you do have to put down $500 (which is refundable) ahead of time to buy shares – it would take some time before this paid itself off. With Zip car you can virtually start right away, but it is based on hourly charges, so even if you don't drive very far, the cost can add up if you keep the car for an extended period of time.

Obviously you'd have to 'crunch the numbers' but at the end of the day, I prefer CAN as you don't have to worry so much about the time and I feel it's generally cheaper. Zip Car might be good if you only drive occasionally.

It’s clear that car-sharing is much cheaper. Plus, all you have to do is go online and quickly reserve a car which isn’t much of a hassle. I have to admit, though, I do like the idea of just jumping in my car and driving off. If you’re on a busy weekend, there could be a chance you won’t get a car if you don’t plan far enough in advance.

What Will I do?

Well, I will only sell my car if I get at least $1,500 for it – I’ve already spent quite a bit maintaining it and there is virtually nothing left to fix. I would have enough to pay for the $500 shares for CAN and still have money left over. Plus, I would get a refund on my insurance since it is prepaid until the end of the year. It’s currently sitting on Craigslist with no offers, though, so I may be stuck with my beloved Tempo after all.

CREATE YOUR OWN CAR-SHARE

Take it one step further beyond car-pooling. Why not share all the costs with someone you know and trust? In my case, I may ask my roommate to fork over a bit extra each month, since he has an extra key to the car, anyways. I’ll still save money and I’ll have the added convenience of having the car in the building.

Regardless of what you choose, I think car-sharing is the way to go. There is really no need to own a car – especially if it’s brand new and you’re making payments – if you live in a major city. If you already own a cheap car or beater, it may be worth it to keep it and try to get a friend or roommate to help out with the costs.

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