The big idea: Pay-as-you-go hire cars

Louise (Admin) · The big idea: Pay-as-you-go hire cars

In the first in our series on driving schemes and innovations, we look at pay-as-you-go car rental. Could they save you money? Could you live without your car?

What's the big idea?

In recent years we've seen the rise of commercial car clubs: companies offering cars for hire on an hourly basis, booked as and when you need to use them. These companies have thousands of cars throughout the country ready to drive away from convenient city-centre and suburban locations.

There are several operators (the big four are City Car Club, Streetcar, WhizzGo and Zipcar), but the basic idea is much the same: you pay a yearly membership charge and then go online (or make a phone call) to book a car when you need it. You then walk to the car, swipe your membership card over the windscreen to unlock it, and drive away.

The price varies from provider to provider but is typically in the region of £4-£6 per hour (including fuel). Between them the four majors cover Bath, Birmingham, Brighton, Bristol, Cambridge, Edinburgh, Guildford, Huddersfield, Leeds, Liverpool, London, Manchester, Newcastle, Norwich, Oxford, Sheffield, Southampton, St. Albans and York, with other cities to follow.

Internationally Zipcar (which started in Boston, MA, as far back as 1999) has cars in over 50 US cities and more than 100 university campuses. In Europe, GreenWheels is dominant in the Netherlands and Germany, but the country with the most car-sharers per capita is Switzerland, where the first clubs emerged in 1987.

Arguments for

Frugal. Unless you drive for a living, or drive to and from work, the yearly cost of using a pay-as-you-go car is a fraction of what you'd spend on car ownership. You don't have to worry about the cost of monthly repayments, depreciation, insurance, fuel (up to a daily mileage cap), road tax or residents' parking permits. If you live in London, some of the providers also factor in the cost of the Congestion Charge.

Fun. You get to try out a number of different vehicles and aren't tied-down to driving the same car day in, day out. Between them, the car clubs operate family hatchbacks, hybrids (Toyota Prius, Honda Insight), frugal diesels (Vauxhall Corsa Eco, VW Golf Bluemotion) and even Mini Coopers.

Green. For each pay-as-you-go car there are typically 30 car club members. If each of these members replace an existing car with car club membership this takes 29 cars off the road. The fewer cars there are on the road, the less carbon is expended in the production of new cars. In congested city centres this could lead to fewer parked cars which would lead to less driving around hunting for spaces (and the wasted fuel and unnecessary emissions this creates).

Convenience. Because many car clubs have locations in different cities somebody from Manchester, for instance, can use a car when they visit Birmingham or Edinburgh.

Arguments against

Availability. You can't guarantee that there will be a car available in a location convenient to you. Of course you can book far in advance, but you can't always drive away whenever the fancy takes you. Inevitably pay-as-you-go cars are more popular at the weekends, making spontaneous day trips less likely.

Ownership. There's a social status to car ownership that isn't always trumped by the satisfaction of doing one's bit for the environment. Some of the companies insist on plastering their cars with logos, making it impossible to pretend that you're driving your own wheels.

Other users. Although there are contractual penalties for breaking the rules, it's not uncommon to find the car you have booked hasn't arrived back yet, or that the interior is littered, or the fuel tank close to empty (car club members are expected to fill up the cars when necessary, using the pre-payment card in the glove compartment).

Pets. Quite understandably, most car clubs forbid the carrying of pets. But this can be hard on environmentally-minded dog walkers.

Longer journeys. Car clubs only really make sense for short, urban journeys. If you want to book a car for an entire weekend, or need to drive from city to city, then traditional rental cars are more cost-effective.

hakkie

A good idea, but maybe not feasable.