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Is car sharing right for you?

Date Published: 22nd September 2009
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Author: Mariano Graham RSS Views: N/A PRINT ASK ABOUT THIS ARTICLE
A car can denote many different things for different people, it can represent their status, their personality and how they want to look.

Except what if that doesn't matter to you and a car is just that, a way to get from here to there. With the global economy still in the state it is, people are have smartened up on how to save money and eliminate any unnecessary expenses. Hence the interest of the car sharing scheme. This will save money on your ">car loan!

Owning a car has many costs attached, both hidden and transparent. These include:

Car buying costs
Depreciation
Insurance - according to CANSTAR CANNEX in September 07 the average insurance cost being around $852.90
Registration
Car loan interest and repayments - this can depend on various factors including the amount of the loan and remaining amount owed, but car loan repayments can cost hundreds per month

Vehicle upkeep - includes everything from tyres to air conditioning to repairs
Petrol - often the clincher in the car costs discussion, normally averaging $150 a month per car per household
With many people not able to afford the costs of owning a car any longer, but still want access to a vehicle whenever they need, has lead to the rise in car sharing.

Car sharing is a great new alternative for today's cities where owning your own car can be more of a hindrance than a help. Car sharing works on an straightforward process.People become members of a car sharing program register for the use of a car sharing vehicle, either over the phone or online, designate a pick up spot where the car sharing vehicle you have selected is waiting for you, use an allocated fob key to access the car, drive the car for your allocated time and leave the car exactly where you picked it up. Hiring duration time is up to you, with choices ranging from as little as an hour.


Car sharing service members will generally pay a registration fee and a fee attached to use the actual hire of a car, worked out based on either distance or time. However, due to the start up registration fee, members never have to pay for any car insurance, maintenance or fuel costs.

Membership with car sharing companies can vary depending on how often you think you may need to use one of the car sharing vehicles. These membership deals can vary from occasional to frequent with use of hours typically determining the level of membership that you will need.

The majority car sharing businesses will have many car picks depending on the requirements of the member. Common categories include:

Business cars for city driving
Leisure vehicles

Transporters or carriers (Utility Vehicles)
Holiday cars
Family cars
In Australia, car sharing is growing while at the same time new car sales fell a massive 18.6 per cent in the twelve month to February 2009 according to the Australian Bureau of Statistics.

Basically the design of car sharing comes from the individuals need for a car, minus the expenses of owning one full time.
Tags: registration fee, global economy, sharing program, hindrance, upkeep, clincher, own car, many different things, how to save money, depreciation, owning a car, unnecessary expenses, car costs, service members, car drive
This article is free for republishing
Source: http://www.articlealley.com/article_1103099_19.html
About the Author
Jamie Uther researches different parts of general finance and investment, and is a writer online for http://www.squidoo.com/credit-cards-australia.
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