Car sharing a cheaper alternative?
Wednesday September 2, 2009
A car can represent many different things for different people, it can represent their status, their personality and how they want to look. But what if to you a car is just that, a way to get from here to there. As the global financial crisis continues, people are looking for ways to save money and cut any undue expenses. Hence the rise of the car sharing scheme.
Owning a car has many costs attached, both hidden and transparent. These include:
- The cost of the car itself
- Depreciation
- Insurance - the average being around $852.90 in September 07 according to CANSTAR CANNEX
- Registration
- Car loan interest and repayments - the amount of a car loan repayment can vary widely depending on how much was borrowed and how much is left, but car loan repayments can be up in the hundreds per month
- Car servicing and general maintenance - includes everything from tyres to air conditioning to repairs
- Petrol - always a hot topic, averaging $164.60 a month per household
With many people simply not being able to afford the costs of owning a car anymore, but still wanting to have access to a vehicle whenever they need, car sharing has emerged as the popular choice.
Car sharing works on a fairly simple format. People become members of a car sharing program and will simply book a time for use of a car sharing vehicle, either online or over the phone, designate a pick up spot where the car will be for you, use a special fob key to enter the car, use it for your allocated time and return the car back to where you found it. Hiring time can range anywhere from an hour, a week to a month or longer.
Car sharing programs members will often pay a registration fee and a fee attached to the actual hire of a car, either an hourly rate or distance travelled rate. However, the member doesn't have to pay for any maintenance, fuel or car insurance costs.
In Australia, this car sharing idea has proven increasingly popular as new car sales declined a massive 18.6 per cent in the twelve month to February 2009 according to the Australian Bureau of Statistics with the car loan market getting more competitive in response.
Essentially the idea of car sharing comes down to the individuals need for a car. If you use your car sporadically or only for long distances, perhaps car sharing is worth the consideration with significant savings to be made on such car sharing programs.
CarLoan.com.au offers a broad range of information and tips to help you find the right car loan for you. Compare Car Loans here and see what deals suit you best
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