Saving: Is a car club worth it? Comparing it with owning a car
Is a car club worth it? Yes if you need a car occasionally rather than every day, and in a worked example four trips a month cost about 120, against about 350 to own a small car.
By Wealtie Team · 3 min read
Key takeaways
- A car club is worth it if you need a car occasionally rather than every day.
- In a worked example, four trips a month cost about 120, against about 350 to own a car.
- Car clubs get expensive if you drive often, so compare with owning for your usage.
- Check membership fees, mileage charges and insurance excess before joining.
Is a car club worth it?
It is if you need a car now and then, rather than every day. A car club lets members book a nearby car by the hour or day, usually through an app, and pay only for the time and distance they use. Insurance, servicing and often fuel are included, which makes the cost of each trip easy to see in advance. For people who mostly walk, cycle or use public transport, a car club can give the freedom of a car without the cost of owning one. There's no need to find parking at home or arrange servicing.
Car clubs are mainly found in cities and larger towns, so check what's available near you. Some also offer vans, which are handy for moving furniture or big shopping trips.
How much does a car club cost?
Most charge a combination of a membership fee, an hourly or daily rate and sometimes a mileage charge. Here's a worked example with a 20 monthly membership and trips costing about 25 each, in round numbers that work in any currency:
| Use | Monthly cost |
|---|---|
| 2 trips | 70 |
| 4 trips | 120 |
| 10 trips | 270 |
| Owning a small car | 350 |
In this example, the car club is far cheaper than owning for a few trips a month, but the gap shrinks as you drive more. Your own costs depend on the club's prices and how long each trip lasts. Some clubs offer pay-as-you-go plans with no monthly fee, which suit very occasional drivers.
When is a car club better than owning?
A car club usually wins when:
- You drive a few times a month, not daily
- You live where parking is expensive or hard to find
- You use public transport, walking or cycling for most trips
- You'd otherwise pay for insurance, tax and servicing on a car that sits unused
If you drive every day or for long distances, owning is often cheaper. Working out your likely monthly trips, and pricing them at the club's rates, gives a clear answer. How much car can you afford helps you compare.
How does it compare with renting?
Car clubs are often better for short trips of a few hours, like a big shop or a visit, since you can book by the hour. Traditional rental can be cheaper for longer trips of several days, like a holiday. Many people use both, choosing whichever is cheaper for each trip. Comparing both for each trip, by total price including fuel and insurance, finds the cheapest option.
What should you check before joining?
Read the details:
- The membership fee and whether there's a joining fee
- Hourly and daily rates, and when peak prices apply
- Mileage charges and whether fuel is included
- The insurance excess, and whether you can reduce it
- Late return and cleaning fees
- How close the cars are to your home
Choosing a plan that matches how often you'll drive avoids paying for a membership level you don't need. Many clubs let you change plans as your needs change.
Plan bookings well
Booking the right length of time, and returning the car on time, avoids extra charges. For busy times like weekends, booking ahead helps you get a car. Checking the car for damage before you drive, and reporting it in the app, protects you from charges.
How do car clubs fit with other transport?
They work best as part of a mix, and it's worth reviewing how often you use the club every few months. Public transport for commuting, cycling or walking for short trips, a car club for the occasional drive and taxis for late nights. How to cut commuting costs and how to save money on taxis cover the other parts of a car-free routine.
Could a car club replace your car?
For many city households, yes. Adding up what your car costs each month, including insurance, tax, servicing, parking and depreciation, and comparing it with your likely car club use often shows a big saving. Selling the car can also release a lump sum for savings or debt. Try joining a club while you still have your car, and see how often you'd use it. If you sell your car, put part of the money aside for the occasional bigger trip, like a holiday rental.
How do you track car club costs in Wealtie?
Log car club trips and membership in a transport line in your expense categories, so you can see what you spend each month. Comparing it with what your car used to cost shows the real saving. A monthly limit in the budget tracker keeps car club spending from creeping up.
Questions people ask
If you need a car occasionally. In a worked example, four trips a month cost about 120, against about 350 to own a car.
Usually a membership fee plus hourly or daily rates, and sometimes mileage. In a worked example, about 25 a trip.
Often for short trips of a few hours. Traditional rental can be cheaper for several days.
Membership and joining fees, rates, mileage charges, insurance excess, late fees and how close the cars are.
This article is general information, not financial, tax or legal advice. Your situation is your own; check the numbers that apply to you before you act on them.
