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Do car-sharing programs really save you money?
There are a growing number of services cropping up in Canadian cities that give you access to a car for an hourly fee. But is it really cheaper than buying your own vehicle?
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There are a growing number of services cropping up in Canadian cities that give you access to a car for an hourly fee. But is it really cheaper than buying your own vehicle? We compared the rates for two car-sharing companies, Zipcar and Car2Go, with the cost of owning a Honda Civic EX. It turns out car-sharing is only cheaper if you use the vehicle for a few short trips each week. If you need a car more than two or three times a week, it’s cheaper to get your own set of wheels.
*Assumes a three-hour 40-km trip. Car-sharing sign-up fees are factored in. zipcar cost based on extra value plan prices for a sedan in Toronto. Car ownership costs are based on Edmunds.com data. Costs are amortized over eight years and include purchase, gas, insurance and maintenance.
MoneySense Magazine, November 2012
Great Blog!
like others have said. 2 things are missing. the depreciating cost of the car from it's original purchase price, and the cost of owning a parking spot in downtown Toronto (including property tax on the spot and possible maintenance fees if you live in a condo). For some if not many, the cost of the parking space would be added onto the mortgage, so then you have to account for the interest accrued on the spot as well.
The assumptions used here are absurd; and greatly inflate the cost of carshare.
The whole assumption in carsharing is that you do NOT use the car to commute.
So if you arrive home by walk/cycle or transit; and go out to get groceries or such, one evening a week; maybe a date night; and shopping trip on the weekend….what are the odds of 40km trips??? There may be the odd one; but that's a terrible way to get an accurate cost.
The working assumption would be most trips are no greater than 10km total; 20km at a stretch.
At the same time, you do have to have to consider both the cost of transit and parking in the balance for most users.
That provides a much more accurate costing.
They don't seem to include the cost of buying the car… the whole point of car sharing.
Bit of a strange comparison. Why would you take a three-hour Car2Go trip when the whole purpose of the program is short one-way trips. Three hours would take you a pretty long distance in most cities.
I used Vrtucar in Ottawa, and my annual costs end up being approximately $1500, and I use it on average 1-2 a week, and more so in the winter. Still ends up cheaper, than maintenance, gas, insurance and parking at my apartment, not to mention the cost of buying/financing the vehicle.
My car was costing me nearly $4k a year, including gas, parking, maintenance & insurance. I live in Vancouver, BC, and have a 10+ year safe driving record.
In January 2011, using the BC Scrap-it program, I switched to a car sharing program, and took the occasional bus trip. My transportation costs for 2011 were less than $200.00. 2012 is shaping up to cost even less.
If you're a low-use driver, car sharing is the clear winner.
"Costs are amortized over eight years and include purchase, gas, insurance and maintenance."
What about parking?
The monthly total that I pay for car sharing in Toronto has yet to exceed the $200 I used to pay for a parking spot alone.