Tuesday, January 18, 2011

Car Sharing---Go Green and Save Thousands!

Compete By Meeting Unmet Needs: How Zipcar Rethought the Car Rental Business
What's Mine Is Yours: The Rise of Collaborative ConsumptionI'm a "zipster."  This means that I have a car-sharing membership (like joining the gym rather than buying a pool).
I am a member of Zipcar, a car-sharing company.  I can choose from a  fleet of shiny, new Toyota Hybrids and pickups or BMWs.  If I'm wanting to be flashy I can tool around in my brand-spankin' new, zippy, fire-red Mini-Cooper  or soon the all electric Nissan Leaf--all for a fraction of what it would cost to own, keep, and maintain a car of my own.
 
Car sharing is on the rise.  There are car sharing companies like Zipcar in every city.  Zipcar and Connect by Hertz have branches all over the US and Europe.  Once a member you can make a reservation either by phone or Internet, at anytime during the day or night.  Prices range from around $5.00 to $10.00/hour.  The price includes (in most cases) up to 120 miles/day, gas, insurance, maintenance, overnight parking spot (close to where you live), and cleaning. 

List of Car Sharing Companies Around the World

You really can't beat it.
Here are some statistics.  On average I spent the following on my car per month:
  • $100 insurance
  •  $75 gas
  •  $100 maintenance--it was an used, old car
  •  $10 for cleaning
  • Had it been new I would have paid at least $350 for the car payment and $100 for parking (I'm not parking a new car on the street!) 
Total =$735/month. (I would save money for maintanence each month because if I had a new car I would end up having to pay for another one some day).

With Zipcar I pay:
  • a yearly fee $50.00/12=$4.16/month
  • average monthly use (when I rented a car whenever I wanted it-outside of commute)= $250.00/month
  • Monthly bus pass=$75.00/month (metro commute)
Total=$330/month

Net savings?  $735-330= $405
That equals an approximate savings of $4,860/year!

I'm putting what I save toward my down payment on a house.  Car sharing saves me time (I don't have to take it to the shop, get it cleaned, or deal with it when it won't start or has a flat--Zipcar will pay for a taxi).  It saves me money (and lots of it).  And most importantly, at least to me, it greatly reduces the number of cars spewing fumes into the air!

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