The True Cost to Own: How car-sharing saves you money!

We are often asked how the cost of car-sharing compares to the cost of owning a car. To be honest, it's a difficult question to answer directly; it is a bit like comparing apples and oranges - they are just different! We can, however, explain how car-sharing can save the average person a lot of money.

Owning a car comes with many fixed costs - expenses that occur before you even drive the car. These fixed costs include the original cost of the car, depreciation and interest, parking, insurance, and registration. For some older-car owners, these costs may also be a long series of needed repairs.  When the car breaks down, the money must be spent to fix it if there are still plans to drive it! According to the 2008 edition of "Your Driving Costs" put out by the AAA, the average owner of a mid-sized sedan pays $466 per month on these fixed costs, without even driving a mile. Being that most cars sit parked in driveways and parking lots for 98% of their lives, that's a huge expense (especially for the even-more-rarely used 2nd car)!

Car-sharing takes these fixed costs and shares them between a community of users. Instead of every individual or family paying to keep a car in their own driveway, the cars become shared property and each person pays a portion of the cost based on the amount they actually drive! While the actual cost varies dependent on individual driving patterns, the following chart gives an estimate for an average CarShare Vermont member versus private car owner.



Because car-sharing converts the high fixed costs of owning a car into variable, bite-sized costs that are directly proportional to how much one drives, car-sharing members become more aware of the financial costs of driving--every decision to drive is a deliberate decision to spend. This allows people to take control of their automobile spending by deciding what trips are necessary to take by car, and which ones could be done by bus, bike, or by foot. This encourages CarShare members to make more thoughtful choices about how they get around; and not surprisingly, they tend to drive 50% less and walk, bike, and use public transit a lot more. So the cost-savings of car-sharing over owning are realized for two distinct reasons: 1) the high fixed costs of owning a vehicle are removed; and 2) by driving less, CarShare members save more.

In addition to the cost to the users' pocketbooks, private car ownership contributes to a lot of hidden costs for the community and the environment, which are later made evident through poor air quality, water quality, and health, among others! By reducing the number of cars on the road, car-sharing can help to reduce some of these long-term costs as well! In this way, car-sharing benefits members and non-members alike! Join us to find out more!