We’re frequently asked to help people figure out if joining CarShare Vermont will save them money. We’re confident that in most instances it will, but it really depends on each person’s circumstances. We try to provide our potential members and interested onlookers alike with the information they need to make that highly personal decision for themselves. With this in mind, we wanted to share some information with you. With spring around the corner, it’s a good time to think about clearing the cobwebs, and that extra car from your garage!
Owning a car is expensive, plain and simple. Nationally, transportation is the second highest household expense next to housing, consuming about 20% of annual household income (the percentage is actually higher for both rural and low-income households). Not surprisingly, vehicle ownership is the most costly of transportation expenditures. Individuals and families that are able to reduce vehicle ownership with other modes—like walking, biking, riding the bus, and car-sharing—are proven to spend significantly less on transportation than those who primarily get around by car.
So how much does it really cost to own a car? There are two types of costs: fixed and variable. The bulk of the costs are fixed—they include what you originally spent to purchase the vehicle, depreciation (the value your vehicle loses from the time you bought it to the time you get rid of it), financing charges, insurance, registration and fees, and for older cars, major repairs needed to keep the car running. According to AAA’s 2009 edition of “Your Driving Costs,” Americans spend an average of $477 a month to own a mid-sized sedan. This hefty sum does not include the costs of actually driving the car. These operating costs are the variable expenses and include things like gas, tires, and routine maintenance. When you count the variable expenses, you can add an additional 16¢ per mile to the monthly ownership cost. If you drive 10,000 miles per year, that’s an additional $133 per month. In comparison, most of our members spend less than $100 a month car-sharing.
If you’d like to figure out what you spend on car ownership, AAA provides a simple worksheet for you to plug in your figures. If you’re unsure what you spend on depreciation, you can use AAA’s estimate of $200 per month, or you can find a number of handy calculators online that can help you figure it out based on the age of your vehicle, how much you paid for it, and how long you plan to keep it (just google vehicle depreciation calculator and you’ll be on your way).
So now that we’ve got you thinking about how much your car costs (or cars if you own more than one), we can now offer some guidance about how to decide if CarShare Vermont can save you money. Generally speaking, if you drive one of your vehicles less than 8,000 miles a year and you can reliably get to work without using your car (e.g. by walking, biking, bussing, or carpooling), then it’s safe to say that CarShare Vermont is a sound replacement for that vehicle. If you must drive to work because your employer requires you to use your car for work travel, ask them if they’ll reimburse you for your CarShare Vermont usage—often our rates are cheaper than reimbursing for mileage (find out more at www.carsharevt.org/how-it-works-business). You can then calculate what you’d spend car-sharing by thinking through how frequently you’d use our service and the types of trips you’d go on (distance and duration). You can then plug in our rates to roughly estimate the cost on a monthly basis. We’re also happy to help you crunch the numbers.
Now if you’re holding onto that extra vehicle because it’s a so-called junker that’s been in your family for years and you’ve already “paid” for it, then please consider this: owning a car is the number one factor that contributes to excess driving. When people own a car, it becomes the default mode of choice because it’s convenient, and because there’s a perverse incentive to get your money’s worth out of it. By simply getting rid of that old family chariot, you will soon opt for modes that are more cost effective than driving, and which also happen to yield the least environmental impact, offer numerous health benefits, and enhance our community as a whole.
In Burlington, we’re very fortunate to have a reliable bus system, bike-able streets, and safe sidewalks to move around car-free. When a car is truly needed, car-sharing fills in the gap, along with taxis and car rentals. Collectively, these options can make living car-free or car-light a viable option. Moreover, families that have taken the plunge and gotten rid of a car before joining CarShare Vermont tend to use our service substantially less than they anticipated, saving even more money. This is largely because the costs of car-sharing are more transparent with each use, and so there is financial incentive to prioritize cheaper modes. Also, CarShare Vermont members become adept at getting around car-free and start to enjoy these other modes even more.
Whether or not car-sharing makes sense for you, we’re always more than happy to help you with your decision. We also hope that you’ll continue to recognize the benefit of our service to others, and to the community.