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Running and owning a car is quickly becoming un-affordable for lots of people. If you add up the costs of breakdown cover, insurance, servicing and maintaining a car, you’ll see how much of a dent in your wallet it makes. And with the rising cost of living taking its toll we need to make savings where ever we can. Here at MoneyMagpie we’ve found you some brilliant money-saving alternatives to owning a car. So take a look and see what might work for you and how much you could save.
A car club gives you access to what are essentially pay-as-you-go cars. You can sign up with a car club like Zipcar or Enterprise Car Club and rent one of their cars by either the hour or day. Once you’ve signed up and paid the annual fee (around £60) you will be sent a special smartcard and PIN number which you can then use to access the cars and make your bookings. There are charges for returning the cars late but most give around ten minutes’ leeway and you can always call the club to extend your booking if you know you’re running late.
Club cars will have breakdown cover and insurance (although you will have to pay an excess towards the insurance). You will also be fined if you leave the car in a mess, so don’t smoke or allow pets in there and clear out any rubbish before you drop it back to the parking bay. You will also be required to leave a certain amount of fuel in the tank (which the club will pay for) so that the next person has enough to get going.
Zipcar: Annual fee: £59.50 a year or, alternatively, you can pay £6 monthly for twelve months. No deposit. No monthly commitment. Hourly rates from £5 per hour or £49 per day.
Enterprise Car Club: Annual membership: £60. Alternatively, you have a monthly membership which costs £7 per month. Hourly rates start at £3.15 or £25.55 per day.
If you are going to use the car for longer than just the occasional short trip around town then a package deal may be best for you.
Neither ZipCar nor Enterprise Car Club offer these deals any more, although Enterprise Car Club do offer a business membership which allows several employees to use cars, often at a discounted rate.
Zipcar drivers must be 19 years old and have a valid driving licence for at least a year. You must have no more than six penalty points on your licence or no more than three if you’re under 30. You must have no major endorsements, no major violations in the past three years and no alcohol or drug related violations in the last seven years.
At Enterprise Car Club you can join as a member from the age of 19, UK or non UK licences accepted. You must have had your full licence for at least one year if you’re aged under 22. If you’re over 22, you can join as soon as you’ve acquired a full licence.
You use your own car or ride in someone else’s so there are no contracts to sign. You register your details with a car sharing website and specify where and when you want to travel. The system then matches you up with other travellers going the same way. You can share a car for pretty much any journey, whether getting to work, going shopping, taking the children to school, or even going to a festival. The idea is that you split the cost of the journey, so that everyone can save money on their travel costs.
You can find out more by visiting liftshare.com which lists car sharing pools all around the country. All you have to do is click on a location near you and see who else is travelling your way.
If you have a car yourself and you drive to work, get started now by registering yourself for free with one of the car-sharing websites like Liftshare.
You can choose whether to always be the driver or passenger and search nationwide or simply within you’re own area.
Another option is to share a car with a friend or relative. This is much more difficult because only one of you can be the policy holder and the other must be added as a named driver. This means that only one of you (the policy holder) can build up No Claims Bonus (NCB) – which is crucial to reducing your insurance premiums. One way around this is to contact your insurers covering the car you’re sharing and explain the situation. It’s likely that you will be able to build up the NCB as long as you agree to stick with the same insurers when you get insurance later on down the road.
If you do decide to share with a friend make sure you’re both absolutely clear about who is going to take the car on any given day, including holidays and weekends. Split all the costs (insurance, petrol) and set up an online calendar so that you both know who’s turn it is to take the car on any given day.
The only cost will be the petrol to get you to your destination, which you will split with whoever shares the journey. This figure could be really come down if you manage to find three or four people to share one car journey.
Could you be financially better off on two wheels instead of four? Savvy commuters often turn to motorbikes as a cheaper alternative to driving.
You’ll need to take your CBT test at the very minimum. This is a one-day course that, if you pass, means you can ride with Learner plates on a limited-size engine. For larger engines, you need to take an advanced test. A fast-track course over one or two weeks will set you back between £500-£800. Or, you can gain road experience on your smaller bike then pay for a few lessons on a larger one, then the tests – which’ll cost around £300-£400 instead.
You need protective gear, too. At the very least, invest in:
This initial investment will set you back a couple of hundred pounds – but will last you for years and could save your life. A learner bike starts from £800 up to around £2,000.
The overall outlay for a motorbike is more than a car. However, in the long term, the maintenance and running costs are significantly lower.
Don’t forget to get some motorbike insurance – it’s a legal requirement for motorbikes. Read our full article to find out how to save money on your premiums.
TFL also provides Londoners with a cycle map with handy tips to get cyclists from A to B with the least hassle.
Bicycle insurance can be really cheap, and with a bike being stolen every 65 seconds in the UK it could save you paying out a large sum in the long run. Read our full bicycle insurance article for more information about where to get insurance and what to expect.
If you can commute to work by bike do it – you’ll save hundreds of pounds and get fit in the process. You can even get a fold-up bike so it’s easy to stash away in the office, and once you’re a confident rider you can find the best routes and get to work in double-quick time.
Take advantage of the government’s Cycle to Work scheme which allows you to save up to 32 per cent with tax-free bikes. Ask your employer to sign up to the scheme – it won’t cost them anything.
Using public transport is a great way to get around and there are ways to cut costs. Find out how by reading our full article on cheaper train tickets.