Why car clubs are not as cheap as they seem

Car clubs are touted as the ideal way to save money on running a car. But, while the benefits of 'pay as you go' car usage certainly seem appealing, Ruth Jackson urges you to think carefully before you sign up. A car club may not always be the best option.

As new car sales plunge, car clubs are being touted as the ideal way to save money on running a car. Their cars are cheap, hassle-free and, because a single one can meet the needs of many drivers, kinder to the environment say fans. But are they always the best option?

In return for an annual membership fee and an hourly rental cost, car clubs claim to give you access to a car near your home which you can use whenever you like for as long as you like. But without the hassle or cost of maintaining a car yourself. Car keys are kept in the cars and your membership card will unlock the one you book, so you don't even have to worry about losing them. And the benefits of a 'pay as you go' car service are certainly proving appealing membership at City Car Club rose 93% last year, while its rival Streetcar's membership doubled to over 50,000 in 2008.

Subscribe to MoneyWeek

Subscribe to MoneyWeek today and get your first six magazine issues absolutely FREE

Get 6 issues free
https://cdn.mos.cms.futurecdn.net/flexiimages/mw70aro6gl1676370748.jpg

Sign up to Money Morning

Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter

Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter

Sign up
Ruth Jackson-Kirby

Ruth Jackson-Kirby is a freelance personal finance journalist with 17 years’ experience, writing about everything from savings accounts and credit cards to pensions, property and pet insurance.

Ruth started her career at MoneyWeek after graduating with an MA from the University of St Andrews, and she continues to contribute regular articles to our personal finance section. After leaving MoneyWeek she went on to become deputy editor of Moneywise before becoming a freelance journalist.

Ruth writes regularly for national publications including The Sunday Times, The Times, The Mail on Sunday and Good Housekeeping, among many other titles both online and offline.