Car Sharing vs Car Ownership: Which Is Cheaper in the UK?
Car Owl
Published in English •
Summary
- Car sharing suits low-mileage drivers: If you drive under 5,000 miles a year, sharing is often cheaper.
- Ownership is better for daily commuters: Regular drivers save more by owning their own car.
- Car clubs are growing fast: Zipcar, Enterprise Car Club, and Co Wheels offer pay-per-hour access.
Owning a car in the UK is expensive. Insurance, tax, fuel, MOT, and maintenance add up quickly. For some drivers, car sharing is a smarter option.
But sharing is not right for everyone. This guide compares the costs and helps you decide which suits your lifestyle.
What Is Car Sharing?
Car sharing means using a car without owning one. There are several models:
- Car clubs: Companies like Zipcar and Enterprise Car Club park cars around cities. You book by the hour or day.
- Peer-to-peer sharing: Platforms like Turo and Hiyacar let you rent cars from private owners.
- Ride sharing: Services like BlaBlaCar let you share journeys and split fuel costs.
Car clubs are the most popular option for regular use. Insurance, fuel, and maintenance are all included in the price.
Cost Comparison
Here is how the numbers compare for a typical UK driver:
| Cost | Car Ownership (per year) | Car Club (per year) |
|---|---|---|
| Vehicle purchase/depreciation | £1,500–£3,000 | £0 |
| Insurance | £500–£1,200 | Included |
| Road tax | £0–£165 | Included |
| Fuel | £1,000–£2,000 | Included |
| MOT and servicing | £200–£500 | Included |
| Car club membership | N/A | £60–£80 |
| Hourly/daily hire | N/A | £1,500–£4,000 |
| Total | £3,200–£6,865 | £1,560–£4,080 |
Use our car running costs guide to calculate your own ownership expenses.
When Car Sharing Makes Sense
Car sharing works best if:
- You drive fewer than 5,000 miles per year.
- You live in a city with good public transport and car club locations nearby.
- You only need a car for weekend trips or occasional errands.
- You do not want the hassle of insurance, MOT, and maintenance.
- You prefer driving different types of cars for different needs.
When Ownership Makes Sense
Owning your own car is better if:
- You commute daily by car.
- You drive more than 8,000 miles per year.
- You live in a rural area without car clubs nearby.
- You need a car available at short notice, any time of day.
- You carry tools, equipment, or child seats regularly.
The break-even point is roughly 6,000 miles per year. Below that, sharing is usually cheaper. Above it, ownership wins.
Popular Car Clubs in the UK
Here are the main car club providers:
- Zipcar: The biggest car club in the UK. Cars are parked across London and other major cities. Prices start at £7 per hour.
- Enterprise Car Club: Wide coverage across the UK, including smaller towns. Hourly and daily rates available.
- Co Wheels: A social enterprise car club. Available in cities like Edinburgh, Bristol, and Norwich.
Most clubs charge an annual membership fee of £60–£80. Some offer pay-as-you-go plans with no commitment.
Environmental Impact
Car sharing is better for the environment in most cases:
- Fewer cars on the road means less congestion and lower emissions.
- Car clubs maintain newer, cleaner vehicles.
- Shared cars tend to be used more efficiently than private ones.
- Research suggests each car club vehicle replaces 10–15 privately owned cars.
Practical Considerations
Before switching to car sharing, think about these practical issues:
- Availability: Will a car be available when you need one? Peak times can be busy.
- Child seats: You need to carry and fit your own child seat each time.
- Personal items: You cannot leave belongings in a shared car.
- Pets: Most car clubs do not allow pets.
- Flexibility: Spontaneous trips are harder. You need to book in advance.
For families, car ownership usually makes more sense. For single city dwellers, sharing can be a smart choice.
Hybrid Approaches
You do not have to choose one or the other. Many families own one car and use a car club for the second vehicle. This saves the cost of insuring, taxing, and maintaining two cars.
Other options include:
- Short-term leasing: Flexible 3–12 month contracts with all costs included.
- Subscription services: Monthly fees cover a car, insurance, and maintenance.
- Peer-to-peer rental: Rent your car out when you are not using it to offset costs.
Calculate your total car running costs to see which option works best for your budget.
Final Thoughts
There is no one-size-fits-all answer. Low-mileage city drivers can save thousands by joining a car club. But for regular commuters and rural drivers, ownership is still the most practical choice.
Work out your annual mileage and compare the costs. You might be surprised at how much you could save either way.
Find the cheapest fuel near you with our fuel price finder if you do decide to own.
Read our other articles:
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