Car clubs catching on

By Matthew Jones

LONDON, July 3 (Reuters) - Fed up with the cost and hassle of keeping their own car on the road, Britons are increasingly signing up for clubs where vehicles can be hired by the hour for just a few pounds.

"We have seen a 25 percent spike in membership month-on-month since the credit crunch started to bite. People are working out the cost of motoring and seeing they can make savings of up to 80-90 percent by using car clubs," said Paul McLoughlin, managing director of Zipcar, one such car club.

"People are feeling the pinch in their pockets and looking to alternatives."

Car clubs like Zipcar differ from traditional car rental companies in that members pay a joining or annual fee -- typically about 50 pounds -- and use smartcards to unlock vehicles left across the city in designated parking bays.

In contrast with rental firms, many car clubs give free petrol for up to 60 miles a day and members can have a car for as short or as long as they want.

The concept is well established in other countries and Zipcar boasts 350,000 members worldwide, most of them in the United States.

The AA motoring organisation estimates the cost of owning a car, whether it is used or not, to be about 4,000 pounds for an average family car including depreciation. This does not include fuel costs, repairs or parking fees or road tolls.

"We have seen a huge rise in member numbers since fuel prices started to go up," said Paul Johnson at Zipcar's competitor Streetcar, Britain's largest car club with 35,000 users and cars available from 3.95 pounds per hour.