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Advice & More November 2014

Car Sharing for Seniors?

By Bill Siuru

The best way for seniors to take advantage of car sharing is when they travel to a city where car sharing is available and they need a car for only a few hours. Why pay car rental and parking fees for a car that sits most of the time in a hotel parking garage?

Unlike baby boomers, the Millennials born between 1980 and early 2000s are often more interested in smartphones and social media than cars. Thus, car sharing is rapidly growing in popularity, especially around college campuses. Basically, car sharing allows renting a vehicle for short periods of time just when you need it, perhaps for only an hour. With car sharing you can have “wheels” without having to own them.

Are seniors another demographic that could benefit from the car sharing? AARP thinks so and recently formed a partnership with Zipcar, the world’s leading membership-based car sharing network. Right now the ARRP's association means reduced membership fees, but there could be more in the future.

However, the demographics are quite different for seniors. First of all, unlike this younger generation, seniors have been accustomed to private car ownership probably since they got their drivers licenses a half-century ago. Secondly, nearly three-quarters of seniors live in suburban or rural areas. This presents a problem for the car-charging business model that is based on locating vehicles in densely populated urban areas.

Zipcar, now owned by the Avis Budget Group, offers its car sharing services in about three dozen U.S. cities, usually at or near a university or airport. Several other companies offer car sharing including Hertz on Demand, Enterprise CarShare, and Uhaul Car Share. Car manufacturers have also introduced their own car sharing services, the most ambitious being Daimler's Car2Go with services in 11 major U.S. cities and three in Canada. Car2go uses the two-passenger smart fortwo (sic) car, most of which use gasoline, but some are electric vehicles. At last count there were about 1.3 million car sharing members sharing 21,459 vehicles with 24 operators in the U.S.

There have been proposals to locate car-sharing near 55+ communities like the Rossmoor senior adult community in Walnut Creek, California, but they never happened. That is because there are two basic types of senior drivers. Those with a car they have had for years that is paid for and since they don't drive much, the only major cost is insurance and registration. The others are “car guys” who buy the latest cars and would never be seen in a rented car. Drive around many adult communities and see almost as many Corvettes as Buicks. Unlike college campuses, the culture for car sharing isn't here. The best way for seniors to take advantage of car sharing is when they travel to a city where car sharing is available and they need a car for only a few hours. Why pay car rental and parking fees for a car that sits most of the time in a hotel parking garage? This is especially true in Europe where car-sharing is even more established and very popular. A few seniors who live in locales with car sharing like near college campuses might even be able to avoid owning a car.

How does car sharing work? Let's look at Zipcar that is typical. First, you have to join Zipcar and obtain a Zipcard. Eligibility includes a valid driver license, a good driving record and decent credit history. While there a variety of Zipcar plans, typically it costs $6 per month and $6 to $8 per hour depending on location, vehicle and time. This includes 180 miles and insurance, then it costs 45 to 55 cents per mile. You reserve a car on their website, using an iPhone or Android app, or by phone. You have to travel to the car's location. At the time of your reservation, you hold the Zipcard against the card reader in the windshield to unlock the doors. The keys are inside. Use a smartphone or Zipcard to lock and unlock the doors during your trip. You have to return the car to the location where you picked it up with a 1/4 tank of fuel. Zipcar pays for the fuel. You can bring a pet along, but it must be kept in a locked pet carrier, unless it is a service animal. Of course, no smoking.

FOR MORE INFORMATION: http://www.carsharing.net/

 

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