With the costs of car ownership becoming overwhelming for many, more people are deciding to sell their cars and primarily use a car share service. The following are some of the pros and cons to consider:
Lack of availability
If you decide on a whim that you need a car, the closest car sharing location to you might not have anything available for the amount of time you need or it may not have the type of vehicle you need. This inconvenience can prove to be frustrating for many, or even a deal breaker.
Many car services require that you commit to a return time, which is another major disadvantage for many. It can sometimes be difficult to predict when you’ll be returning the car. If you’re too early, you lose out on prepaid time, and if you’re late, you’re charged an additional fee that is often much costlier than the amount of time you went over.
Frequency of use
The cost of car sharing is usually not practical for daily use. Unless you mostly telecommute or use other modes of transportation, then you’re better off not selling your car or perhaps leasing a car instead.
Although far less expensive than a monthly car payment, most car share services require monthly memberships (or the option to pay more to borrow a vehicle if you don’t want to sign up for a membership). Whether or not you intend to use the service enough to warrant a membership, this is still one bill you will be paying no matter what—even if the entire month goes by and you didn’t borrow a car once. There are also other requirements set in place in order to qualify as a customer—for instance, most companies will require that drivers are at least 21-years-old and that they have a blemish-free driving record within the last year.
Car share services usually impose extra fees and costs for exceeding mileage limits. As such, the cost effective solution for a long trip is usually to rent a car the traditional way or to hang on to your current vehicle. If you frequently make long trips, you might be better off keeping your car.
At Peachtree Financial Solutions, we understand that daily expenses have a tendency to add up quickly. If you feel like you’re drowning in debt and bills, we may be able to help if you’re receiving long-term payments. As an annuity payment stream recipient, you may have the option of selling some or all of your future structured settlement annuity payments for a lump sum payout. Contact us today to find out how you can access some or all of your cash now.
Nothing above is meant to provide financial or tax advice. You should meet with appropriate professionals for such services.