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Written by asap   
Thursday, 12 October 2006

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America has always had a love affair with cars. But lately, many city drivers are saying they don't want to commit to their wheels. They just want to date.

At least 17 car-share companies — led by Zipcar and Flexcar — are happy to oblige as high gas prices boost car ownership costs and environmental concerns loom.

Car sharing is somewhat similar to a car rental, but members can rent by the hour. And instead of getting a stodgy Hyundai Accent from a car rental agency, you can zip around in fun cars from progressive Toyoto Prius hybrids to cheeky Mini Coopers and flashy BMWs.

Depending on the car-share program, members get an electronic key or card that lets them into the vehicles. The rates usually include gas, insurance, maintenance and parking.

"A lot of people don't want the hassle of owning a car and fixing it. It simplifies your life," said Kevin McLaughlin, founder of CarSharing.net and president of AutoShare in Toronto.

Young people dig the idea, which was introduced in the U.S. in 1998, in Portland, Ore. Scott Griffith, CEO of Boston-based Zipcar, said two-thirds of his 70,000 members are under 35. Started in 1999, Zipcar is now in 30 cities with a fleet of 1,900 cars.

Mark D. Norman, CEO of Washington, D.C.-based Flexcar and former president of DaimlerChrysler Canada, sees car sharing as a new form of automotive financing -- similar to car leasing.

Flexcar, whose investors include AOL founder Steve Case and former Chrysler Chairman Lee Iacocca, has grown to 40,000 members in eight major cities since 1999.

But car sharing isn't for everyone. Car ownership costs aren't astronomical in every city, and there's the convenience of having access to a car at home. In many towns, drivers can't use public transportation to work and need a car daily. Also, some people have special needs.

It's best for city folk who can survive most days without a car, said Tanya Seaman, co-founder of PhillyCarShare, a nonprofit that has attracted 2,800 members in four years.

So will you save money? It depends on how often you drive, how much your car insurance costs, whether or not you have to pay for parking, and other factors.

Car ownership costs vary. In Detroit, it's over $12,200 a year to keep a 2007 mid-size vehicle, according to Runzheimer International, a Wisconsin-based consultancy that studies cost of living. Philadelphia comes in second at over $11,000 and Los Angeles third at around $10,600. But the cost is just over $7,600 a year in Sioux Falls, S.D.

Taking a car for four hours to get groceries within a 20-mile radius would cost from $25 to $33 plus taxes under PhillyCarShare. Add the monthly fee, and the yearly cost is between $1,500 and $1,700.

Tack on a 10-hour daytrip traveling 200 miles every other Saturday — plus $70 a month for a transit pass -- and total costs per year rise to between $4,300 and $5,100.

Hourly rates vary by program. PhillyCarShare charges either $5.90 or $7.90 an hour plus taxes and mileage; Zipcar's rates range from $7.65 to $13 an hour; while Flexcar charges $8.25 to $10. Some offer daily rates or specials. There may be a monthly fee.

Will America ever be a nation of car renters rather than owners?

"I would love to see that happen," Seaman said. But it'll work only if owning a car "becomes extremely expensive or something shifts in the culture."

___

asap contributor Deborah Yao is an AP business writer in Philadelphia.

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