Apr 11, 2010
Rent your wheels
Car-sharing, which is cheaper than buying your own vehicle, becomes more attractive as COE prices rise
By Lin Wenjian
Office manager Diane Gan sold her Hyundai sedan in 2000 and has no plans to buy another car because she says car ownership is too costly.
The 52-year-old tells LifeStyle: 'Including petrol and the regular maintenance, I used to spend more than $1,000 every month on my car.'
But she has not given up driving altogether. Since 2005, she has been a member of car-sharing firm NTUC Income Car Co-op, which is now known as Car Club. Former staff of NTUC Income Car Co-op bought over the operations last July when NTUC decided to wind up the business it started in 1997.
Whenever Madam Gan needs a car for occasions such as weekend outings, she will book one through the company's website.
'Once the booking is confirmed, I walk three to four minutes to a car park near my house to collect the car,' says the mother of a teenage daughter.
That car park is one of 51 collection points or ports that Car Club has set up all over the island. Cars have to be returned to the same port that members collect them from.
As a member of the club, Madam Gan pays an annual fee of $120 and from $10 for every hour that she has the car. She estimates her monthly Car Club bills to be around $350 a month. 'Even when I add the $200 to $250 I spend every month on taking taxis, buses and trains, it is still cheaper than having my own car. And with this Car Club membership, I don't even have to worry about road tax, maintenance or parking charges.'
Mr Lai Meng, director of Car Club, says: 'Members have easy access to our fleet of 83 cars 24 hours a day and they can use the car from one hour to as long as they wish.
'Once reservations by phone or through the Internet are confirmed, an SMS or e-mail is sent to members to confirm their booking, which can be made just 15 minutes before the pick-up time, depending on availability.'
Members scan their membership cards against data readers in the cars to open the doors and retrieve the keys from the glove compartments. Another way is to collect the car keys from a key press located at the ports, also by scanning their membership cards.
Car Club has more than 2,000 members and is the biggest of three car-sharing businesses here.
Another company, KahShare, started operations in 2008 under the rental and leasing division of local Honda distributor Kah Motors. The head of the division, Mr Choong Tat Soon, says: 'We are gearing up for more members in the face of recent cuts in COE quotas.'
He is expecting a 5 to 10 per cent jump in new members 'from now till the COE prices stabilise, which I can't predict'.
Currently, KahShare has 300 members sharing its fleet of 50 cars located in 16 ports across the island.
Since last December, KahShare and Car Club have signed a deal to allow their members to rent cars from both companies.
'By doing this, we open the door to all members to enjoy more ports around Singapore,' Mr Choong explains.
The third player in the car-sharing market, WhizzCar, is a subsidiary of car rental company Popular Rent A Car. It started in 2003 and currently has 2,000 members sharing its fleet of 90 cars located in 34 car parks islandwide.
Its general manager, Mr Ho Kok Kee, is also expecting an increase in membership because of the high COE prices.
'We are now getting 50 to 60 calls a month inquiring about our membership schemes and prices, up from about 40 before the increase in COE prices,' he says.
But there are downsides to driving a car-sharing vehicle. Real estate agent Bernard Shen, 27, who joined then NTUC Car Co-op in 2008, says: 'Cars are not always properly maintained. I once drove a car that smelled of durians.
'And there were times when I wanted to extend my usage of the car at the last minute but couldn't because another member had already booked it.'
There is also the problem of the lack of a suitable car. KahShare member Alvin Ng, 44, says: 'I usually opt for a smaller car such as a Honda Jazz when I book but sometimes it is not available.
'But now there is Car Club, I can book one of their smaller cars if it is available.'
He usually rents a car for a couple of hours on weekends to go out with his wife and son.
Mr Shen gave up his car, a Hyundai Tucson, in 2008 because owning it cost him up to about $1,800 a month. His monthly Car Club bills now 'average between $300 and $800'.
He stresses that 'a car is not a must-have and it is a depreciating asset'.
But during rush hour, he still prefers driving to taking public transport. He says: 'Taking a taxi during peak hours is not worth it, especially if I have many trips to run. So I will try to book a car through Car Club instead.'
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What: Car Club
When: Started last year (took over NTUC Income Car Co-op, which started in 1997)
No. of members: 2,190
No. of cars: 83, mostly Japanese sedans and a few MPVs. Members also have access to 50 cars owned by Honda KahShare
Where: 51 ports islandwide
How to book: Online at http://www.carclub.com.sg or call 6788-1511 (7am to 10pm, Mon to Sat)
How it works: After a booking is confirmed, members go to their chosen port to collect the car key by scanning their membership card against a reader in the car or in a key press
Membership requirements: At least 23 years old, must own driving licence for at least 30 months
Costs: One-time entrance fee of $100, plus annual membership fee of $120. A $100 fully refundable deposit also applies for every rental. Prices start from $10 for the first hour of usage.
Info: http://www.carclub.com.sg, tel: 6848-7900
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What: KahShare
When: Started in 2008
No. of members: 300
No. of cars: 50 Honda hatchbacks, sedans and MPVs. Members also have access to 83 cars owned by Car Club
Where: 16 ports islandwide
How to book: Online at http://www.honda.com.sg/cars/kahshare or call 6840-6858 (24 hours)
How it works: Same as above
Membership requirements: At least 23 years old, must own driving licence for at least 18 months
Costs: One-time entrance fee of $50, plus annual membership fee of $120. A $100 fully refundable deposit also applies for every rental. Prices start from $10 for the first hour of usage.
Info: http://www.honda.com.sg/cars/kahshare, tel: 6840-6858
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What: WhizzCar
When: Started in 2003
No. of members: 2,000
No. of cars: 90, including sedans, MPVs and vans from Toyota, Hyundai and Mitsubishi
Where: 34 ports islandwide
How to book: Online at http://www.whizzcar.com
How it works: Same as above
Membership requirements: 21 to 65 years old and own driving licence for at least one year
Costs: One-time entrance fee of $80, plus monthly membership fee of $10. A $100 fully refundable deposit also applies for every rental. Prices start from $11 for the first hour of usage.
Info: http://www.whizzcar.com, tel: 6742-8888
