Top Tips for Car Clubs

We know the value of peer-to-peer learning at CTA. Our ‘Show and Tell’ event series is a dedicated space for our Scottish members to share insights and inspiration from their journey with the rest of the Community Transport movement.

Our first showcase was Glenfarg Community Transport Group in Kinross-shire. We heard how their village stepped up after the loss of its last commercial bus service to develop their own fast-growing, much-loved and award-winning community-owned bus services in less than two years.

Next up, we welcomed Local Energy Action Plan (LEAP) in Renfrewshire, which works to advance environmental protection, sustainability education and community participation.

LEAP’s Mike Callaghan joined us to tell the story of their innovative community-owned car club, which he launched back in 2012 to provide local people with more sustainable transport options, reduce forced car ownership in the area and deliver savings for users, especially those in more deprived neighbourhoods.

A car club is a collective or community who arrange to share a car or cars between themselves. Members can access vehicles on a ‘pay-as-you-go’ basis by booking a shorter- or longer-term rental and picking up from convenient local locations such as dedicated on-street bays, car parks or train stations. They are a useful tool for people who occasionally need a car for a journey, like when picking up bulky items or going farther on a multi-stop trip.

As Mike puts it, car clubs give “all the convenience of a car without the hassle and expense of owning one”. 78% of car club members in Scotland report saving money compared to owning or leasing a car.

1 in 10 CTA members in Scotland are now running a community-owned car club, with others considering the idea for their future plans, especially in smaller places struggling with car dependency where larger or commercial car club operators are unlikely to get to anytime soon.

“I don’t believe there’s a kind of one-size fits all model for a car club”, says Mike. “Everyone’s car clubs are different. I think everyone’s needs and communities will be different.”

But there are shared challenges and common things to consider. So, what are Mike’s top tips, from more than a decade of evolution and growth, for setting up a successful community-owned car club?

1. Location, Location, Location

LEAP has expanded over the years and how has 5 cars, of which are electric, which is fantastic for the environment. 3 are based in Linwood and 2 are located in Lochwinnoch, but they’re “very different kind of places”, says Mike.

Lochwinnoch is relatively compact with an active community and a bustling High Street. Linwood, however, is “one of the most deprived areas of Scotland” and is “much more of a sprawl”.

Mike argues that getting the location right is absolutely essential. LEAP have used “trial and error” over the years to find the right places. Some locations just haven’t worked, because they were either too far for people to walk to or just not visible enough. Cars had once been based in other villages, but a lack of local demand and the wrong geography meant it just didn’t work.

But now, the cars are well-used with bases at Lochwinnoch’s community centre by the main crossroads and on the doorstep of their target neighbourhood in Linwood.  

Mike recommends doing your research, listening to the community and being ready to adapt to find what – and where! – works best. “You want it to be in a place where there are a range of public transport options that are easily available to people.”

The Carrick Mobility Hub, housed at the Carrick Centre, provided by South Ayrshire Community Transport and home to shared bikes, cars and minibuses, is a perfect example.

2. Partner Up

Working in partnership can be a powerful way to improve your offer, widen your pool of potential users and ensure greater financial sustainability.

LEAP have partnered with Linstone Housing Association to provide discounted access to the car club for social housing tenants and make the vehicles available to their staff as pool cars.  

Mike’s justly proud of the partnership. “It kind of became a model of how car clubs and housing associations can work together… We've provided people access to electric cars that they probably wouldn't otherwise have had the opportunity.”

He suggests finding a third-party organisation which pays for their staff or clients to use it too. “This meant it was much easier for us to deliver a car club there, because you know you've got a kind of a guaranteed income every month from a car.”

But he does caution that the model “will never be self-sustaining” and will “always require additional funding” to keep it going.

3. Shop Around (To Keep Costs Down)

Insurance costs have been a major challenge for LEAP over the years. At different points, premiums have risen sharply, putting the financial model under real pressure.

Although it is a larger, industry-wide phenomenon, exacerbated by some insurers pulling out of the car club market, shopping around by contacting different providers and engaging with brokers has helped to minimise those increases, according to Mike.

Remember: CTA members also have exclusive access to tailored insurance support from our two trusted partners, Business Choice Direct (for vehicle insurance) and WRS Insurance Brokers (for all other organisational insurance needs). We’ve worked closely with them to resolve barriers to insurance for community-owned car clubs.

4. To See Ourselves As Others See Us!

Building awareness and understanding throughout your community is vital once a car club is launched. Not everyone will know what a car club is! So, it might take some time to bring people around through things like leaflets, open days and test drives.

LEAP do “a lot of community engagement”, says Mike. “Get out, be visible, do the marketing… I think you need to have adequate staff or committed volunteer resources.”

Your branding can help too. Think carefully about how you’re perceived.

Climate Action Strathaven have seen an uptick in usage locally after re-branding their car club as ‘car hire’, a much more familiar (and perhaps less exclusive-sounding) idea for most folk.

5. Bring It In (House)

LEAP started off using an external provider to manage the administration of the car club and the booking of vehicles. However, this proved to be pretty expensive and Mike learned that “it was far, far cheaper for us to do everything in house”.

Learn More

A big thank you to Mike for sharing his expertise and experience with us! You can watch his fascinating presentation here.

You can also get ideas and inspiration from Glenfarg Community Transport Group here or for community-led climate action here.

Or browse CTA’s upcoming online and in-person events at www.ctauk.org/events.