London is the 49th most congested city globally, with an average congestion level of 31%. Despite this being 18% less than 2019, there is still a major traffic issue in the capital city which not only causes peak hour disruption but also has a detrimental effect on the environment.
The decreased levels are a direct result of the COVID-19 pandemic, resulting in a shift from the office to working from home, which means fewer cars are on the road. Many have also opted to sell their cars and instead seek car hire in London when travel is necessary.
Car hire in London is on the rise, as fewer people require access to a car on a daily basis, and therefore only need to use a car for certain occasions. This can be both economically and environmentally beneficial, all depending on the type of car rental service you choose.
Car Ownership Vs Car Hire Costs
Car hire is significantly more affordable than car ownership, as there are not only the purchasing costs to worry about with buying a car. New vehicles tend to range from £12,000 to £36,0000 to buy outright. However, most people purchase cars on finance with an average monthly cost of about £200.
The average cost of running a car is around £3000 per year. This overall cost typically includes the vehicle as well as the cost of fuel. Petrol and diesel prices will vary, although car owners should expect to pay around £960 to £1000 per year.
Car insurance and motor vehicle road tax are also factored into the yearly price, costing approximately £600.
The price of car ownership also includes servicing and repairs which can add up to around £270 or more.
Car owners who plan to sell their cars may also be at a disadvantage as most cars lose around 15% to 35% in value within the first year and 50% after three years.
Car hire in comparison typically ranges from £21 to £70 per day, depending on the make and model of the vehicle. This price normally includes mileage, taxes and damage costs. Many car hire companies will also only charge an extra £10 to upgrade a vehicle.
The cost of temporary car hire services such as car-sharing schemes may turn out cheaper, as the cost is usually calculated based on hourly usage rather than a daily rate. This is ideal for anyone who only needs access to a car for a few hours a day.
Temporary Car Hire is Greener
The cost is not only the advantage that car hire has over car ownership. It is also much kinder to the environment, as car hire services are normally only utilized for short periods, which results in lower emissions being produced.
The majority of car hire companies are also working on reducing their carbon footprint and become more environmentally aware. Many are now hiring out electric vehicles and low emission cars, which are much safer for the planet.
Hiring a car can actually remove an average of seven to eleven vehicles from the road, significantly reducing emissions by 4 to 18%.
The Concept of Car Sharing
One of the most eco-friendly car rental services is car sharing. Typically, customers who use a car-sharing service tend to use public transport on a regular basis and may just require a car rental for special occasions. This not only helps reduce congestion levels but also lessens the amount of emissions released.
Car sharing schemes are a fairly new concept. However, this type of car rental service is on the rise, with a reported 5385 car-sharing companies across the UK. A reported 60% of these car clubs are based in London, as sharing a car is a much more economical and environmentally friendly option.
A car-sharing service is suitable for people who are looking for car hire in London but need to rent a car at the last minute. For example, remote workers who may need to travel to the workplace once a month may opt to use a car-sharing service, as it offers instant access to a car, compared to a car rental company which normally only operate within business hours.
Here at Karshare, we are leading the way with the first car-sharing platform that connects car renters with vehicle owners in their community who are looking for extra income. We use our own innovative KarshareGo technology, which is a keyless module that is fitted in all of our vehicles. This enables car renters to book, locate and unlock the app via the Karshare app.
This is a game-changing car hire London service for short-term and long-term car renters, as it is completely hassle-free, requires zero queuing and has no hidden fees. KarshareGo also features sustainable telematics, which enables drivers to monitor fuel consumption and mileage.
Car owners can also list their car with Karshare and track renter’s behaviour with the benefit of insurance breakdown cover. Karshare’s service offers the advantage of earning extra income while also supporting their wider community by reducing car consumption in London and beyond.