No car! ... The Henry family says using a car sharing service only costs them around $2500 a year. Source: News Corp Australia

After living without a car while in New York she decided to continue life less four wheels when she returned to Australia late last year.

She avoided the expene of buying a car and instead opted to join the new phenomenon trickling into the capitals, particularly Sydney and Melbourne, where you can hire a car for a modest charge.

Users can either rent out their own car when they’re not using it, for instance when they’re at work, or hire a car if they don’t have one.

Carnextdoor has only a few hundred vehicles in its network but more than 6000 borrower members including Henry who says it’s been a great cost-saving measure.

CHEAP CAR

“The more we got used to having a big car when we needed it and a small car on other days, the more we thought we don’t need to commit to buying a particular type of car,’’ she says.

“We weren’t committed to owning a car and all the costs, we think using Carnextdoor will cost us between $2000 to $2500 a year.”

She uses the services frequently on the weekend to go the markets and also to run any errands she may have.

Mickael Dominguez hires a car for $10 an hour with free fuel to drive up to visit his girlfriend Rosie Attwell who lives in Brisbane. Source: News Limited

The service charges users who hire a car hourly or daily rates plus a 33 cents per kilometre travelled.

Insurance and petrol costs are included in the price.

When collecting the car after ordering it online or via an app, the borrower uses a PIN that is messaged to them to access an electronic lockbox attached to the car’s window giving them access to the car keys.

Similar services have also been available for motorists including GoGet and FlexiCar however the cars are owned by the businesses themselves whereas vehicles used by Carnextdoor are those owned by individuals.

BENEFITS

Carnextdoor spokeswoman Kate Trumbull says frugal consumers aged between 25 and 40 are their most common users of the service, while those renting out their cars usually have two cars so they look to make money but hiring out one of their vehicles.

“Borrowers are initially attracted by the price but they keep coming back because of the community aspect,’’ she says.

“They like that they are not adding any cars to the road and helping the environment.”

Consumer watchdog Choice’s spokesman Tom Godfrey says car sharing services can save consumers a lot of money but says it’s also a case of buyer beware.

He urges users to understand the terms and conditions involved before taking advantage of car sharing deals.

“If something goes wrong you’ll most likely be dealing with a private car owner not a big business,’’ Godfrey says.