Sharing a car … to buy a condo
· By: staff
· Date: 2003-08-24
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The idea of sharing ownership in a car is not new, but using it to help fund
your purchase of a condominium apartment is, at least in North America.
Electric Avenue condominiums in Vancouver, Canada has brought this European
idea to North America for the first time. Basically it's a car ownership cooperative,
European style, in which a fleet of 7 vehicles (including 4 hybrid cars) is
available to all residents of their new downtown condo complex on a shared basis.
It's a great alternative to owning your own car, says the condo developer, and
it can produce huge mortgage interest savings for condo owners.
Electric Avenue Condominiums is located in the heart of downtown Vancouver, a spectacular location in which parking is at a premium, public transportation is easily available and walking is a year round pleasure. So why, ask the condo developers, spend all that money on a car which sits in an expensive parking space for more than 90% of its lifetime when a viable co-op alternative is available? And, the developers are quick to point out, the money you save by not buying a car can reduce your mortgage costs substantially.
The Electric Avenue Condominiums web site offers some examples: ownership of a $15,000 car would typically cost about $400/month. On the other hand, the cost of being in a co-op, with shared access to the seven vehicles it owns, would be about $108 per month. Put the savings of $292 towards a $200,000 mortgage and the result is a saving of more than $54,000 in mortgage interest (on a 5% mortgage with a 25 year term).
Auto sharing cooperatives are designed for people who have occasional need
for a car and don't mind the inconvenience of perhaps having to book access
to one in advance. They are popular in Europe and now gaining a foothold in
North America. Typically, members of the co-op buy a share, which they can sell
back to the co-op when they leave. All the management costs of the vehicles
are paid by the cooperative, including insurance, maintenance, repairs and even
fuel. The cooperative has different plans for members who use the cars more
and for those who hardly use them at all but want the convenience of access
to a shared vehicle.
- Autoshare
- Cooperative Auto Network
- Car sharing: An idea whose time has come
- Transportation cost hinder home ownership
