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Introduction: The Economic Case for Car Clubs

For over a decade, the strategic case for car clubs has been well understood, and is informed by Carplus’ Annual Survey as well as other evidence sources. Financial, management and commercial cases are usually considered by operators and those developing schemes.

But what is the formal economic case for car clubs? What are typical benefi t:cost ratios and how can the economic benefi ts be optimised? If a car club development is being considered as a policy option, solution in an options appraisal to a problem or as an initiative for other reasons, how does it compare to other options in terms of value for money?

This document: • Presents illustrative benefi t:cost ratios for a variety of types of car club related initiatives;

• Summarises which elements of a car club deliver the economic benefi t;

• Provides advice for those needing to present the economic case for a car club scheme; and

• Links to a dedicated car club Benefi t Cost Ratio Toolkit.

The principles underpinning this work were that the approach taken had to be:

• Robust:

Follows DfT WebTAG guidance (as appropriate), the appraisal processes used in the LSTF and has been prepared in discussion with the DfT

• Transparent: The Appraisal Tool is explicit in its required inputs and is fully annotated

• Proportionate:

Benchmarking rather than full scale modelling and forecasting.

A full report with further detail on appraisal context, approach and assumptions on which this summary is based is available from Carplus. It is based on work commissioned in 2015 by Carplus and undertaken by Keith Buchan at MTRU.

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