Will Hoboken car-sharing work?

Cheapest cars will be $60 a day, applications are $25

Right now, a dozen cars have been placed at street corners in Hoboken for residents to rent whenever they want – including a Toyota Yaris at Harrison and Second streets, a Mini Cooper at Hudson and 11th streets, and a Mazda 3 at Madison and 10th streets.
The cost starts at $5 an hour for the tiniest cars, including gas, roadside assistance, a navigation system, and insurance. While $5 an hour would work out to $140 a day – more money than it costs to rent from an agency – there are cheaper daily rates available, which run from $60 to $144, depending on the type of car and the day.

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Turn in your parking permit and get $100 off.
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The cars – of which there will be 50 on the streets by the end of the month – are part of the City of Hoboken and Connect by Hertz’s new “Corner Cars” program, which is being touted as the country’s first true city-wide car-sharing program.
The program is meant to keep residents in parking-strapped Hoboken from buying cars, and city officials claim that it will keep as many as 750 cars off the streets. They also say that the low prices will help low-income people who need transportation.
But some residents have asked if this is really better than building more parking.

How it works

The program is similar to the ZipCar program that exists in Hoboken and Manhattan, where people pay an annual fee and can go pick up a car to use for as long as they need to. However, as a special incentive, through June 2012, Hoboken residents will be eligible to receive free membership (which typically costs $50 per year for the pay-as-you-go plan). Residents will still be responsible for a one-time $25 application fee.
Users reserve cars online or by phone, then walk to the car’s designated on-street parking space and wave their membership card over the windshield to unlock the doors – the keys are already inside.
Even non-Hoboken users can sign up for a car in Hoboken. Likewise, Hoboken residents will be able to use cars anywhere that Connect by Hertz offers service. Other nearby locations include New York City and Park Ridge, N.J.
After signing up, users will be allowed to rent a vehicle by the hour, day, or week at various rates. Although $5 an hour could get you a two-seater Smart Car for a few hours, other rates vary. A standard sized vehicle in Hoboken starts at $8.50 an hour. A Mazda 3 goes for $10 an hour on the weekdays and $12 an hour on the weekend.
Hybrids like the Toyota Prius go for $12 an hour on the weekdays and $14 an hour on the weekend. Larger vehicles are also available and are $14 on the weekdays or $16 an hour on the weekend.
When finished using the car for the reserved period of time, the car is to be returned to the same location and the user will be billed automatically. Special parking spots are reserved for these cars, and no one else may park in them.
A variety of issues could tack some additional charges on that bill, including losing the membership card ($20) or fuel card ($50), ignition key replacement ($200), returning the fuel below a quarter of a tank ($25), returning the car late ($50), calling to change or cancel a reservation ($3.50 per call), and “incorrect parking” – i.e. not returning the car to its home parking location ($45).
Also, users are asked not to smoke in the car or bring pets (except service animals) into the car.

Why no new parking?

Mayor Dawn Zimmer said that the program will save residents thousands of dollars compared to owning a car. It will also eliminate the stress and hassle of looking for parking in the city.
Some residents have questioned why the city created a car-sharing service instead of creating more parking for Hoboken’s congested streets. Over the years, politicians have floated various ideas to increase parking in Hoboken, including building “perimeter parking” on the outskirts of town and offering shuttles to those sites. Hoboken contains the first of its kind automatic parking garage at 916 Garden St., built in the 1990s, in which a machine carries cars into their indoor spots.
But officials in the Zimmer administration say that car-sharing offers the best of both worlds.
“Instead of taking on millions of dollars in taxpayer debt for structured parking, residents who switch to car-sharing will save thousands of dollars,” said Transportation and Parking Director Ian Sacs last week. “It’s the 21st century solution to contemporary urban parking woes.”
The city has said the program will take 750 cars off the streets. But where did that number come from?
“Zipcar already has cars in Hoboken,” said City Spokesman Juan Melli. “Their numbers show that for every Zipcar vehicle they have, 17.6 households have gotten rid of a car.”
Melli added that for every Zipcar vehicle on the road, an additional 20 Hoboken households postponed or decided not to purchase a vehicle because of it.
It’s a statistic that seems to be across the board – a survey of members on the Phillycarshare.com website drew almost the same results, Melli said. Hoboken’s website details other benefits of such a program, including the reduced pollution due to fewer cars on the streets.
A community forum to discuss the program and other transportation issues with residents will be held on June 23 from 7 p.m. to 9 p.m. at the Jubilee Center, 601 Jackson St.

One added benefit

City officials note that low-income people may benefit because unlike Zipcar, users do not need to have a credit card in order to have an account. Usage can be deducted from a checking account using a debit card.
Hoboken residents also touted the benefits of car-sharing programs.
Steve Fahmie, a Hoboken resident and founding member of the bike and pedestrian advocacy group Hoboken Sweet Streets, said he sold his car in 2008 and switched to car-sharing.
Helen Manogue, coordinator of the Hoboken Quality of Life Coalition, said her group is an enthusiastic supporter of the program.
“The Corner Cars project brings to Hoboken the very first imaginative attempt to get the city away from building and trying to maintain expensive multi-story garages to a program that will be accessible to almost everyone both physically and financially,” said Manogue in a city press release.

Insurance and security

When renting a car from a national company, users often have to pay several types of insurance, particularly in case they injure a person or damage another vehicle while using the car. According to the Hertz Connect website, liability insurance is included in the hourly fee for the cars, “at the level mandated by the automobile responsibility law” in the area which an accident occurs. Although there are no additional insurance choices at this time, Hertz may add that option in the future.
If you lose or damage the Hertz car, you will pay a $250 deductible.
Because the key remains in the car at all times, to prevent theft, every car is equipped with an immobilizer. Thus, the car will not start without an active reservation for the car, and the member who made the reservation will have to swipe his or her card over the reader.
For members who decide to keep the car beyond their reserved time without alerting the member care center, Hertz has the ability to immobilize the care remotely.

Users can get extra credit

In addition to the free membership, residents who sign up and use the keyword “Hoboken” will also receive a $75 credit on their account. And if they decide to surrender their parking permit at the Hoboken Parking Utility, they will receive a special code to use during registration that will allow them to receive a $100 credit instead.
To find out more about the Corner Cars program or see where cars will be located, visit http://hobokennj.org/cornercars, email cornercars@hobokennj.org or call the Department of Transportation and Parking at (201) 653-1919.
Lana Rose Diaz can be reached at ldiaz@hudsonreporter.com.

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