Car club expands North East ambitions thanks to loan

August 27 2009

A £45,000 loan has helped a social enterprise car club get on the road.

Durham-based Option C received the loan from The Social Enterprise Loan Fund (TSELF) to help members access cars from a number of locations across Durham, Newcastle and Chester-le-Street.

Cars can be booked for a minimum of half an hour and members ‘pay as they drive’. Anyone can join online or over the phone and cars can be booked with as little as one minute’s notice (subject to availability). There is no membership fee, only a one-off £25 joining fee, plus hourly rate and mileage fee per trip.

Founder and director Paul Balmont said: “Option C car club was set up as an alternative to people owning their own cars. Also, as a way of providing pool cars to local businesses to help them reduce costs and staff car usage.

“Most people don’t think twice about using their car, even if it’s not really necessary. When you join a car club it makes you think more about whether you really need to use a car and the environmental implications of its use.”

Mr Balmont identified a gap in the market when he set up Option C in 2006, as there were no car clubs in the North East at that time.

Now, three years on, the enterprise has received another loan from TSELF, which will allow Option C to expand its operations in the Newcastle area.

Said Mr Balmont: “The support we received from TSELF was fundamental. Without it we would never have got the finance we needed to start up, let alone win a big contract in Newcastle.”

As a Community Interest Company, Option C’s profits are locked into the car club and its future. Also, they don’t have shareholders but are owned by the members of the club, who have a direct say in how Option C develops.

Rod Jones, regional director of TSELF, added: “Option C provides a radical new alternative to the traditional concept of everyone owning their own car. A car club provides access to a vehicle when you need it, but also helps make people think more carefully about their car usage, which is good news for the environment.

“Option C is leading the way for car clubs in the North East and TSELF is delighted to be able to help them develop their ground-breaking solution.”

For more information about visit www.optionc.co.uk or call 0845 602 8030.