Car clubs are usually organised schemes, which members of the public can join to gain access to a vehicle for short periods of time. In parts of Europe and in North America, car clubs are often referred to as car sharing. Car clubs differ from hiring a car in that club members pay an annual membership fee and can book a car either by telephone or using the internet for anything from a couple of hours to a couple of days. A mileage fee is charged to cover fuel costs. In most clubs, members would collect and return the car from a centrally located parking bay with no administration beyond booking the vehicle. The cars are generally obtained through a long term lease from a hire company by the club organisers, although a group of individuals can establish their own club.

Car clubs are introduced as a means of reducing the need to own and use cars without loosing access to a vehicle. They can also be introduced to increase accessibility in rural and/or deprived areas. Car clubs can also be introduced as part of a low car housing scheme Fewer parking spaces are provided than in standard developments, with the car club as compensation. Car clubs are intended to bridge the gaps between full ownership and conventional car hire, ride sharing, public transport, walking and cycling.

Demand impacts may not necessarily reduce car use, but they can be incremental over time. With this in mind contribution to achieving key policy objectives can may not always be positive.