You had to know it was coming.

With gasoline prices at $3 a gallon and the demand for transportation alternatives on the rise, it was only a matter of time before new and more creative options came on-line.

Enter the HOURCAR. It’s the Twin Cities’ (Minneapolis/St. Paul) answer to the growing transportation conundrum created by high gas prices and a new generation that wants to embrace public transportation, but occasionally needs access to a set of wheels.

Before you dismiss the HOURCAR as a wacky idea; read on. It is a state-of-the-art car-sharing program. The program's Web site spells it out very clearly.

HOURCAR buys, insures, and maintains a fleet of member-shared cars -- all Toyota Prius gas-electric hybrids. Additionally, they take on all the responsibilities of owning the vehicles, including paying for fuel. The cars are parked in hubs near members’ homes and workplaces. Members make reservations online or by phone, and pay monthly dues and car-usage fees.

While this sounds like a good alternative to owning and maintaining a car, I thought it was best to ask an HOURCAR member for some feedback.

“I absolutely love it,” said Kari, 31, who along with her husband, Josh, and young daughter, Lillian, are somewhat unique in that they do not own a car. Their reasons are both philosophical and financial. Until now, they have relied heavily on public transportation.

“This past winter it started to feel very confining, which is why we took the plunge and signed up for the eight-hour-a-month HOURCAR plan, which costs $58,” said Kari. Not only did it provide their family with transportation flexibility, but there were other benefits as well.

“The cars are new, spotless and we love that it’s a hybrid,” exclaimed Kari. “Just the other day Josh was reading the on-board computer and said, ‘look honey, we’re getting 52 miles to the gallon – how cool is that?’”

Suffice it to say, they are hooked. In fact, they will likely increase their plan by a few hours a month as their budget allows.

“Could we buy a car? Sure. But the costs to the environment, repairs and insurance are too great,” said Kari. “And with a limited number of hours per month, it forces us to make really good decisions.”

Some experts believe oil prices need to reach $100 a barrel before Americans will be forced to change their transportation habits. If that’s true, Kari and Josh are definitely in the early adopter category.

While you may not have access to an HOURCAR, you can incorporate the philosophy into your routine. And the benefits (financial and environmental) can be significant.

1. Create a simple chart or spreadsheet with one-hour increments for people to sign out the family car. Do this for one week to monitor your usage.
2. Make another column for needs or wants. Every time you use the car you have to decide if the trip was a need or want.
3. Increased awareness of driving habits can benefit your bottom line. Track how much money you saved month-to-month with the new approach.
4. If you saved money, invest the difference in a long-term retirement account or a short-term savings account for a more fuel efficient vehicle.

With the price of gas rising exponentially in the last year, it doesn’t take much to realize significant savings.

What other time in your life have increased prices impacted your financial routine and decisions?

For example, the high interest rates of the early '80s had a significant impact on people’s home-buying decisions.

The Hummer H1 series, which retails for $130,000 and gets 10 miles per gallon, will be discontinued this summer. General Motors said it was not related to higher gas prices.

Source: Associated Press

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