What would be cheaper? Owning Your Own Car or using a taxi on a regular basis? We analyse. The answer might surprise you!
Transportation is quite a necessity for all human beings. Nowadays, people can choose between various means of transportation for their travelling purposes – to go to work, marketplace, shops and stores, hospitals, visiting friends and relatives, etc., among others by having their own cars or using public transports. According to the Finance Minister, Nirmala Sitharaman, some studies revealed that our millennials are not willing to commit an EMI for buying a car, preferring instead to take Cabs, or even public transport like Bus, Metro, etc. Regardless of whether this had led to the current market slowdown as theorised by her, there is an undeniable rise in the use of public transport in recent times.
The question is, would it be cheaper to own a car than using taxis on a regular basis? To figure that out, we calculate the cost of keeping and running a car in comparison with the amount we spend on using taxi services. We did a little research on how much an average person would have to pay for in order to travel around 50 km per day, 25 days per month for a period of 3 years both by driving himself and taking a cab.
I. Determine The Cost of Car Ownership
Owing an automobile includes many different kinds of costs, like cost of maintenance, fuel, parking cost, road toll, car insurance, etc. For our calculations, we plug in the price sticker of a new car, details of the car loan, and how much we pay on the running cost. You can tweak the figure as per your expenditure, based on how much you usually spend on insurance, maintenance, registration, etc.
III. Comparing The Cost Of Car Ownership Vs Using Taxi For 3 Years
Total Cost Of Owning A Car
Total Cost Of Using Taxis Regularly
Total Cost Of Using Taxis With Surge Pricing
Resale Value Of Used Vehicle
Apparently, driving your own car for your daily errands is cheaper than using a taxi regularly, and by quite a margin too!. Further, owning and driving a car of your liking is more pleasurable than using taxi services, not to mention the status symbol it offers. If you are a bit tight on the budget for your favorite new car, try the used car market instead. There's a high chance you'll find a steal deal there. If you are looking to buy a well-maintained used car in India, Indianauto.com is right here for you. Check it out now!