Pros and Cons of Rideshare vs Car Ownership
Wondering if to opt between rideshare vs car ownership? Today, we’ll share with you the benefits and drawbacks of each one. That way, you’ll be able to know which will save you money in the long run.
Differences Between Rideshare vs Car Ownership
Depending on the type of lifestyle you’ve got, it can be tough to decide to ride or drive.
For this reason, it’s imperative that you must know everything there is about each option. By doing so, you’ll be able to choose which means of transportation best suits your needs and routine.
When it comes to rideshare vs car ownership, ride-sharing can actually be cheaper than owning a car when it comes to low-mileage users. However, if you use a vehicle to run errands and travel over 15,000 miles per year, then it’s best to have your own car.
What’s the Cost of Car Ownership ?
When it comes to car ownership, there are many factors to consider. From car maintenance to traffic tickets and insurance premiums, car owners must keep in mind these expenses to avoid having a bad time.
Thus, we divided each of these expenses into two main categories: direct and indirect costs.
Generally speaking, the average cost of owning a vehicle tends to be around $5,800 up to $6,200 yearly. Of course, your annual car spending also depends on the type of car you own.
Direct Costs
A car’s direct costs often include what everybody thinks of as car maintenance. These factors are:
- Insurance
- License and registration fees
- Financing charge
- Taxes
- Fuel depreciation
First, we have car insurance.
As you may already know, to legally own a car and drive means you have to get car insurance. While choosing between a general liability or a full coverage policy is up to you, bear in mind that insurance fees tend to vary for each person. Not only that, but auto insurance policies also tend to be higher for younger adults.
Moreover, along with insurance fees, you’ll need to consider annual or biennial registration renewal and taxes.
Finally, the cost of owning a car tends to increase over time due to the ongoing fuel depreciation.
Indirect Costs
Along with these costs, car owners must be aware of other expenses as well. Some of these include traffic and parking fees and opportunity costs. While traffic and parking tickets tend are self-explanatory, the opportunity cost isn’t that straightforward.
When talking about this last type of expense, we refer to the time lost when stuck in traffic. Simply put, people are much more productive during these times when they’re not driving.
Just think about it:
By spending around thirty minutes to an hour in commutes on a daily basis, you end up being stuck in traffic between 130 and 260 hours yearly! This time can actually be spent either at work or home.
What Do Rideshare Services Cover ?
Ridesharing tends to be the option for people who want to move on from public transportation but don’t want to purchase a car.
Typically, a quality ridesharing service will include the following:
- The transportation base cost
- Booking fee
- Route accommodations
- Pool discounts
- Tips
- Surge pricing
For this reason, an average ridesharing fare per mile can be around $2.30 per ride. However, by avoiding commute times and choosing a pool option, you can lower this fee between $1.5 and $2.
If your monthly mileage is between 60 and 90 miles, a ridesharing service can cost you between $1,800 to $2,100 yearly. On the contrary, owning a car can cost you 25% more with this mileage.
Why Should Opt for Ride-Hailing Services ?
As you can see, ridesharing services tend to be the best option for people who don’t need to travel long distances regularly. Along with lower prices, there are other benefits why you should opt for ride-hailing services.
Here are four reasons why you should go for ridesharing services instead of car ownership:
- You won’t need to worry about car expenses.
- Ridesharing gives special discounts.
- It reduces car accidents.
- You don’t lose any time in traffic jams.
You Won’t Need to Worry about Car Expenses
As we said earlier, owning a car often involves lots of extra costs.
There’s no need to worry about these monthly and even unpredictable expenses by going for a ridesharing company. Not only that, but you’ll also have that peace of mind that you won’t need to schedule any maintenance appointments such as oil changes and tire alignments.
Ridesharing Gives You Special Discounts
One of the best things about ridesharing is the fact that it becomes cheaper over time. By completing a certain number of rides monthly, as well as keeping an excellent passenger rating, then you can undoubtedly get unique and exclusive discounts. Consider this cut-price as a loyalty incentive.
It Reduces Car Accidents
Did you know that Atlanta tends to have around 1 car accident every 4 hours?
And, most of the time, these accidents tend to happen due to DUI and speeding.
However, when going for a ridesharing service company, you lower the chances of being involved in this sort of accident by a lot. The reason behind this is that ridesharing often demands the driver to pay complete attention to the road. Not only that, but it also requires the company to count on up-to-date vehicles as well.
You Don’t Lose Any Time on Traffic Jams
Lastly, when using a carpool service, you can often use that commute time on other tasks. For instance, you can use this time by getting some extra work done or maybe hearing an audiobook or podcast. You won’t need to fret about losing around 250 hours a year due to heavy traffic.
When Should You Go for Owning a Car ?
As time goes on, you’ll likely want to own a car eventually. This is especially true when needing to travel a lot.
For this reason, opting for car ownership might best for you if you:
- Want to get a good credit score.
- Don’t want to depend on a company.
- You enjoy driving a car.
Now that you know the main differences between rideshare vs car ownership, you can now decide which means of transportation is best for you! Remember to count on a quality ridesharing company whenever you need a ride.