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RE: As on-demand services like Uber and Lyft grow their customer bases, more people will decide they no longer need to own a car of their own. Is it really mor

by chank 7y ago

RE: As on-demand services like Uber and Lyft grow their customer bases, more people will decide they no longer need to own a car of their own. Is it really more expensive to own than use a ride share service? Seems to only be reasonable when you have a monthly payment and even then depending on how much that payment is and how much you go out; it still may be less expensive to have your own. I own my car outright. Calculated, it costs me roughly ~2500 a year to keep it, baring any catastrophe. Thats Insurance, gas, maintenance, inspection, registration, and a few hundred on top for surprise road trips. On the other hand to take an uber/lyft "only" to-and-from work each weekday would cost me ~6000 per year (ride + tip using the cheapest option). Add on for any additional activities and it goes up considerably from there. Don't get me wrong, I would love to not have to own a car, but it really is cheaper and more convenient for me to do so. I live in a major US city.

albertshin 7y ago
Yes. There's convenience in not having to find / pay / be restricted by parking.
microtherion 7y ago
> I own my car outright. Calculated, it costs me roughly ~2500 a year to keep it, Does that include depreciation? Even if you own the car outright, it seems to me that a proper cost accounting should include the cost of eventual replacement of the car. > On the other hand to take an uber/lyft "only" to-and-from work each weekday Yes, I think if your daily commute depends on a car, ownership is the most cost effective model. But an increasing number of people are finding ways to commute in other ways.
- xur17 7y ago
  > Does that include depreciation? Even if you own the car outright, it seems to me that a proper cost accounting should include the cost of eventual replacement of the car. I did a similar calculation and found it cost me ~$2k, and this includes depreciation, car insurance, opportunity cost (funds would be invested @ ~8% return if they weren't locked in a car - this accounted for ~40% of the cost), registration, regular repairs, and depreciation. If you have to pay for parking and tickets, this math changes pretty dramatically.
- chank 7y ago
  > But an increasing number of people are finding ways to commute in other ways. Outside of LA/SF & NYC and maybe Chicago are I wonder what other ways people are looking to commute. Mass transportation even in my own city doesn't service enough areas to be in any way convenient. Biking in most cities (there are a few good ones for it) is just right out in most places due other traffic. I just feel that the people who write these kind of articles can't see beyond where they are, which is probably in one of the aforementioned cities and think the rest of the US is similar.
hossbeast 7y ago
If you're driving yourself to work everyday, no, it isn't cheaper. Many people take public transit to and from work, and also own a personal car.
starpilot 7y ago
Why are tips becoming customary for Uber rides? Wasn't one of their original selling points the lack of tipping?
Brakenshire 7y ago
Probably more likely people who commute by public transport but who occasionally need a car. If you wanted a car 20 times a year, and rideshare can plug that 10 times, you’d be better off renting the other 10 times rather than owning a car outright.
xur17 7y ago
I'm in a similar boat. I drive my car a few times a month, so I made a spreadsheet calculating the cost of car ownership, and it was ~$1600 per year including insurance, depreciation, regular repairs, car registration, investment losses, etc (a fairly large portion of the cost is the "opportunity cost" of having funds locked up in a car vs investments). For the number of trips I take Uber ended up costing me about the same, but I lose a fair amount of flexibility in the process. Based on this I went without a car for about a year and used ride sharing services exclusively, but I found it to be more hassle for very minimal savings. (Some of the variables obviously depend on where you live though. ex: parking) The fact of the matter is that owning a used car that's 5-10 years old actually isn't that expensive. I purchased my current car for $8k when it was ~6 years old, and did the same for the car before that. Repairs have been basically non-existent, just the normal oil change every year or two (I drive a few times a month).
standardUser 7y ago
I live in a major US city as well. It would cost me around $300/month to park near my home, and hundreds more to park at my various destinations over the course of a month. I don't own a car outright - many people obviously do not - so that's another $400+ every month for a rapidly depreciating piece of equipment that will inevitably cost me additional money in maintenance and repairs in the years to come. And of course there is insurance, gas and registration. And once I'm spending this $1000/mo for the benefit of owning my very own car, I'd still be using ride shares or public transit anytime I'm going to consume alcohol. Instead, I spend maybe $50/mo on transit, $100/mo on ride shares and another $200 or so every other month to rent a car for a weekend (and on those occasions, I get to pick the car). Transportation, to me, is a minor line item in my budget. I never have to search for or pay for parking. I am never in a situation where I would be inclined to drive after drinking. My car can never be broken in to because it doesn't exist. It's actually a pretty sweet setup if you can pull it off.
glennpratt 7y ago
Situations vary though and this is just one more thing on the scales. I bike or ride the train much of the time (~10 miles). This is slower and has it's own costs, but also benefits. I work downtown and parking is not free. I find daily driving miserable (and I love cars). I rent a Home Depot truck whenever I need a truck, which is still probably less the $100 a year. Knowing I can get a ride in a pinch is just one more thing on the scales. This makes operating a family of four with one small, aging car perfectly reasonable. Friends and family from Texas and Arizona seem concerned we don't have 1.5 luxury vehicles per adult of course.

by chank 7y ago

albertshin 7y ago

Yes. There's convenience in not having to find / pay / be restricted by parking.

microtherion 7y ago

> I own my car outright. Calculated, it costs me roughly ~2500 a year to keep it, Does that include depreciation? Even if you own the car outright, it seems to me that a proper cost accounting should include the cost of eventual replacement of the car. > On the other hand to take an uber/lyft "only" to-and-from work each weekday Yes, I think if your daily commute depends on a car, ownership is the most cost effective model. But an increasing number of people are finding ways to commute in other ways.

xur17 7y ago
> Does that include depreciation? Even if you own the car outright, it seems to me that a proper cost accounting should include the cost of eventual replacement of the car. I did a similar calculation and found it cost me ~$2k, and this includes depreciation, car insurance, opportunity cost (funds would be invested @ ~8% return if they weren't locked in a car - this accounted for ~40% of the cost), registration, regular repairs, and depreciation. If you have to pay for parking and tickets, this math changes pretty dramatically.
chank 7y ago
> But an increasing number of people are finding ways to commute in other ways. Outside of LA/SF & NYC and maybe Chicago are I wonder what other ways people are looking to commute. Mass transportation even in my own city doesn't service enough areas to be in any way convenient. Biking in most cities (there are a few good ones for it) is just right out in most places due other traffic. I just feel that the people who write these kind of articles can't see beyond where they are, which is probably in one of the aforementioned cities and think the rest of the US is similar.

hossbeast 7y ago

If you're driving yourself to work everyday, no, it isn't cheaper. Many people take public transit to and from work, and also own a personal car.

starpilot 7y ago

Why are tips becoming customary for Uber rides? Wasn't one of their original selling points the lack of tipping?

Brakenshire 7y ago

Probably more likely people who commute by public transport but who occasionally need a car. If you wanted a car 20 times a year, and rideshare can plug that 10 times, you’d be better off renting the other 10 times rather than owning a car outright.

xur17 7y ago

I'm in a similar boat. I drive my car a few times a month, so I made a spreadsheet calculating the cost of car ownership, and it was ~$1600 per year including insurance, depreciation, regular repairs, car registration, investment losses, etc (a fairly large portion of the cost is the "opportunity cost" of having funds locked up in a car vs investments). For the number of trips I take Uber ended up costing me about the same, but I lose a fair amount of flexibility in the process. Based on this I went without a car for about a year and used ride sharing services exclusively, but I found it to be more hassle for very minimal savings. (Some of the variables obviously depend on where you live though. ex: parking) The fact of the matter is that owning a used car that's 5-10 years old actually isn't that expensive. I purchased my current car for $8k when it was ~6 years old, and did the same for the car before that. Repairs have been basically non-existent, just the normal oil change every year or two (I drive a few times a month).

standardUser 7y ago

I live in a major US city as well. It would cost me around $300/month to park near my home, and hundreds more to park at my various destinations over the course of a month. I don't own a car outright - many people obviously do not - so that's another $400+ every month for a rapidly depreciating piece of equipment that will inevitably cost me additional money in maintenance and repairs in the years to come. And of course there is insurance, gas and registration. And once I'm spending this $1000/mo for the benefit of owning my very own car, I'd still be using ride shares or public transit anytime I'm going to consume alcohol. Instead, I spend maybe $50/mo on transit, $100/mo on ride shares and another $200 or so every other month to rent a car for a weekend (and on those occasions, I get to pick the car). Transportation, to me, is a minor line item in my budget. I never have to search for or pay for parking. I am never in a situation where I would be inclined to drive after drinking. My car can never be broken in to because it doesn't exist. It's actually a pretty sweet setup if you can pull it off.

glennpratt 7y ago

Situations vary though and this is just one more thing on the scales. I bike or ride the train much of the time (~10 miles). This is slower and has it's own costs, but also benefits. I work downtown and parking is not free. I find daily driving miserable (and I love cars). I rent a Home Depot truck whenever I need a truck, which is still probably less the $100 a year. Knowing I can get a ride in a pinch is just one more thing on the scales. This makes operating a family of four with one small, aging car perfectly reasonable. Friends and family from Texas and Arizona seem concerned we don't have 1.5 luxury vehicles per adult of course.