These Tools Can Tell You If Buying a Car Is Really Cheaper Than Uber

Depending on where you live, knowing which form of transportation is most cost-effective for you can save you hundreds of dollars a month. But is it public transportation, using a sharing app like Uber or Lyft, or buying a car? It depends on the circumstances, and there are tools to help you figure it out.

A recent SmartCapitalMind report analyzed data to estimate people’s average spending on vehicle ownership, sharing, and using public transportation. Their results showed that to cover equivalent distances—about 15,000 miles per year or, in the case of public transit, one round trip per day—Americans are likely to spend about $141 per month on public transit, $915 per month. for vehicle ownership. and $2,632 per month on sharing. Obviously there are a lot of factors to weigh here – someone who needs to drive 15,000 miles a year probably won’t choose to rideshare – this will give you very different numbers depending on your situation. With that in mind, here are a few tools that can help you calculate your own numbers and decide what’s best for you: ridesharing or owning a vehicle.

Calculate the cost of ridesharing

Not surprisingly, ridesharing – the most expensive option per mile – is three times more expensive than owning a car, according to the report. Interestingly, Uber was typically twice as expensive as Lyft, but both options were deemed cheaper than taxis. Of course, you need to run numbers for your region, as the cost differs depending on the city.

Uber offers a Price Estimator to help you calculate the cost per mile for your region. To do this, choose a meeting point, ideally your home, and a shared destination, such as your work. Use Google Maps to figure out how many miles you need to drive and write that number down for later. The app will automatically suggest three options for different types of vehicles and number of passengers, so choose the one you think will be used the most. Click the “i” next to the price and find the cost per mile .

Next, you need to calculate the average number of miles you will cover during the year. If this means daily commuting, use the number you got from Google Maps earlier and estimate any weekend or non-business travel. Multiply this by the cost per mile to get the estimated annual cost of sharing.

(For Lyft, you can use their pricing tool to find the total cost for the same trip from Uber. Unfortunately, there is no pay per mile option , but you can simply divide that number of miles you travel by the cost of the trip. on Lyft to get the cost per mile for Lyft.)

Calculate the cost of car ownership

To find out the cost of owning a car in your area, you first need to find the cost per mile for your actual car or the hypothetical car you would receive. Use this cost per mile driving calculator to determine your cost per mile. Enter the gas price at your local gas station or use the AAA Average Gas Price Tool for your area. Enter your vehicle’s miles per gallon – if you don’t know this, use the US Department of Energy search tool to find it. And finally, consider the value of your car—either the monthly payment or, if you can afford to pay for the car right away, the price divided by the number of months you plan to own it ( most people keep their cars for an average of eight years , according to recent poll by The Zebra).

Once you get the cost per mile of car ownership, multiply that by the number of miles you drive in a year (the same figure you used above when calculating the cost of sharing a car) and you’ll get a good idea of ​​how much you’ll be shelling out for the privilege of being driven around.

bottom line

Obviously, none of these numbers will be exact. These calculations require a lot of assumptions and estimates, and even some gut feeling – would you take extra trips if you had a car? The quality of life boost you’ll get if you can make sightseeing trips on weekends more easily is also valuable, but hopefully they’ll get you back on the starting line.