Do you often book an Uber or Lyft ride for work or school? A study suggested that it may be less expensive to own a car instead.
If you live in Utah, you may think that using a ride-sharing service such as Uber or Lyft will be cheaper, but it may cost you more in the long term.
The price difference between car ownership and paying for ride-hailing services not only depends on where you live, but also on how often you need to move around. The American Automobile Association’s study noted that it costs $18,866 on average per year to book ride-hailing services in Salt Lake City.
On the other hand, car owners spend an average of $7,321 to own and maintain their vehicle for 10,841 miles driven per year. This may include a budget for an automotive mechanic in Salt Lake City, the price of gas, and other miscellaneous expenses.
AAA Managing Director John Nielsen said that having your own car will be the cheaper option, especially for urban dwellers who drive for almost 11,000 miles each year. Those in Boston should particularly consider buying their personal vehicle instead of using Uber or Lyft.
The study ranked the city as the most expensive place for using ride-hailing services, with average costs amounting to $27,545 per year. Some may say that the numbers could be inflated, but it’s worth considering the frequency of your booked trips that can easily accumulate over time.
Driving your own car may seem to be the practical choice if you live in the city, where people move around a lot. Despite the convenience of booking an Uber or Lyft, think about adding the small amounts that you pay for these services. How much are you actually spending on ride-hailing services?