When you ask anyone – ‘Which is cheaper? Buying a car vs Ola or Uber ride?’, most of the people will have a different opinion. In this article, we have shared our thoughts.

At a press conference which happened in the last Tuesday, Finance Minister Nirmala Sitharam said that the millennial prefer to go through Uber and Ola rather than buying their Car. This is because the option is much cheaper and affordable for the current generation. 

According to the finance minister, it was said that the youth today would rather spend a load of cash on booking an Uber or an Ola other than paying long term EMIs for buying their vehicle. And this statement has created an uproar among the working individuals and even the mentioned names of the automobile/transporting service system since they reportedly said that they have nothing to do with the slowdown in the current industry’s plans.  

According to recent reports, it has been said that the makers and the top-level managers of the Maruti Suzuki have noted that the existence of the Ola and Uber has been there for the past seven years. During the peak time, there was no such slowdown in the current condition of the automobile business. They have said that they do not think that these services are responsible for the slowdown in the industry in any other way.  

A personal opinion shared by the people who use ridesharing plus a car

But have you given it a thought? Is it true that traveling via Ola or Uber will help you to cut down your costs more than paying the personal loan for your Car? As the service of Ola and Uber is growing in the market, some are wondering which might be easier to hail. Getting a car of your own is undoubtedly a cherry on the top, but somehow you have to understand that getting a vehicle is not the final thing that happens here. 

You have to take care of the loan and the EMI budget of your Car so that it can be done at the right time and paid off. It will help you to ease off your burden. This complex question is rising in the minds of the millennial, but we might help you to get an insight into the matter and take it sincerely. 

Owning a car is better for long term rides, sharing a ride will be good for the short term. It is a golden rule that you should learn from this article. 

Here is the main deal. If you have a car of your own, then you can take it for a ride at any time of the day that you want. Primarily they are needed when you want to travel and cover the long term.

Car ownerships might be affordable for people who drive typically medium to long-distance or about 20km. Whereas, the ride-sharing apps like Ola or Uber happens when you want to cover a short span of about 7 km. However, these findings are based on some back details as well.

The cost of the Car that you have depends on the on-road price of that car that you have bought, the fuel price that you have to pay for it. The maintenance charges are even varied here.

To explore this part of the question, take for example that Datsun Go is for Rs 3,50,000 – 5,20,000 and it takes about a 5-year car loan with a whopping amount of 10% of the rate of interest. Over that, you need to have six years of maintenance for that Car when the full cost is covered onto the same. There are some potential car issues which can happen here as well.

For the medium or long trips-owning, a car wins

For an individual who trips on the basis of the medium or the long trip wins here. We ‘have also found the fact that owning a car is about 44% cheaper than sharing a ride if you cover the long-distance or even the mediocre ones.

Short trip rides- the cabs win

Rideshare is in for short trips. We have found out that typically people who take journeys of about or less than 10 km wins on the Rideshare here. It becomes 24% cheaper for them. If your twice-daily rides are about for 7 km, which means one ride will time up for 15 minutes, the Rideshare or the app cab will win here. Due to the lower distance of your trip, the 5-year cost plan for your Car decreases by a rate of about 25%, and it can save a lot on the fuel consumption here.

However, in the current period, the cost of an Uber or Ola is becoming cheaper by 56%. It illustrates the fact of how you use it and how much consumption is made from your side.

Also read: How much does a Wedding cost in India? (For Average Indians)

Is Rideshare the right replacement for you?

The final verdict says that Rideshare is only a feasible replacement, for the people who want to have a shorter distance of their ride. If you are a typical short distance traveler, then the Rideshare will be a viable option for you. Of course, the cost consideration which is charged varies on your location and even the individual who is paying for the same.

If you have your Car, you can take it out on a trip if you want. You can even cover the longer distance if you wish to so with the help of your Car here. Of course, there are parking tickets you have to pay, regular maintenance of your vehicle, take your vehicle to the car wish, etc. But it will be an excellent option to invest in if you are an avid traveler.

Mainly if your place of work is situated far away from where you live, it is essential that you get a car of your own. If you use the Rideshare each and every day here, it will cost you a lot.

Additionally, you can even supplement ride sharing to motorbike ride-sharing apps like Rapido. They will cost you less. And also purchasing your motorcycle is a much cheaper option for vehicle ownership.