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Is Buying A New Car In This Uber-Ola Age Financially A Good Decision ?

| Published on December 27, 2017

Owning a car can be very costly for those who don’t have the habit of saving money from their monthly earning. But, does it really makes sense to buy an expensive car when we have the options of cab services like Uber and Ola. These companies are working to satisfy their customers by introducing new plans like sharing the ride to make their services affordable for most of the people in society.  We tried to actually know what is the better option between buying a new car and using the cab services for our daily usage.

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An average car in India costs around Rs 6 lakh and its value after 6 years of usage comes down to only Rs 1 lakh normally. There are about 2200 days in 6 years, so, if we divide this loss of Rs 5 lakh with 2200 days it equals to a loss of Rs 230 per day. Plus there are many more expenses that one has to spend to drive a car on Indian roads. The main expenses among these are petrol/diesel cost and insurance cost which is around Rs 15,000(Rs 41/day) per year.

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Along with these charges, one normally has to spend Rs 25,000(Rs 23/day) every three years on the battery and tyre changes, plus maintenance charges of around Rs 9000(Rs 25/day) in a year.  Now, you all should be knowing the fact that financial institutions like banks give us interest if we deposit our money in it. The average interest of a bank is around 8% per annum which can be deduced into Rs 131 per day for the principal amount of Rs 6 lakh.

The daily expenditure on a newly bought car comes around Rs 850. So, if you spend less than Rs 850 in a single day by using cabs for your daily tasks then you know what is the better option in buying a new car or taking cabs for rides. We know that many readers will provide several benefits of owning a car but we covered only the financial segment of the dilemma.

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