Owning A Car Vs. Riding A Cab: Making The Right Choice

Purchasing Versus Riding A Cab
The ongoing debate on buying a car or using a cab has intensified. Each option has pros and cons; the right choice depends on your circumstances and daily travel needs. We can help you figure that out. Now, let’s explore the long-term effects of both options.

The Guidelines
To determine the actual costs, we need to calculate the per-kilometer expenses for driving a car and taking a cab. While cab costs are readily available on their websites, evaluating car expenses involves considering purchasing, upkeep, comprehensive insurance, and fuel over its assumed five-year ownership and usage.

Cost Of Car Ownership
Assuming a conservative vehicle cost of Rs 6 lakh and a monthly journey of 1500 km with diesel priced at Rs 67 per litre, the estimated fuel expense over five years would be approximately Rs 4,02,000.

Let’s now examine our next expense, which is upkeep. The entire cost should be Rs 20,000 per year if you drive safely. That would equal about Rs 1,000,000 over five years.

Indeed, you would only hit the roads with comprehensive car insurance. An annual premium for a car in this range is approximately Rs 18,000. Over five years, the total cost for a comprehensive insurance plan would be around Rs 90,000. Calculate the Bajaj Allianz car insurance premium for any car using a car insurance calculator if you’re curious about the calculation.

Let’s now sum everything up.

The total cost of owning a car for five years equals the purchase price plus insurance, fuel, and maintenance. Car insurance renewal online needs to be done each year on time. You can do so using an app for car insurance.

Rs 11,92,000 is Rs 6,00,000 + Rs 90,000 + Rs 4,02,000 + Rs 1,00,000.

If you don’t plan to use the car after five years, selling it with a 20% annual depreciation would yield around Rs 2.6 lakh. Consequently, the net cost of owning the car would be Rs 11,92,000 – Rs 2,60,000, totalling Rs 9,32,000.

The Price Of Using A Cab
A taxi ride at Rs 12 per km for a monthly travel of 1,500 km amounts to Rs 18,000 monthly and Rs 10,80,000 over five years. Note this doesn’t include surcharges or late-night fees, which can increase costs significantly, especially with additional trips each year.

Advantages And Disadvantages
Car ownership provides travel flexibility, especially for short distances and challenging conditions. Driving offers safety but involves additional costs, traffic challenges, and parking issues. Taxis spare you from driving hassles, enabling productive use of travel time for work, reading, calls, or relaxation.

The Ultimate Decision
Buying a car outright can be cost-effective and flexible if your monthly travel is substantial (1500 km) due to work or personal reasons. It saves money, offers relocation freedom, and ensures coverage under comprehensive car insurance for you and your loved ones. Make sure to do the process of car insurance renewal online on time. *

Get insured anytime, anywhere! Check out Bajaj Allianz General Insurance website to learn more and download the app now.

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