The average new car loan recently hit a record of $31,455 in the United States and the increasing cost of new vehicles has pushed a number of consumers to look for more affordable options.
Services like Lyft and Uber are one alternative as they enable users to avoid a costly initial purchase as well as related expenses such as fuel, maintenance and insurance. Of course, they also have a number of downsides as rides might not be available when you need one and they can be expensive during peak times.
Ride-sharing services are popular in large cities and a recent report suggests they could actually be more affordable than car ownership in a handful of locations. As noticed by TechCrunch, Kleiner Perkins’ 2018 Internet Trends report says using Uber is a better option than owning a car in four of the five largest cities in the United States.
According to the report, New York City is the most expensive place to own a personal car as weekly transportation costs – including gas, maintenance, insurance and parking – would be $218. For comparison, using Uber would only cost $142 a week.
Chicago, Los Angeles and Washington D.C. are significantly more affordable in terms of car ownership and Uber usage, but the ride-sharing service still has the edge. Depending on the city, using Uber could save people between $27 and $39 per week. That doesn’t sound like much but it could add up to nearly $2,028 a year.
The only major city to buck the trend was Dallas where using Uber would be nearly three times more expensive than using your own car. As the report notes, using a personal vehicle in Texas’ largest city would only cost $65 a week while using Uber would be $181.
Everyone’s situation is different but it’s no secret that parking in major cities can be expensive. In particular, someone was trying to sell a parking spot in New York City for a million dollars six year ago.