Is Owning a Car the Economical Choice?
It’s no surprise that the most common mode of transportation in America is citizen-owned vehicles.
The average American family has at least 2 cars, and most of them were purchased new off the lot!
Upwards of 17 million new vehicles were purchased this year.
In America, buying your first car is seen as a rite of passage. A present on your 16th birthday. The fruits of your summer job labor. A bonding experience with your dad.
But that is what the car industry wants you to believe–that cars are what make you an adult.
But you know what’s really indicative of maturity? Running the numbers and weighing your options.
Most people who make the investment on a brand new car say that they will save money in the long run. That newer cars are safer than old cars. And that it teaches responsibility. But check out our article on road safety to see some shocking statistics about car accidents.
The truth is that using public transportation can save you a substantial amount of money.
But don’t take my word for it. Let’s do the responsible thing and look at the data.
According to dealerships across the nation, Crossover SUVs are the most popular vehicles right now, and their popularity is on the rise.
The average price of a crossover SUV is going to spike to $34,000 in 2019!
Luckily, you don’t have to pay all of that upfront. But there’s an expected 20% down payment, which, in this case, is a whopping $6,800. Right out of pocket.
Then you have your monthly payments of about $425. And don’t forget about the interest you pay on financing–which, currently, sits pretty at a minimum of 4.9% for those with excellent credit!
The average insurance payment is about $1,100 (and that’s if you have never been in an accident.)
You usually don’t have to pay for repairs for a while, but once your warranty ends, AAA estimates that most cars need about $100 of maintenance a month. Think oil changes, tire rotations, heat or AC.
Once you have your car, your insurance, and everything is in driving condition, you have to fill that tank up in order to hit the road.
Gas tanks for crossover SUVs can hold about 18 gallons. Gas is averaging at about $2.25 per gallon. So it’ll cost you roughly $40 to fill up every week.
Altogether, 1 month of owning a brand new car will cost you $1,725, after the initial investment is paid.
But let’s say you chose to use a professional ridesharing service like Global Sedan. Not only are you riding in safe style, but your driver has also gone through extensive background checks and is fully insured for your safety. To see our standards for our drivers, click here.
City dwellers typically only drive to work. Their average commute from their apartments to their offices is 8 miles round trip.
A trip that short with Global Sedan would only cost about $18 if you opted to carpool with other people who are headed your way!
That’s $90 per work week and $1350 a month! – Imagine what you could do with that extra $400.
The numbers don’t lie, folks. Using Global Sedan can save you $4,800 a year on top of saving you stress, the hassle of traffic, and the nightmare of finding a place to park.