Could you be better off using Uber than owning a car?

For many young Melbournians, Uber has become an important part of their daily lives. After entering the Australian market in back 2012, the ride-sharing service rapidly rose in popularity and has since become one of our most preferred methods of transportation.

While it’s easy to assume that owning an affordable car would make the most financial sense, new reports indicate that this may not be the case. For those living in the inner city suburbs, it could actually be cheaper to ditch your wheels altogether.

As we all know, the cost of owning a car extends far beyond the price tag – but exactly how much are we spending on our cars each year? As well as the unavoidable expenses like fuel, registration and maintenance, car owners also need to consider the added cost of insurance, tollways, parking, cleaning, depreciation and any interest on loan repayments should you not yet own your car outright.

If you live and work further out of the CBD, the price of tollways and parking might not be such a major concern, but if you’re based predominantly in the heart of the city, these costs can add up to thousands of dollars every year.

On the flip side, with Uber you simply pay for the trips you take – and that’s it. No unexpected costs like parking tickets, speeding fines or emergency maintenance, just the distance you travel.

As well as this, it’s also worth considering how much time taking an Uber can save you. Parking in the CBD can be a real challenge at the best of times, and being dropped off right where you need to be instead of circling around looking for a nearby place to park can save you endless hours of time and stress.

Furthermore, being a passenger rather than a driver allows you time to catch up on your work emails and follow up any business calls, or simply log in any life maintenance you might be able to do from your smartphone (pay bills, book appointments, etc.).

Ultimately, whether or not you will be better off using Uber than owning your own car will depend on where you live and where you’re likely to travel. If you’re based further out of the city or regularly visit more remote areas, you’re probably going to be better off keeping your car – but if not, you could save yourself some serious cash by kissing it goodbye!

For more great advice on how simple changes can help you cut down your spending, contact the expert team at Rising Tide Financial Services today and set up an appointment with one of our friendly financial advisers.

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