Is it really necessary to own a car?

Greetings, all members of the India’s most friendly car community. I have been thinking about the necessity to own a car. Not everyone out there needs a car. I know a car is an object of passion to many and lot of people here love driving. But I am writing this article for people who don’t travel more than 500 Km a month in their cars. 

Is it really necessary to own a car?

Total cost of car ownership

When we are buying a car for a monthly usage of about 500 km, we initially invest a sum of say about Rs. 5,00,000. This is considering that for a mere 500 km a month not many would invest in a diesel car. Let us consider that the car delivers a mileage of 12 kmpl in the city traffic. The total cost we would be spending on fuel is close to Rs. 36,000 per year (considering the cost of petrol at Rs. 72 a litre). For five years, the cost of fuel adds up to about Rs. 1,80,000.

Now also take into account maintenance of the car. The regular maintenance would cost us at least Rs. 10,000 a year. So for five years the total maintenance cost would come close to Rs. 50,000.

Summing up all these expenses, the total money we spend on our car will be close to Rs. 7,50,000.

Total cost of hired transport

Now let’s see how that figure compares with using hired transport.

The call taxi business is growing very fast with a lot of competitors in the market. For comfortable travel, if we hire a Maruti Suzuki Dzire or Mahindra Verito (Renault Logan) with AC, we have to pay about Rs. 18 per kilometre. So for 500 km a month for five years, we will end up spending Rs. 5,40,000.

In addition to this, we need not worry about parking the car or regular maintenance. We need not worry about the traffic conditions or driving, and we get the peace of mind of sitting quietly and travelling, allowing us to use that time more productively, although we do lose a bit on the privacy front.

So from this basic calculation, we save a sum of Rs. 2,00,000 over a period of five years by refraining from buying a car and travelling by call taxis alone. The savings are greater if you use other forms of transport.

Please do this basic math before investing your hard earned money on a car. Share your thoughts on this.