The advent of app-based cab services such as Ola and Uber are making more and more people wonder if it is better to buy a car or take a cab for travel. Both have their pros and cons and hence, it is very difficult to conclude which is better. For instance, hailing a cab is a good idea if you wish to avoid driving in peak traffic or bad roads while buying a car is a good idea if you do not want to rely on cabs to move around.
In this article, we shall discuss both the pros and cons associated with buying a car and taking a cab. By the end of it, you can take a call on whether you should buy a car or take a cab, based on which option appeals more to you.
The most important factor that most of us consider before deciding whether to buy a car or rent a cab is the cost-effectiveness. To understand which option is better in terms of cost, let us make a tabular comparison:
|Particulars||Cost of Buying a Car*||Cost of Taking a Cab|
|Cost of Vehicle||Rs.5.6 lakh||0|
|Daily Travel Cost (for 30km)||Rs.1.6 lakh||Rs.6.6 lakh|
|Insurance Cost for Additional 4 years||Rs.60,000||0|
|Maintenance Cost for 5 years||Rs.60,000||0|
|Total Ownership Cost||Rs.8.3 lakh||Rs.6.6 lakh|
|Resale Value||Rs.3 lakh||0|
|Money Spent After 5 years||Rs.5.3 lakh||Rs.6.6 lakh|
*Price of basic model of Wagon R
The cost of taking a cab has been calculated by taking into consideration that you travel to work for 22 days and travel 30 kms daily.
From the above table we can say that owning a car is cheaper than taking a cab and at the end of it, you have the ownership of the car whereas when you take a cab, you do not own any vehicle even after spending so much.
The answer to this depends on your usage and a lot of other factors. If you are taking a cab for your daily commute to the office, you cannot rely on it especially during peak hours. However, if you buy a car, you can use it to travel to office daily without the hassle of booking a cab, coordinating with the driver, waiting for the cab to arrive, etc. Also, during peak hours, the prices of the cab may go up by as much as twice the original fare. So, you may end up spending more when you take a cab daily.
Having said that, if you are a person who does not like driving during traffic and bad road conditions, taking a cab may be ideal for you. When you take a cab, you do not have to worry about finding a parking spot for your vehicle which these days, can be quite difficult. The other benefit of taking a cab is that you can sit back, relax, listen to music or read a book while someone else does the driving.
Taking a cab may not be the best option when there is a medical emergency. You cannot afford to wait for a cab in times of medical emergencies when you need to get to the hospital as quickly as possible. In such situations, having a car can help save the day. Owning a car gives you a sense of freedom by enabling you to travel anywhere, anytime, as per your convenience. For many, owning a car is also a status symbol.
Now that you know the advantages and disadvantages of buying a car or taking a cab, you can make an informed decision. If you do not want to take the trouble of driving or do not know how to drive, you can take a cab. However, if you are the kinds who like to drive around and travel frequently, buying a car is a good idea. In case you have decided to buy a car, you can avail a car loan from BankBazaar at attractive interest rates and drive around at your convenience.
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