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Buying a car vs hiring a cab – which is more profitable?

Amitava Chakrabarty
Buying a car vs hiring a cab, car price, cost of hiring a cab, car maintenance cost, fuel cost, petrol price, car insurance, parking issues, parking cost, Cost of hiring a driver, loss of interest

Owning a car is always a matter of pride and also ensures swift movement-be it a short trip to nearby market or a long drive with family and friends. However, driving on over-congested or rather choked city roads is not only time and fuel consuming, but is also a risky thing that may even cause hypertension depending on your temperament.

However, if you don’t drive your car regularly and use public transport to avoid congested roads, you would have to spend more on repair and maintenance of the car to keep it in working condition.

Another big issue in cities is to get proper parking space, especially when you visit big markets and other congested places, and it’s again a stressful and time-consuming job to find a parking space. If you are unable to find an authorised paid parking space and park your car on the roadside, it will again give you tension due to issues like safety of the car or the fear of the car getting towed away.

To avoid such tension, you may hire a cab that will come with a driver, who will take care of negotiating peak traffic and there will be no parking issues and cost as well. Moreover, in metro cities, taking a flat with parking space and proper approach road would be Rs 8,000-Rs 10,000 more per month than taking a flat on rent without such facility.

However, hiring cabs are costly, and even having your own car comes with a cost.

Let’s calculate how much it would cost you to own a car to compare it with the cost of hiring a cab.

buying a car, hiring a cab

As per the calculation, per day cost of using your own car would cost minimum around Rs 1,000. So, unless you need to use the car extensively or need to carry important documents or heavy files everyday, using a cab will be cheaper if it costs less than Rs 1,000 per day.

It will be best for you to save time, cost and also to save the environment from vehicular pollution, if you can use public transport, especially metro while roads are choked. During odd hours or for leisurely trips, you may hire a cab.