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Buy a car vs Uber vs GoGet | What’s cheaper?


So having a car in your driveway can be a
great status symbol, people could be quite impressed by your ride. But it’s quite expensive
to have a car sitting there and doing nothing most of the time. Now in Australian cities,
there’s a lot of alternatives to owning a car such as Uber, and GoGet but when is it
cheaper to go for one of those, aside from owning a car, and when is it cheaper to just
own a car, we crunch the numbers. This is how it turned out. So before we get into the
results, let’s have a little look at what we did. Here we looked at the cost of owning
a car with a car loan, grabbing a GoGet or grabbing an Uber for various numbers of
trips of various length every week, we didn’t include costs of parking spaces, or cost of
tolls that will be extra in every case. For owning a car, we looked at the cost of a $10,000
car with car loan. We also bundled in your day to day costs with that car. So we also included
the cost of fuel, registration fees, compulsory insurance and also servicing. It used to be that Uber was the only game in town when it came to rideshare in Australia but now there’s lots of alternatives such as Bolt and DiDi and Ola depending on where you live. But they all tend to copy Uber’s pricing model generally, so we use Uber’s pricing model in this analysis. We did not include surge so if you get an Uber during a busy time,
costs could be even higher. So the third alternative here is car sharing. The way this works is that a company will have cars in your area in dedicated parking spaces ready to drive.
You pay a subscription and then once you hop in the car, you pay for the time that
you spent driving. GoGet is the biggest player in this sector right now. And they have various
different subscription models depending on how often you want to drive and the car that
you want to drive. In this analysis, we pick the cheapest GoGet plan in every single case. So which option is the best value? Well, unsurprisingly it depends on how often
you drive. Here we looked at three different profiles of drivers to see which is the best
option in each case. For infrequent drivers driving half an hour, twice a well GoGet actually turns out to be cheaper than an Uber at $1300 versus about $3500 for Uber for those infrequent trips, and nearly $4000 in a car So if you’re only travelling
infrequently GoGet’s actually a lot cheaper than grabbing an Uber. If you’re travelling a bit
more regularly – six trips a week. So this is somebody who works from home, most of the
time, who travels maybe at the weekend. And once during the week. In this situation, GoGet is still the cheapest at $3500 But when you’re doing six trips, it’s
the sweet spot only car starts to become better value $4500 for owning a car
in this situation versus $11,000 for an Uber. But what about those who drive more regularly?
Well, if you drive 12 trips a week, so this is somebody driving to and from work and maybe
driving once to the weekend. This is where owning a car really comes into its own. A
car in this case will cost you just over $5,000 a month versus nearly $7000 for a GoGet and
a huge $21,500 for an Uber. Those are all for 30-minute trips but if
you’re driving longer we’ve also run the numbers for 60 minute trips. You can find more details
of that in the link in the description. So which is the best for you? Well, obviously it
depends on more than just price. GoGet and Uber also offer convenience. Uber’s available
whenever you need it GoGet it means you don’t need a parking space. And they’re cheaper
for fewer trips. But as you’ve seen if you drive longer or more frequently, or indeed
if you don’t live in a city or near a CBD, these options might not be available, so car
might be the only way to go. If you’re a daily commuter owning a car really is the only way to go. And if you can’t afford to buy one outright, you can always get car loan. This
cost about $200 a month and are included in our costs here. Obviously, you’re going to
need to make sure you get a good interest rate. So compare all the loans on the market
on finder.com.au. And if you want to see more breakdown of the numbers we discussed
here, you can also check out the insights blog on Finder which will be linked in the description.

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