If you live in a big city, you’ve probably heard this question: Why own a car when you can just use a ride-hailing service?
New research from travel organization AAA, which advocates for individual motorists, found that ride-hailing services actually cost more per year than owning a car.
AAA compared how much you will pay for both in 20 U.S. cities.
It turns out that the average cost to own a car is $7,321 per year not including parking charges, or $10,049 with parking charges.
Those tallies are based on owning a medium sedan, plus additional costs like gas and insurance. The calculation was also based on driving 10,841 miles annually.
By contrast, ride-hailing services cost $20,118 per year to cover that same distance. That calculation includes the usage of a rental car for longer trips. The average driver takes 2.1 road trips per year, according to AAA.
Those costs do vary by city. Here is a breakdown of how much you stand to pay for ride-hailing based on where you live.
*Includes the costs of rental cars for longer trips.
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Source:CNBC
