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Is it Better To Rent a Cab Or Buy a Car?

Buying a Car or Taking a Cab - Which Is More Cost-effective?

Wondering if it is better to rent a car or buy one? The best answer can be derived from calculating the cost of utilising this private and personal transportation. 

Follow this approximate tabular comparison to get a clear idea:

Particulars

Cost of Buying a Car

Cost of Taking a Cab

Price of an Entry-level Car

Starts from ₹ 6 Lakhs

Starts from ₹ 1,000 per day

Travel Cost (Daily for 50 km, monthly 1500 km)

₹ 5,38,680 (For 5 years)

₹ 13,23,000 (For 5 years)

Maintenance Cost

₹ 1,00,000 (For 5 years)

₹ 0 (For 5 years)

Insurance Cost

₹ 90,000 (For 5 years)

₹ 0 (For 5 years)

Approx. Total Ownership Cost

₹ 13,28,680 (After 5 years)

₹ 13,23,000 (After 5 years)

Tentative Resale Value

₹ 3,00,000 (After 4-5 years)

₹ 0 (After 4-5 years)

Money Investment After 5 Years

₹ 10,28,680

₹ 13,23,000

The calculations and estimations considered in the above-mentioned table are explained below.

Buying a Car or Hiring a Cab - Which Is More Convenient?

Car vs Cab: Which Gives More Freedom and Is Helpful in Emergency Situations?

Frequently Asked Questions