Here's the math.

 

FM Nirmala Sitharaman said Millennials increasingly prefer to ride Ola-Uber cabs instead of buying their own car.

 

EMI of about Rs 9,000 (based on financing of 75 percent, for a loan of 5 years). Besides an upfront down payment of Rs 1,41,750, which works out to an amortised cost of Rs 2,362 per month. We are ignoring the opportunity cost of investing the same amount in a fixed deposit if you chose to not buy a car.

Fuel cost: Rs 8.17 per km (assuming mileage at 12 kmpl and petrol at Rs 98 per litre) Uber charges avg. Rs. 14.7 per km.   If you travel 1000 kms a month Rs 5000 more cost than having a car. 

Maintenance cost about Rs 417 per month  (Rs 5,000 per year) Depreciation cost: Rs 4,725 per month (assuming sale of the car after 5 years of ownership at 50 percent cost, or Rs 2,83,500).

Social media is being little unfair as the math shows that hiring Ola/Uber taxi is cheaper to own a car. As spent 60K extra every year on Ola/Uber which makes 15 years to complete 9 lac.  After 3-5 year you need to buy new car.

it make sense to just do Uber rather buying new car if your travelling 2000kms month.

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