Let's take the example of an average middle-class Indian's dilemma. Let's say you want to buy a Honda City which cost 10 lakhs. Most of us own a car for 5-6 years before upgrading. If you assume 20% down payment, 8% interest rate, INR 15,000 insurance, and 500kms per month travelled, your total cost of ownership comes up to INR 9.71 lakhs post selling the car. This computes to INR 27 / km
Uber / Ola in metro cities is around INR 25/km based on my personal usage. When the destination is less than 2 km away, the price is around INR 35/km, 2-5 km its around INR 25 / km and greater than 5km its around INR 20 / km. Open your app right now to see what's your approx per km price and comment down below. It would be interesting to compare our metrics with thousands of people on social media.
If you take Uber, you save the 20% down payment which is around INR 2 lakhs. If you invest this 2 lakhs in a equity mutual fund and assume 12% returns you will end up with close to INR 4 lakhs at the end of 6 years. This brings down the effective cost per km to INR 14 which is half of the cost of owning the car.
If you travel more than 1000 km per month only then you break even but you lose out on time driving the car. There is also a money value associated with your time which can be saved if there is a driver taking you around.
➡️ Bottom line: Buying a car today just doesn't make financial sense considering we are all working from home and travel only on weekends. Run the numbers on my excel tool (link in bio) to help you decide whether you need to buy a car
➡️ Source: Moneysage, Economic Times, Ankur Warikoo
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#financewithsharan #uber #uberindia #marketingmind #carloan #personalfinance #investingforbeginners #moneymanagement #savemoney
2 years agoauthorsubhasis
Another example, how these idiots are misleading you. You never get to ride a car like Honda City in Ola and Uber. They mostly have second hand base model. Car loans are now cheaper to 7.10% and you don't even need to pay anything other than registration and insurance. Rest all expenses are included in loan. Uber and Ola are not available everywhere and at all time. Driving your own car is a lifetime experience which these cartoons never discuss Also, no investment can give you gaurantee of 12% returns consistently Like, I always say that there is a life beyond excel sheet
4 years agosequissential
Loved many of your videos, but not this :(Firstly the Mutual fund returns @12% are never fixed like this - market crashes and bad financial decisions need to be factored in, secondly if you look at prices today- mostly Ola and Uber have an ongoing surge- which by the way is expensive than 25-30km/hr. Over 6 years- these prices are not going to stay the same Ola Uber started with 9 rupees 6 years ago, they are already close to 3x and may follow the same trend. Buying a car is important - However at times, going to a certain place in cab is cheaper than your own car- for example places with a very high parking fee.
4 years agokausikmitra
Why are you assuming the cost of Uber would remain same thoughout the six years? 25/km can go upto 40/km in 6 years also consider the points like the drivers cancelling the ride, wait time etc etc. Isn't so simple
4 years ago_i_am_ammy__
Shitty idea. At night uber charges double price. During rain they might even ask for your kidney.
4 years agoabirghosh1977
How do I value the convenience of getting a ride when I want and not have to wait, beg and get insulted by these ola uber drivers. Forget emergencies at odd hours.
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