Archive · 8 Aug 2025
The Real Cost of Car Ownership vs. Alternative Transport
Imagine buying a car, but only using it sometimes.
A man bought a car for Rs 12.8 lakh and paid a big amount upfront and monthly payments.
The car cost him about Rs 3.2 lakh each year because of the loan, gas, insurance and services.
But he didn't drive it much, only on weekends.
If he had used Uber or rented a car, it would have been much cheaper, around Rs 90,000 per year.
This shows that owning a car can be expensive, especially if you don't drive it a lot.
It's like paying a lot for something you rarely use, while a taxi or rental would be cheaper.
A client of CA Abhishek Walia purchased a car for Rs 12.8 lakh with a Rs 2.5 lakh down payment and Rs 21,300 monthly EMIs.
The client used the car primarily on weekends, leading to an average of eight drives per month.
The annual cost of owning the car, including EMI, petrol, insurance, and services, totaled around Rs 3.2 lakh.
The cost per drive was approximately Rs 3,300, without considering the down payment.
Using Uber or Zoomcar for the same trips would have cost about Rs 90,000 annually, significantly less than car ownership.
- Who
- CA Abhishek Walia's client who bought a car and the analysis performed on his expenses.
- What
- The high cost of owning a car with low usage compared to alternatives like ride-sharing or rentals.
- When
- The analysis was done recently, after a client purchased a car.
- Where
- The information is based on an analysis shared on LinkedIn.
- Why
- To highlight the financial implications of car ownership versus alternative transportation options.
Car Ownership
Alternative Transportation
Cost vs. Status
Car Ownership
Provides status and convenience for those who value ownership.
Alternative Transportation
Offers a more cost-effective transportation solution, particularly for low-frequency users.
- Car Price
- Rs 12.8 lakh
- Down Payment
- Rs 2.5 lakh
- Monthly EMI
- Rs 21,300
- Annual Car Ownership Cost
- Rs 3.2 lakh
- Cost per Drive
- Rs 3,300
- Alternative Transportation Cost
- Rs 90,000 per year
- Usage
- Approximately 8 drives per month