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Taxi's are cheaper than driving your car daily to work


derik

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I live 15 km from my work place and drive daily for 5 days a week. While thinking of selling my car and going for another car, I realize to do some interesting math that I like to share with you all and seek an opinion on "WHY DO YOU BUY CAR?"

COST OF REAL OWNERSHIP OF CAR

All calculation are based on 1 year of car ownership of 100K AED car, to make math simple:

  • 30 Km / day X 20 days / Month = 600 Kms / Month = 7,200 Kms / Year.
  • Fuel cost: 14L / 100 kms = 7 kmpl = 7,200 / 7 = 1,028 liter / year = 1,028 x 1.78 AED / Liter = 1,830 AED / Year
  • Insurance = 3,500 AED / Year
  • Car wash and maintenance = 2,000 AED / Year
  • Parking = 4,500 AED / Year (based on new RTA rates now)
  • Registration = 500 AED / Year
  • Salik =  2 crossing per day = 8 AED x 240 days = 1,920 / Year
  • 1 year car depreciation = 15% = 15,000 AED.

Total Running Cost: 1,830 (fuel) + 3,500 (Insurance) + 2,000 (Maintenance) + 4,500 (Parking) + 500 (Registration) + 1,920 (Salik) = 14,250 AED / Year

Total Cost of car ownership: 14,250 (running cost) + 15,000 (depreciation) = 29,250 AED / Year.

 

RIDING TAXI DAILY

  • 240 days per year X 54.07 AED (as per RTA taxi calculator) X 2 (both directions) = 25,954 AED / Year.
     
  • trip.PNG

 

Though this math is very interesting, but it's VERY FUCKING DISTURBING to see that riding taxi's in Dubai is lot cheaper for work than our own car.

I can actually sit at back and take a 15 min power nap twice daily than fighting with traffic. I can listen to music / watch movie / podcast anything I like.

I don't have to worry to find a car park every day and walk for few meters in hot sun and bake myself in heated car for 10 minutes, and at end of 15 mins I reach home with sweated back.

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Can't believe my eyes seeing this cost comparative and checked your numbers twice and its almost same and I am also started feeling same what you are feeling. I hate you derik.

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Well, I think this math is good for people driving less than 20 km to work within Dubai, but not for people driving more than that and that too from Sharjah to Dubai daily as it will add 20 x 2 = 40 AED daily by taxi fare + the usual fare.

Cars My passion :mrgreen:  :ugeek:

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It's crazy when you sit down and think about all the costs of car ownership added up but on the other hand you can't go for a random cruise to wherever you want when you're on a bus. You're pretty lucky when it comes to fuel costs here in the UAE though. Back home, I was paying the equivalent of 7-8 AED for a litre of petrol. Not much fun when you're driving something that's maybe only getting 10-15 MPG. I've also noticed how cheap public transport is here. I can take the Metro from here to the office for 3 AED whereas back home the same journey would probably cost 5 times that. 

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Do the math with 50K - 3 year old car and whole math will change as that's what you get in Dubai taxi's - 3 year old, 400000 kms camry that was worth 70 when new and now not even 17K.

I agree to the comfort of not driving and fight in traffic, but I do't agree to compare my car with taxiiiiiiiiiii. That's not far.

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Derik, you are right but nothing can beat the comfort of your own car and feel of driving when you really love your car.

Girix, your explanation was bang on mate and I wouldn't sit in cab unless and until I have to during clubbing time or airport pickup.

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Derik, if transportation is the only thing you look at daily drive then you are better off with the Taxi's. Not only for the slight cost saving, but big time for hassle saving.

However, if you live on taxi's only then you should have factored the weekend as in two off days sometimes we drive and cherish our cars more than 5 days of travel, km's and utilization for long road trips, family outings, mall hopping and what not.

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