Car

Gasoline price increase: is it worth taking an Uber or owning a car?

With car and gasoline prices rising frequently, find out once and for all if it's better to use Uber or own a car, thinking about the health of your wallet!

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With gasoline prices rising, is it better to use Uber or keep your own car?

Ir de Uber ou carro? Descubra qual é a melhor opção com a alta da gasolina. Fonte: Pexels.
Uber or car? Find out which is the best option with rising gas prices. Source: Pexels.

The question of whether to take an Uber or a car started in 2016, when the app arrived in Brazil.

Today, five years later, with gasoline hitting around R$ 7.00, the issue is even more prominent. 

So, after receiving a series of questions from our readers on the subject, our experts decided to delve deeper into the matter. 

So, is it more worthwhile to own a car or to use technology to your advantage?

To find out once and for all whether it's better to use Uber or own a car, you only need to do one thing: read today's article. 

The 10 most fuel-efficient cars in Brazil

Find out which are the 10 most fuel-efficient car models in Brazil and compare the calculations to using Uber.

Is it more expensive to own a car or to use Uber?

Considering the price of fuel and the rates charged by the app, Uber is currently a viable option for those who drive very little.

In other words, that person who only travels from home to work.

People who travel an average of 10 km per day, totaling 300 km, benefit the most from using the app. 

Ultimately, even though paying for the ride costs more than paying for fuel, the cost of owning the vehicle exceeds the profit for both the driver and the platform.

However, for those who live a little further from work, or use the car for more trips, driving more than 30 km per day, having a car ends up being a better deal. 

When is it cheapest to use Uber?

Mas, afinal, quando escolher Uber? Fonte: Unsplash.
But ultimately, when should you choose Uber? Source: Unsplash.

Although many people don't know it, there's a calculator on Uber's website to answer questions like: Uber or car?

So, based on this calculator, a 5 km ride in the city of São Paulo costs on average R$17.97 on Uber X, the cheapest option on the platform. 

Therefore, to make this journey twice daily, the passenger would need R$ 1,078 per month, totaling almost R$ 13,000 per year. 

Simulating a second scenario now: a 15 km ride on Uber X costs R$ 38.27. 

Therefore, to make the journey twice a day for a month would cost R$ 2,296.20. In a year, the amount reaches R$ 27,550.00.

This is the cheapest way to get around by Uber.

Is it still worth owning a car?

Now that you know the cheapest way to get around using Uber, we'll show you if owning a car is worthwhile.

This is the best way to answer whether it's better to go by Uber or car.

So, let's now list everything a vehicle owner needs to pay.

So, here we go:

Fuel price

Avalie o consumo de combustível. Fonte: Unsplash.
Evaluate fuel consumption. Source: Unsplash.

Most of the time, the price of fuel is the main factor considered when deciding whether to take an Uber or a car.

So, let's analyze different scenarios.

One is for a person who drives little, an average of 300 km per month, and the other is for a person who drives a little more, around 900 km per month. 

Now, considering economical models: Mobi or Kwid, which are priced around R$ 50 mi and get about 13 km/l in the city with gasoline. 

Thus, considering the first example of 10 km per day, the cost of gasoline alone would be R$ 114 per month or R$ 1,370.00 per year. 

In the second scenario, for a driver who travels 30 km daily, the monthly cost would be around R$ 432.00, totaling R$ 5,200.00 per year. 

It is important to mention that for this calculation, our experts used the average R$ value of 6.25 for gasoline in the city of São Paulo. 

Vehicle tax, documentation and car insurance.

When discussing expenses, it's also necessary to include vehicle registration tax (IPVA), vehicle documentation, and car insurance in the list of car-related costs.

So, using the city of São Paulo as a base once again, the IPVA tax rate is 4% of the car's market value, which is approximately R$ 2 thousand. 

In addition, it is necessary to pay for the licensing, which costs R$ 85.24, and finally, the average insurance cost for the city of São Paulo is R$ 2,500.

Depreciation

When using the average annual depreciation basis of 8% on a car that costs R$ 50,000, we have a value deficit in the range of R$ 4,000. 

Although the owner doesn't spend this money, it ends up being lost. 

Maintenance

Continuing the discussion about the question: to go by Uber or car, it's necessary to take maintenance into account. 

In other words, maintenance includes expenses for inspections, oil changes, and routine repairs of all kinds. 

Thus, the stipulated value for drivers who travel 300 km per month is R$ 900 per year, and for those who travel 900 km per month it is R$ 1,400.

Extra expenses

Extra expenses are considered to be those invisible expenses. 

In other words, these are factors that often go unnoticed when calculating whether it's better to take an Uber or a car.

Therefore, these expenses must include parking and cleaning costs, which total on average R$ 300.00 and R$ 100.00 respectively.

The total cost of owning a car

Adding up all the expenses and costs of owning a car as we've shown, a driver who travels just 10 km per day spends an average of R$ 15,750 per year.

In the second scenario, driving around 30 km per day, the value rises to an average of R$ 20,600 annually. 

However, this calculation still needs to include what economists call Opportunity Cost.

In other words, the money that the owner loses by not investing that money in a monetary investment that could generate gains and returns.

It's important to mention that we are only showing the predictable costs of owning a car here.

But as many people know, other expenses arise.

Fines, mechanical problems, and repairs resulting from minor collisions are examples of this.

Now, if the idea is to finance a car, the financing costs need to be included in the calculations.

In other words, the amount paid to the bank in the form of interest.

Therefore, the final cost of owning and maintaining a car varies considerably. 

So is it better to go by Uber or by car?

The answer here will be somewhere in the middle: The truth is, it depends.

Going by car or Uber has advantages and disadvantages. 

The first major benefit of driving your own car is freedom. 

In other words, the vehicle is there waiting for you, regardless of what happens, you won't need to depend on a third party. 

However, with a car comes responsibility; you are subject to fines, accidents, and maintenance costs. 

Good and bad sides

Uber ou Carro: ambas opções possuem vantagens e desvantagens. Fonte: Pexels.
Uber or Car: both options have advantages and disadvantages. Source: Pexels.

It's also important to note that Uber has both positive and negative aspects. 

Having to wait for a ride is something not everyone enjoys. 

Furthermore, due to the high price of gasoline, many Uber drivers have been canceling and re-evaluating trips, which is causing inconvenience to passengers.

Another point worth noting is that Uber prices vary according to demand and time of day.

So, to avoid sitting on the fence, we'll state that, from a purely financial standpoint, it's better to take an Uber.

But if you're looking for comfort and convenience only, it's better to go by car. 

Buy a cheaper car and get more value for your money.

The fact that you have to spend a large amount of money when buying a car ends up being a major drawback compared to taking an Uber.

So now that you know whether it's better to take an Uber or a car, why not buy a vehicle for up to half the price?

Although it may seem absurd, our experts say:

It's possible to buy a car for up to half the price, and the way to do that is through a vehicle auction. 

So, to help you make this purchase and bridge the financial gap between Uber and a car, our experts have selected 10 auction website options for you. 

To discover these 10 options and ensure savings and convenience, simply click below. 

The 10 best car auction websites

Discover the 10 best car auction websites and enjoy the convenience that Uber doesn't offer.

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