December 15, 2020
Which will save you more money in the long run – using a personal car for your commute and weekend trips or switching to ride-hailing mixed with public transport and car rental? We did the math.
It’s no news that a personal car comes with regular costs. But how big are they exactly? We took Suzuki Alto as an example to make the following calculations. Please keep in mind that depending on the car model, fuel consumption and other costs may vary.
On average, in Accra, you may spend around GHS 826 on leasing, GHS 1,050 on yearly repairs and maintenance, insurances take GHS 5,800 out of your pocket and as your vehicle is parked 95% of the time, you’ll need to invest in parking fees. Not to mention the amount of money that goes into the fuel tank and on keeping your steel horse clean.
Another thing we need to take into account to understand if keeping a personal car is financially feasible is the average car usage. For that, we created a coefficient that goes from 1 to 3:
In Accra, Kumasi, Cape Coast and Takoradi, this coefficient for an average person is 2.
Summing it all up, it equates to about GHS 1,934 spent on your car on a monthly basis.
But what if you switched to on-demand transport? Would you actually save money?
In Accra, the average monthly public transport cost per person is GHS 30. But you’d probably like to get out of town from time-to-time, wouldn’t you? For these occasions, you’d have to get a long-route public transport ticket for GHS 40 or rent a car. Based on a short scrolling session on multiple car rental websites, the average price for one rental trip is around GHS 250. It still amounts to far lower spend compared to the car costs described above.
Let’s add some extra convenience and introduce ride-hailing into the equation. We all need a car ride from time to time, right?
An average trip in Accra with Bolt is 8.1 km long and costs GHS16.
Taking into account the costs of different modes of transportation used for getting from A to B, daily distance, the money spent on car ownership and the price of travelling one kilometre, we estimate that an average person in Accra could save up to 39% on transportation costs by ditching their personal car and, for example, opting for on-demand transport instead. Switching from ride-hailing to micromobility would increase the saved amount even more.
That means you could save up to GHS696 on a monthly basis by giving up your car. That’s GHS 8,347 a year.
2021 is already knocking on our doors and that means it’s time for some New Year’s resolutions.
How does “This year I’ll spend 39% less on transportation and save that money for add the thing you’ve really-really wanted for a long time here” sound? Considering the unknown ahead, having to worry less about monthly expenses doesn’t seem too bad either. Or, if you’re not into the money talk, perhaps a change towards a more eco-friendly way of life would inspire you.
Ride smart, ride with Bolt.