We actually don’t stop to analyze what’s the current cost of driving a vehicle or the reason why transportation services provide those rates and prices for each ride. Car owners need to consider the whole cost of it, it is not just about gasoline, you also need to have a car insurance, take it to service and maintenance once every three or more months, buy some car accessories, etc. The current costs we’re going to read below make us think about which transport system we should use according to our earnings and the adequate budget we have.
Current cost of driving a vehicle:
• 0.20 Cents per mile for depreciation for the vehicle (assuming an average Toyota depreciates 2,500 bucks a year – been driven 12,000 miles).
• 0.16 Cents per mile for gasoline.
• 0.05 Dollars per mile on average for insurance
• 0.05 wear and tear (tires, oil change, etc.)
Total: 0.46 dollars per mile.
Let’s take this to the private transportation services we know like Uber, ShuttleWizard, Lyft, etc. which are actually known because of their low rates and good service. Depending on your utilization ratio, on average, your local transportation company spends around 0.75-1.50 dollar per mile on employee costs. Plus, passengers have to pay tips to the driver.
You also need to consider that a luxury vehicle depreciates on average 0.50 cents a mile, plus more expensive gas, more expensive insurance and premium parts on the wear and tear – can bring the cost up to 2.00 a mile. Also, luxury car drivers normally demand a higher tip and get paid more on an hourly basis.
Self-driving cars will completely remove driver cost out of the equation. For a standard vehicle, the cost could be slashed to 0.46 dollars per mile vs 1.59 dollars per mile. That’s a 71% decrease in cost.
For electric vehicles, the cost per mile of the gas-equivalent can be reduced by 3.7 cents per mile versus 16.0 cents per mile. That’s a 77% decrease in fuel cost. All-in-all, when you combine self-driving cars with electric vehicles, you can bring down the cost from 0.96 per mile to 0.38 dollars per mile.
What does all that mean? Here’s a good example: currently going from downtown Los Angeles to LAX airport costs:
Self-Driving + Electric Vehicle: $6.73
Self-Driving Car (gas powered): $8.14
UberX: $24-$32
LA Taxi: $72.77
Regardless of how much you spend on transportation each day, you know there are some ways you can minimize your costs.
You can use public transportation options (which are actually inexpensive alternatives) when going to work or when you are going to a crowded place with traffic and parking problems. There are other driving tips for saving gas like climbing slowly when or leaving the car in gear instead of turning it off.
You can also try to avoid eight-cylinder cars and buy a four-cylinder instead and drive through car pools when you can.
And finally, you know you can walk, use a bicycle or a motorcycle when you need to go somewhere nearby.
