Do we need to Own a Car in Cities?

I DON’T think owning a car is necessary in cities. This is only my personal opinion – yours may vary. I know very few people will support me on this, but I need to say what I think. That’s what blogs are for, right?

Limitations of Owning a Car in Cities like Chennai – High Upfront Cost – I don’t think there is any car for less than 5 Lakhs in India. A decent car will cost you around 10 Lakh today and the price of cars is only increasing every year. There are umpteen other ways in which you can invest your hard-earned 10 Lakhs instead of owning cars whose value deteriorates by at least 20% once you buy them. High Fuel Cost – With petrol and diesel crossing Rs. 100 per liter in most cities, owning cars that give 10-15 KMPL is not exactly any savings. High Maintenance Cost – I am spending Rs. 5K to 10K for my 7-year-old motorbike for maintenance. Imagine how much more you’ll be spending for a car that costs 5-10x that value. Parking Space – In countries like India, there is very little parking space, especially in the cities. So whether you want to park at home or you want to park at someplace where you visit, it’s going to be difficult – sometimes impossible. People park cars outside their houses on almost every street in India, which only increases risks like scratches and theft, which again results in losses. Keeping up with the Joneses – You want to buy the latest and the more expensive car to score a point over your neighbor or colleague? Wait until yours will become obsolete in a couple of years. And then, you’ll be tempted to exchange it, spending money unnecessarily, again. Loan Trap – Want to take a car loan. If you’ve taken any loan in your life, you’ll realize that you are paying 2x-3x that value over the repayment term. That means, you are paying more interest than the actual value of the car! Why? The money that goes to the bankers could be spent elsewhere more productively. Availability of Alternate Travel Options in Cities – I have been using Metro Rail frequently although I have a bike – Metro is an excellent way to travel, if you have one in your city. Public Buses are a great option during non-peak hours. You can also explore Cabs and Autos for last-mile connectivity or even for the full distance. With a cab, you’ll pay less than just the bank interest for a car loan!

Those are just some of the points, but I am sure you can think of more. When I reapplied for my driving license as it expired some time ago, I just applied for the bike license renewal, not for the car. That was a conscious decision as I never drove a car for the past twenty years and don’t intend to drive one in the future as well.

Destination Infinity