The decision for owning a vehicle or using mobility services is unique to every individual. If you purchase a highly efficient vehicle for less than $25,000 and drive it more than 15,000 miles per year until it falls apart, then you should definitely own a car if your goal is to save money.
But, if you drive less than 10,000 miles per year, face long waits in traffic, or place a high value on your time that would otherwise be spent driving, our calculations show that mobility services might be the cheaper option. Geography can also play a role—it’s not a coincidence that there have historically been so many taxi cabs in New York City, where the high cost of parking and slow pace of traffic consume time and money.
As noted before on this blog, owning a car can be a substantial part of middle-class expenses. With their physical layout, the sprawling suburbs probably then do not make much sense for not having a car. Yet, those denser suburbs for the older millennials and companies hip to them may be the true spots where suburbanites can ditch their cars. A combination of walkability, some mass transit, and car sharing in these denser suburbs could be enough to push people toward limiting car ownership.
On the other hand, perhaps driverless cars will render this all moot within a short amount of time. Within ten or twenty years, few of us will even need to own a vehicle if we just buy into a car sharing option.