Uber Technologies, Inc. (UBER)

Should I buy a car for freedom when Uber is cheaper and I work from home?

Many younger Americans are opting to forego car ownership in the era of ride-hailing. It’s not just costly to buy or finance a new vehicle in this tough inflation-plagued economy, but car insurance, gas (or charges if you’re using an electric vehicle), regular maintenance, oil changes, tolls, and parking (as well as the occasional ticket) really do add up. And while you can Uber (or Lyft) to most places in the city, one does forgo a bit of freedom to go on those spontaneous road trips or bulk hauls over at the local Costco. Indeed, with grocery delivery becoming the new norm for many young families and ride-hailing the new way to get around, I’d argue that the most economically viable move is to stick with ride-hailing rather than vehicle ownership. At the end of the day, it’s nice and flashy to have your own car, but it’s a liability and a very expensive one to park in your garage. While lifestyle should definitely play a major role in one’s decision to buy or keep ride-sharing, I do think that it’s just far more convenient to stick with ride-hailing apps than head on over to the local dealership to purchase something that could cost you a ton of phantom expenses and easily push you over your monthly budget. Key Points Owning a car is too expensive for many young Americans. Ubering remains the cost-effective way to go. If you have young children who need car seats or boosters, owning a car often outweighs relying on Uber to go everywhere. Are you ahead, or behind on retirement? SmartAsset’s free tool can match you with a financial advisor in minutes to help you answer that today. Each advisor has been carefully vetted, and must act in your best interests. Don’t waste another minute; get started by clicking here.(Sponsor) It’s not just cheaper to Uber (or Lyft). It saves a great deal of time as well. Indeed, it’s not just the sticker price of a vehicle that can sink an otherwise sound budget, but all the unexpected costs that arise over time. Negative cash flows, especially the ones that come from left field, may not just come with high opportunity costs, but they could cost a great deal in time (sitting around getting those tires rotated or those windshield chip repairs every couple of months). As the old saying goes, time is money. And for those who have an Uber One subscription, there’s ample cash to be saved by skipping car ownership and catching a ride or getting food delivered from your favorite restaurant. When it makes sense to own your own car rather than Ubering everywhere Indeed, for the many folks who work from home, there’s no morning commute to worry about, so the case for car ownership, I think, is a fairly weak one since most people own a car for transportation to and from work. With the rise of remote and hybrid work, one may need to show up to the office every now and then, but perhaps not often enough to make car ownership worthwhile. For a remote worker, I’d argue that the biggest reason for owning a car is not for road trips, as you could easily rent a car (believe it or not, Uber offers such services) for a few days if you’re keen on travelling state to state. It’s for those with large families and lots of children. Indeed, if you need to get a car seat or two attached for the baby, it can be pretty inconvenient to hail an Uber. Additionally, all those karate practices, swim lessons, drives to school, and more are something that would make an investment in a car worth the while. For an individual without children, I’d say sticking with Ubering is the best move. It’ll save you time, money, and won’t limit your freedom by too much, given that car rental services can fill in the gap for those who seek greater freedom to travel. However, if there’s a growing family, I’d say it just makes sense to consider buying a car for the sake of practicality. So, in short, I don’t think it’s a good idea to buy a car versus ride-sharing for a remote worker unless there are children who need rides. The costs of car ownership (even a used, budget one) are hefty, and they may not be worth the extra “freedom” they provide.The post Should I buy a car for freedom when Uber is cheaper and I work from home? appeared first on 24/7 Wall St..