Skip the Second Car – Why Uber Rideshare Might Be Your Cheapest Ride

Just the Tip:

Before buying that second car, calculate your true annual ownership costs (payments, insurance, maintenance, parking, gas) and compare it to rideshare expenses for those same trips. You could save $5,000+ annually by ditching car number two.

Your spouse drives to work daily, but you only need wheels occasionally. Seems like second-car territory, right? Not so fast. Let’s crunch the numbers that would make your car dealer sweat.

That “convenient” second car bleeds money monthly:

• $400 car payment
• $150 insurance
• $150 gas
• $100 maintenance
• $100 parking
• $50 in registration and taxes

Total damage: $950 monthly or $11,400 yearly.

Consider one family that tracked their actual usage. Their second car moved just four times weekly – mostly grocery runs and weekend errands. At $25 per Uber ride, that’s $400 monthly in rideshare costs. Their annual savings by going car-free? A clean $7,000.

“What about emergencies?” Budget $2,000 yearly for unexpected rides and you’re still ahead by five grand. No surprise brake jobs, no parking nightmares, no watching your asset depreciate in the driveway.

Smart money move: Stack credit card rideshare rewards with Uber and Lyft loyalty programs. These perks slash costs further while you earn points on spending you’re already doing.

Here’s the reality check – a car sitting idle 90% of the time is just an expensive driveway decoration. Make it justify its existence or cut it loose.

Bottom Line:

Track your actual second-car usage for one month, calculate total ownership costs, then compare to rideshare expenses for those same trips. If rideshare wins, pocket the difference and invest it where it actually grows.