Taking Grab or Car-sharing services have been an increasing norm seen in recent years. With COE increasing and public transports being more busy since the easing of safe distancing measurements, commuting has been more of a hassle since the traffic has started to pile up, and public transportations has been getting more packed than usual.
During the pandemic, commuting spending dipped as commuters were more wary of heading out, in fear of contracting the virus. It was seemingly preferred for one to hail a taxi or order for a Grab than to squeeze through crowded trains and buses. However, with activities going back to normal, one would consider if it is financially advisable to continue our spending and commuting habits via car-hailing on a needs basis? Perhaps, car rental could be a viable option to consider as commuting habits and preferences change, and that it is more hassle free than you think it is!
How to Calculate the Cost of Utilising Ride-sharing Modes
Taking finances into account could be one of the more important components of your decision making process. Hence, we have provided you with a rough breakdown of the car rental prices as compared to an average spending on commuting if you were to commute around Singapore in a Taxi/Ride-sharing Application in a month.
P.S.: This excludes other extraneous fees like car park fees, ERP, and petrol, which varies from person to person.
Amount of money spent going to work (assuming 20 working days) and with 4 nights out in a month:
Assuming the amount from home (non-mature) to work (town area) = $30/trip
To and fro from office – $30 * 2 = $60
1 TGIF/week (entertainment after work) = $30
($60 x 20) + ($30 x 4) = $1320
Amount of money spent commuting on the weekends (assuming 4 saturdays and 4 sundays) in a month:
Assuming the amount from home to a supermarket 10 mins away = $15/trip
Grocery run once a week (to and fro): $15 * 2 = $30
Grocery run month: $30 * 4 = $120
Grocery runs/ month: $120
Assuming 1 family outing per week:
Assuming the amount from home to a place of interest= $20/trip
Family outings/weekend: $20 * 4 = $80 (assuming going to town, and cabbing to another location)
Family outings/month: $80 * 4 = $320
Family outing commuting, 4 times a month: $320
Assuming $20/trip for 4 additional Ad Hoc Errands/Trips per month:
Additional ad hoc errands/trips per month = $30 x 4 = $120
TOTAL (Car-Sharing): $1320 + $120 + $320 + $80 = $1840
How to Calculate The Cost of Long Term Car Rental?
Typically, car rentals are charged based on a daily, weekly or monthly basis.
Short term car rental packages could go for an average of $80 – $180/day. However, for longer periods of rent (i.e. weekly or monthly), it is recommended to go for long term car rental as one could see the price of the car drop to about $40 – $60/day.
For long term car rental (per month): $46 (on ave) x 30 (days) = $1380.
The Best Bet?
With simple math, taking any form of ride hailing would cost you on average a whooping $1840/mth. Barring this calculation has not taken into account the price hikes during peak hours and increase in fair prices due to the surge in oil prices. Regardless of choice of commute, one may also have to take note of the variable ERP costs, parking fees and petrol costs, which are dependent on your commuting habits and needs. We all know that financial considerations are not the only reason why car rental triumphs over other commuting modes, but it is a worthy point of deliberation nonetheless.
It is cautionary to also take these numbers with a pinch of salt, and to tabulate one’s own baseline of commuting expenditure. However, it is clear that taking the financial aspect of car rental vs cab-hailing into consideration, car rental would be an option if it costs below $1840/mth, and indeed, it is doable with some models and make of cars up for rent!
Other Pros of Car Rental To Consider:
Car Rental for Its Flexibility
If you’re not sure whether you need a car on a regular basis, consider a short term car rental. Flexibility in timing is a key point of interest as car rentals can be done on a daily, monthly or yearly time frame, and perhaps one time frame of rental could triumph another. Additionally, you would also be able to try out different car models, or select car models that are more friendly to your wallet.
However, one thing is for sure that the best part of getting a rented car: not having the issue of long waiting-time to hail a taxi, especially during peak hours, due to shortage of drivers.
Financially efficient – Pay for what you use
Compared with car ownership, time spent not driving the car is money wasted having the car sitting idly in the car park. With car rental done on a daily, monthly, or yearly basis, the car is being fully utilized and one gets to fully maximize the time and benefits of having a rental car. Not to mention that other miscellaneous costs are not incurred by the customers but are taken care of by the car rental company!
In Conclusion: To Rent or Not to Rent?
Be it a long-term car rental or a short-term car rental, both financial and non-financial considerations play a part in the final decision making. BizLink Rent-A-Car would like to extend our support in helping you find the most suitable car rental package that best suits your financial and personal needs of commuting. Speak to our friendly sales associates at 6285 6616 to enquire more about the car of choice, and to have a discussion on whether car rental is the most suitable choice to facilitate your lifestyle or commuting need.
Click here to enquire about our long term car rentals.