Car Vs Public Transport - Which One More Economical

Lhuubang on 09/09/2016 - 15:07
Last edited 09/09/2016 - 15:19 by 1 other user

I'm sorry if I post in the wrong category because I can't find a good fit.

With the changes introduced in Opal this week, I have been evaluating the options for my family (2pp) daily commute. I myself am a supporter for public transport so I have been trying to persuade myself and wifey towards using the public transport. However, surprisingly, it costs me more for using public transport and I find very little incentive to use it.

I'm still travelling to work by public transport as it is the only choice since parking is freaking expensive during day time on weekdays. I'm evaluating on the daily/casual shopping trips or getting around here and there after office hours.

Let's say I stay around 8-10km (depends on route) from the mall that I frequent:

• A trip by train will cost $2.36/person
• My car is running 10km/l which costs around $1.20-$1.50

The car clearly wins here.

Am I missing something or can someone enlighten me on why I should use public transport?

Thanks a lot guys :)

Poll Options

• 10
  I am driving after office hours
• 3
  I am using public transport after office hours, even though I have a car

• 

  fossilfuel on 09/09/2016 - 15:23

  +3

  Parking - it's not economical for people who work in the CBD to park unless their employer offers free on-site parking.

  Congestion during peak hours - and depending on where you live, you might be better off catching a train than sit in traffic that hardly moves. Buses are fairly quick as well if the bus lane is used.

  Although there has been huge leaps in progress to modernise the NSW transport system, the tickets are way too expensive. If you don't work in the CBD/busy metro area with limited parking and you're not caught in peak traffic all the time, then there's really no incentive to using it.

  Free trips after 8 journeys really made it worthwhile. I use to travel everywhere after my 8 journeys on public transport. I got my shopping done, gone to sporting events and other places without needing to take the car. Now it's a cash grab. If the government wanted you to take public transport, they'd lower the prices. Sadly, cutting carbon emissions isn't a priority on their agenda.

  • 

    ProjectZero on 09/09/2016 - 15:30

    +1

    Although there has been huge leaps in progress to modernise the NSW transport system, the tickets are way too expensive. If you don't work in the CBD/busy metro area with limited parking and you're not caught in peak traffic all the time, then there's really no incentive to using it.

    Good point, there is also the issue of public transports not being as convenient as driving. For me, and I'm sure I'm not the only one, taking a public transport to work can take up to three transit and take longer than just driving.

    My experience in travelling to Uni was even worst, three buses early in the morning direct from my home to Uni… none through out the day until 5pm which means 3 bus from Uni direct to my home. If I miss any of that, I'd have to catch a bus to the nearest station (15mins), catch train to an exchange (30mins), change line (15min) and than change line again before getting to Uni (10mins) and that does not even include the wait time.

    The public transport system needs a major overhaul, at the very least for Sydney.

• 

  ProjectZero on 09/09/2016 - 15:23

  +4

  I think you need to take into consideration the upkeep cost of your car… surely in your scenario, it is clearly the winner but if you take into account the initial cost of investment (the car), maintenance cost etc and how many trips you take in a year, public transport wins.

  Of course that also means that you are quite limited in how much you can buy at the mall per trip… but in terms of cost of transport alone, your way of thinking about it is too simplified.

  • 

    huubang on 09/09/2016 - 19:41

    Regarding maintenance cost, I tend to choose a reliable brand new (but not luxury) car to minimise the running cost as logbook servicing is the only thing that adds on top of fuel. I did put in the initial investment and maintenance cost and still can get break even. Even if putting everything together makes the car option slightly (not too much) more expensive, I still prefer car for the convenience. The only dilemma is I want to support public transport and I thought it should be cheaper than running a car (which I am surprised by the calculation)

    I don't understand why you said I could buy less when using a car compared to public transport. With only 2 persons in the car, I have plenty of room for the goods. Furthermore, I tend to buy less if I take the train because that means I will need to carry the goods for some distance

    • 

      ProjectZero on 09/09/2016 - 19:56

      I don't understand why you said I could buy less when using a car compared to public transport.

      Hahaha I worded that poorly, I meant you'd may buy less if you were commuting via public transport since it would be less convenient.

      Just curious, did you also factor in the cost of insurance and the like?

      • 

        huubang on 09/09/2016 - 20:06

        Yup:

        • Comprehensive insurance is around 1200$ per year
        • Let say initial car cost is 18,000 and I plan to sell after 3 years to get back 8,000, then depreciation is 10,000 over 36 months
        • Scheduled servicing is 200$ every 6 months

        So in total it's around 400-450$ per month which is 15$ per day. It's not too bad for two persons isn't it?

      • 

        [Deactivated] on 10/09/2016 - 10:46

        +1

        @huubang:
        remember
        Tyres $500-800 every 24 months
        Major Service inc Brakes $500-800 every 24 months
        Car Parking $50 week

  • 

    robsonap on 10/09/2016 - 14:04

    If he's already got a car the initial cost of the car (and insurance) is not a factor in the calculation (it's a sunk cost in economic lingo). Yes there would be some depreciation based on distance travelled and some extra maintenance. But if he has a second hand car whose value is low already and looks after it properly (weekly checks on oil, brake fluid levels, does air filter, oil changes on schedule etc.) then public transport may not win. It would help if he could do some basic maintenance himself and buy a Gregory's maintenance book. There are benefits of driving too so it's not a pure cost effectiveness comparison. There are too many variables to be definitive about whether his net benefit of public transport is greater than a car. I suspect if he is thinking it's close then the benefits and costs for him are close.

    • 

      huubang on 10/09/2016 - 23:23

      I've already got a car as I use it for weekend travelling so yes it's a sunk cost :) I guess in this case car is a better winner for me. I just feel pity for the P/T

      • 

        robsonap on 11/09/2016 - 11:23

        Are you comfortable checking fluids weekly and doing the odd easy maintenance on the car? If you it may tip the balance in favour of the car!

• 

  toniyellow on 09/09/2016 - 15:25

  +8

  It looks like you're only looking at fuel consumption but you have other operating costs for your car - insurance, tires, servicing etc. If you are always going to own a car regardless then for the trip to the mall scenario these are a bit less important - but you are still adding wear and tear to your car every kilometre you drive. Being out and about, especially in a shopping centre carpark leaves your car more at risk of accident than if it is at home.

  Public transport has health benefits as it involves more walking and you are less likely to be injured in an accident. You have more opportunities to maximise your use of time by reading or relaxing instead of paying attention to traffic.

  Driving can be more stressful than public transport, but much more convenient in poor weather (although again, more risky) or if you have heavy things to carry.

  • 

    silverrat23 on 09/09/2016 - 15:53

    Driving can be more stressful than public transport, but much more convenient … if you have heavy things to carry.

    Yep, carrying big things without a car is not a good idea - just like the time I brought this (person for scale, not me BTW) onto a moderately-packed Metro train.

• 

  airzone on 09/09/2016 - 15:40

  Depends on where you are, where you're going, and how often.

  I used to catch the train to work, it involved one change-over and took around 30 - 45 minutes, cost around $17 / week. Versus driving a turbo skyline through an hour of stop-start traffic - about 15km each way. Train operated every 10 minutes during peak, and 15 minutes during off-peak. P/T was the clear winner.

  Now I drive a kia rio 35km each way to work, at 35 - 45 minutes. Costs me around $20 a week in fuel (plus extra for maintenance, rego, etc). P/T would involve 3 buses and 2 trains, take at least 2.5 hours each way, and I didn't even look up the price. Bus leaves ever 30 minutes peak, and 1 hour off-peak.

  • 

    huubang on 09/09/2016 - 19:45

    By no way you can get the price of 17$/week now with Opal. You need fork out at least 30-35 bucks! And as mentioned in the post, I'm still choosing P/T for work but I'm discussing on other trips after office hours (which means heavy traffic is not really applicable)

• 

  mskeggs on 09/09/2016 - 15:49

  It costs around $50 a week to keep a car on the road if you really economise, assuming insurance, maintenance, tyres etc.
  If a 2 car family can become a 1 car family, then there is a huge benefit.

  • 

    huubang on 09/09/2016 - 19:46

    Only my wife and I are in the family, and we both share the same car all the time becoz she can't drive :)

• 

  pernunz on 09/09/2016 - 16:11

  +3

  An alternative is purchasing a motorcycle or 50cc scooter.

  I have a 50cc scooter (in Adelaide) and live less than 10km from the CBD. However, the free parking and fuel consumption make it a much better financial option compared to public transport.

  $121.80 per 28 days for a Metrocard in SA equates to $1,587 per year to pay for public transport.

  Petrol is approximately $4 per week for my scooter, equating to $208 per year. Other costs include Registration (~$250 per year), 3rd party insurance ($80/year) and servicing ($150/year) which put it a long way ahead. In SA you can drive a 50cc Scooter with a regular drivers license. Especially considering I bought my scooter for $700 off Gumtree.

  It also saves time (~15 minutes each way) compared to public transport, but that's more a function of where I live.

  The other "cost" you have to take into account is the increased risk of having an accident.

• 

  niner on 09/09/2016 - 16:59

  PUBLIC TRANSPORT IS ALWAYS BEST unless of course you live in an area where there isn't.

  • 

    huubang on 09/09/2016 - 19:48

    Care to elaborate more? Based on my calculation, it's much more expensive than driving the car

    • 

      Euphemistic on 10/09/2016 - 08:15

      You need to take into account more for the cost of running your car. About 20 years ago I was told a good estimate for running a car was $1 per km. I'm sure it's gone up since then.

      Add up all your annual car expenses, rego, insurance, maintenance, tyres, fuel, depreciation then divide it by the number of kms you do each year and it will actually cost you a lot more than a couple of bucks of fuel to go to the shops. Then, if you start using more PT then your car costs per km actually increase because the fixed annual costs are covering less kms.

      • 

        supaderp on 12/09/2016 - 18:07

        $0.66/km according to ato.

• 

  inherentchoice on 09/09/2016 - 17:00

  In South East Queensland a car is cheaper. I used to take the bus/train and it cost me like $3k a year. With a car I pay about $700 in rego plus maybe $1.5k maximum in depreciation, fuel and maintenance combined. So I figure travelling by car means I am winning by at least $800 a year. And the car is just so much more convenient.

  In Sydney I suspect an Opal card is cheaper. Sydney public transport is cheap in my experience. Plus NSW car rego is more than QLD car rego.

  • 

    huubang on 09/09/2016 - 19:49

    Unfortunately as per my calculation above, P/T in Sydney is more expensive than driving a car

    • 

      inherentchoice on 09/09/2016 - 21:18

      There are a lot of variables and it looks like your calculation only looks at fuel?

• 

  ozeebee on 10/09/2016 - 01:38

  As someone who currently lives in London, using the underground Tube (train) is the most economical both time and financially. However if I had a choice, I would always choose to drive but it's just not possible in this city without paying over the top parking fees.

  You would also need to factor in costs in terms of income losses from not coming to work due to illness. The Tube is a breeding ground for bacteria and viruses where people commute like sardines sneezing at each others faces.

• 

  r2160 on 10/09/2016 - 09:30

  Why not a bike? Costs you nothing, does you good. For the most part, faster than driving. You get to work feeling better.

  • 

    Euphemistic on 10/09/2016 - 18:29

    Pedalling is cheaper than public transport, you don't need to wait on a timetable, and you can easily carry as much as you would on the bus. Riding regularly also saves money on gym fees.

• 

  outlander on 10/09/2016 - 14:18

  Why can't you use both? It doesn't have to be one or the other

  Going to the city, somewhere close to a station, traveling a long way -> public transport
  Picking things up, traveling somewhere far from pt, traveling with other people -> car

  • 

    tonyjzx on 11/09/2016 - 15:56

    +1

    This^^^

    There's no one answer. I personally would find it very hard to live without a car.

    You need a car to buy stuff from the shops… I dont think schlepping on the bus with all your groceries is a good idea.

    Also when it comes to off peak times, especially weekends, you need a car unless your time is worthless.

    When I work in the city, I take the train.

    I get that cars are a massive expense. Problem is there's no alternative.

• 

  phocus on 12/09/2016 - 09:57

  I dont work in the CBD so it makes very little sense for me to take the train. I've worked out the costs and everything still works out better for me in the car. However riding my bike on dry days and just taking my car on wet days proves to be a significant saving.

• 

  [Deactivated] on 13/09/2016 - 10:30

  Use to work in the cbd driving in wasnt an option but in some cases i had to do it.

  I still wasnt fond of publoc transport because of the restrictions on times…. was much better than now but you had to live by the time table which was hard to manage work.

  Now i dont need work in thw city and rarely to never go there now.

  I can see that with a car you have the freedom of using it when you want to but if its not feasible and publi cbd transport works for you then use it.