Considering vehicle ownership as opposed to public transportation, or vice versa, is a very common and important financial decision to be made. While most people can agree that owning a car can often be more convenient than riding the bus or taking a train, convenience will often take a backseat to the fact that public transportation is often cheaper than driving.

Here, we’ll compare the cost of public transportation vs. owning a car, and also discuss when one decision or the other may be the right fit for you and your situation.

Average Cost of Owning a Car

A lot of things factor into how much you’ll spend on maintaining your own vehicle each year; AARP estimates that the average driver will spend an estimated $11,000 per year on owning their own car - that figure can be conservative based on your individual car payments and how far you commute and how regularly.

Factors that account for how much you’ll end up spending on your car will include:

• Car Payments - It is being reported that for 2018, car payment averages ranged from $381 to $530 per month - that’s over $6,000 per year just in car payments!
• Gas - Gas prices continue to increase each year. In 2018, the average cost was $2.90 per gallon. Depending on how far you travel for work, this can really add up. It’s estimated that Americans commute about 16 miles each way to work. Depending on how fuel efficient your car is, your gas costs could total $3,000 or more per year.
• Insurance - In most states, it’s required by law that you at least carry liability insurance on your vehicle. The average insurance cost is currently $1,426 per year.
• Maintenance - Oil changes, tire rotations, and other maintenance costs can really add up each year. Expect to pay $500 to $700 per year on maintenance, barring any major issues with your car.
• Maintenance - Oil changes, tire rotations, and other maintenance costs can really add up each year. Expect to pay $500 to $700 per year on maintenance, barring any major issues with your car.

With all of the costs listed above, public transport may be looking pretty appealing right now.

Average Cost of Public Transportation

Not only does public transportation allow you the added benefits of being able to kick up your feet for a moment, catch up on some work or reading, or just take a nap; public transport can also be a real money saver.

Fares will vary depending on cities, however individual fare costs range between $1.50 to $3.00 typically. If you plan on using public transport throughout the week to get to work or other activities, purchasing a monthly transit pass can save a lot of money, even in the most expensive cities.

Here’s a comparison on some major cities and what their costs for monthly transit cards are:

• Washington D.C. - $81
• Los Angeles - $122
• New York - $121
• Seattle - $99
• Baltimore - $68
• Chicago - $100
San Francisco - $91

These numbers, while not a small monthly bill, in comparison with owning a car can save you thousands of dollars in cost per year.

Why You May Choose a Car over Public Transportation

While public transit is often cheaper, it can make more sense to own your own car in certain situations:

• If your commute distance is further than usual, public transport may not be feasible or may be more expensive.
• Public transport schedules sometimes don’t coincide with your work or other schedules.
• If the city you live or work in does not have public transport conveniently available.
• Picking up and dropping off from child care can present an issue. If you’re late on pick ups, you may have to pay a fee or run the risk of losing your child care.