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August 21, 2018
AAA: RIDE-HAILING TWICE THE COST OF CAR OWNERSHIP
 
 
https://us.vocuspr.com/Publish/522440/vcsPRAsset_522440_109914_5067af5b-4b77-449b-a7bf-25f9c7100e35_0.png News Release
CONTACT: 
AAA – The Auto Club Group
Susan Hiltz, Public Affairs Director, Michigan
C: 586.940.0278    -  slhiltz@aaamichigan.com
 
AAA: RIDE-HAILING TWICE THE COST OF CAR OWNERSHIP
 Even with high parking costs, car ownership cheaper for urbanites
 
 
DEARBORN, MI (August 21, 2018) — Ride-hailing continues to gain popularity in urban markets across the United States. With the increased use of ride-hailing, AAA evaluated the cost of utilizing these services as a primary mode of transportation. The purpose of this research is to give consumers a common-sense perspective on cost-effective transportation options. 
 
According to the AAA Foundation for Traffic Safety, the average driver in an urban area – the only setting in which using these services are a practical full-time transportation option – drives 10,841 miles per year. While urban drivers travel fewer miles than those living in smaller towns or rural areas, relying on ride-hailing services as a primary mode of transportation would cost $20,118 annually. This equates to more than twice the cost of owning a personal vehicle, even when factoring in the expense of fuel, insurance, parking and the vehicle itself.
 
“In order to make an informed decision on which option would be most cost effective, it’s important that consumers understand the definition of ride-hailing,” said Susan Hiltz, Michigan Public Affairs Director, AAA – The Auto Club Group.  Ride-hailing is when an individual requests transportation for their self and they pay the associated ride fare. Examples of these services include traditional taxis, calling a car service or requesting a car and driver from an app on your phone. Sharing a ride and the associated fare with friends or carpooling is referred to as ridesharing, not ride-hailing.
 
For the study, AAA analyzed the costs of ride-hailing services (including the use of an occasional rental car) in 20 major urban areas. Based on the average number of miles traveled by city-dwellers, annual ride-hailing costs are as follows:
 
Atlanta $17,741 Nashville $26,397
Austin $19,821 New York  $21,279
Baltimore $19,917 Philadelphia $23,201
Boston $27,545 Phoenix $17,436
Chicago $22,020 Pittsburgh $18,940
Cleveland $20,091 Salt Lake City $18,866
Dallas $16,944 San Diego $17,316
Denver $20,434 San Francisco $21,972
Los Angeles $17,951 Seattle $23,951
Miami $17,339 Washington, D.C. $21,093
 
 
According to data from AAA’s annual Your Driving Costs study, the average annual cost to own and operate a new vehicle, the costliest form of vehicle ownership, is $7,321 for 10,841 miles of travel annually. Understanding that parking costs can be a major ownership expense for those living in urban areas, AAA also analyzed the costs of flat-rate parking per year, which ranges from $706 (Phoenix) to $8,088 (New York), with an average cost of $2,728. For those with access to free parking, relying on ride-hailing services is nearly three times more expensive than vehicle ownership in these cities.
 
Vehicle owners looking to minimize their operating costs should consider the following:
 
  • Buy (gently) used – Depreciation is the single largest expense for vehicle owners. By driving a pre-owned vehicle in good condition, ownership costs are significantly lower. A safe, reliable vehicle can be found at an attractive price point. AAA members who purchase their vehicle through AAA save $3,383 off MSRP † on average and receive auto loan rates as low as 2.74%*. Visit AAA.com/AutoLoan for more information.
  • Fuel responsibly – Avoid wasting money on premium gasoline unless your vehicle specifically requires it and, if you’re one of the 20 percent of Americans considering an electric car, these vehicles offer lower fuel and maintenance costs.
  • Show your car some love – It sounds counterintuitive, but spending money on routine maintenance can actually save you money in the end. To keep engines running longer, consider switching to synthetic oil and upgrading to TOP TIER™ gasoline.
  • Slow down – When gas prices are high, small changes in the way you drive can make a big difference.
 To determine the average number of miles traveled by a city-dweller, AAA’s analysis leveraged data from the AAA Foundation for Traffic Safety’s American Driving Survey. AAA’s Your Driving Costs data served as the basis for all car ownership calculations, factoring in depreciation, fuel, maintenance, repair, financing, insurance, license, registration costs and taxes. Total cost of ride-hailing is based on data from 243,838 economy-level, single rider trips in 20 U.S. urban areas and does not factor in costs associated with carpooling or multimodal transportation options. On average, those using ride-hailing services spent an average of $13.15 per trip, spending 15.11 minutes and traveling 6.66 miles. Ride-hailing costs include the occasional use of rental vehicles for longer distance travel. Full methodology can be found in the study’s fact sheet. 

 
†AAA Member Savings - Between 7/1/17 and 9/30/17, the average savings off MSRP presented by TrueCar Certified Dealers to users of TrueCar powered websites, based on users who configured virtual vehicles and who TrueCar identified as purchasing a new vehicle of the same make and model listed on the certificate from a Certified Dealer as of 10/31/2017, was $3,383. Your actual savings may vary based on multiple factors including the vehicle you select, region, dealer, and applicable vehicle specific manufacturer incentives which are subject to change. The Manufacturer’s Suggested Retail Price (“MSRP”) is determined by the manufacturer, and may not reflect the price at which vehicles are generally sold in the dealer’s trade area as not all vehicles are sold at MSRP. Each dealer sets its own pricing. Neither TrueCar nor Auto Club Trust, FSB, sells or leases motor vehicles.
*Annual Percentage Rate (APR) - Rates and terms effective as of 8/7/2018. Advertised rates and terms are subject to change without notice. Additional terms and restrictions apply. Other loan rates available. Subject to borrower qualification. Advertised rate assumes a 0.25% discount when you set up automatic payments from any checking or savings account. Offer valid on personal vehicle loans only. Criteria to receive the stated APR: Loan term 48 months or less and vehicle model 2017 and 2018 new or used models. Borrower pays any closing costs. Auto Club Trust, FSB uses a managed credit program and final APR is dependent on your credit score. An auto loan with an APR of 2.74% for a $35,000 loan at a term of 48 months, your monthly payment would be $770.69.
 
AAA in Michigan celebrated its 100th Anniversary - A Century of Service in 2016 and has over 1.4 million members across the state. It is part of The Auto Club Group (ACG).  Connect with us on Facebook and LinkedIn.
The Auto Club Group (ACG) is the second largest AAA club in North America.  ACG and its affiliates provide membership, insurance, financial services and travel offerings to over 9 million members across eleven states and two U.S. territories including Florida, Georgia, Iowa, Michigan, Nebraska, North Dakota, Tennessee, Wisconsin, Puerto Rico and the U.S. Virgin Islands; most of Illinois and Minnesota; and a portion of Indiana.  ACG belongs to the national AAA federation with more than 57 million members in the United States and Canada and whose mission includes protecting and advancing freedom of mobility and improving traffic safety. Motorists can map a route, identify gas prices, find discounts, book a hotel, and access AAA roadside assistance with the AAA Mobile app for iPhone, iPad and Android. Learn more at AAA.com/mobile. AAA clubs can be visited on the Internet at AAA.com.
AAA provides more than 58 million members with automotive, travel, insurance and financial services through its federation of 36 motor clubs and nearly 1,100 branch offices across North America. Since 1902, the not-for-profit, fully tax-paying AAA has been a leader and advocate for safe mobility. Drivers can request roadside assistance, identify nearby gas prices, locate discounts, book a hotel or map a route via the AAA Mobile app. To join, visit AAA.com.

 
 
 
 

About The Auto Club Group
The Auto Club Group (ACG) is the second largest AAA club in North America. ACG and its affiliates provide membership, travel, insurance and financial services offerings to approximately 9 million members across 11 states and two U.S. territories including Florida, Georgia, Iowa, Michigan, Nebraska, North Dakota, Tennessee, Wisconsin, Puerto Rico and the U.S. Virgin Islands; most of Illinois and Minnesota; and a portion of Indiana. ACG belongs to the national AAA federation with nearly 55 million members in the United States and Canada and whose mission includes protecting and advancing freedom of mobility and improving traffic safety.

About Auto Club Group Traffic Safety Foundation
Established by AAA – The Auto Club Group in 2010, Auto Club Group Traffic Safety Foundation, Inc. (ACGTSF) is a 501(c)(3) non-profit organization and public charity dedicated to producing a significant and continuous reduction in traffic crashes, injuries and deaths in the communities targeted by its efforts. ACGTSF provides programs, education and outreach to increase public awareness about the importance of traffic safety and improve driving behavior. ACGTSF is funded by voluntary, tax-deductible contributions from organizations and individuals who support ACGTSF’s purpose.


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