Nine percent of those selling their car cut the cord on car ownership completely. Are you ready?
A growing number of consumers forego car ownership thanks to the accessibility of car- and ride-sharing services , Zipcar and car2go.
Around 9% of people who sold or traded in a vehicle over the past year decided to forego getting a new car in favor of using services like Uber and Lyft, a poll conducted by Reuters and Ipsos found last May.
Robert Farrington, founder of personal finance website The College Investor, is one of those people. When the time came for Farrington to replace his car, which was over a decade old and had more than 100,000 miles, he decided to test his hand at going without his own car. Instead, he planned on using Uber or Lyft for the bulk of his transportation needs. His family still owned another car, but he primarily traveled via ride-sharing.
His experiment has proved to be a resounding success: He only spends between $100 and $200 per month on rides with Uber, and he has found that the availability of cars is fairly good even though he lives in the suburbs. "I definitely think it's a viable option as long as ride sharing is available and low cost," he said.
The shift away car ownership is even more notable when taking car-sharing services such as Zipcar and car2go into account. While 43% of Zipcar members owned a car prior to joining, only 24% continue to do so after they've joined, Zipcar found in a study. It does, of course, have a vested interest in people renting rather than buying automobiles.