Is Uber Cheaper Than Owning a Car? (2025)

It’s a classic modern dilemma: own a car for freedom and convenience, or use Uber (and similar apps) to avoid the headaches of car payments, insurance, and repairs? With car prices and fuel costs skyrocketing, more people are crunching the numbers to figure out the smarter deal. Maybe you’re tired of surprise repair bills, or maybe you just found a $50 Uber ride that made you rethink monthly car ownership.

What Does Owning a Car Really Cost?

When tallying up the full cost of owning a car, you need to count more than just the monthly loan or lease:

• Car payment (or saving for depreciation if you own outright)

• Insurance (average is $1,900+ per year in the US)

• Maintenance, repairs, and annual servicing

• Gasoline, parking fees, and registration

• Occasional tickets and surprise costs

According to AAA and Rocket Money, the average annual expense for owning a new car is now around $12,000–$12,200 in 2023–2025. That’s about $1,000 a month, even for moderate use. In big cities with expensive parking, costs can go even higher.

What Does Uber Actually Cost?

Uber charges by the mile—usually around $1–$2 per mile plus a booking fee and tip. If you take long commutes or frequent rides, it adds up fast. For US drivers, traveling the national average of 13,000 miles per year would cost about $13,000 with Uber (and that’s before accounting for surge pricing, extra stops, or tips). If you ride less, Uber is often cheaper.

• Light users (less than 5,000 miles/year): Uber usually wins on cost.

• Heavy users (10,000+ miles/year): Owning a car starts saving you money.

If you’re taking short trips in dense urban areas, Uber (and other ride-hailing apps) can be much cheaper and way more flexible.

The Tipping Point: Where Does Uber Become More Expensive?

Several recent studies crunched the numbers:

• If you travel more than 8,000–10,000 miles/year, owning a car is cheaper.

• If you commute less, live centrally, or often use public transport, Uber shines.

For example, commuting only three times a week and driving less than 10 miles daily can make Uber significantly more affordable, especially after factoring in parking fees, insurance, and city taxes.

More Than Just Money: Things People Forget

• Freedom: A car gives you total flexibility, especially for road trips or late nights. Uber is ideal for predictable routines, city living, and days when you really don’t feel like dealing with traffic.

• Convenience: Ordering a ride and skipping gas station stops is pretty nice, but Uber isn’t everywhere all the time—especially in rural zones.

• Hassle: No need to worry about breakdowns, oil changes, or insurance paperwork with Uber. But waiting for a car in a busy area (or dealing with surge pricing) can be annoying.

Quick Formula: How to Decide

1. Estimate your annual miles traveled.

2. If under 8,000–10,000 miles/year: Uber might be cheaper.

3. If over that, or you drive daily: Owning a car usually wins on cost.

💡 Pro tip: Try a month using only Uber/public transport. Compare all actual receipts to your old car expenses (payment, gas, insurance, repairs) for the most realistic answer.

Final Thoughts

Uber is cheaper than owning a car if you’re a low-mileage driver, live in a city, or just don’t want the hassles of car ownership. If you’re constantly commuting, road-tripping, or don’t like waiting for rides, then owning is likely a better deal in the long run. Real-world costs vary by location, lifestyle, and how much you drive—so run your own numbers for the safest answer.