The real cost of car ownership (PS: most are losing money)

I had purchased a used car almost a year ago that I sold yesterday, here is the math I did mentally before taking the decision to sell it:

A used car costs approx: 3.5L (very base model, higher if you move to a standard car)

Interest on car cost in 4 years: 1.8L

Cost to maintain: 12K / yr

Insurance: 12K / yr

Dep.: 20% / yr

Parking costs in a city like Mumbai, along with the fact that it takes 15 – 20 mins on an average to find a spot and 50 – 70 rs per 2 hours to park.

Petrol: 18K / yr (1500 rs / month avg)

If you use car only for once in a week, the math for Ola, Uber or zoomcar (assuming 5 one way trips in a day) or one day rental for zoomcar to avg about 1600 rs/day assuming you use it for 48 days in a year, i.e 4 times a month for a day or 4 days at a stretch in a month, it would be 77,000 rs/yr (no maintenance and no insurance, no upfront cost, no deprecation)

If you use the car daily, it makes sense to buy, but if you use once in a week, ola, uber, or zoomcar is better.

Here’s the base math of what makes ola, uber or zoomcar cheaper.

Cost for zoomcar if used once per week: 6500 / month (and cost for insurance / dep. / maintenance is all included in this).

Cost for Ola, uber if used for 20 trips per month at 250 rs per trip: 5000 rs / month.

Cost for own car (considering dep at 20% / year, petrol usage of 15 km / trip), 4000 rs lost per month when 4 lakh is put in a dead asset like a car, 1000 rs lost in insurance and 1500 in petrol and 1000 in maintenance and dep. cost to be: 50K per year).

Total cost to own a car: 50K + 12K + 12K + 18K + 48K = 1.4L

Total cost for Ola, Uber or Zoomcar (if used for 48 days in a year at a flat rate of 1600 rs / day = 60 – 77K (60K for Ola, Uber, and 77K for Zoomcar)

You are actually losing 63K rs per year at least if you own a car and use it only for 30 days in a year, a better option is to use Ola, Uber or Zoomcar.

It would only make sense to own a car if you use it for 60 days in a year or 6+ days in a month to break even.

Ofcourse, there is the luxury factor involved in owning a car, plus convenience and emergencies, more often than not, Ola, Uber ditches you at night, if you can buy a car with cash, and spend only 5% of your net worth on a car, the above calculation doesn’t make sense in your case.

And here’s the bonus, Did you forget the fact that Ola, Uber comes with a driver, and ZoomCar comes with zero liability and allows you cash in hand.

** In the calculation above, considering depreciation at a flat of 50K / yr (which is very Conservative) / value of cash if invested at 1% per month (easy to do so in an MF).

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Why I pay for software, apps and quality content, and why you should too

A lot of my friends think I am crazy when I pay for software, apps, content, and music (even if I know how to use them for free).

Indians love to not pay for software, art or content, for most people here if it can be used for free, why pay?

I think of it as paying it forward to the industry for their work and art, the artist needs to be rewarded for his time, effort and skill or we run out of creativity from this world (and good software to use).

I feel very content that I have not watched any pirated movie, nor used any pirated or counterfeit product or software since almost two years now, I think of it as paying it forward to the community of geeks and artists, I always try to pay something at the least if not in full, I make small donations to websites that I enjoy reading and have improved my thought process, websites which are donations supported, I try to pay every year, (Wikipedia — 3 year donor), I love to pay for quality journalism, artists and software. Plain and simple.

Broke people don’t go on to become Mozart’s or Musk’s of the world, please, pay it forward, donate bits to all chrome extensions, phone apps and plugins you use.

Steve Jobs and Bill Gates are rich enough, but with the 2$ donation, you make to that Chrome extension developer for using his software for free he puts food on the table for his family or else he will be forced to sell your data.

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4th of July- USA’s Independence Day, a look at the biggest celebration of USA

Significance of 4th July for the USA

Today is 4th of July, 2017. It was the date when the USA of present-day took shape 241 years ago. Since then, the USA celebrates the 4th of July as their Independence Day. The calendars of USA mark this date as the most prominent one. For the USA and its citizens, the Independence Day brings a lot of celebrations in the form of family get together, baseball, parties, fireworks (the list goes on) along with a feeling of patriotism and love towards their country. Let’s have a look at what makes this day so special for them.

On 4th of July, 1776 the US won independence from the British Empire after going through the Revolutionary War. It was the same date when the US adopted the Declaration of Independence 241 years ago!

This day is most important for US citizens historically as well as patriotically. On this day, in 1776, the Thirteen Colonies of America declared themselves as states and declined to be under the British regime. It happened after an exhaustive Revolutionary War. After the Declaration of Independence, the Revolutionary War continued for a while.

The Thirteen Colonies of US were perfectly in harmony with the British Empire. But the newly introduced taxation by Brits sparked the agitation in the US settlers which ultimately laid the foundation for the Revolutionary War.

The US achieved freedom after a rigorous struggle. Hence, the 4th of July is the most enthused and celebrated day in the US calendar.

The present day USA is referred to as the heaven of democracy. The US citizens and its founders have struggled a big time to be at the place where the present day USA stands today. It is truly an inspiration for everyone to witness such a  triumph of patriotism.

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