Dealers might have heard that Uber poses a big threat to the auto retail industry, but leasing still trumps the ride share app for low mileage drivers, says Swapalease.
“There are some instances when Uber could be an attractive alternative but in general leasing a car today is an extremely affordable means of transportation,” said Scott Hall, Executive vice-president of Operations for Swapalease.com in a statement.
The online lease marketplace crunched some numbers, and found that leasing a vehicle in the U.S. is more cost effective than Uber for consumers who require under 10,000 transportation miles.
Swapalease says a consumer would end up spending $12,744 a year on Uber for 9,500 transportation miles, while leasing would only cost that same consumer $7,775 a year.
The annual cost for leasing the vehicle factors in monthly payments, fuel costs, insurance, and maintenance, says Swapalease.
Leasing is still cheaper even after factoring parking fees, adds the site.
This is good news for dealers located in big, urban centres.
Here’s how Swapalease breaks it down (all information provided in U.S. figures):
- Car lease payments at $400 per month or $4,800 per year including tax
- $1,344 for fuel, assuming 9,500 miles per year at $3.50 per gallon and a 12-gallon car
- $1,300 for annual insurance
- $355 for maintenance
