Here's How Many Miles per Year Make Owning a Car Cheaper Than Using Uber
With Kelley Blue Book reporting that the average sale price for a new car is now over $50,000, those in the market might wonder whether it would just be cheaper to Uber full time instead of buying a personal vehicle — especially when they consider the many other costs associated with owning one.
For some, booking an Uber for every journey can make financial sense, depending on a wide variety of factors — but in the end, it’s mileage that matters most.
For the average person, there is a mileage-based break-even point when it makes more sense to buy a car than to rely on rideshare. Consider the following before you decide.
Find Out: 10 Target Shopping Hacks That Will Save You Tons Immediately
Read More: Start Growing Your Net Worth With Smarter Tracking
The Cost of Owning a Car
In its most recent analysis of average annual vehicle ownership costs, the AAA Your Driving Costs report found that the real price of owning a car decreased slightly in 2025 to $11,577, or $964.78 per month.
The study, which AAA has published for more than 70 years, presumed 15,000 annual miles driven and a five-year ownership period. It analyzed 45 models across nine categories of top-selling, mid-priced vehicles to compare the overall cost across six key categories:
Fuel
Maintenance, repairs and tires
Insurance
License, registration and taxes
Depreciation
Finance charges
Note: Gas prices are up by nearly $1 per gallon from the $3.15 AAA used in its 2025 calculations. However, during the last gas crisis in 2022, Uber began implementing temporary surcharges during periods of elevated fuel prices, so it’s essentially a wash for the intents and purposes of this analysis.
Keep Financial Literacy Month going — learn how the MoneyLion app helps you track, manage and move your money in one place.
The Cost of Uber
The cost of an Uber ride can vary considerably according to the time of day, your location, the type of Uber and the level of rider demand when you book. In some cases, certain factors can cancel each other out. For example, rideshare service is more expensive in places like New York City, but those who don’t drive avoid the exorbitant cost of parking there.
Publications such as Auto Class Magazine and Upgraded Points mostly agree that, after averaging the many variables -- including the company’s booking fees, service fees and surge pricing -- the average Uber rider paid about $1 to $2 per mile between February 2025 and February 2026.
The 8,000-Mile Sweet Spot
Splitting the difference of the average price range, Ubering at $1.50 per mile is cheaper than owning a car for up to about 8,000 miles per year. Then, the total hits $12,000, exceeding the average annual vehicle ownership cost of $11,577.
That won’t work for most people.
Despite the trend toward remote and hybrid work and away from traditional commuting in the post-COVID era, the average driver still logs between 12,000 and 15,000 miles per year — 13,662 in 2025, according to the Federal Highway Administration.
However, those who drive fewer miles might be able to get from Point A to Point B for less money and with a fraction of the hassle and stress by ditching their cars to Uber everywhere they go.
This article was provided by MoneyLion.com for informational purposes only and should not be construed as financial, legal or tax advice.
More From MoneyLion: