You Don't Really Need a Car!

When I moved to Bengaluru, often hailed as India’s Silicon Valley, I was struck by its vibrant culture, dynamic tech scene, and, most notably, its relentless traffic.

Like many, the thought of owning a car seemed like a ticket to freedom amidst the chaos. However, over time, I’ve come to realize that in this bustling Tier 1 city, the idea of car ownership might not be as practical or financially sensible as it appears on the surface.

Here’s my journey and my take on why opting out of car ownership might just be the modern, minimalist way to live in Bengaluru.

Public Transport and Alternatives

Living in Bengaluru, I quickly discovered that the city is a hub of various commuting options:

• BMTC Buses: Efficient, cost-effective, and surprisingly punctual for most routes.
• Metro: Although not extensive, the metro lines cover significant areas and are expanding.
• Ride-Hailing Apps: Uber, Ola, Rapido, and their local competitors provide a convenient alternative with options like UberPool and Ola Share which are even more economical.
• Biking: Services like Bounce, Yulu, and the traditional rentals offer short-term or subscription-based bike usage.

With such an array of options, the necessity for personal transport dwindles. I’ve found myself relying on these alternatives, which not only save money but also reduce the stress associated with driving in notorious Bengaluru traffic.

The Parking Headache

Parking in Bengaluru is a nightmare:

• Space: Residential areas, commercial zones, and malls are notorious for their lack of parking space.
• Cost: Even if you find a spot, parking fees can accumulate over time, adding to your daily expenses.
• Security: Cars parked on the street are damage, necessitating additional security measures like covers. Show me a scratchless car in Bengaluru.

Owning a car here means dealing with this daily hassle, which often feels like a part-time job in itself.

Upkeep Costs

• Servicing: Regular servicing every few thousand kilometers isn’t just about routine checks; it’s about keeping the car in a condition that doesn’t depreciate its value too quickly.
• Cleaning: Bengaluru’s dust, coupled with the occasional downpour, means frequent washes to keep the car looking presentable.
• Repairs: Scratches, dents, and the inevitable wear and tear from city driving add up to significant costs over time.

I’ve seen friends spend weekends meticulously cleaning their cars or waiting for hours at service centers. This time could be better spent on hobbies, relaxation, or even side gigs.

Cars Drink Petrol

Fuel costs in India have been on an upward spiral. Here’s a quick math:

• If you drive daily to work, considering the average distance and traffic, you might be spending upwards of ₹6000-8000 a month on fuel alone.
• Compare this with the cost of ride-hailing services, where for a similar distance, you might spend around ₹6000 for a premium ride, but with none of the ownership hassles.
• An electric car makes sense because the operating cost is low but at the moment it is only limited to intra-city travel because of the range it offers on one charge.

Taxes through the Roof

You will be paying anywhere around 30% in taxes for a car(personal).

• GST (28% + 1-22% Cess)
• Road tax(3-24%)
• GST on Insurance Premium
• Taxes on fuel (55%+)
• GST on car services and repairs

You pay all this after TDS has been deducted from your salary income(if you are salaried employee) by the government🤭.

Investment Over Indulgence

• Mutual Funds: By investing ₹10 lakhs in a mutual fund yielding 12% annually, you could potentially withdraw ₹18,000 every month for 6 years, or reduce your withdrawal to ₹10,000 and enjoy it for 26 years!

• Car Costs: Cars’ value depreciates rapidly. Within the first year, it could lose 20% of its value. Over 5 years, you might see a 50% depreciation.

This financial perspective has been a enlightening for me. The money not spent on a car is money that can grow, providing financial freedom far beyond what a depreciating asset like a car can offer.

I’ve invested in auto-makers like Tata motors, Mahindra, OLA, etc whenever I had the urge to buy a new car.

I do not regret this decision. They have grown so much that I can easily buy a car/bike from each of these companies just by selling their shares.

You can easily rent cars in tier-1 cities. When I was in Bengaluru, there was this option in Bounce where you can just drive any Bounce bike parked near you and park it in anywhere near your destination 🤯.

You have to verify yourself on their app though with proper documentation but after that all you need is your phone to unlock these bikes and drive wherever you want. Payments are taken care of from the Bounce app wallet.

Bounce,

please come back🙏

It was a dream come true experience. I still pinch myself and say myself that “Yes, it was real”. I guess that did not sustain because people are abusive. We don’t value easily available things that well.

I wish there was something like that for cars. Maybe with the advent of electric cars, it can be a reality soon.

Emotional Attachments

Yes, cars are often seen as status symbols or emotional investments:

• Care and Affection: Many treat their cars like family members, spending considerable time and money to keep them in pristine condition.
• Identity: Owning a car can be tied to one’s identity, especially in a culture where it’s seen as a sign of success.

However, from a minimalist’s viewpoint, this attachment can be more of a burden. “Use things and love people” - this mantra from The Minimalists Podcast has resonated with me.

Why invest emotionally in something that adds stress and subtracts from your savings?

The Small Town Exception

In smaller towns, where public transport might not be as reliable or frequent, owning a car makes more sense:

• Limited Options: Fewer ride-hailing services or public transport options mean personal transport is necessary for convenience and safety.
• Status: In smaller communities, the status associated with car ownership can still hold significant social value.

My journey in Bengaluru has taught me that sometimes, less is indeed more.

By choosing not to own a car in Bengaluru, I’ve saved not just money but also time, stress, and the opportunity cost of what that money could have been doing in investments.

For those considering the leap towards minimalism or financial freedom, think twice before investing in a car. Bengaluru, with all its challenges and charms, provides enough alternatives that owning a car might just be an unnecessary luxury.

I live in a small town and I do own a simple car (passed on by my dad) that gets me and my family to places. It makes sense here but for you, make the right decision considering the options available to you.

Use things, love people, and drive your life forward, not just your car.