AZE.US
As traffic congestion and car prices continue to rise in Baku, many residents face a familiar question: is it cheaper to use taxis every day or buy a personal car?
According to calculations cited by bizim.media, a person spending 15-20 manats a day on taxi rides to and from work pays around 330-440 manats per month on weekdays alone.
Once weekend trips are included, the monthly cost can rise to 450-600 manats, or roughly 5,400-7,200 manats a year.
A Car Bought on Credit Costs More
The financial picture changes sharply when a car is purchased on credit.
For a mid-range vehicle priced at around 15,000-20,000 manats, monthly loan payments after the down payment typically amount to about 350-500 manats.
Once fuel and routine operating expenses are added, the total monthly burden can reach 650-850 manats.
That means buying a car on credit may not make financial sense for someone who currently spends only 15–20 manats a day on taxis.
Owning a Car Can Cost 300-500 Manats a Month
Many buyers focus only on fuel costs and overlook the less obvious expenses of car ownership.
These include mandatory insurance and comprehensive coverage, technical inspections, oil changes, paid parking, car washes and occasional fines.
According to the cited estimates, such expenses can add up to around 165-315 manats per month.
Adding another 120-180 manats for fuel brings the basic monthly cost of keeping a car on the road to at least 300-500 manats, even before any loan payment is included.
Cars Also Lose Value
Depreciation is another major cost that drivers often overlook.
A new car can lose around 15-20% of its value in the first year and another 8–10% annually in subsequent years.
Used vehicles are estimated to lose roughly 5-8% of their value per year.
For example, a car purchased for 20,000 manats could be worth only around 15,000-16,000 manats three years later.
That represents a loss of 4,000-5,000 manats in value on top of regular maintenance and operating expenses.
When Does Buying a Car Make Financial Sense?
Experts cited in the report estimate that switching from taxis to a personal vehicle becomes more economically reasonable when monthly taxi spending exceeds around 600-700 manats, equivalent to more than 25-30 manats per day.
Another threshold is mileage. Buying a car may make more sense for people who regularly travel more than 1,500-2,000 kilometers per month.
For residents spending about 15-20 manats a day on transportation and traveling less than 1,000 kilometers a month, taxis may remain the cheaper option.
They also eliminate some of the non-financial burdens of car ownership, including parking problems, maintenance visits and the steady decline in a vehicle’s resale value.
AZE.US