Does driving cost less than transit?

Median journey to work time in Melbourne, by mode, ordered by approx distance of home municipality from CBD (VISTA)

With petrol prices spiking upwards, it’s a good time to examine the relative cost of driving versus public transport. You can save a lot of cash if you’re prepared to live without a car, but you’ll pay in other ways.

According to the RACV’s 2010 Driving Your Dollar survey, it costs $10,668 p.a. on average to run a medium sized car like a Toyota Camry Altise. The cost could be as low as $6,759 p.a. for something small such as a Toyota Yaris or as much as $19,234 p.a. for a behemoth like a Toyota Landcruiser GXL. On the other hand, a zones 1and 2 Yearly Metcard costs $1,859 p.a. for unlimited travel. However ticket outlays need to be adjusted for household size. In my case, my wife would also require a yearly pass and our two children would need travel concession passes. That brings the total cost up to $4,562 p.a., but that’s still considerably less than the Camry’s $10,668 p.a.

Of course many children already have a school travel concession pass. And adults who know they have a limited travel range could probably get by with either a zone 1 ($1,202) or zone 2 ($799) ticket and buy extra daily tickets on those (presumably infrequent) occasions they travel cross-zone. Travellers who use public transport exclusively will in all likelihood spend more on taxis and occasional light truck rental, as well as sacrifice some spontaneity in trip planning, but in cash terms they should still come out well ahead of car owners.

Whatever the overall saving is, it isn’t going to be realised by households who keep their car and simply use it less. The bulk of outlays associated with a car are standing costs like depreciation, insurance and registration. In order to be significantly better off in cash terms, a household either has to lose a second car or decide they can get along without any car at all.

But this simple accounting doesn’t provide a fair comparison. There’s one big difference that has to be taken into account – travel by car is much faster on average than by public transport. The latter is most attractive for work travel, but even then the median journey time in Melbourne is almost double that by car (see accompanying chart). Those longer trip times in part reflect commuters who catch trains from distant places to the city centre. But the main reason is that passengers have to expend time on tasks like walking to the stop, waiting for the service and in some cases transferring between services.   Read the rest of this entry »