The Sunk Cost of the Car Ownership

The "Sunk Cost" of Car Ownership: A Shifting Mindset

For a century, the goal of every adult was to own a vehicle. However, the modern "traffic driver" is increasingly economic. When you factor in insurance, maintenance, fuel, and depreciation, the average car costs its owner over $10,000 a year according to AAA.

This is leading to a rise in "Transportation as a Service" (TaaS). Younger generations are realizing that paying for a car that sits parked 95% of the time is an inefficient use of capital. As we shift from "owners" to "users" of mobility, our relationship with traffic changes. If you don't own the car, you are more likely to choose the most efficient mode for that specific trip—be it a bike, a bus, or a ride-share—leading to a more fluid and less congested urban environment.