Parking is the largest cost of driving

By 12 June 2018Scenario

Indirect, hidden costs of driving, such as sitting in traffic and searching for parking, represent a significant economic burden for drivers. Recent study by transportation analyst INRIX compared vehicle ownership costs in 30 major cities in the United States, United Kingdom and Germany, founding that traffic- and parking-related costs made up 45% of the total cost of ownership in the US.

The average US driver faced a total driving cost of $10,288 in 2017, including direct (maintenance, fuel, insurance, and parking and toll fees) and indirect (wasted time and carbon, parking fines and overpayments) costs. Parking made up a third of the total cost of vehicle ownership, that was more than $3,000 a year.

New York City was the most expensive US city, with drivers parking more often (10 times/week), paying more frequently (60 percent) and the most (average off-street rate of $28 for two hours). Detroit had the lowest total cost of car ownership mostly due to cheaper on-street and off-street parking rates. 

Smart Parking solutions can alleviate some of these costs, as creating intelligent car services can improve urban mobility, reduce the economic and environmental impact of traffic congestion. The smarter management of existing parking facilities increases average usage rates, with to the opportunity of setting dynamic pricing schemes and launching emission-based fares. By seamlessly integrating the solution with mobile apps, variable message panels and traffic guidance systems, it is possible to alert drivers with real-time parking availability and route them to the nearest facility. People will thus enjoy an easier, quicker, cheaper and more relaxed parking search.

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