Economics of car use

Compared to other popular modes of passenger transportation, the car has a relatively high cost per person-distance travelled.

[2] The advantages of car usage include on-demand and door-to-door travel, and are not easily substituted by cheaper alternative modes of transport, with the present level and type of auto specific infrastructure in the countries with high auto usage.

One general benefit is availability of use which, when coupled with public support via infrastructure (such as roads or fuel stations), can allow highly flexible movement and transportation.

[3] The typical motorist underestimates this fixed cost by big margin, or even ignores it altogether, according to a survey by the RAC.

In countries deprived from wide door-to-door public transport and with low density, such as Australia, the automobile plays an important role on the mobility of citizens.

The automobile industry, mainly in the beginning of the 20th century when the high motorization rates were not an issue, had also an important public role, which was the creation of jobs.

For instance, providing carpooling lanes to cars with multiple passengers has received attention as it helps reduce traffic.

Sharing one or more cars between many people reduces the fixed costs per person and limits extraneous vehicles; the use of fleet vehicles affords savings through joint use of a set of autos by a very large group of persons either for business or pleasure.