As ride-hailing services become more available and affordable, many adults are opting to use them instead of buying a car. Whether this is the right choice for you can depend on a number of factors.

In the past, everyone assumed that their only options for getting around were owning a car, using public transportation, or calling taxi services. Now, ride-hailing services like Uber and Lyft have upended that model, changing the way we get around by offering a new level of convenience and affordability.

Many people are either putting off buying a car or giving up driving in favor of using ride-hailing services. But is it the right choice for you? To help you decide, ask yourself these six questions.

1 Where Are You in Life?

Your lifestyle will be a major consideration as to whether ride-hailing is right for you. If you have a family with younger children, using ride-hailing exclusively is probably a non-starter. Car seats and other necessary kid gear usually aren’t compatible with quickly hopping a ride.

Instead, ride-hailing makes more sense for those who don’t need to manage driving kids around. The flexibility and lower costs compared to car ownership can be a real benefit for them. Older adults who may not be able to drive or are driving less can take advantage of the availability of ride-hailing without bothering friends or family.

2 What Will It Cost?

Just as you would budget for anything else, you’ll need to weigh all the costs to determine if ride-hailing makes more sense than owning a car.

Ride-hailing can be an effective way to get around town without having to worry about the costs of owning a car. The biggest drawback to ride-hailing is that you do pay a premium for the convenience.

The biggest concern with owning a car is the expense. Paying off a car loan usually requires two to eight years of consistent monthly payments. You’re also responsible for gas, maintenance, insurance, parking, and licensing fees. The costs of ownership are generally worth it if you drive 10,000 miles a year or more.

Ride-hailing can be an effective way to get around town without having to worry about the costs of owning a car. The biggest drawback to ride-hailing is that you do pay a premium for the convenience. You’re usually charged for the distance you need to travel and may also be charged more during peak hours. Driving fewer than 10,000 miles might make ride-hailing a more economical option.

3 Where Do You Live?

Ride-hailing services take advantage of the density of available drivers in a particular area to provide the expected speed and convenience. If you live in a more rural or suburban area, you run the risk that fewer cars will be available when you need them. Ride-hailing is usually best suited to urban environments where distances are short and amenities like grocery stores and entertainment venues are nearby, public transit is accessible, and walking between locations is possible.

4 Why Do You Drive?

Owning a car is the ultimate expression of personal freedom. Owning a car gives you the freedom to go wherever you want whenever you want. There’s also the reliability of knowing you can jump in your car and drive to the gym, the grocery store, or a restaurant spontaneously without planning ahead.

If you need to travel frequently to get to and from work, need to drive longer distances, or need to transport supplies, equipment, or other people regularly, a car may be the best option. However, if you drive less frequently, the cost of maintaining your car may outweigh the freedom of ownership.

5 Do You Like Driving?

If you don’t enjoy driving, ride-hailing frees up your time. If you need to text, make calls, or check your social media, it’s easier and safer to do it in the back seat of a ride-hailing vehicle than while driving.

6 Do You Feel Safe?

Ride-hailing isn’t for everyone, particularly those who are concerned about the idea of riding with someone they don’t know. It’s true that ride-hail apps provide driver ratings, and in-app payment means you don’t have to reach for your wallet or purse. However, even if a driver has good reviews, you don’t always know about the safety record of the car or its driver.

Comparing Costs

If you already own a car and are thinking of giving it up, take the time to experiment with ride-hailing first. Try ride-hailing for a month to see if you like it, if it fits your lifestyle, and if you feel comfortable. Use the month to estimate what your future costs might be. That will help you determine if ride-hailing or driving is the most cost-effective option.

The decision to own a car or live the ride-hail lifestyle is not just about dollars and cents. Time is another factor you need to consider. The time spent waiting for a ride and the time spent maintaining your vehicle are two important considerations. If you decide you want to own a car, contact your financial institution to learn about your auto loan options.