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How Would DBKL’s 150% Parking Rate Hike Affect Our Monthly Expenses?

Perhaps it’s time to give Uber and Grab a try.

 

Recently, parking rates for DBKL’s metered parking bays in the Central Business District (CBD) has increased by at least 150%.

The Rate Hike – Before Vs After

In the CBD, what used to be RM0.80 for the first hour has been increased to RM2 for the first hour and RM3 for each subsequent hour. Public parking bays in the outskirts of the city like Cheras and Setapak were not spared, with rates of RM0.50 per hour raised to RM1 to RM1.50 per hour depending on area.

No doubt, this would definitely take a toll on the pockets of the many Malaysians who park at these public parking bays in the city.

Read Also: How Much Are You Really Paying When Buying A New Car In Malaysia?

Where Do You Park?

If you depend on these public parking bays for your daily parking at work, then you would feel the full brunt of the hike in parking rates. With the new rate, you stand to pay up to RM32 per day (assuming you park there from 7.30am to 6pm). Assuming that there are 20 working days in a month, that would set you back by RM640 per month.

Read Also: Is It Better For Malaysians To Buy A Used Car Or A New Car?

Do You Travel For Work?

If your job requirements require you to travel from meeting to meeting, chances are you would have to park at these public parking bays whenever you attend a meeting as well.

If that is the case, the cost of parking at these parking bays would depend on the number of meetings you have per day and how many of them requires you to be parking at one of these public parking bays.

If you happen to be salesperson who has an average of 5 meetings per day at various locations in the city with public parking bays, your parking costs would amount to at least RM10 (5 x RM2) if all of your meetings lasts less than an hour.

If each one lasts more than an hour, then your parking costs would amount to at least RM25 (RM10 + RM15(5×3)) due to the cost of each subsequent hour being RM3. That would amount to a monthly total of RM200 or RM500.

If your job requires you to squeeze in 20 short 10 minute meetings at different locations in a day, then you would need to pay up to RM40 (RM2 x 20) a day in parking fees. That would amount to RM800 a month.

Is It Time To Switch To Ride-Hailing Services?

With such a significant increase in parking costs, you might start considering taking an Uber or Grab to work and meetings instead.

While the economics seems to make sense since you would not need to pay for parking, fuel or your car’s instalment anymore should you switch entirely to ride-hailing services, it is important for you to put pen to paper and calculate the actual cost difference before making a decision to switch.

Ride-Hailing Services Can Be More Expensive

That is because, ride-hailing services can be expensive during peak hours especially if your average distance of commute is long. It can cost you up to RM20 per trip.

If you stay far away from your work place, that is already RM40 a day, slightly more expensive than a full day’s parking at one of DBKL’s public parking bays. Presumably, you would be able to save on car maintenance, fuel, instalment and tolls.

Read Also: Is It Cheaper To Settle An Accident Out Of Your Own Pocket Instead Of Claiming From Insurance?

Alternative Parking Options

However, there might be cheaper private parking options with season passes that are within walking distance to your office that you could also consider as an alternative.

If you are sales person and your commutes between destinations are long, 5 RM20 trips a day would already cost you RM100, much more than the parking fees that you would be paying. If you do 10 trips, that would cost you RM400 a day.

In that case, it would not make sense for you to switch to ride-hailing apps at all! You would be better off just paying the higher parking fees.

Figure Out Which Is Cheaper

However, if the distance between your destinations are short, with each trip costing less than RM7, then 5 trips a day would work out to be around the same as the cost of owning and parking your own car after factoring in fuel, toll and monthly instalments.

If that is the case, the convenience of not having to waste time driving and looking for parking might be enough to convince you to make the switch. (Provided factors such as the need for a family car for weekends or for traveling to your hometown during festive periods does not apply to you.)

Do the math.

If you could save a significant amount by switching to ride-hailing services, then go for it. If the difference is negligible or it adds up to be more expensive to switch to ride-hailing services, then you would have no choice other than to suck it up and bear with the higher parking charges.

Read Also: Uber/GrabCar Vs Buying Your Own Car: Which Is Cheaper?

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DollarsAndSense Malaysia is a website that aims to help people make better financial decisions, one interesting, bite-sized article at a time. Like us on Facebook to stay in touch with our latest articles.