Get Rid of Your Car
Getting rid of your car can save you more money than you might realize. In a world where it is becoming increasingly expensive to own one, some people are starting to consider the idea of giving up their car all together. There are several benefits to doing this. Below are some good reasons on why it might be a good idea to do so.
Saving Money and Aggravation
Residents of highly populated cities such as NYC are coming to the conclusion that having a car simply isn't worth it from a financial perspective. Paying for gas and parking is enough to strap many people of more cash than they can afford to spare. Insurance rates are also very high in general in cities with a high population. Especially in a crowded city like New York, some people find themselves on a waiting list for years just to get their own parking space.
Aside from the financial perspective, owning a car in crowded cities can become very aggravating. This is why many people are getting rid of their car and switching to public transportation. For some people this is preferable to being stuck in traffic jams every day or paying a very expensive toll just to get back and forth on any given day.
Amount of Savings
For the average American, it is possible to save as much as $700 per month by giving up your car. This eliminates the need to keep making car payments, especially if you are in a position where you don't need your car much or even at all. In Canada the average family can save $800 per month by giving up their car. Families who own multiple cars can get rid of both which would add up to some considerable savings each month. The amount of money you can save by getting rid of your car varies according to the car you own and the city which you live. Getting rid of a luxury car can save you thousands more dollars per year than getting rid of an old clunker would.
Car Ownership Statistics
The Bureau of Labor Statistics reports that owning a car is the second biggest expense for households throughout the U.S. On average, a family spends as much on their car per month as they spend on health care and food for the whole family. As of 2010, which is the last time statistics were gathered, 15% of a family's total expenditures go towards owning and maintaining their car. This is second only to mortgage and rent payments for U.S. families.
Conclusion
If your car is already paid off, or very close to being paid off, getting rid of it won't save you as much. However, if you still owe expensive payments on your car and you find yourself struggling financially, it may be worth it to just get rid of the car. Before you make the decision to get rid of it you should calculate how much it will cost you to get around without a car. This will vary depending on your lifestyle and the availability of public transportation in the city where you live. If you have alternative transportation, you can likely save money.
