I have never owned a new car. In two weeks, I am moving my family to Europe for four months. These two sentences are related.
Cars are expensive. The average American now spends $482 per month for the “privilege” of car ownership. And, most of us own two.
Oh, and don’t forget. There are fuel costs. The average cost is $1,681.50, or 11.2 cents per mile. Then, there is insurance. The average is $1,115 per year. According to AAA (which I have because I drive clunkers), average annual maintenance is $766.50 and tires are $147 per year equalling $913.50. And, of course, there are the bureaucrats to feed. Licenses, registration, and taxes come to an average of $688 per year. Just for fun, let’s assume you don’t get pulled over. In my town, a ticket is usually about $200 by the time I have paid for court costs and driving school.
The grand total? It costs an average of $4,880 to own a car.
Years ago, I moved my family from our commuter house twenty miles away to a condo in town. I could walk to work, and we could walk to the grocery store. For a while, we dropped down to one car. We poured the savings into eliminating debt. It was hard, but, it was worth it.
They say there is a recession coming. No surprise. They show up about every seven years. Need to save some money? It may be time to dump a car.
Here are five things you could afford without one: http://www.thesimpledollar.com/five-things-you-could-afford-if-you-didnt-buy-a-new-car/
Dwane Thomas Tip of the Week – February 27, 2016