Dump a car.

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/

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Happy Saturday!
Dwane

Dwane Thomas Tip of the Week – February 27, 2016