Since the recession many Americans have been forced to make financial sacrifices and cutbacks to reduce spending that they normally would not have considered. One big expense that most Americans have is their car. Consider selling your car to improve your financial situation.
I know, life without a car can be devastating and you will have withdrawal symptoms. You will start considering what people will think if you don’t have a car. Forget about what people think and consider your future. Do you want to be debt free or do you want to be 65 and still working because you don’t have get enough in Social Security to pay all of your expenses. It is never too late to change and take charge of your finances to prevent a financial disaster.
The cost of owning a car includes depreciation, sales tax, gas costs, interest (car loan), maintenance and repairs, and insurance. Depreciation is approximately 46% of the total cost of the car over 5 years. The average sales tax charged each time you pay for maintenance or repairs on your car can range from 3-5%. Filling up your gas tank can be expensive and can cost up to $20,000 over a 5 year period assuming an average of 12,000 miles driven per year using regular gas or 26% of the sales price. The average interest on your car loan over a five year period is 12%. Insurance can range from $1,000 - $5,000 a year or 10% of the sales price. Owners can spend as much as $80,000 in insurance over the life of their car.
According to Edmonds.com, if you purchased a car that costs $21,500, over five years, it will cost $33,438 to drive the car. If you are struggling with debt consider selling your car can help you pay off debt. Here are 14 ways to live life without a car.
1. Cost. Americans spend 20% of their income on cars which can range from $300-$800 a month which includes gas, car payments, insurance, maintenance, registration fees and taxes, parking, tools and repairs.
2. Repairs. Many car owners spend hours at the car dealer or repair shop waiting to get their car repaired. Think about what you could with your time if you didn’t have to sit in the car dealer all day.
3. Rent. Rent a car to go on long weekend road trips. Even if you don’t own a car keep your driver’s license up to date in the event you need to drive a car.
4. Kids. If you have kids it may be difficult to get around and go to all of their activities without a car. In that case, consider carpooling, use a shared car service like Zip Car, public transportation, bike or ride a motor bike.
5. Bad Weather. Don’t try to ride your bike in the snow and use caution when riding in the rain.
6. Eco-friendly. Getting rid of your car is good for the environment and reduces your carbon footprint. It also helps you to live a healthier life by allowing you more opportunities to exercise.
7. Options. Consider your lifestyle to see if selling your car is the right option for you. If you are disabled or have more than one child, it may not be possible to live a life without a car. However, you can reduce your driving your car.
8. Resources. You can use tools like www.walkscore.com to find services and attractions in a certain neighborhood that can be useful if you bike or walk.
9. Alternate. Keep your car as an alternate method of transportation. Do a test to see how much money you can save if you don’t drive your car for a week, and then try it for a month. Use the extra money to pay down debt or create an emergency savings account.
10. Move. Consider moving to the city or a downtown area to eliminate the need for having a car. Consider getting a job that is closer to a downtown area or train station.
11. Bike. Buy a bicycle and look for roads that have bike lanes to travel onto ensure you can ride your bike safely. You can also buy a motorbike or scooter to get around town.
12. Carpool. Consider joining a carpool to get to work or to take children to school events or other events.
13. Taxi. Take a taxi if you need to get somewhere and don’t want to bike or walk.
14. Shopping. If you are walking consider getting a wheeled cart to carry groceries or other items. Also consider shopping online.
No comments:
Post a Comment