If you have a car and drive it often, it can be one of your biggest expenses, aside from housing. But if you haven’t already, consider the benefits of ditching your car altogether and fully taking advantage of your local public transportation system. According to the American Public Transportation Association, the average individual can save approximately $9,242 each year by solely using public transportation. By selling a car and just using public transportation, you save money by no longer worrying about the following:
If you’re financing your car, one of your biggest monthly auto expenses is probably your car payments. By selling your car, you could be done with those car payments for good. And even if you own your car free and clear, you might be able to sell your car for a good price, and use that cash towards another financial goal that you might be saving up for (for example, a down payment on a home).
Auto insurance is one of those completely unavoidable expenses if you own a car. Some insurance policies will cost more than others, and can vary depending on the make and model of your car. If you’re financing a car, you’ll likely be required to purchase more insurance that will also protect your own car in the event of an accident. Even if you opt for liability insurance only, you could still be paying a pretty penny on auto insurance premiums. Depending on your rate, your car insurance payments could almost be as much as your auto loan payments! By selling your car, this is one less bill you’ll have to worry about.
Unless you have an electric car, gas is another unavoidable expense of car ownership. If you opt for public transportation instead—even for just a portion of your travels—you can greatly reduce this expense. And of course, if you decide to go without a car entirely, this is one expense you won’t ever have to worry about.
Maintenance and repairs
Cars need regular maintenance in order to run well, and over time, a brake pad change here, and an oil change there, will add up. Even when you do everything you’re supposed to do, cars can still have issues. If you have a car with a warranty, you’ll be fully responsible financially for any necessary repairs once that warranty is up. Car repairs can cost hundreds or even thousands of dollars, and some are unavoidable if you need a running car. In some situations, a costly car repair might not be worth it, especially if the cost to fix the car exceeds the car’s actual value.
Even if you don’t live in a big city, there can still be plenty of public transportation options available to you, but you might just have to do a little research first. In fact, you might be surprised to discover the cheaper ways you can commute to and from work everyday. If public transportation options are pretty much non-existent where you live, however, there are still ways you can save on transportation costs, which can still potentially allow you to get rid of your car. If you’re looking for ways to save on transportation aside from public transportation, check out our other article for some useful money-saving tips.
Do you need extra money to take care of accumulating bills and debt? If you’re receiving long-term payments from an annuity, contact Peachtree Financial Solutions today to find out how you can sell future payments and receive a lump sum of cash.
Nothing above is meant to provide financial, tax, or legal advice. You should meet with appropriate professionals for such services.