Well, I thought that because I don’t have a car payment the cost of owning and operating a vehicle would be… I don’t know… LOWER?
I’ve done a quick tally of all the costs associated with my car:
Gasoline/parking: $150 a month
Auto insurance: $125 a month
Oil change/maintenance/repairs: $85/month
Total: $150+$125+$85 = $360.
So every month, my car get $360 of my $2,000 budget, or 18%. I might be under budget, especially if I don’t have any major repairs this year, but still…
This result showed me that, NO! It’s not cheap owning a car (even if I own it free & clear) – it’s just a lot cheapER than driving a car that you still have to make payments towards. This means that if I get a new car, with a monthly payment of $350 or $450, the total cost of having a car can easily rival (or exceed) my rent.
*Does not compute*
People with a car – how much does your car cost you? People without a car – how much does public transportation cost you? People who would rather spend the $$$ on something else – does this talk of $4 gallon/gas make you cringe?
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My car cost me $417 a month. I don’t pay for parking since my house has a garage. I work from home so I use it maybe 2 times a week which saves on gas. I think the last time I got gas was 6 weeks ago.
It’s interesting you bring this up. I graduated from college last June and have been saving up for a new car. My ’93 civic is still holding strong at 150K miles, so I decided to avoid a cost that most new graduates accumulate: I’m not going to take out a loan to buy a new car.
What I’ve done instead is setup a sub-savings account at my credit union marked “New Car” and part of my money goes into it automatically every paycheck. Since it’s a high yield savings account (4%, even now), i will have my money working FOR me instead of having a loan working against me. Also, if I lose my job, I won’t have ANOTHER monthly bill hanging over my head.
Finally, to answer your question, my insurance is $580/year thanks to my car being old and no accidents on my record. Gas is around $80/month, Oil Change is around $160/yr, which means I spend:
$141/month on my car PLUS maintenance.
Maintenance varies widely, so that’s a hard one to figure out, as a student I had no money so I put off repairs for several years. Then last year I got all four brake pads replaced, timing belt, water pump, all windshield wipers, fractured engine mount, etc, etc… all done in one go, which cost $800.
Hmm, calculating all this has convinced me I need to start biking to work again. 10 miles each way isn’t so bad now that the weather’s getting warmer.
I live in Seattle around the University, and Seattle really does have an amazing bus system in the city. I pay about $70 for a bus pass that gives me unlimited rides for 3 months. With fares going from $1.25 a trip to 1.75 in March, this is a great deal considering that everything essential is fairly reachable by bus!
I’m still in college, and we’re fortunate enough to have a private coach company serve our campus so we get “free” bussing to and from various areas of my admittedly small city. (Think about it, though. Somewhere in almost $50,000 of expenses, that is my bus fare.)
When I’m not at school, I’m in the same boat. I actually don’t have a license – which is very bizarre for someone my age and in my area, since I’m not in a major metropolitan city. But I do carpool and since I’m planning on taking my road test this summer, I’ll probably end up splitting costs with my mom. I may end up taking the bus to and from work this summer, depending on what happens. Right now my transportation costs are ~$15 monthly, for carpooling.
My intention, preferably, is to live somewhere large enough with a good public transportation system.
Last time I had a car was 4 years ago. Insurance was approx $950/year. Gas was pretty cheap at the time, comparatively. I remember I could fill my tank for around $10. A mechanic in the family kept maintenance & repairs down to almost nothing. (A replacement transmission only set me back $200.)
If I had the same car where I live now, I could easily triple all those costs, if not more. Now I pay $76/month for a metrocard and I walk for free.
Living in New York City as I do, I pay $76/month for unlimited subway and bus rides. It’s about to go up to $82 (I think?) but it’s still a bargain, even with the odd cab fare for late nights or return trips.
Of course, I pay more in rent than you do… so it all evens out.
Seeing the price of gas still makes me cringe, though; I rent cars occasionally on vacation and it’s definitely a deterrent for taking such trips.
About $130 is what I hope to spend on gas (not sure if that is accurate). Insurance is $90/mo. Maintenance is variable, but I probably spent about $600 all of last year on misc car stuff.
Public transportation, obviously, would be much cheaper but a huge hassle and time waster. NYC is much better suited for a car-less life.
I have a brand new car and my monthly cost is only $388. That is including payment, full insurance, and gas! Service is free!
Living in Louisiana, a car is a requirement since public transportation is only available in certain areas and riding a bike to work is pretty impossible.
In Baton Rouge my student ID gave me a free ride to various routes which I used every chance I could.
Omg… I guess I never added up the whole cost of the car:
Payment: 375
Gas: 160 month
Insurance: 175
Parking:100
Maintenance Avg Per Month: 50.
Getting Car Cleaned 2x per months: 40
so um… a lot.
I live in the LA vicinity and just my commute alone is 40 miles roundtrip.
Insurance: $31
Gas: $60
Maintenance/Repairs: $58 (variable, this is average over the life of the car)
Total: $149 per month.
I paid cash for the car six years ago. If we amortize the purchase price over the life of the car, it adds up to $48 per month. I expect the car to last two more years (still in perfect working order, but showing its age), which would bring that down to $36 per month, but likely maintenance will increase somewhat.
So total cost is $200 per month, including amortization of purchase price. I am amazed at the deal we get on insurance compared to the folks here (only Red’s $48/month is close). I didn’t realize we were doing that well, though I knew it was a good deal. Older car, clean driving record, liability only (but more liability than is required by law, so we could make it even cheaper).
$75/mo gas
$25/mo insurance
~$50/mo maintenance (on average, I have one large repair/year at about $400, then adding oil changes, etc.
$150/mo total. With the purchase price, it brings it up to ~$200/mo. Still way cheaper than having a brand new car with payments!
A car is pretty necessary in areas without good transportation systems, like southern California. It seems like the places with great public transportation are much, much higher in housing and cost of living (read: NYC and San Francisco), so it pretty much evens out.
Aren´t you forgetting something?
What about depreciation? The fact a car is fully paid for saves you repayment of a loan (principal + interest) but not the loss on resale coming from depreciation. You should figure it in.
And to be economically correct, you should add the opportunity cost. By investing money (yours or borrowed) in a car, you forgo other investment opportunities, which in some cases may give you better returns (in tangible or intangible ways – such as a trip or a class).
I live in London where there is a vast public transportation system (old and relatively expensive but it´s there) and a new service offered by private companies of cars on demand: you pay an annual subscription fee ($100 or so) and then can use at will cars they have parked in specific locations all over town. You get charged per hour or day based on your use. It´s easier and cheaper than using a rented car for short needs.
Result: I have no car and love it!
Much as I loved being able to completely control my transportation, I’m glad I don’t own a car right now. In New York City, I pay $76 a month for an unlimited MetroCard, and this is paid with pre-tax dollars. Once a month or so I travel outside of the city and pay $36 for a train ticket to Connecticut. I don’t usually spend more than $110 a month on transportation, BUT the exorbitant cost of my rent makes up for it!
I bought my car outright, so no loan payments.
Gas: ~$90
Maintenance: I set aside $50/month to cover any maintenance
Insurance: $60
Total:$200
Public transportation cost me $66.25 a month, but that’s just for the Winter.
Otherwise I use my beloved Scooter ! Insurance costs me $250 a year and gas is about $5 a month.
Let’s see..
Car payment: $270
Insurance: $20
Gas: $150
Maintenance: $10
Total: TOO MUCH!
I wish I could pay for it with pre-tax dollars!
$610/month for my car
$670/month for rent
Like the girls have said, the New Yorkers amongst your readership pay $76 (soon to be…$81?) on monthly unlimited MetroCards. I get this taken out of my paycheck pre-tax, though, so it costs me a little less than that in “real” dollars. I also budget $40/month for taxis (to get home from a bar in Brooklyn at 2:30 a.m. and suchlike), but don’t usually end up spending that much.
Because I grew up here, I don’t even know how to drive!
California insurance rates have decreased recently – laws changed that require the insurers to spend less time in court, lowering everybody’s prices. I’d call your insurance company and see if they can adjust your rate now, rather than when the policy expires.
If they won’t, call Wawanesa. http://www.wawanesageneral.com/
They don’t advertise, and they only insure safe drivers, so their rates are really low. However, their customer service is excellent, according to Consumer Reports and similar surveys. (I’ve never had to file a claim so I can’t vouch for this). They saved me almost $400 a year off of State Farm’s quote.
Oh boy. Thanks for reminding me… the Ol’ Honey Wagon could use a tune up.
How much do one of those cost typically?
I live in Denver an don’t own a car. It’s $60 a month for a pass that gives unlimited bus rides and allows me to go to most of the light rail stops. If I’m going outside my lightrail ‘zones’ I have to pay the difference- a buck or two (I only do this maybe once a month).
Overall, it’s a heck of a lot less expensive. Plus, I enjoy being able to use my commute time (20 mins) for reading (a hobby of mine) as opposed to staring at the cars in front of me.
My car costs:
$310/month (loan)
$25/oil change (about 2-3 times per year)
$35/fill-up (3 times per month)
$549/parking permit (for the academic year)
$1100/insurance (for the year, on my dad’s plan)
$15/wash (every other month)
I don’t really budget for major repairs since the car is still new, but I will need to replace the tires within the next few months, which will be about $400.
So, about $575/month right now. When the car is paid off (December!), this will go down, but will go back up again when my dad kicks me off his plan when I finish school. I think by then I might also make a point to wash my car a little more often
.
living in boston, i spend an average of $50 a month on transportation. that includes both my t pass, the rare cab ride, and bus tickets to visit my family. car expenses are one of the many reasons it will be a long time before i live outside a city with a solid public transportation system. whenever i’m walking in the freezing cold to the nearest subway stop, i remind myself that it’s a lot better than making car payments.
I have a car and take public transport since I live in the suburbs but work in the city.
I own the car free and clear, thank goodness, but there are still expenses. Its an old car though, so my insurance is fairly low as I don’t have collision.
gas: $120-180/month depending on how much driving I do
insurance: $68/month
maintenance: varies–oil changes, etc.
train station parking: $12/month
train ticket: $217/month
metro card: $81/month
No car. It didn’t start out intentionally — I hadn’t had one in the City and then I moved west for grad school and totally lucked out with good public transit. A bus pass is included in our segregated fees (the tuition add-on that covers student health, subsidizing the football, team, etc.). If I were paying retail, it would be $47/month for unlimited rides. I’m also a member of a local car sharing service, which costs $8/hour gas included, which I use anywhere from 4-10 hours/month. So out of my own pocket: $32-$80/month, plus whatever part of my fees is going to the bus pass. Definitely under $100/month.
Gas: $50/month (I carpool, drive to work every second week)
Registration: $78/month
Insurance: $15/month
Repairs/Maintenance: $50/month average over the past 5 years
I would love to not have a car and be able to walk but where I live, the public trans system is so poor, there’s no way I could do it.
I have a 1.9% loan on my car, so I’ve chosen not to pay it off (since my savings account pays more than that). I could pay it off any time if I chose to.
So here are my current expenses…
($506 – car payment)
$60 – gas (1 – 2 tanks per month, avg ~1.5)
$75 – insurance (Wawanesa for me as well)
$17 – maintenance (car is under warranty, and it uses synthetic oil, so oil changes are only every 10,000 miles)
$10 – registration
In addition, I buy a train pass and take the train to work 3-4 days a week. That’s going to end up running me somewhere between $68 and $106 (pre tax, so less in real dollars).
So all in all, about $162/month for the car, plus $47-74 in post-tax dollars for transportation (I don’t count the car loan for the reasons listed above). Doesn’t look too bad to me.
For me, there’s less than 3 months until graduation. But right now, I do not have a car and plan not to have one when I graduate.
Right now, my bus fare is included in tuition (just wave my ID..isn’t it great). But in the city I plan to live in, a monthly pass for bus and light rail is $64. It might be less if I choose to buy a bike and just ride to work. And only take the bus when I need to go to the mall in the ‘burbs.
This is awesome to now lastly get a site where the blogger really knows what he’s sharing.