Today, I spent time going through old budgets to see what I spend on owning a car. Over the last 20 years I have spent a total of $76,000 on cars & car transportation. Pretty hefty when I started adding it all up! These numbers include insurance, what I paid for the cars (mostly used), maintenance and gas.
In the last 5 years alone, I've spent $25,929. That's $5,000 per year or $417 per month. Since I drive about 11,000 miles per year, that's $.45 a mile. If I had driven my car for 10 years as I originally planned when I purchased it in 2006, then amortizing the $16,000 cost over 10 years instead of 5, would give me a yearly expense of $3,600 or approx. $300/month or $.33/mile. This is still well below the $1/mile figure AAA uses or the $.55/mile allowed by the IRS when calculating car costs.
Looking at my car costs another way, I've spent about $1800 to $2000 a year the last few years for car expenses, not counting car purchase costs, or approximately $150-167/month. Roughly, I spend $50 for gas, $66 for insurance, and $42 for maintenance each month ($158 total).
Basically, no matter how I calculate it, owning a car is an expensive proposition! And, I do frugal things like buy inexpensive and/or used cars, combine trips, shop for best insurance, etc.
I'm getting into the swing of thinking about every car trip or possible trip. I haven't driven my car for the last 3 days at all. Saturday, I have to go somewhere that is not an easy bus ride, though only 10 minutes by car. I may get a ride from my parents or take a taxi- haven't decide yet.
This is great, April. We've grown accustomed to cars being a necessity, like paying rent or mortgage. But what happens when we begin to question these "necessities" and their benefits on our health/sanity? When you add in our tax dollars for road and safety maintenance the cost of a car is even higher. I'd be interested to look at these numbers in comparison to, say, what it would cost to ride the bus to and from work for a year, for a person who works a regular 8am-5pm type job (riding into downtown and back from a near suburb). (Amy)
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