No Car = Bigger Wallet
December 23, 2008
Brett Arends makes the economic argument for getting rid of your car in today's Wall Street Journal. First, and obviously, when you look at cars, regardless of type, they aren't cheap:
Forget lattes and store-brand cereal. If you really want to see where your money is going, take a closer look at your car. Foreign or domestic, it doesn't matter. It's a cash guzzler, and it is probably costing you more than anything else except your home.Arends suggests that families sacrifice the beloved vehicle in order to survive in tough economic times:
How much? First there's the actual capital cost of buying the vehicle. Obviously people can spend as little as a few thousand dollars buying an old clunker. But most spend a lot more. And that initial cost is just the start. Now add everything from gas and maintenance to insurance, registration, taxes, tolls, parking, tickets and so on.
You'll be lucky if you're spending less than about $4,000 a year. Most people will pay a lot more. If you buy the vehicle with a loan, you'll have to pay interest. If you pay cash, you have to factor in the interest you would have made on that money if you had saved it instead. That's a real cost too, and a substantial one, though most people forget about it.
In 2007, the most recent year that numbers are available, the American Automobile Association figured its members paid about $7,800 a year on average to own and maintain their cars. That figure dropped to about $6,200 for small-car owners.
Maybe it's time for smart families to consider some really tough choices.The reason "smart" families need to make these "really tough choices" right now is the result of years and decades of "stupid" public policy that has essentially made life without a car unbearable in all but a few parts of the country. So while a few pioneering individuals might choose a car-free lifestyle in a place that is typically dependent on auto-transport, real change won't come until society and government decide to make serious commitments to auto-alternatives. It isn't just a coincidence that cities like New York and Portland have among the lowest percentages of individuals who own or drive cars; those local governments have made a serious enough commitment to transit and bicycling (respectively) to make alternatives to driving mainstream realities. So long as we have governments who would rather spend money on new highways and expanded road capacity than transit and other alternatives, Arends suggestion will continue to be a "really tough choice" for more Americans than it should; and that is too bad, because they sure seem like they could use some real relief in these tough economic times.
Life without a car may seem inconceivable. They are useful and can be fun. In most parts of America, you really can't survive without one. And they've been hammered into the culture and the national psyche.
But a lot of things are happening these days that nobody expected. Rules are changing. People need to make every dollar count.
I love this post! More people need to be talking about this. I have no intention of buying a car for as long as I possibly can. Better for the economy *and* the environment.
I have been living without a car for 10 years. Its no small adjustment but its not as critical as some might think. On the upside my wallet, in fact, is fatter. Having savings around is more important than driving 4.3 miles to work and back weekly. At the same time my shopping (aside from food) has been dramatically reduced since "going shopping" is a planned event now as opposed to hopping in the car for a quick drive.
Ask yourself with anything that parts you with your earned dollars: "Do I need it? or do I want it"?
Great post and great blog. I remember growing up thinking that only poor people rode the bus, so I focused on getting a car as soon as I could so I wouldn't appear "poor." It is most definitely the culture, and unfortunately, I don't see it changing anytime soon. While I couldn't stand the city for being so crowded at all hours of the day and night, I loved NYC's transit system. Could get anywhere in ten minutes!
Nisha, hopefully we can get more people talking about this?
Cris, thanks for sharing. Good points about being more efficient with your shopping, as well.
Tara Pringle Jefferson, in some ways it is already changing. Where people who ride the bus used to be viewed as "poor", now many of them are viewed as "smart", and I've been hearing it more and more recently.
I admit now when I see someone waiting for the bus, I think, "They must be saving a fortune..."
I second the idea of getting more people talking about this as it is critical to the future of CLV.
How about a car-free movie festival at Levin College? The Dively Auditorium has seats for about two hundred - could be a lot of fun!