Do You Really Need Two Cars?
It’s expensive to own two cars!
One of my sons recently totaled his car on black ice. He borrowed mine until insurance took care of his. So my wife and I shared her car by planning ahead and combining errands. Flexibility made it work. The savings of going from two vehicles to one adds up quickly. A report in June revealed that American households spent an average of $5,400 a year on car loans and insurance. With fuel, maintenance, repairs and other costs, that’s a lot of money. At Bankrate, they say that last year, the total cost of owning a new car ran nearly $10,000. That’s why I pay cash for used cars. It’s a radical thought for suburban families to consider driving just one car, but hey, radical opens the door to explain yourself.
Making the sacrifice temporarily frees up money to build an emergency fund, to pay down debt, or to save for a major purchase. Maybe you need the money to go back to school, start a business, or save for retirement. You can use public transportation, walk, bike, carpool, or car share through companies like Enterprise or Zipcar, or reserve an Uber, Lyft or simply rent one when needed. If dropping down to one car is too difficult, lower the cost of ownership. Minimize depreciation by finding a used car that holds its value. Look for good fuel economy and try to drive less. Shop around for a good rate for insurance and find a reputable mechanic. Above all, ask God for wisdom to make the right car decision.
Now if you’ve been blessed with My MoneyLife, I invite you to discover the Crown Stewardship Podcast. They focus on helping you find freedom in your finances and career. You can subscribe on Spotify and iTunes, or listen at Crown.org.