Many consider having a car an absolute must, but it may not actually be as big of a necessity as some might think. As most know, owning a car is a huge financial responsibility, and if you calculate the cost and consider how much you could save over the course of a year by not having one, it could leave you wondering if it's more of a burden than a blessing. If you're looking to save some money and are considering ditching driving, here's five financial benefits of not having a car.
Not shelling out money for gas
With the cost of gas in the $3 - $4 range, a quick few minutes at the gas pump can completely empty your wallet. According to an infographic done by H R; Block in March 2012, the average American spends about $2,120.40 a year for 558 gallons at $3.80 per gallon. Taking public transportation will cost you much less per year and riding a bike or walking will cost you nothing.
Not paying maintenance costs
According to AAA's 2012 "Your Driving Costs" study, maintenance is " 4.47 cents per mile on average for sedans." Time states that " the average car is driven about 15,000 miles per year." At $670.50, that's a good chunk of change annually that you could save or use to pay off bills.
Not paying for insurance
According to the aforementioned AAA study, the average cost of insurance for sedans is $1001 annually. Rates vary, of course, so depending on a variety of factors, you may even be paying more.
Not having to buy a new or used car
If you already have a car and it dies out on you, you're likely going to buy a new or used car to replace it. In August 2012, the average American paid $30,274 for a new car while in the same year, the average price for a used car was slightly shy of $12,000. Even making monthly payments is tough for some. Instead of paying several hundred dollars per month for a car, you could be putting that in savings.
Saving on gym memberships
Walk or bike to work or to do errands and it can be great exercise for you not only to lose weight but also to keep your weight under control. It could be so beneficial that you may feel that you don't even need a gym membership, which can be quite expensive, especially if you pay and don't even go.
I'm not saying foregoing the car is right for everyone, but with the economy not in stellar shape and many people out of work, ditching the car could be a great option financially for those who want to save more money. Before you just give up the car entirely, give up driving for two weeks and see how you would fare without it. It will definitely take some getting used to, but you may find it's the right decision for you.
