The Cost of Owning a Car

Everyone knows that owning a car is expensive. Beyond the cost of the car, the interest on a car loan, and the finance charges, automobiles come with several other considerable costs. Car owners must pay for gasoline, insurance, licensing, and maintenance every year. These costs pile up fast and make up a significant percentage of the average American’s income. Unfortunately, many of us live our lives in such a way that we rely on cars to get around. By eliminating car costs from your budget, you could save a significant portion of your income for other needs, such as paying off debt or saving for the future.

What You Pay Each Year

According to the Bureau of Labor Statistics (BLS), the cost of owning a car accounts for 17% of all of the expenditures that we make every year. This is the second most costly expenditure, behind only the annual cost of rent or mortgage payments for a house. The BLS reports that the average car owner spends roughly $600 per month on a single vehicle, or around $7,200 per year. This is a considerable portion of income that could be used to pay off existing debts or saved for college or retirement. If you are currently in debt or are just seeking to save more of your income each month, consider the different modes of transportation that are available to you in your area.

Reducing Your Car Ownership Costs

There are many ways to reduce your annual vehicle expenses. Whether you want to cut back a little or a lot, the following list of recommendations can help you get around town without breaking the bank:

• If there is a public transit system in your area, try taking the bus to work or school.
• If you commute five miles or less, consider biking to work as an alternative to driving every day.
• Carpool with a friend to work or school and split the cost of gas.
• If you have more than one car, consider selling at least one vehicle and organizing your life so that you can do without.
• Move within walking, biking, or busing distance of work or school and sell your car.

These are just a few ideas to help you save money each year on car expenditures. While it may take a while to adjust to different modes of transportation, you will be left with considerably more money in your bank account each year.

Contact Us

To learn more about cutting your expenditures to save money for your debts or savings, please contact the experienced New Orleans debt negotiation lawyers of Kervin & Young, LLC today at 504-599-5906.