Friday, February 08, 2008

Carfree Life: Doing the Math

According to a 2004 American Automobile Association study, the average American spends $8,410 per year to own a vehicle. That’s equal to $700 per month, and a lot of potential savings when you throw away your keys.

How much? If you take those $700 each month and invest them in an 8 percent annual return, it'll really add up. You'll have enough to do something like make a down payment on a house—$18,153—after two years. Five years of car-free living will net you enough to, say, pay cash for you child's college education (or about $51,433).

Planet Green


Brains said...

And like Brian said in the previous post, you can travel lots with your lady!

roberta said...

I was able to buy a house with all the money saved not owning a car.

Still do carsharing about once a month, but mostly bikes, buses, light rail, and taxis at night.

Saved a down payment big enough to secure a cheap loan.

Real estate holds value much better than owning a car anyway.

If the recession ends, the house you buy now could be worth lots more some day.

Going carfree is just part of the new movement towards being a real cheapskate. This guy is great if you are into being cheap.

Anonymous said...

Yeah. You can send your kids to college on that money! You just won't be able to get them there! Light rail is a great way to move bean bag chairs, I tell you.

Brian said...

Hey "Anonymous"

Breaking News!

Rental car agencies now have trucks. You can rent one for a day and then give it back.

Cheapskate carfree life continues!

Got any other reasons you can't possibly go car free? Bring them on.