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

4 comments:

Brains said...

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

Anonymous 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.

http://www.ultimatecheapskate.com/

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.

Unknown 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.