Two years ago I bought a brand new Corolla. I went to the dealer to look at a used Solara, but I ended up negotiating a good deal on the new Corolla, so that is what I left with. That was really stupid. You will never see me buying a brand new car again. Ever. For any reason. Uh-uh. Not gonna happen.
See, over the weekend I figured up how much this car was costing me over a year. The results made me a bit nauseous. Actually, it made me very nauseous.
Over the course of a year, I pay out around $5600 in car payments and insurance. This does not include any extra payments I may be making. Looking at where I have been tracking my spending, I spend about $2800 a year on gas. It might be a little less, since recent gas prices have been pretty steep, but I’m sticking with that number. Obviously, I drive quite a ways to and from work each day. And for things like oil changes, registration and other maintenance, I’m saying around $600 a year. I think that’s a pretty good estimate; however it does not include tires because they aren’t needed every year.
So, that is $9000 a year on this vehicle, or $750 a month. That is $17 dollars less than my rent. Are you nauseous yet?
Owning a car is expensive, and way more expensive that I thought. Even if I had a little beater car, I’d still have most of those expenses. I would not have the car payment, but I might have more maintenance charges. So, I would guess that a beater car would cost me half as much as my current car. Boy, I could really use that extra $375 a month. Of, if I could find a place to live in a city like NYC where I could use public transportation and have the rent be less than $1500 I could come out ahead. And get the added benefit of exercise. How truly depressing.