Becoming a one-car family has been on my mind a lot lately. Currently we own 2 cars My husband needs a car for his job, and until recently, so did I. However, I will be starting a job very close to my house soon and don’t really need a vehicle.
For these reasons, we have been examining the benefits of dropping to one car. I knew our cars cost us a lot, but I didn’t truly grasp the extent of it until we did this experiment!
How Dropping to One Car Can Save You $5000 a Year
Here are my top 6 financial reasons for dropping to one family car:
1. Car payments or repairs
If you have car payments, the monthly savings are very clear when you drop to one car instead of two. We own our car, but still spend a lot on car repairs. Our car seems to run smoothly for quite some time – and then – boom – an $800 repair.
We budget $100 monthly to pay for these repairs. $100 per month is a very large savings right there!
Insurance is very expensive. We have gone through a few providers, and found a reasonably well-priced insurer through my work, however, it’s still a large chunk of money each month. For us, it’s just over $100 monthly.
The price of gas has been on the rise for some time, and there are no signs that it will be declining. I fill the tank once every other week. And our van sure takes a lot of gas! That cost is $80 a fill or $160 a month. I could easily take a cab on rainy days and pay substantially less than the cost of gas alone.
4. Oil changes and fluids
Regularly scheduled maintenance is a must to keep your vehicle running well and to save yourself money in the long run. It’s certainly not something you want to skip. An oil change every three months, windshield washer fluid when needed, and the other necessary regular maintenance runs us about $60 every three months, or $20 monthly.
5. Shopping and errands
I would save my family a ton of money by shopping one day only. Since right now I am home with my boys, I am always running (well, driving) to grab something at the dollar store, for a great deal I saw online, or to grab a coffee while I drive my littlest around to get him to sleep.
If I was forced to be organized and only shop once a week (when I had the car on the weekend), we would save a ton. Not to mention I would have to really, really want a coffee to walk or bike to the coffee shop. Without any stretch, this would easily save my family $50 a month (and that is being very conservative).
6. Health benefits
By biking or walking to work every single day, I would be much healthier. Biking 5km everyday would certainly keep me fit and healthy, making me less susceptible to many illnesses. This means less time off work and less money spent on expensive medicines and prescriptions.
Not to mention a gym membership would be absolutely unnecessary. Priceless.
This ads up to a savings of $430 a month for my family. In one year, we would save $5,160! And this is without a car payment – imagine the savings if you those to pay for, as well.
So, will we be dropping to one car? I must tell you, that number is much larger than I expected. That would be a HUGE savings. I’m thinking we may just have to take the plunge…