Not my car!
Do you ever keep a luxury item that you don’t need because it has sentimental value or it makes your life more comfortable? I’d like to say that material things don’t motivate me and I’m a frugalista in all aspects of my life, but neither are true. There are plenty of “things” in our house that I keep solely because I like them and I want them around. I’m not embarrassed to say that I have a pretty decent selection of designer handbags and my closets aren’t exactly bare. I sometimes buy things that aren’t on sale and when I really want something I buy it, whether I can find a discount code or not.
Am I financially irresponsible?
Some people might say “yes”, but I don’t think so. When it comes to personal finance, we all make decisions about the ways we’re willing to spend our money. Some of us spend our extra cash on travel, or snowboarding gear, or designer watches. While others spend our weekly “blow” money on organic foods, wine or dining out.
Inspired by Pauline’s post, I decided I’d do a write-up about why we have a car, despite the fact we live in one of the most public transportation friendly cities in the world. If you’ve ever lived in, or traveled to NYC, you know that the public transportation is pretty abundant and fairly easy to use. Buses, trains, ferries and bikes can get you pretty much anywhere you want to be in the 5 boroughs. In fact, Eric and I both take public transport to work on a daily basis. With the cost of garage parking near our respective workplaces, and the hassle of rush-hour traffic, it would be pretty much insane for either of us to drive to work.
Cost of having a car in the city:
Parking: $3000/yr
Insurance: $1000/yr
Gas: $1500/yr
Maintenance: $1000 (give or take you never know with a used car)
Total Yearly Cost: About $6,500
vs.
Cost of a public transportation:
Monthly subway pass: $120/mo
Total Yearly Cost: $1,440
So why don’t we sell our car and save $5,000 on insurance, maintenance, gas and garage parking (on street parking is available, but I challenge you to find a spot on the street after 5pm!)? Because we’re stubborn and set in our ways and we both like having a car. In short, it’s a luxury item that we’re willing to keep, despite the fact we both know we don’t “need” it.
It’s important to both of us that we’re able drive to the grocery store, escape the city and spend the day in the suburbs (my sanity some days!) and drive to Maine to see my family whenever we want to. Do we need a car to do those things? No. But it sure makes life easier. When our car flooded during hurricane Sandy, we didn’t have a car for several months. During that time we bought out groceries online and rented cars by the hour from zipcar and Hertz. While the rentals were nice during a pinch, it was often a huge hassle. Sometimes we wanted to rent a car and none were available. Other times we rented a car and the previous renter returned the car with the gas tank empty or didn’t return the car at all (this actually happened to us! In 10 degree weather we walked for blocks trying to find a car that was never returned.).
There’s also an emotional aspect to having a car that’s important to both Eric and I. Because we both grew up in areas without public transportation (Maine and Manila) there’s something very sentimental about having a car. I laughed, cried, sang and celebrated in my first car. It was like my “key” to freedom and adulthood-no pun intended.
Are emotions and convenience costing us money? Absolutely! But for now we’re OK with that.
Do you need a car in your area? If you were me, would you sell the car and save the money, or keep it?
Image: M 93