Can Getting Rid of Your Car Help You Financially?

The decision to buy or lease a car is a big decision, and a choice that has a huge impact on your personal finances.

A car gives you the freedom to travel and provides a lot of convenience. However, is owning a car really the best financial decision, or are there alternatives that we can rely on?

For many people, purchasing a car is no cheap task, and it takes a lot of time, money, and effort to maintain a car. In this post, we’ll be talking about how getting rid of your car may be a wise financial decision and why you should consider it.

The Responsibility

Whether it’s ending up in a car accident due to your driving (or someone else’s) or having to keep your vehicle maintained for a long period of time, the responsibilities of vehicle ownership are expensive and you need to consider all of them.

Be it servicing your vehicle, replacing certain parts, keeping the engine clean, or even just washing off the grime and dirt, maintaining your vehicle comes with responsibilities- and they can get incredibly expensive if you’re not careful.

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Financing and Payments

Paying for a car is expensive. If you’re already knee-deep in debt, then it’s important that you try and get yourself out of debt, if you’re experiencing financial trouble. By selling your car, you can minimize a lot of the debt that you’ll incur and you might even be able to completely wipe your loan if you’re smart about it. This can become a great financial benefit, especially if you’re struggling to pay for the car in the first place.

Have Public Transportation?

Thanks to the growth of public transport in many cities, it’s much easier to get where you want to go. Whether it’s visiting friends in another city, or even taking an Uber when you’re out partying with friends, it’s more convenient, relaxing and ultimately costs less.

Even if you’re injured in an Uber, you may be able to make similar insurance claims and get the compensation that you would from paying car insurance, and you don’t even need to own the car!

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There are plenty of other conveniences and extra perks to public transport, but they all ultimately affect your financial situation. Would I recommend public transport as a financially wise alternative? Absolutely! But there are, of course, some downsides, such as having less freedom to drive where you want.

Think About It

As you can see, getting rid of your car may be a great financial move. While it can limit your transportation options, there’s no denying that it may be one of the best moves you can make, you’re cutting back on expenses. Give this idea some careful thought, because it may pay off for you.

This post is for educational purposes only.

Ken Boyd

Author: Cost Accounting for Dummies, Accounting All-In-One for Dummies, The CPA Exam for Dummies and 1,001 Accounting Questions for Dummies

Co-Founder: accountinged.com

(email) ken@stltest.net

(website and blog) https://www.accountingaccidentally.com/

(you tube channel) kenboydstl

 

Image: Bullseye, Jeff Turner CC by 2.0