Expenses like car payments, gas, insurance, maintenance, and parking can take up half of your paycheck before you know it. If you add in occasional rideshare trips, transportation can easily become one of your biggest monthly expenses.
Transportation doesn’t have to drain your bank account. Whether you own a car, take the bus, or use ridesharing apps, there are practical ways to cut costs while still getting where you need to go for the things that matter to you.
The Real Cost of Car Ownership: What To Expect and How To Save
Cars changed everything about daily life, from making travel easier and quicker to shifting how people commute to work. Before widespread car ownership in the 1950s, most Americans lived within walking distance of the places where they worked, shopped, and viewed entertainment. Today, cars have contributed to spreading communities that make car ownership feel necessary.
However, cars can be expensive to own. The average cost to own a new car in 2024 is $12,297, according to AAA research. That price includes everything that comes along with vehicle ownership, such as gas, insurance, registration, maintenance, and depreciation.
To save money while owning a car:
- Buy used (but not too used): In general, cars lose 20-30% of their value during their first year of ownership. This means a two or three-year-old car can provide you with modern safety features and reliability without the new-car markup.
- Choose practical over flashy: While a sports car might turn heads, it’ll also drain your wallet with premium gas, higher insurance, and expensive parts. Practical sedans and hatchbacks from brands like Toyota, Honda, and Hyundai consistently rank highest for reliability and lowest for lifetime costs.
- Shop insurance rates yearly: Many insurance companies raise rates gradually, knowing customers rarely switch plans. Set a reminder in your calendar to compare quotes annually. You might save hundreds by switching to a new insurer, or you can ask your current insurance company to match competitors’ rates.
- Learn basic maintenance: Changing your car’s oil, air filters, and wiper blades is surprisingly easy and saves $200-$300 yearly. YouTube tutorials make these tasks accessible even for beginners.
Buying a car online can also be a good way to save thousands, but before you buy, understand online vehicle inspections and shipping costs. Have a mechanic check it out, or use a service that can verify its condition. For out-of-state purchases, you’ll need to arrange shipping, which requires another inspection process to document the vehicle’s condition before transport. Many online car-buying platforms have shipping calculators to estimate your shipping costs.
Ridesharing and Public Transit: Smart Alternatives to Car Ownership
Living car-free isn’t just for New Yorkers anymore. With expanded public transit and ridesharing options, more people are ditching car payments for more flexible transportation.
Public transportation remains the most affordable option in most cities. A monthly transit pass typically costs $50-$100 — depending on the city. Even with daily use, that’s a fraction of car ownership costs. Public transit also eliminates parking headaches and gives you time for other things like reading, listening to podcasts, or catching up on emails during your commute.
Some argue public transportation should be free altogether. Cities like Kansas City, Missouri, and Dunkirk, France, have already implemented fare-free systems, seeing increased ridership and economic benefits. Free public transit helps low-income workers access jobs, reduces traffic congestion, and cuts down on pollution.
Ridesharing makes sense for occasional trips or when transportation is time-sensitive. Find the cheapest ridesharing option with these tips:
- Compare prices across apps: Uber, Lyft, and other services use different pricing structures. Rates can vary by $5-$10 for the same trip depending on which app you use and current demand. Apps like RideGuru compare rates across services.
- Use scheduled rides when possible: Booking your ride in advance often locks in lower rates and ensures a driver will be available.
- Look for subscription options: Uber One and Lyft Pink offer reduced rates and waived fees for monthly subscribers. If you use these services regularly, the membership can quickly pay for itself.
With these tips, ridesharing can become a practical, low-cost transportation option alongside public transit.
Creative Transportation Solutions for Every Budget
Besides car ownership and ridesharing, there is a world of options for budget-friendly transportation. Walking and biking cost almost nothing and provide numerous health benefits and environmental advantages. Biking to work twice weekly could save about $50 monthly on transit passes and provide quality exercise outside of a gym.
The basic costs of bike commuting are surprisingly low. You’ll need a decent commuter bike ranging from $300-$800 as a one-time purchase, basic maintenance costing about $100-$200 yearly, and safety gear — a helmet, lights, and bike lock — for roughly $100-$300. Combined these expenses are a fraction of a car’s expenses, especially if you spread these costs over a bike’s lifetime. There are also electric bikes and scooters, which many cities offer through rental programs. However, frequent bike users might save money in the long run by purchasing their own.
For longer distances, consider carpooling with coworkers as a budget-friendly ride option. Splitting gas and parking with just one colleague cuts your commuting costs in half. You can also use car-sharing services like Zipcar and Turo to rent vehicles by the hour when you truly need one, making them perfect for occasional trips that would be inconvenient by public transit.
Finally, don’t forget about utilizing employer benefits. Your job might offer pre-tax transit accounts or subsidized transit passes to help cover your transportation costs. Some employers even have shower facilities for cyclists and remote work options that eliminate the need to commute.
Choosing What Works Best for You
Transportation isn’t one-size-fits-all. Your best option depends on where you live and work as well as the type of lifestyle you want. To discover what transportation might be best, track your current spending for a month and compare this with alternatives like biking or ridesharing to see what truly costs less.
For many, the most optimal option is a hybrid strategy: public transit for commuting, occasional rideshares for convenience, car-sharing for weekend trips, and walking or biking for nearby errands. Ultimately, taking a different approach to transportation could help free up money to use for the things that matter most to you.
Photo Credit
Photo is from Pexels
Guest Author Bio
Charlie Fletcher
Charlie Fletcher is a freelance writer from the lovely “city of trees”- Boise, Idaho. Her love of writing pairs with her passion for social activism and search for the truth. When not writing she spends her time doodling and embroidering. And yes, she does love all kinds of potatoes!
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