WANT TO SAVE $1K A MONTH? USE THESE 6 CHEAP CAR ALTERNATIVES

We often focus on the average price of a new or used car and how it’s gone up or down (usually up) over the past month or year. However, in 2023, AAA reported that the average cost of owning and operating a new vehicle rose to $12,182, or $1,015 monthly. This annual expense represents a 15.6% increase from 2022 when the average yearly cost was only $10,728, or $894 monthly.

Find Out: 5 Cars You’d Regret Buying If You Live Only on Social Security

With increasingly expensive fixed costs — food, rent or mortgage, insurance and transportation — needing paying, it’s not just about cutting out non-essential spending anymore. Many Americans are taking drastic measures to fix their finances by driving less, choosing alternatives to driving and resorting to ditching their rides altogether.

There are plenty of reasons to go car-free, and as remote work continues to be practiced in many industries. Daily auto commutes can be reduced or eliminated, allowing you to invest in other transportation alternatives or avoid transportation costs completely. There’s a lot of money to be saved monthly without fueling and maintaining a car.

According to The Verge, the American Public Transit Association (APTA) found that Americans can save almost $10,000 by switching to public transportation or cutting back to using one car only, according to its 2020 Economic Impact of Public Transportation Investment report.

Cheap car alternatives can help you save money on transportation while reducing your carbon footprint and embracing more sustainable modes of travel. Whether you’re looking to cut costs or avoid the responsibilities of owning a car, consider these six cheaper transportation options.

Sponsored: Owe the IRS $10K or more? Schedule a FREE consultation to see if you qualify for tax relief.

Downsizing Your Vehicle

Some regular car, truck or SUV drivers choose smaller, more affordable alternatives like motorcycles and scooters to save money. You’ll spend less on purchase price, fuel costs and maintenance and will have the advantage of moving around town with greater maneuverability in traffic and parking spots. Electric mopeds and e-bikes are modern alternatives that combine convenience with the efficiency of electric power. They are especially useful for brief trips and are often accessible through booking apps.

Public Transportation

The original alternative. Using buses, trains or subways is often more affordable than owning a car. A town’s public transportation system is designed to provide passengers access to all parts of the city, so if you can spare a couple of minutes to plan your route, public transportation can be a reliable and cost-effective way to commute.

Lyft, Uber and Taxis

Sure, ride-sharing companies and taxi services can be costly if you use them often. After all, some people decide to buy a car after spending too much money on cabs and rides. However, if you don’t need a car for work and don’t overuse them, taxis and ride-sharing companies like Uber and Lyft can offer a convenient way to get around without spending big on car ownership. Taxis don’t have different payment tiers and split fare options, but might have more stringent hiring policies.

Commuter Rail and Light Rail

If you live in a city of a certain size, you might have access to trains or light rail systems, that allow riders to travel from a different city or state to work without the cost of gas and the hassle of traffic. If your employer provides commuter benefits — where they pay some or all expenses for commuting — riding the rails is an attractive and calming way to use public transit over your personal vehicle to get to work.

Rental Cars and Car Sharing Services

Renting a car for specific trips or occasions can be more economical than owning one. Car-sharing services like Zipcar or Enterprise’s CarShare allow you to rent a car for a few hours or a day, reducing the need for car ownership. Zipcar’s memberships start at $9 a month and $90 a year and come with gas included. The company says members save more than $1,000 a month compared to car owners.

Walking and Biking

One of the bonuses of inner-city living or living close to your workplace is adopting a healthy and relaxing lifestyle while walking or biking to your job. They are the most environmentally friendly and cost-effective alternatives to driving. Many cities have prioritized bike lanes, helping cyclists get to their destinations safely.

More From GOBankingRates

This article originally appeared on GOBankingRates.com: Want To Save $1K a Month? Use These 6 Cheap Car Alternatives

2024-04-24T21:45:42Z dg43tfdfdgfd