**Top 5 transportation choices in today’s environment***
When it comes to the most cost effective forms of transportation, here are the top 5 options in 2015 (for the vast majority of people):
1. Ditching the car altogether. With this no longer being the year 1968, the options for non car ownership in America have gotten to the tipping point to where they are extremely in your favor.
Today, the average cost to maintain a recent model sedan is $838/month –>> https://pbs.twimg.com/media/B2v97UJCIAAjh81.png
Next generation companies like Sidecar, Uber, Lyft, Zipcar, Relay Rides, Cars2go etc have put in blood sweat and tears to offer new experiences that will also save you a ton of money and trouble.
Relocate yourself to a more centrally located to work and/school and you will save more money AND time than you will ever spend on the potential for increased rent. Couple that with public transportation and personal transportation (bike/scooter etc) and you can end up spending no more than $200-$300/month and be healthier doing so.
2. Ditch the car…mostly. An alternative to number one, that is better for (some) parents, is to do the heavy lifting using step 1 (above) while keeping a 10 year old, paid off reliable clunker parked on the street for those one off trips. Since the car is paid off, and you’re spending about $200 for public transportation, your costs go up here for low insurance, low gas, low maintenance and non luxury car annual registration.
Total spent here – no more than $300/month
3. Drive electric! This is by far the cheapest of the “I must drive my own car during the majority of the month” scenarios. With dealers basically giving these cars away –>>
The cost breakdown becomes this:
+$10k for a 36 month lease = $278/month
-$2500 check from the state = +$69/month back in your pocket
+$10 maintenance®istration/month (you have a brand new car that doesn’t need oil changes or any other real maintenance – its lovely)
+$30/month in increased electricity bill (maybe)
-free car pool lane use
-incredibly fast pickup and acceleration
-saving the world for your kids future
= $330/month on average
4.Drive reliable (Honda, Toyota & Nissan) used & paid for in CASH (under $12k).
This is the second best option for the “I must drive my own car during the majority of the month” scenario.
5.Leasing non-electric cars. Understand that even if you are going to make the mistake of avoiding the previous 4 options listed above, the worst thing you will ever do is take out a loan on a new or used car. Learn why here –> http://thisiswhyubroke.wordpress.com/2012/01/02/the-lost-decade/
And here –> http://thisiswhyubroke.wordpress.com/2014/02/21/the-only-options-to-escape-bad-car-loans/
Learn why leasing, as of today, is still better than debt –>> http://thisiswhyubroke.wordpress.com/2014/08/22/for-new-car-drivers-leasing-is-now-killing-owning/
Personally – I have zero desire to run around telling people I’m paying monthly to “own” a quickly depreciating asset.
I’d rather go legally blind over the course of a month.
http://www.BKFUniversity.com (Beat Debt, Master Your Money. Reclaim your LIFE)