Saving Money: Downsizing to One Car

It is pretty much a given in our society that many families have at least two cars. My husband and I were considered a bit odd in our neighborhood, since for seven years we shared a car. (We finally bought a second car earlier this year.) However, things are changing now. Some people are beginning to see that they really can get by with only one car if their budgets demand it. I received the information about this rising trend from LeaseTrader.com, a company that specializes in helping people get rid of their leases early:

“We’re finding more and more families right now willing to give up one or two of their cars even if it means they have to share the only remaining vehicle for the entire family,” said Sergio Stiberman, CEO and founder of LeaseTrader.com. “Despite many headlines that say the recession is over, the reality is that people are still hurting financially and they’re finding additional ways to slash their own bills.”

It really does make a difference in the family budget to cut out one car. While we are saving money in gas overall (we bought a Prius), we still have the cost of insurance, as well as the fact that we financed part of the purchase price of the car (after putting down a decent down payment). And, of course, there is one more car to do maintenance on. We are able to absorb the $500 extra a month that we spend now that we have a second car — most of it coming from making payments on the loan — because we had planned ahead. Since most families either finance or lease a car, it is no surprise that many of them are now looking into downsizing to one car.

Are you considering downsizing to one car?

Image source: AutoPhoto via Wikimedia Commons