Are you feeling the heavy burden of the expense of your car? If you feel like your car is breaking your budget, you may want to consider getting rid of a car. If this doesn’t seem like a possibility, there are creative ways to reduce or cut auto expenses and even make extra money using your car.
My husband and I have been looking over our budget recently, and one of the expenses which stands out the greatest is our cars. We have been looking for ways to reduce our automotive expenses, and the idea of getting rid of one car keeps coming up. It’s been tough to make the decision to ditch a car, and so we’ve also been researching ways to make extra money with side hustles using our cars.
We actually own three cars. One is mine, and the other two belong to my hubby. He recently purchased a Chevy Colorado pickup truck because we are seriously tossing around the idea of buying an RV and renting out our house.
My husband also owns an older Toyota 4-Runner and this is a car he would like to work on as a hobby car. But it’s been sitting on the street for years, barely gets used, and ends up costing him thousands a year in insurance and registration costs.
How to decide whether to keep a car or not
I’m leaving the decision up to hubby on whether or not to get rid of the extra car because I know how important it is to have hobbies and interests outside of work. I see how much joy he gets from tinkering, and that’s why I don’t push for him to let it go.
Friends of ours recently decided to sell one of their cars because they realized they weren’t using the extra car enough to justify the added expenses.
Deciding whether to keep a car or not is really a personal decision. If you are having a hard time deciding, you can use a declutter method to figure out if it’s something that is beneficial to you or not anymore. When you declutter, you go through your items and decide if each item brings you joy, if it’s useful, or if it needs to go.
Pros about letting your car go
Obviously the biggest pro to getting rid of an extra car is the expense.
The average family spends over $10,000 annually on car-related expenses! This is a lot of money to potentially save!
Another pro is you will be forced to think and plan ahead if you no longer have a car to use. This could actually make you more conscious of your decisions about shopping and entertainment.
If you were to ditch your car, you might also get more exercise. If you don’t have a car, you would need to walk or ride your bike to get around town.
Walking or biking could help you save money on fuel and maintenance costs on your car.
Cons about letting your car go
One of the biggest cons to getting rid of your car is you won’t have an easy way to get to work, get kids to school or extra curricular activities, and get around town. While you could ride public transportation, it might be more of a hassle when you have a couple of kids in tow and you need to get them to baseball practice and also pick up groceries for the whole family.
Another con to getting rid of your car is having to get around when the weather is bad. We have a few friends who have completely ditched their cars. We always get calls from them when it’s raining and they need to get to the gym or when they have an emergency, which leads to the next con…
If you ditch your car, a major con is you are relying on others, public transportation, ridesharing, Lyft or Uber to get where you need to go. This can mean your day gets delayed while you wait for someone. You might not get somewhere at all, potentially miss appointments, or be late to or miss work or school.
A compromise to getting rid of all your cars
Not everyone will be ready to get rid of all of their vehicles. If you are a two car household, you might consider getting rid of one vehicle first. This would give you the opportunity to try it out and see if it’s a change that works for you and your family.
There are plenty of ridesharing services and transportation options for those times when you just need to get somewhere. It’s a great alternative if you car is breaking your budget.
How to cut back on the cost of your car if your car is breaking your budget
Major expenses to consider when keeping a car is the cost of gas and maintenance. When we sat down to look at our budget, we noticed one of the major car expenses was my husband’s drive to work and home everyday.
We did a little math and figured out that by trading in his gas guzzling Xterra and opting for a diesel truck, he could save hundreds of dollars a month in gas expenses. His gas bill went from $800 a month in gas to $400 a month! This was a huge savings for him, and he was able to add that money right into his 401K account.
Another major expense is maintenance. Many people opt to do their own oil changes and repairs on their cars. You could also wait for your dealership to mail you coupons or go online and find deals through Yelp or Groupon. I’ve signed up by email with my tire company and they send me coupons and discounts during major sales or holiday events.
Tips for saving when buying a new car
We deliberated over purchasing the truck new or buying it used. Ultimately, we ended up buying it new because the diesel truck we were looking for was in short supply. If you are buying a car new, here are a few tips for saving money.
- Compare prices at multiple dealerships. You can talk to salespeople and general managers at many dealerships to see who will knock the price down for you.
- Wait for holidays and when dealerships need to get rid of old inventory to bring in new inventory.
- Research the car ahead of time using a site like Edmunds.com. You can find out what the car should be priced at and you can determine if there are any dealer incentives.
- If financing the car, go through your local credit union or shop auto loans using a site like SuperMoney.com. You may save a few percentage points in interest which adds up to thousands of dollars saved over the life of the loan!
Tips for buying a car used
- Buying a used car over a new car can save you thousands right away. Research your options using a site like Cars.com or AutoTrader.com.
- Remain patient in your search and make sure to test drive the car and bring it to your favorite mechanic to have them look it over before you buy.
- Set a budget for yourself and decide how you will pay for the car. Sometimes you can get a great deal if you offer cash to the seller.
If you decide you need a car but your car is breaking your budget, here are some ways to make extra money with your car
Driving Sign
If you have a car and you drive around town, then you could make extra spending money by having a removable ad placed on your car. Carvertise acts as an agent and finds you an advertiser who wants to market their message on your car. They pay about $100 a month, but they do sometimes pay more if you park your car in public areas. You have a to have a car, it needs to be a 2008 model or later, and you have to drive at least 30 miles a day. Find out more about becoming a Carvertiser by clicking here.
Deliver items on your way
If you have a car and need to make extra spending money, then consider signing up for a service like Roadie. You can turn your daily commute into cash by delivering physical items. If you are already planning on going somewhere, you can also deliver an item and make cash. The delivery pays for your trip! This is a great way to save money on gasoline and make extra spending money. You can earn $8-$60 for local deliveries and up to $650 for longer trips! This is great if you don’t like to have to drive people around. You simply deliver items. You can even earn money to drive pets around with Roadie. Check out this driving delivery service by clicking here.
Deliver packages for Amazon Flex
Deliver Amazon packages to their customers. You can set your own hours which makes it perfect if you have other side hustles or want more flexibility. Amazon Flex is in major cities around the United States and all you have to do to get started is download the app and apply. Click here to find out more about Amazon Flex. The pay ranges from $18-$25 an hour.
Drive for Lyft
If you have a car and need to work odd hours or supplement your pay, consider driving for Lyft. After working a certain amount of hours, they sometimes offer a sign-on bonus. If you are at least 21 years old and you have a four door car with insurance, then you might qualify to work for Lyft. Check out the benefits to working for Lyft here.
Deliver groceries
Shipt is an on demand grocery service. They want reliable people to go pick up groceries and then deliver them to customers. You just need to be at least 18 and have a reliable vehicle. This is a great way to make extra spending money. If you are curious about signing up for Shipt, click here to find out more.
Rent out your car
If you have a car and don’t use it for part of the day, you could rent out your car for a fee or sign up for a service like GetAround. This online service allows people in your neighborhood to find out about your car availability. You sign up and then your car is listed on their app. People rent your car and you make money. Check out GetAround by clicking here.
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- 10 College Student Jobs That Pay $20-$40 an Hour
- Make Money as a Freelance Writer
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Would you get rid of your car? If not, would you consider using your car for a side hustle to make the payment? What are some of your favorite car side hustle ideas?
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