Reply to need to buy a home to save money but can't

Forum Index » Money and Finances

Reply to "need to buy a home to save money but can't"

Subject:

Emoticons





More smilies

Text Color: Font: Close Marks

[quote=Anonymous][quote=Anonymous][quote=Anonymous]And I'm also curious how I'm going to go to the grocery store and such in this super cheap rental without a car?[/quote]

Could you sell your car for more than you owe on it?  If not, then you're pretty stuck with the costs.  If not, though, the math might make sense to sell it.

Every year you are paying $3,804 in car payments, $2,880 in gas, and some fraction of $2,220 in insurance (let's assume $1,000).  So that's $7,684 per year to own a car.

Peapod is $7 a week for grocery delivery (and I'm willing to bet you would save at least that much by avoiding impulse purchases.  Amazon Prime is $99 a year.  So for your every day shopping errands, you could cut your costs down to $463.  Let's throw another $100 on there for shipping for things you can't get in either place, and can't find a free shipping deal on.  So $563.

Assuming an average $4 Metro fare each way for each of you, Metro costs of about $4000 for the both of you.  I know you'd prefer to avoid mass transit, but you didn't say it wasn't possible to take it to work.  Saving money to own a home will mean some sacrifices.  So now we're up to $4563 per year to give up the car.

That leaves you with $3,121 in savings for the year if you give up the car.  I realize you probably do more with the car than run errands and go to work, though, so have you looked into zip car for other driving needs?  $85 for application fee and annual fee on the no-monthly-fee plan leaves you with $3,036.  At $76/day (assuming you do it in whole days and not shorter, cheaper increments), that's nearly 40 days of zip car before you hit even with the annual cost of owning a car.[/quote]

NP here.  You're forgetting that eventually the car payment will go away and OP can keep the car for another 8 or 9 years.  [/quote]

Options

	Disable HTML in this message
	Disable BB Code in this message
	Disable smilies in this message

Review message

Search Recent Topics Hottest Topics