younginvestor2013
Recycles dryer sheets
- Joined
- Feb 6, 2013
- Messages
- 226
Having just paid my license plate annual renewal fee ($100), 6 month car insurance policy ($350), and facing my city sticker renewal in Oct ($100) plus anther 6 month policy ($350), I am highly considering selling my car.
I live in Chicago and take the train to work everyday. I really only use my car to drive to the grocery store, the gym, and the occasional random place (target, a sports game, random store, to dinner with a friend if more convenient etc).
My car is paid for and is about 4% of my net worth excluding my home. Given that I rarely drive, and pay ~$1,000 a year just for insurance and registration, I am highly considering selling it.
If I sold it, I could rent a zip car when needed, or take an uber and not feel bad about it, given that I am saving ~$1,000 a year.
The easy and obvious answer is "yes" why wouldn't I sell it? I've only had it about a year, and I must say, it is very convenient to have when I do use it. But the amount of money I am paying for it is crazy.
I am reluctant to sell it because I think I will miss it, and I did some back of the envelope calculations, and if I were to add the approx $12k I could get back if I sold it to my portfolio, in 15-20 years, I would only be about $27-$28k wealthier in today's dollars (this only takes into account the $12k lump sum - not the additional $1,000+ I'd be saving year over year). Plus, given that I drive so little, it will likely last me many many many years, but over those years, my annual licensure and insurance costs will surpass the cost of the car.
Thoughts?
I live in Chicago and take the train to work everyday. I really only use my car to drive to the grocery store, the gym, and the occasional random place (target, a sports game, random store, to dinner with a friend if more convenient etc).
My car is paid for and is about 4% of my net worth excluding my home. Given that I rarely drive, and pay ~$1,000 a year just for insurance and registration, I am highly considering selling it.
If I sold it, I could rent a zip car when needed, or take an uber and not feel bad about it, given that I am saving ~$1,000 a year.
The easy and obvious answer is "yes" why wouldn't I sell it? I've only had it about a year, and I must say, it is very convenient to have when I do use it. But the amount of money I am paying for it is crazy.
I am reluctant to sell it because I think I will miss it, and I did some back of the envelope calculations, and if I were to add the approx $12k I could get back if I sold it to my portfolio, in 15-20 years, I would only be about $27-$28k wealthier in today's dollars (this only takes into account the $12k lump sum - not the additional $1,000+ I'd be saving year over year). Plus, given that I drive so little, it will likely last me many many many years, but over those years, my annual licensure and insurance costs will surpass the cost of the car.
Thoughts?