Drastic Savings - Possibly dropping the car!

stones88

Hi everyone,

Relatively new here, visited for tips all the time but now decided to come and join in :-)

Well, I'm in a situation now where me and my partner want a place of our own so we are looking at mortgages - soon discovered the more money you have already the best deals you get.

We,ve just moved to be closer to work, as I alone used to spend £300 a month on just fuel!

It was this that brought things to mind...

Car Loan Monthly Payments = £317
New Fuel Cost Per Month = £90 (£210 savings already now we've moved)
12 Months Insurance = £1,563
12 Months Road Tax = £220
MOT / Servicing = £280

It was only when I wrote everything down that I discovered the sheer cost of everything car related;

All the above saved over just one year is £6,947, almost 7k!!!

Being fortunate anough to be able to walk to work now, I'm toying with the idea of giving up the car to save for an excellent mortgage deal... In 5 years if I put that money away instead we could have an extra £35,000 on top of our other savings.

Sounds tempting right??

However, my question is, has anybody on here given up the car to drastically save and how was the impact on life style?


Thanks everybody!!
P.S. hope it's in the right forum

oldvicar

No I have never done anything like you propose, having a car has always been a priority for me.

But I have never spent anything like you do on a car. Smaller, cheaper ones are available.

blossomhill_2

Why is your insurance so high - mine's only £300?

pqrdef

It's even scarier if you work it out per mile.

I've reduced my mileage to the point where the costs work out at several quid a mile. I just try not to think about it.

srcandas

stones88 wrote: »

However, my question is, has anybody on here given up the car to drastically save and how was the impact on life style?

I gave up driving ten years ago (medical reasons). After a year or so you get used to a different life style.

You need to live near facilities: shops, doctors/dentist, transport, etc. I use Tesco home delivery. On-line shopping is amazing; you can buy and have delivered almost anything. Last week had compost delivered from a company 300 miles away (postage free ). I use lots of taxis.

I now feel life is better without the car. And of course you can always hire one when required. And I also use a bike which has made me much fitter.

But the bottom line is that you do not save 100% of the costs.

That said your costs are very high. You need to explore cheaper motoring (as already posted) in parallel to the real costs of public transport, deliveries, etc..

But the struggle to own my own home for me was very worthwhile. I didn't buy a house, I bought a home. For me rented property was not the same. If you want your own home then the sacrifices are worthwhile but remember you can't buy back years of life. Good luck :beer:

CLAPTON

depends where you live and what your lifestyle is

when I lived in london I got rid of the car
if I needed one I would just hire it ; marvelous-usually brand new no problems no hassle no MOTs etc and saved loads of money too.

however if you live in an area of poor public transport, play golf at weekend in a remote course etc then it might be difficult.

mgarl10024

Since taking up cycling (2 years ago), I found that I drastically reduced my car mileage - to the point (like someone else said) where per mile the costs of the car can be quite pricey. However, I do feel quite smug when I pop the car to the petrol station for it's 6 monthly fillup. Other benefits included increased fitness, learning new skills (bike maintenance), and actually improved journey times at rush hour.

My girlfriend has a car which she regularly uses, so we tend to use that where possible.

However, I've not quite given up my car yet. It's so handy when you are under the weather and don't feel like cycling to work, or when something crops up. She's 12 years old now, so there's little depreciation to worry about.

With your insurance, could you lower your mileage limit and see if that brings it down at all?

gadgetmind

Back in the early 90s, we went car free for a year as it was a choice of car or paying the mortgage. That one was easy!

I started cycling to work about a decade ago, and now use a bike for 95%+ of my trips. Now when I get into the car, I often have to remember where controls are as it's often 3-4 weeks since I last drove it!

I don't think we'll ever go car free again, but you never know. The bike can do most jobs, particularly if you get good luggage, and hire-by-the-hour cars can fill most gaps.

kidmugsy

We've kept capital costs down by buying second hand and aiming to keep for 15 years. We've kept running costs down by cycling a lot so that our car mileage is < 5000 p.a. So we've not needed to try a car-free existence. But I take it that OP's partner still has a car?

atush

I insure 3 cars incl 17 yr old drivers for 1460. You are paying way too much.

I also buy new cars (or generally late model used) for cash so no finance.

I live rurally so can't do w/o a car. but if you moved closer to work- you'll have to buy there as well. Are the houses more or less expensive closer to your work?

Ultrasonic

If you can do without a car, great! Better for your pocket and better for the environment. One minor spanner in the works may be the terms of your finance deal though. Have you looked into the practicalities of how you dispose of the car and pay off the rest of the loan?

oldvicar wrote: »

But I have never spent anything like you do on a car. Smaller, cheaper ones are available.

Exactly my first thoughts. So if you do decide you can't cope without a car, finance permitting, costs could still be reduced dramatically. And for the short term, given how uneconomical the car must be to have to pay £220 a year in VED, it is likely appreciable savings in fuel expenditure could be made by trying to drive more economically if you're not already consciously doing this.