Let’s look at getting rid of my car. The car is worth maybe $7k. I usually spend ~$75 on gas every month and around $70 on car insurance. Oil changes maybe twice a year ($60). Registration every year ($180). I’ll pretend that also covers smog. Also, there’s probably crash washes, $25 / year. Let’s throw in $30 of random maintenance per year.
I’m going to ignore depreciation as a significant source of loss now.
Cost per year:
$1740+$295 = $2035. $169/month. About $6 / day. Not bad.
If I got rid of my car, when might I want to buy a car again? For how many years would $2035 be a meaningful savings amount?
At the end of 5 years, I could have $22,296.