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5 tips to becoming a one-car family

Develop a savings strategy and stick to it
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Develop a savings strategy and stick to it

Don't be too quick to re-absorb that monthly payment.

"If you really want to try to get top dollar, sell it yourself," he says.

You could end up with $15,508 in five years by having your car note redirected to a money market account with 1.35 annual percentage yield, or APY, assuming a monthly payment of $250, Gerhard says.

In addition, it costs $46,845 to own a car for five years, according to AAA. That includes fuel, routine maintenance, tires, insurance, license and registration, loan finance charges and depreciation costs for a car that is driven 15,000 miles a year.

The savings comes to $62,353, which could be used to pay for needed repairs on the remaining car, Gerhard says. Or, you could use it to buy your next car with cash.

"You'd really have a nice pot of money," he says.


 

 

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